Thinking about how Citi Bank’s Custom Cash credit works? You’re not alone—many people are curious how this unique card can fit into their financial routine and help them earn rewards on everyday purchases.
Understanding how the Citi Custom Cash Card operates can make a real difference in how you manage spending, maximize cashback, and take control of your finances.
In this article, we’ll break down exactly what the Custom Cash credit card is, how it works, and tips for making the most of it.
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Understanding the Citi Custom Cash Credit Card: A Comprehensive Guide
If you’re searching for a credit card that adapts to your unique spending habits and rewards you automatically, the Citi Custom Cash Card might be just what you need. This card is designed to simplify rewards without requiring constant monitoring or strategizing. In this guide, you’ll discover how the Citi Custom Cash Card works, its benefits, the application process, tips to maximize rewards, and answers to common questions.
How Does the Citi Custom Cash Credit Card Work?
The Citi Custom Cash Card stands out in the crowded credit card market because of its dynamic rewards structure. Unlike traditional cards that require you to select or rotate bonus categories, this card adjusts automatically based on your spending.
Key Features at a Glance
- Automatically earns 5% cash back in your highest eligible spending category each billing cycle (up to $500, then 1% after that).
- Unlimited 1% cash back on all other purchases.
- No annual fee.
- Introductory APR offers for new cardholders.
How the Automatic Category Selection Works
Every billing cycle, your top eligible spending category earns the 5% cash back rate. Eligible categories typically include:
- Restaurants
- Gas stations
- Grocery stores
- Select travel expenses
- Select transit
- Fitness clubs
- Streaming services
- Drugstores
- Home improvement stores
- Live entertainment
For example, if you spend more on groceries than on anything else in a billing cycle, you’ll earn 5% cash back on grocery purchases that month (up to the $500 cap).
Steps to Get and Use the Citi Custom Cash Card
Securing and using a Citi Custom Cash Credit Card involves several straightforward steps. Here’s what you can expect:
1. Evaluate Your Eligibility
Most credit cards, including the Citi Custom Cash, require:
- Good to excellent credit (typically a FICO score of 670 or above).
- Sufficient income for responsible credit use.
- U.S. residency and legal age (usually 18+).
2. Submit an Application
You can apply online or at a Citi branch. Be prepared to provide:
- Personal information (SSN, address, date of birth).
- Employment and income details.
- Financial information (housing status, monthly rent/mortgage payment).
Most applicants receive a decision quickly, but sometimes additional verification is required.
3. Activate and Set Up Your Card
Once approved and you receive your card:
- Activate it online or by phone.
- Set up your Citi online account and mobile app for monitoring balances, rewards, and payments.
4. Use Your Card Strategically
Remember, you don’t need to select a bonus category. Just use your card for everyday purchases, and the 5% cash back will apply to your top eligible category. For purchases outside the top category, you earn 1% cash back.
Benefits of the Citi Custom Cash Credit Card
The Citi Custom Cash Card offers several perks for users who want simplicity and flexibility. Let’s break these down:
1. Automatic Rewards Without Hassles
- No need to enroll or rotate categories.
- The card automatically adjusts to match your spending pattern each month.
2. 5% Cash Back Potential
- Receive 5% cash back in your highest eligible spending category each billing cycle, up to $500 (that’s up to $25 earned monthly).
- After reaching the cap, continue earning unlimited 1% cash back everywhere.
3. No Annual Fee
- There is no annual membership fee, making this card accessible and cost-effective.
4. Introductory Offers
- Many cardholders receive a 0% APR offer on purchases and balance transfers for a set period after opening the account.
- Some offers may also include a one-time cash bonus after meeting a minimum spending requirement.
5. Flexible Redemption Options
- Cash back is earned as Citi ThankYou Points, which can be redeemed for statement credits, direct deposit, gift cards, travel, or other purchases.
- Points do not expire as long as your account remains open and in good standing.
6. Additional Benefits
- Access to Citi’s security features, including account alerts and $0 liability protection for unauthorized charges.
