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The Citi Custom Cash® Card is a popular no-annual-fee credit card with a straightforward yet valuable rewards program. It’s an excellent choice for individuals seeking a hassle-free way to consistently earn cash back without having to deal with rotating bonus categories.
However, if you’re in search of the perfect credit card that maximizes cash back on all your everyday purchases, the Custom Cash Card may not be the optimal solution.
Here’s a breakdown of when the Citi Custom Cash Card could be the top cash back credit card for you and when you might want to explore other options.
When is the Citi Custom Cash Card worth it?
For most people, the standout feature of the Citi Custom Cash Card is its flexible and rewarding rewards structure.
Depending on your spending habits and priorities, there are additional perks that can enhance the card’s value. Here’s a closer look at scenarios where carrying the Citi Custom Cash Card makes sense:
When you prefer simplicity
The Custom Cash Card’s rewards program is user-friendly. You automatically earn 5 percent in the eligible category you spend the most on each billing cycle (up to $500 spent per billing cycle, then 1 percent).
The eligible categories encompass a variety of everyday spending areas, such as:
- Grocery stores
- Gas stations
- Restaurants
- Fitness clubs
- Select streaming services
- Home improvement stores
- Drugstores
- Live entertainment
Additionally, if you’re planning a trip, your top spending category can also relate to travel and select transit purchases. The beauty of it all is that you don’t need to enroll in specific categories — and if the Custom Cash Card is your sole credit card, you won’t have to expend energy remembering which card to use for each purchase.
This feature will particularly appeal to individuals looking to avoid credit cards with rotating bonus categories. These categories are chosen by the card issuer and typically change quarterly. Most of these cards also require enrollment in the bonus categories each quarter, which can be a hassle for those seeking rewards without the added complexity.
Compared to the top flat-rate credit cards, the Custom Cash Card offers more value for individuals on a budget. Those who can reach the $500 spending limit in the 5 percent category will earn $25 each billing cycle. In contrast, using a 2 percent cash back flat-rate card would require spending $1,250 to earn the same $25. Therefore, budget-conscious individuals looking for a straightforward card can extract more value from the Custom Cash Card.
When you seek short-term benefits
New cardholders eligible for the Custom Cash Card can take advantage of two short-term perks: a welcome bonus and a lengthy introductory annual percentage rate (APR) offer on purchases and balance transfers. Here are the specifics:
- Welcome bonus: Earn 20,000 ThankYou points, equivalent to $200 in cash back, after spending $1,500 in the first six months. It’s a quick way to earn cash back without breaking the bank, as you only need to spend $250 per month to reach the target.
- Introductory APR offer: Benefit from a 0 percent intro APR for 15 months on both purchases and balance transfers, followed by a variable APR of 19.24 percent to 29.24 percent after the introductory period concludes. While this isn’t the lengthiest introductory offer available, cards with longer offers typically don’t offer high rewards like 5 percent cash back.
Without the welcome bonus, it would take eight months and $4,000 in purchases to earn $200 if you only used the credit card for purchases qualifying for the 5 percent cash back category. Hence, a welcome bonus serves as a nice incentive for responsible users aiming to maximize their credit card rewards.
A credit card featuring a 0 percent intro APR period is also a valuable asset in your wallet. It can help you pay off card debt quicker and enable you to make significant purchases and pay them off over time without accruing interest.
When you intend to complement it with other credit cards
Individuals accustomed to carrying multiple credit cards and strategizing to maximize value from each card will find the Custom Cash Card appealing. Since you only earn 5 percent cash back in one bonus category (up to $500 per billing cycle, then 1 percent) and 1 percent on all other purchases, it’s advisable to use the Custom Cash Card for purchases falling into the card’s eligible spend categories. Other purchases should be charged to another rewards card.
In fact, since the Citi Custom Cash technically earns ThankYou points redeemable for cash back, it pairs well with the Citi Strata Premier℠ Card, which also earns ThankYou points and allows you to transfer them to Citi’s transfer partners.
When is the Citi Custom Cash Card not worth it?
The Citi Custom Cash Card boasts numerous benefits but does come with some drawbacks. Here are instances where you might want to explore a different cash back credit card:
When you prefer a standalone credit card that maximizes rewards
Given that you’re restricted to just one bonus category with a $500 spending limit per billing cycle (then 1 percent), the Custom Cash Card may not be the most suitable choice for individuals seeking a one-card solution, especially if their primary goal is to earn rewards.
Reward-seekers looking to maximize value may consider opting for a cash back card featuring multiple bonus categories aligning with their spending patterns. One excellent alternative to the Citi Custom Cash Card is the U.S. Bank Cash+® Visa Signature® Card*. Instead of a single bonus category, the U.S. Bank Cash+ card offers:
- 5 percent cash back in your two chosen eligible categories on up to $2,000 in combined purchases per quarter, then 1 percent
- 5 percent cash back on prepaid air, hotel, and car reservations through the U.S. Bank Rewards Center
- 2 percent cash back on all purchases in one eligible everyday spending category of your choice
- 1 percent cash back on all other purchases
While the U.S. Bank Cash+ Card requires enrollment in custom categories each quarter, failing to do so results in earning only 1 percent on those purchases. It may require a bit more effort to use compared to the Citi Custom Cash, but it can be worthwhile given the increased opportunities to earn high rewards.
When you aim to save through a balance transfer
While the Citi Custom Cash Card allows for paying down debts via a balance transfer, it might not be the most cost-effective option.
The Custom Cash Card imposes a 5 percent or $5 (whichever is higher) fee for each balance transfer conducted. If you’re looking to transfer a substantial amount of debt, you could potentially save money by exploring other options offering a lower balance transfer fee or an extended introductory APR period. Some of the top balance transfer credit cards charge only a 3 percent balance transfer fee — or even waive the fee entirely.
Should you get the Citi Custom Cash?
For many individuals, the Custom Cash Card emerges as a clear winner. Few credit cards allow you to designate the category earning 5 percent back, making it a great fit for those who spend significantly in bonus areas typically not covered by rewards cards and value the autonomy to have their top earning category determined automatically based on their spending.
Remember that the Citi Custom Cash automatically selects your top spending category based on your purchases, without the need for enrollment. Hence, it’s essential to be mindful of the card’s usage. For instance, if you aim for live entertainment to be your top category, ensure to use the Citi Custom Cash for all such purchases (at least until reaching the $500 spending cap).
However, the Custom Cash Card might not serve well as a standalone credit card, especially for individuals spending across various categories and finding it challenging to reach $500 per month in a single category. To maximize cash back earnings, consider pairing the Custom Cash Card with other rewards cards or exploring superior standalone card options.
The bottom line
The Citi Custom Cash is ideal for most moderate spenders maintaining expenses around $500 per month. Yet, if you tend to spend more than $500 monthly, consider coupling this card with another rewards card or exploring alternative high-earning cash back cards.
For additional details on the card, you may want to peruse our Citi Custom Cash benefits guide — including insights on maximizing the card for travel.
*Information about the U.S. Bank Cash+® Visa Signature® Card has been independently gathered by Bankrate. The card details have not been reviewed or endorsed by the issuer.