Ever wish your credit card could automatically keep up with how your spending changes each month? That’s where the Citi Custom Cash Credit Card stands out, promising cash back tailored to your habits. But how do you make the most of its unique benefits and avoid common pitfalls?
In this article, we’ll break down the smartest ways to use the Citi Custom Cash, share insider tips, and help you maximize your rewards with ease.
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How to Make the Most of the Citi Custom Cash Credit Card
The Citi Custom Cash Credit Card stands out in the cluttered rewards card space, but how do you best use it? If you want cash back tailored to your unique spending habits, this card could be your new favorite financial tool. Here’s a breakdown of its key features, benefits, and some smart tips to help you extract maximum value.
Understanding the Citi Custom Cash Card: The Basics
The Citi Custom Cash Credit Card is designed to fit the way you spend, awarding its highest cash back rate automatically in your top eligible spending category each billing cycle. Unlike cards that make you choose or activate spending categories, the Custom Cash card does the work for you—making rewards easy and effortless.
Key Features
- 5% Cash Back on your top eligible spending category each billing cycle (up to $500 spent; then 1%)
- 1% Cash Back on all other purchases
- No Annual Fee
- Introductory APR on purchases and balance transfers (terms apply)
- Flexible Redemption options, including statement credits, direct deposit, or travel
Steps and Strategies: Getting the Best Value
Want to maximize your Citi Custom Cash? Here’s a step-by-step guide on making it work for you.
1. Know the 5% Categories
Your card automatically applies the 5% rate to the category in which you spend the most each cycle. Eligible categories typically include:
- Restaurants
- Gas stations
- Grocery stores
- Select travel and transit
- Drugstores
- Home improvement stores
- Fitness clubs
- Streaming services
- Live entertainment
By tracking your spending, you can plan where to put larger purchases to maximize earnings.
2. Concentrate Your Spending
If you anticipate a big expense in a certain category—say, home improvement—use your Citi Custom Cash for those purchases that month. The card will automatically recognize your highest spending category and give you that 5% rate (capped at $500 per billing cycle).
3. Pair With Other Reward Cards
Many savvy cardholders pair the Citi Custom Cash with flat-rate cards or cards with set bonus categories. Use a flat-rate card for purchases outside your main spending area, and the Custom Cash for your monthly “focus” category. This way, you’re getting more cash back on every dollar spent.
4. Redeem Rewards Wisely
Citi’s ThankYou Points earned with the Custom Cash can be redeemed as:
- Statement credits
- Direct deposit
- Checks
- Gift cards
- Travel
- Shopping with partners
For most, cash redemption is the easiest. However, sometimes other options (like travel redemption or combining points with other Citi cards) might offer more value.
Practical Tips for Everyday Use
No rewards card is truly “set and forget.” Here are several best practices to make it work harder for you:
- Monitor Spending Monthly: Note your top spending category as your lifestyle or needs change.
- Don’t Overlap With Set Category Cards: Avoid using the Custom Cash in categories where you already get a higher bonus from another card.
- Watch the Cap: Only the first $500 per billing cycle in your top category gets the 5% cash back. If you have more to spend, consider timing purchases to hit the cap each month.
- Plan Large Purchases: If you have a big bill coming up in a new category, try to shift recurring expenses to a new billing cycle to gain maximum benefit.
- Set Payment Reminders: To avoid interest charges, always pay your balance in full—especially since rewards can be wiped out by fees or interest.
Major Benefits of the Citi Custom Cash Card
The card’s strengths make it attractive for various users:
Effortless Maximization
You don’t have to manually select categories, enroll, or activate. The automation makes maximizing rewards simple.
Flexible Cash Back
Your rewards don’t lock you into any specific type of redemption—choose what works best for you, from statement credits to travel.
Low Commitment
Unlike many premium rewards cards, there’s no annual fee, and the rewards structure doesn’t require juggling or micromanaging spending.
Introductory APR Offers
The card frequently features a 0% introductory APR on new purchases and balance transfers for several months—helpful if you’re planning a major purchase or need to pay down debt interest-free.