- Potential savings through Citi Offers and exclusive cardholder perks.
Challenges or Aspects to Consider
While the Citi Custom Cash Card offers notable advantages, it’s important to consider some potential downsides and limitations:
1. Reward Caps
- The 5% cash back only applies up to $500 in spending per month in your top category.
- Additional spending in that category earns only 1%, so high-spenders may want alternatives.
2. Eligible Categories Are Fixed
- The card has a set list of eligible bonus categories.
- Purchases outside these areas—such as utilities or department stores—will always earn 1%.
3. Rewards Structure
- Rewards are issued as ThankYou Points, not direct cash. This provides versatility but may require you to learn how to redeem points effectively.
4. Foreign Transaction Fees
- The card charges a foreign transaction fee, making it less ideal for international travel.
- Consider a different card if you make frequent purchases abroad.
5. No Premium Travel Benefits
- Unlike some high-end credit cards, this card does not include perks like airport lounge access or extensive travel insurance.
Practical Tips to Maximize Your Citi Custom Cash Card
To get the most out of the Citi Custom Cash Card, consider the following strategies:
1. Focus Your Spending
- Use the card for large, consistent spending in one eligible category each month (for example, groceries or gas).
- If your primary category changes (for instance, travel one month, groceries the next), no need to update anything—the card will automatically adjust.
2. Pair with Other Cards
- Complement this card with a flat-rate cash back card for non-bonus spending or a travel rewards card for broader benefits.
- Use your Citi Custom Cash Card specifically for a single high-spend category each month, and put other purchases on another card.
3. Redeem Points Efficiently
- Regularly check your ThankYou Points balance.
- Consider your redemption options—statement credits and direct deposits offer straightforward value, while gift cards or travel may provide more perks.
4. Monitor Your Spending Cap
- Track your spending in your top category to avoid exceeding the $500 cap and maximize your 5% earnings.
- If you hit the cap, shift excessive spending to another high-earning card if possible.
5. Review Introductory Offers
- Take advantage of any 0% APR or welcome bonuses by planning large, essential purchases or balance transfers after opening your account.
Cost and Savings Tips
While there’s no annual fee, you can save even more and avoid unnecessary costs by:
- Paying your balance in full each month to avoid interest charges.
- Utilizing introductory 0% APR periods for major purchases or to pay off existing credit card debt without incurring interest.
- Watching out for the foreign transaction fee—if you’re planning international trips, carry a no-foreign-fee card.
- Avoiding cash advances and late payments, both of which carry hefty charges.
Frequently Asked Questions (FAQs)
What is the 5% cash back limit on the Citi Custom Cash Card?
You can earn 5% cash back on your top eligible spending category for up to $500 in purchases each billing cycle. After you reach this cap, you get 1% cash back for the rest of the purchases in that category during the month.
Do I need to activate or select a bonus category each month?
No. The Citi Custom Cash Card automatically determines which eligible category you spent the most in and applies the 5% cash back—no activation or selection necessary.
How do I redeem my cash back rewards?
Cash back is awarded as Citi ThankYou Points. You can redeem these points as a statement credit, direct deposit, gift card, or for travel bookings. Redemption is generally easy via your online Citi account.
Does the Citi Custom Cash Card have an annual fee?
No, the Citi Custom Cash Card has no annual fee, making it a cost-effective option for earning rewards without ongoing charges.
Is the Citi Custom Cash Card good for international use?
While it can be used internationally, it charges a foreign transaction fee on purchases made outside the U.S. For international travel, a card with no foreign transaction fees may be a better choice.
Conclusion
The Citi Custom Cash Credit Card is a smart, low-maintenance choice for people who want to maximize cash back in a top spending category without the hassle of activating or tracking rotating bonuses. Its combination of automatic rewards, no annual fee, and broad eligibility categories make it a compelling everyday card. However, if you spend heavily in multiples categories or travel often abroad, it may be best to pair it with another card to get the most value. Use it thoughtfully, pay your balance each month, and watch your rewards add up effortlessly.