Ever wondered how you can make your credit card truly work for you? The Citi Custom Cash℠ Card promises rewards tailored to your spending—making it a hot topic for anyone looking to maximize their money.
Understanding how this card operates, and how to use it smartly, can mean extra cash back each month. In this article, you’ll find a clear breakdown of how the Citi Custom Cash credit works, tips for getting the most value, and insider insights for every cardholder.
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How the Citi Custom Cash Credit Card Works: A Comprehensive Guide
The Citi Custom Cash® Card is a standout among cash back credit cards, promising simplicity, flexibility, and value for cardholders. If you’re wondering how the Citi Custom Cash works—and whether it’s the right fit for your wallet—this in-depth guide will break down its features, how you earn rewards, how to maximize your benefits, and practical tips to get the most out of every dollar you spend.
What Is the Citi Custom Cash Card?
The Citi Custom Cash Card is a no-annual-fee credit card designed to reward you based on your spending habits. Unlike many other cards that require you to manually activate bonus categories, this card automatically adapts to reward you most where you spend the most each billing cycle. It’s ideal for those who want hassle-free rewards without the need to track rotating categories or sign up for promotional offers.
How Does the Citi Custom Cash Card Work?
At its core, the Citi Custom Cash is a flexible cash back card that tailors its highest rewards to your top eligible spending category each month.
Key Mechanics:
- Automatic Bonus Category: Each billing cycle, you’ll earn the most rewards automatically on the category in which you spend the most (from a list of eligible categories).
- No Activation Required: You don’t need to sign up or activate any specific category—the card does the work for you.
- Simple Structure: Earn 5% cash back on up to $500 in purchases in your top eligible category per billing cycle, then 1% after that.
- Unlimited 1% Back: All other purchases earn 1% cash back—with no limit.
Eligible Bonus Categories Include:
- Restaurants
- Gas stations
- Grocery stores
- Select travel
- Select transit
- Streaming services
- Drugstores
- Home improvement stores
- Fitness clubs
- Live entertainment
This flexibility means your cash back rewards shift as your spending habits change throughout the year.
Step-by-Step: Earning and Redeeming Rewards
Navigating the Citi Custom Cash program is simple, whether you’re focused on earning as much as possible or redeeming your rewards.
1. Using Your Card
Make everyday purchases—whether it’s groceries one month, gas the next, or dining out with friends. The card tracks where you spend the most.
2. Earning Cash Back
- 5% on your top eligible spend category for the first $500 each billing period (up to $25/month maximum).
- 1% on all other purchases and on additional spending in your top category above $500.
3. Redeeming Rewards
Your cash back is rewarded in the form of Citi ThankYou® Points, which can be redeemed for:
- Statement credits
- Direct deposits
- Gift cards
- Travel bookings
- Amazon purchases
Typically, 1 point = 1 cent when redeemed for cash back options.
Major Benefits of the Citi Custom Cash Card
1. Automatic Optimization
There’s no need to track or enroll in categories. Just spend as usual, and the card maximizes rewards where you need them most.
2. No Annual Fee
Enjoy all the card’s benefits without worrying about yearly costs eating into your earnings.
3. Welcome Bonus
Often, new cardholders can earn an appealing bonus after meeting a minimum spending requirement—keep an eye out for current offers.
4. Introductory APR Offer
The card typically features 0% intro APR on purchases and balance transfers for a set period (for example, the first 15 months), making it a strong option for large purchases or consolidating higher interest balances.
5. Flexible Redemption Options
With ThankYou® Points, you have a variety of straightforward redemption choices, from cash back to gift cards to travel.
Challenges and Considerations
While the Citi Custom Cash Card shines in many areas, it’s important to be aware of its limitations.
- $500 Monthly Cap: The 5% bonus is only good up to $500 in eligible spend per billing cycle. Any amount above that in the chosen category earns just 1% back.
- Category Limitations: Purchases must fall into Citi’s predefined eligible categories. Some niche spending may not qualify.
- Secondary Categories: Unlike some cards, you only earn 5% in your top category—not multiples per month.
- ThankYou Points Only: Cashback is delivered as ThankYou Points, which can then be redeemed for cash, travel, or other options.
Practical Tips and Best Practices
Maximize your Citi Custom Cash Card rewards with these strategies:
1. Plan Your Big Purchases
If you have large expenses coming up, concentrate your spending in one top eligible category each billing cycle to milk the full $25 maximum monthly bonus.
2. Track Your Categories
Review your spending to anticipate which category will earn the 5% rate and adjust your purchases if needed.
3. Pair with Other Cards
Supplement the Citi Custom Cash with a flat-rate cash back card or another card with different bonus categories to optimize rewards across all your expenses.
4. Monitor Redemption Options
Points are most valuable when redeemed for statement credits, cash, or gift cards. Compare values before redeeming for merchandise or travel.
5. Use the Introductory APR Period Wisely
Take advantage of the 0% intro APR to finance big expenses or pay off existing debt faster—just be sure to pay down the balance before the promotional period ends to avoid interest.
6. Avoid Overspending
Don’t be tempted to exceed your normal budget just to earn the full 5% bonus; the card is most powerful when used on purchases you would make anyway.
Cost Management Tips
- No Annual Fee: There’s no annual charge, making it easy to profit from your rewards.
- Pay Off Your Statement in Full: Avoid interest charges by paying your bill each month, especially after any intro APR offer lapses.
- Watch for Foreign Transaction Fees: If you travel abroad, note that some versions of the card may charge for overseas purchases. Consider this if international travel is common for you.
- Balance Transfer Fees: While an intro APR is useful, each balance transfer usually has a fee—factor this in when deciding whether to transfer balances.
Should You Get the Citi Custom Cash Card?
The Citi Custom Cash Card is ideal for:
- People whose spending habits fluctuate across categories
- Anyone looking for a straightforward, automatic way to earn bonus cash back
- Cardholders who don’t want to pay an annual fee
- Those who favor flexibility in redeeming rewards
However, frequent big spenders in a single category or points enthusiasts looking for complex loyalty programs may want to look elsewhere.
Frequently Asked Questions (FAQs)
1. How do I earn the 5% cash back with the Citi Custom Cash Card?
You earn 5% cash back (as ThankYou Points) automatically on your top eligible spending category each billing cycle, up to $500. All other purchases and spending above $500 in that category earn 1%.
2. What are the eligible 5% categories for Citi Custom Cash?
Eligible categories include restaurants, gas stations, grocery stores, select travel and transit, streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment.
3. Is there an annual fee for the Citi Custom Cash Card?
No, there’s no annual fee. You get all the cash back earning potential without paying a yearly charge.
4. How do I redeem my Citi Custom Cash rewards?
Rewards are given as ThankYou Points. These can be redeemed for statement credits, direct deposits, gift cards, travel, or at various merchants like Amazon.
5. Can I have more than one Citi Custom Cash Card?
Typically, Citi restricts customers to one Custom Cash Card. Check with Citi for the most current policies regarding multiple accounts.
Conclusion
The Citi Custom Cash Card is a seamless, user-friendly solution for earning bonus rewards where you spend the most—automatically. With its generous 5% rate in a chosen spending area and flexible redemption options, it’s an excellent addition for anyone who values simplicity and savings. By using the practical tips and best practices outlined above, you can make the most of this next-generation cash back card—without adding complexity to your financial life.