Strong Security and Cardholder Perks
Citi’s robust monitoring, account features, and additional protections—like fraud protection and digital wallet compatibility—are valuable bonuses.
Possible Challenges and Limitations
No card is perfect. Here are a few things to keep in mind:
1. $500 Cap on 5% Category
After you spend $500 in your top category in a billing cycle, further purchases in that category earn just 1%. Watch your statements so you don’t leave rewards on the table by overspending.
2. No Bonus Categories Stack
You can only earn the 5% cash back in one category per cycle, so split spending across different categories lowers your reward rate.
3. Foreign Transaction Fees
This card often charges foreign transaction fees, so it’s not your best option for purchases outside the United States.
4. Limited High-Value Transfer Partnerships
While you earn Citi ThankYou Points, the Custom Cash may not let you directly transfer those points to travel partners unless you have other qualifying Citi cards.
Cost Tips: Avoiding Extra Charges
To make the most of your cash back—especially if you’re paying for shipping or making large purchases:
- Try to group online shopping in one cycle: If you need to make large purchases with shipping fees, consolidate them in one billing period to take advantage of the $500 cap.
- Watch for shipping costs: When making online purchases, check if you can use a shopping portal or get free shipping to reduce costs and maximize rewards.
- International Shopping: If you’re shopping from overseas stores, remember the foreign transaction fee; consider another card without these fees for such purchases.
Best Practices: Optimize for Your Lifestyle
Here are ways to make the Citi Custom Cash part of a broader rewards routine:
- Assign a Primary Category: Use your card for groceries one month, restaurants the next, and so forth—based on what upcoming expenses you expect.
- Use Autopay for Recurring Bills: If streaming or fitness club costs are your highest, set those to autopay on this card to ensure consistent high-rate rewards.
- Stack Rewards With Offers: Check for additional promotions (like cash back on certain retailers) through Citi’s offers portal.
- Review Statements Regularly: Stay on top of which category gave you 5% last cycle, so you can adjust your spending going forward.
- Combine With Other Citi Cards: If you carry Citi’s premium cards (like the Premier), you might be able to transfer or pool points for greater value on travel.
When This Card Is (and Isn’t) the Best Choice
Great For:
- People who want to optimize rewards without lots of effort.
- Cardholders who change spending habits often.
- Shoppers looking for a no-annual-fee card with a strong cash back rate in a single category.
Not Ideal For:
- Frequent international travelers, due to foreign transaction fees.
- Big spenders in multiple categories who’d benefit from flexible or unlimited high rewards.
- Those looking for complex travel transfer partnerships with points.
Summary: Is the Citi Custom Cash Card Right for You?
The Citi Custom Cash Credit Card is designed for people who want simple, high-value cash back without extra fuss. Its automated bonus category makes the card easy to use and rewards frequent expenses, from groceries to gas to dining out. If you tend to have “big months” in specific spending areas or like the idea of not having to track or activate categories, this card fits the bill.
Remember, to get the most from the Citi Custom Cash, pay close attention to your biggest monthly expenses, avoid overshooting the $500 bonus cap, and coordinate with your other cards. With thoughtful use, the Custom Cash can be one of the highest-earning no-fee cards for the right spender.
Frequently Asked Questions (FAQs)
1. How does the Citi Custom Cash Card choose my 5% cash back category?
The card automatically awards 5% cash back on your highest eligible spending category each billing cycle (up to $500). There’s no need to enroll or select a category—your top spend is calculated for you.
2. What happens if I spend more than $500 in my top category in a month?
Only the first $500 each billing cycle in your top category earns 5% cash back. Any spending above $500 in that category drops to 1% for the rest of the cycle.
3. Can I change which category earns 5%?
No, you can’t manually select or change the 5% category. The card determines it automatically based on your actual spending patterns.
4. Do the rewards expire or is there a limit to how much I can earn?
As long as your account remains open and in good standing, your earned rewards do not expire. There is no annual limit on cash back, but the 5% earning is capped at the first $500 per category, per billing cycle.
5. Is the Citi Custom Cash Card good for travel?
The card offers flexibility for redeeming points towards travel, but it charges foreign transaction fees. If you travel internationally often, you might want a card that doesn’t have these fees.