Ever wondered how to make the most of your spending and earn cash back effortlessly? If you’re searching for ways to maximize rewards, the Citi Custom Cash Card might be on your radar—especially with its promise of automatic 5% cash back on your top spending category.
Knowing how citi.com custom cash works can help you spend smarter and save more. In this article, we’ll break down what the card offers, how to apply, and share practical tips to maximize your rewards.
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How Does the Citi Custom Cash℠ Card Work? A Comprehensive Guide
If you’re searching for a credit card that rewards you for your unique spending habits, the Citi Custom Cash℠ Card could be the perfect fit. Unlike many traditional cash-back credit cards, this card stands out for its flexibility, automatic optimization of rewards, and absence of an annual fee. Let’s explore exactly how the Citi Custom Cash Card works, what makes it a standout choice, and how you can make the most of its features.
What Is the Citi Custom Cash Card?
The Citi Custom Cash Card is a cash-back credit card designed to adapt to your personal spending. Rather than requiring you to select categories for bonus rewards, this card automatically gives you extra cash back in your top eligible spending category each billing cycle. This unique feature makes earning rewards seamless and stress-free.
Key Features at a Glance
- No annual fee: Enjoy rewards with no yearly charge.
- Automatic bonus categories: No need to enroll or activate bonuses.
- Versatile rewards: Earn cash back as Citi ThankYou® Points, redeemable for cash, travel, and more.
- Valuable intro offers: Includes a welcome bonus and a 0% intro APR period for purchases and balance transfers.
- Top category earns 5%: Get the best rewards in your highest monthly category.
How the Citi Custom Cash Card Works
Let’s break down the workings of the card step by step.
1. Apply and Get Approved
You can apply for the Citi Custom Cash Card online or at a Citi branch. Approval depends on a variety of factors, including your credit score, income, and general financial health. Typically, a good to excellent credit score (generally 670 or above) improves your chances.
2. Start Using Your Card
Once your card arrives, you can use it anywhere Mastercard is accepted—in-store or online. Every purchase helps you work toward your monthly cash-back bonus.
3. Earn Cash Back Every Month
Here’s where the magic happens:
- 5% on Top Spending Category: Every billing cycle, you automatically earn 5% cash back on up to $500 spent in your highest spending category from the card’s list of eligible categories.
- 1% on All Other Purchases: Purchases outside your top category, or above the $500 limit in that category, earn 1% cash back.
Eligible Bonus Categories
These common spending areas qualify for the 5% bonus:
- Restaurants
- Gas stations
- Grocery stores
- Select travel (including airfare, hotels, and car rentals)
- Select transit (like ridesharing and public transportation)
- Drugstores
- Home improvement stores
- Fitness clubs
- Live entertainment (such as concerts or sporting events)
- Streaming services
How It Works in Practice:
If you spend $400 on groceries and $200 on gas in a single billing cycle, groceries will be your bonus category. You’ll earn:
- $20 cash back (5% of $400) on groceries
- $2 cash back (1% of $200) on gas
If you exceed $500 in your top category, the 5% rate only applies to the first $500. Anything above earns 1%.
Benefits of the Citi Custom Cash Card
1. Simplicity and Flexibility
You don’t need to activate categories or track rotating bonuses. Just use your card as you normally would—Citi will automatically calculate which category earns 5% that month.
2. Maximize Everyday Spending
Depending on your lifestyle, the card adapts each month. Travel more this month? Spend more at restaurants next month? The Citi Custom Cash card adjusts seamlessly, allowing you to optimize rewards without planning ahead.
3. Valuable Rewards and Redemptions
- Earn Citi ThankYou Points: Rewards are given as ThankYou Points. Each point is worth $0.01 when redeemed for cash back, gift cards, travel, and more. This provides flexibility in how you use your rewards.
- No Annual Fee: Keep every dollar you earn—there’s no annual cost to chip away at your rewards.
- Intro APR Offers: Many Citi Custom Cash cardholders enjoy a 0% introductory APR on purchases and balance transfers for the first 15 months (rate may vary based on the offer at the time of application).
- Sign-Up Bonus: New cardholders typically receive a sign-up bonus, such as $200 cash back (as 20,000 ThankYou Points) after meeting a moderate minimum spend requirement in the first few months.
4. Security and Protection
- $0 Liability on Unauthorized Purchases: Peace of mind if your card is lost or stolen.
- Contactless Payment Capability: Quick and secure tap-to-pay technology.
Challenges and Things to Watch Out For
No card is perfect. Here are some important cautions to consider before applying:
1. Bonus Cap on 5%
The 5% back only applies to the first $500 spent each billing cycle in your top category. If you regularly spend more in a category, you’ll earn just 1% on the excess.
2. No Flat-Rate Cash Back
If you prefer maximizing rewards on all spending rather than on just one category per month, a flat-rate card (offering something like 2% back on everything) might better suit your needs.
