Ever wish your credit card could flex to match your unique spending habits? If you’ve heard about the Citi Custom Cash Card, you might be wondering how it works—and if it’s worth adding to your wallet.
With more people looking for smarter ways to maximize cash back, understanding how the Citi Custom Cash Card operates is essential. This article breaks down how the card’s features work, outlines easy steps to get the most rewards, and shares practical tips for everyday use.
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Understanding the Citi Custom Cash® Card
If you’re looking for a credit card that matches your spending style and rewards you for it, the Citi Custom Cash® Card stands out in the crowded rewards card market. Designed with flexibility in mind, this card automatically adapts each billing cycle to maximize your cash back on wherever you spend the most. Let’s break down exactly how the Citi Custom Cash Card works, its benefits, possible drawbacks, and how to use it to your best advantage.
How the Citi Custom Cash® Card Works
1. Automatic 5% Cash Back in Your Top Category
The Citi Custom Cash Card is unique because it automatically gives you 5% cash back (up to $500 in spending per billing cycle) on whichever of its eligible categories you spend the most in during each billing cycle. There’s no need to enroll or select a category in advance.
Eligible Categories Typically Include:
- Restaurants
- Gas stations
- Groceries (including supermarkets)
- Select travel and transit
- Select streaming services
- Drugstores
- Home improvement stores
- Fitness clubs
- Live entertainment
All other purchases, or spending in those categories above the $500 limit per cycle, will earn 1% cash back.
2. Cash Back Flexibility
Your rewards come in the form of Citi ThankYou® Points, which can be redeemed for:
– Direct cash back as a statement credit or deposit
– Gift cards
– Travel bookings
– Purchases at select retailers
3. No Annual Fee
You won’t pay an annual fee to keep the Citi Custom Cash Card in your wallet.
Step-by-Step: Getting and Using the Citi Custom Cash® Card
Step 1: Apply
- Check your credit score—good to excellent credit is generally required.
- Apply online or in a branch. The process typically takes just a few minutes.
Step 2: Activate and Plan Your Strategy
- Upon approval and activating your card, review where you spend the most.
- Since the card automatically finds your top eligible category, you don’t need to do anything special—just use your card as usual.
Step 3: Maximize Your Rewards
- Each billing cycle, use the card for purchases in your highest-spend area to get 5% back (up to $500).
- For secondary spending, consider pairing with another card for higher rewards in those areas.
Step 4: Redeem and Manage Your Points
- Monitor your ThankYou points in your Citi online account or app.
- Redeem points for statement credits, deposits, gift cards, or travel—whatever fits your needs best.
Key Benefits of the Citi Custom Cash® Card
1. Effortless Rewards
No need to remember rotating bonus categories or sign up each quarter. The card adapts to your spending.
2. Flexible Redemption Options
Your cashback is earned as ThankYou Points, but you can redeem them in many ways—giving you more options than many traditional cash back cards.
3. No Annual Fee
You keep all your rewards, since you’re not paying an annual fee.
4. Welcome Bonus
New cardholders often receive a welcome bonus after meeting a minimum spend requirement in the first few months. This can jumpstart your rewards right away.
5. Balance Transfer Opportunity
There may be a 0% introductory APR on purchases or balance transfers, providing a window for interest-free payments.
Potential Drawbacks to Consider
- The 5% rate applies only up to $500 in your top eligible category per billing cycle—spending above that, or in other categories, earns just 1%.
- Not all spending categories are eligible for 5%—some purchases (like utilities, insurance payments, etc.) will only earn 1%.
- ThankYou Points may not have the same redemption value across all options; some options may offer less than 1 cent per point when cashed out.
- If you’re a heavy spender across several categories, you may want to pair this card with others to optimize your rewards.
Best Practices for Maximizing Rewards
1. Track Your Billing Cycle
- Know when your billing cycle starts and ends, and plan spending in your preferred category early in each cycle.
2. Time Your Major Purchases
- Large, infrequent expenses should be scheduled to maximize the 5% earning where possible.
3. Combine with Other Cards
- Use this card for its 5% category, and have a flat-rate cashback card or category-specific card to complement your other purchases.
4. Redeem Points Wisely
- Review redemption options to get the highest value—sometimes travel bookings or gift cards offer more value than statement credits.
5. Set Alerts
- If you’re optimizing rewards, set calendar reminders to track your $500 cap and move spending to other cards once you reach it.
Cost Tips and Considerations
There’s no annual fee, but always check for:
– Balance transfer fees if you use the intro APR offer
– Foreign transaction fees (often around 3%). For travel abroad, consider a card with no foreign transaction fees.
– Late payment or returned payment fees
– Interest charges if you don’t pay your balance in full each month—cash back can be negated by high-interest payments.
Shipping or delivery doesn’t typically pertain to this credit card, unless you order a replacement card or rush delivery. Citi sometimes offers expedited card shipping for an additional fee; standard delivery is free.
How to Decide if the Citi Custom Cash® Card Is Right for You
Choose this card if:
– You consistently spend under $500 per month in a top eligible category.
– You value straightforward, automatic rewards.
– You prefer a card with no annual fee.
– You appreciate the flexibility of Citi’s ThankYou Points.
Consider a different card if:
– You spend heavily in multiple categories and want higher rewards on all purchases.
– You want enhanced travel perks, premium insurance, or no foreign transaction fees for international use.
Frequently Asked Questions (FAQs)
What credit score do I need for the Citi Custom Cash® Card?
Most applicants are approved with good to excellent credit, generally a score in the mid-600s or higher. Meeting other financial requirements like income and debt-to-income ratio can also help.
Can I choose my 5% category, or does Citi choose for me?
You don’t need to choose. The card automatically selects your top eligible spending category each billing cycle and applies the 5% cashback rate (up to $500 in purchases).
How does the $500/month cap work?
You’ll earn 5% back on the first $500 you spend in your top eligible category each billing cycle—up to $25 in cash back monthly. Any spending above that, or in other categories, earns 1% cash back.
Are Citi ThankYou Points better than regular cash back?
They can be, depending on how you redeem them. ThankYou Points transfer to select travel partners, can be used for gift cards, or cashed out as statement credits. Review the point values for each option before you redeem.
Does the card have foreign transaction fees?
Yes, typically there is a 3% foreign transaction fee. If you travel internationally often, you may want to use a card with no foreign transaction fees for those purchases.
Summary
The Citi Custom Cash® Card is a powerful tool for earning rewards on your everyday spending, especially if you tend to spend more in a single eligible category each month. With its automatic 5% category and no annual fee, it offers great value and simplicity. To maximize benefits, pay close attention to the $500 cap, combine it with other cards for diverse rewards, and redeem your ThankYou Points in the way that suits you best. This card works well for flexible, adaptive cashback with minimal fuss—and could be a strong addition to your wallet.