Citi Custom Cash Card 2021 Review

For those who love going to concerts, are big into home improvement, or have too many fitness club memberships or streaming service subscriptions, this card may help earn solid rewards in categories most cash-back cards never touch. Arguably the best part of the Citi Custom Cash card might be that the eligible cash-back categories for its 5% cash back on the first $500 in an eligible top-earning category each month are unique enough that finding a card to issue bonus cash back on spend in those categories is tough.

In addition, the card doesn’t have that onerous registration requirement that other 5% category cards do, meaning that you have one less to-do every quarter. For this reason, the Custom Cash card may work well as an additional card to carry for use in one of the eligible categories. These include restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment.

For others who want to maximize the first $500 in bigger spend categories, like restaurants, gas stations and grocery stores, 5% is hard to beat. But considering it’s only on the first $500 of spend in the eligible category means the maximum cash-back reward earned each month will be $25. Earning $25 back on $500 is not a bad return, but cardholders will have to ask themselves if up to $25 extra return per month is worth an additional credit card to manage and an extra open account on a credit report.

It’s likely that for most cardholders, a 2% cash-back card like the Citi® Double Cash Card (which earns 1% when you buy plus 1% when you pay) will be more convenient. With 2% cash back, a monthly spend of $2,000 earns the same amount of cash back as $500 in one category at 5% cash back and $1,500 in all other categories at 1% cash back. If choosing between cards, a 2% cash-back return is likely a better option. But for those who combine these two cards, the extra 3% cash back on $500 per month in spend may be worth the extra account.

You can also pair this card with another ThankYou points-earning card, which unlocks the ability to transfer your rewards to one of Citi’s travel transfer partners which could increase the redemption value of your earnings.

This card offers a 0% introductory APR on eligible balance transfers and purchases for 15 months. After that, the variable APR will be 13.99% - 23.99%, based on your creditworthiness. The card does charge a high balance transfer fee though of Balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum., which can add to your existing debt load.

• Earn 5% cash back on up to $500 in purchases in your top eligible spend category each billing cycle. All other eligible purchases will earn 1% cash back.
• Several of the eligible cash-back categories that offer bonus rewards potential aren’t offered on other cards
• This card offers a 0% introductory APR on eligible balance transfers and purchases for 15 months. After that, the variable APR will be 13.99% - 23.99%, based on your creditworthiness.
• No annual fee
• Welcome bonus: Earn $200 in cash back after you spend $750 on purchases in the first 3 months of account opening. The bonus points come in the form of 20,000 ThankYou® Points that can be redeemed for $200 cash back.

Earning Rewards

Rewards are earned automatically with the Citi Custom Cash credit card. Earn 5% cash back on up to $500 in purchases in your top eligible spend category each billing cycle. All other eligible purchases will earn 1% cash back. Eligible 5% cash back categories include: restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment.

Thereafter and on all other eligible spending, the card earns 1% cash back. Cash back is earned as Citi ThankYou Points, which are redeemable for cash back at 1 cent per point or pooled with another ThankYou points card.

The Citi Custom Cash offers a welcome bonus: Earn $200 in cash back after you spend $750 on purchases in the first 3 months of account opening. The bonus points come in the form of 20,000 ThankYou® Points that can be redeemed for $200 cash back.

Redeeming Rewards

Because the Citi Custom Cash card earns Citi ThankYou Points rewards, redemptions are subject to the Citi ThankYou Rewards Terms and Conditions. Cash back redemptions may be made as a direct deposit to a bank account, a statement credit or even used to make donations to charity. Points may also be redeemed for merchandise through Shop With Points, to pay down loans or as cash back with a minimum check redemption amount of $5.

Rewards Potential

To determine the rewards potential of the Citi Custom Cash Card we have to consider what an American household might spend on a credit card each year. Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. The 70th percentile of wage-earning households bring in $100,172 annually and we base spending on that number.

Forbes Advisor assumes that a cardholder with this card will spend $500 per month in their selected category, earning $300 per year in cash back. We estimate that an additional $20,410 in expenses that can be reasonably charged to a credit card. At 1% cash back, the Citi Custom Cash Card would earn $204.10 cash back per year resulting in total cash back of $504.10 earned each year in addition to the first year welcome bonus.

This card offers a 0% introductory APR on eligible balance transfers and purchases for 15 months. After that, the variable APR will be 13.99% - 23.99%, based on your creditworthiness. This is comparable to similar products.

• 24/7 Customer Service: Around the clock support.
• Digital Wallets: Compatible mobile device contactless pay options.
• 24 Hour Fraud Protection: Cardholders receive alerts when suspicious activity is detected.
• Citi Identity Theft Solutions: Assistance in resolving identity theft issues.
• Lost Wallet Service: Fast card replacement and cash advance-limited cash replacement in the event of a lost wallet situation.