3. Limited Transfer Partners
While you earn ThankYou Points, only certain Citi cards let you transfer these points to airline or hotel partners. The Custom Cash card by itself doesn’t offer direct transfer to travel partners unless you also hold a premium Citi card.
4. Foreign Transaction Fees
The Citi Custom Cash Card charges a foreign transaction fee (typically 3%) on overseas purchases. If you travel abroad frequently, consider using a different card for your international purchases.
Best Practices and Tips to Maximize Your Citi Custom Cash Card
Want to get the most out of your Citi Custom Cash Card? Follow these expert strategies:
- Be Strategic with Spending
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Try to concentrate up to $500 in spending each month on a single eligible category (such as groceries one month, gas another), depending on your needs.
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Pair with Other Citi Cards
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If you have another Citi ThankYou Points card (like the Citi Premier Card), you can pool your points and unlock additional redemption options, including transfers to airline partners—great for those who value travel.
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Redeem Wisely
- For pure cash-back seekers, redeem points for statement credits or direct deposits for simplicity and value.
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For added value, use points for gift cards or travel through the Citi ThankYou portal.
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Track Billing Cycles
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Adjust your spending just before or after your cycle’s close date to maximize the $500 monthly bonus category.
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Avoid Carrying a Balance
- After any 0% intro APR period ends, pay off your full balance each month to avoid accruing interest, which can quickly outweigh any cash back earned.
Cost Tips for Cardholders
While the Citi Custom Cash Card is free from an annual fee, there are a few important costs to keep in mind:
- Balance Transfer Fees: If you take advantage of an introductory balance transfer, watch out for transfer fees (often around 3%-5% of the balance transferred).
- Cash Advance Fees: Like most credit cards, taking cash from your credit line is costly both in fees and interest—avoid this if possible.
- Late Payment Fees: Paying late can result in hefty fees and hurt your credit score. Make use of autopay or reminders.
- Foreign Transaction Fees: At about 3%, using this card abroad can get pricey. Use a card with no foreign transaction fees when traveling internationally.
Comparing Citi Custom Cash Card to Similar Cards
The Citi Custom Cash is often compared to other popular cash-back cards. Here’s how it stacks up:
| Feature | Citi Custom Cash Card | Chase Freedom Flex | American Express Blue Cash Preferred |
|---|---|---|---|
| Annual Fee | $0 | $0 | $0 intro, then $95 |
| 5% Categories | 1 chosen automatically | Rotating (activation required) | Groceries, streaming |
| Cap on 5% | $500/month | $1,500/quarter | $6,000/year (on groceries) |
| Foreign Transaction Fee | Yes (3%) | Yes (3%) | Yes (2.7%) |
| Redemption Flexibility | High (ThankYou Points) | Moderate (Chase UR) | Limited (statement credit only) |
Practical Advice for Different Cardholders
- For Beginners: The Citi Custom Cash Card is hassle-free and perfect for anyone who struggles to keep up with rotating categories or wants a single, easy-to-use cash-back card.
- For Points Enthusiasts: Pair this card with another Citi card to maximize rewards and unlock travel redemptions.
- For Families: With common categories like groceries and gas, families can rack up rewards quickly each month.
- For International Travelers: Consider another card for overseas spending due to foreign transaction fees.
Concluding Summary
The Citi Custom Cash Card brings a fresh and flexible approach to rewards cards. With 5% back automatically in your top earning category each month, no annual fee, robust redemption options, and easy-to-use features, it’s ideal for those who want to maximize rewards without the hassle. While there are bonus caps and some limitations, understanding these can help you make the most of what this next-generation cash-back card has to offer.
Frequently Asked Questions (FAQs)
1. How does the Citi Custom Cash Card decide which category earns 5% back each month?
The card automatically tracks your spending. At the end of each billing cycle, your highest spending category from the eligible list becomes your 5% bonus category for that period.
2. Can I choose my 5% bonus category with the Citi Custom Cash Card?
No. You don’t select the category. The card picks the one where you spent the most during that billing cycle from its eligible categories.
3. Is there a limit to how much I can earn at the 5% reward rate?
Yes. The 5% cash back is limited to the first $500 spent per billing cycle in your top category. Any spend above $500 in that category, and all other purchases, earn 1% back.
4. How do I redeem Citi Custom Cash Card rewards?
You earn Citi ThankYou Points. These can be redeemed for cash back as a statement credit or direct deposit, gift cards, travel, or other options offered through the Citi ThankYou portal.
5. Does the Citi Custom Cash Card have an annual fee or foreign transaction fee?
There’s no annual fee. However, there is a foreign transaction fee (typically 3%), so it’s best to use a different card for international purchases.
With its convenience, adaptability, and strong cash-back potential, the Citi Custom Cash Card is a noteworthy choice for a wide range of spenders. Use it strategically, and you’ll keep more cash in your pocket month after month.