The card also comes with standard Mastercard benefits which include:

• Zero Liability Protection. You’re not responsible for unauthorized charges made on your card.
• Global Services. Get emergency assistance anytime, anywhere and in any language. This includes reporting a lost or stolen card, obtaining an emergency card replacement or cash advance, finding an ATM and answering questions on your account.
• ID Theft Protection. You can opt in to this service that monitors your credit file for changes that could indicate fraud, sends you emergency alerts and can assign you a resolution specialist if fraud is detected.

Interest Rates

• Regular APR: 13.99% – 23.99% (Variable)
• Purchase Intro APR: 0% for 15 months on purchases
• Balance Transfer Intro APR: 0% for 15 months on balance transfers

Fees

• Annual Fee: $0
• Balance Transfer Fee: Balance transfer fee applies with this offer 5% of each balance transfer; $5 minimum.
• Cash Advance: 5% of each cash advance; $10 minimum
• Foreign Purchase Transaction Fee: 3%

Citi Custom Cash℠ Card vs. Blue Cash Everyday® Card from American Express

The American Express Blue Cash Everyday card offers a great example of a card for those who want to see cash back rewards across a variety of purchase categories. With 3% cash back at U.S. grocery stores on up to $6,000 spent each year, 2% at U.S. gas stations, 2% cash back at select U.S. department stores and 1% thereafter and on all other eligible purchases, the Amex Blue Cash Everyday spreads the rewards across several categories while the Citi Custom Cash automatically selects and rewards the eligible top earning category each billing cycle with 5% cash back on the first $500 of spend in the category.

Which card is more rewarding will depend on your spending habits. But for those who plan to use one of these cards in addition to an unlimited 2% cash back card, it’s first a question of “will you spend at least $6,000 on groceries each year?”  If the answer is yes and the extra annual $60 in cash back seems more appealing than the extra $25 in monthly cash back on the $500 in spend in a top category each month, then we think you should recheck your math, but good for you—go with the Amex Blue Cash (rates & fees). For everyone else, the obvious answer is the Citi Custom Cash.

Citi Custom Cash℠ Card vs. Chase Freedom Flex℠

The Chase Freedom Flex also offers 5% cash back, though in a much different way. With the Freedom Flex, 5% cash back is earned on the first $1,500 in bonus category purchases each quarter. These categories change each quarter and must be activated to earn the cash back. Because each quarter is three months, the averaged category spend cap is $500 per month—the same as the Citi Custom Cash. This means the same amount of cash back can be earned by maximizing either category.

Though the Citi Custom Cash means being able to leverage spending in a specific category—and this may appeal much more to some potential cardholders—the Freedom Flex also offers 5% back on travel when purchased through Chase Ultimate Rewards, 3% cash back on dining and at drugstores and 1% on all other purchases. For this reason, we’re calling the cash-back earning advantages between these two cards a toss-up: It’s entirely about what’s best for each individual consumer’s spending habits.

Both cards have similar introductory APR periods, though the Freedom Flex only applies to purchases. This card offers 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%. There is no introductory period on balance transfers. Neither card has an annual fee.

Citi Custom Cash℠ Card vs. Citi® Double Cash Card

We’re fans of these cards from Citi, albeit for different reasons. We believe the Citi Double Cash and the Citi Custom Cash make great neighbors in a wallet. With an unlimited 2% cash back in all categories—1% when a purchase is made and 1% when the purchase is paid off—the Citi Double Cash is the plastic standard for a flat-rate cash back earning card. But add Citi’s latest offering, the Citi Custom Cash and maximize the 5% reward on the first $500 each month in a top-earning category for up to an extra $300 in cash back rewards per year.

If choosing one card, the Citi Double Cash is hands down a better cash back card for most. Its lower balance transfer fee and its introductory APR makes it a superior card for balance transfers as well. New cardholders receive a 0% intro APR on balance transfers for 18 months. After that, the standard variable APR will be 13.99% - 23.99%, based on your creditworthiness. There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater. This card does not offer an introductory APR on purchases. Add in the ability to pair the Double Cash with a premier ThankYou Card for travel partner transfers and the Double Cash comes out strongly on top.

There are certainly reasons not to get this card. It won’t make a great primary credit card. It could add extra accounts to a credit score. Maximizing the cash-back reward value requires some attention and effort be paid to what’s being purchased on the card. But using this card alongside a 2% cash-back card or other solid cash back reward cards is a great idea for those trying to maximize rewards each month in specific categories not covered by other cards.

To view rates and fees for Blue Cash Everyday® Card from American Express please visit this page.