It's not often a major card issuer introduces a brand-new credit card, and even less common to see a new card with a completely novel rewards structure.
Citi has just launched the no-annual-fee Citi Custom Cash℠ Card, and it's out to give other 5% cash-back cards some stiff competition. It's got a solid welcome bonus: Citi Custom Cash℠ Card. And cardholders can earn 5% cash back on purchases in their top eligible spending category (from a list) each billing cycle, on up $500 in spending (then 1%).
Here's everything you need to know about the new Citi Custom Cash℠ Card.
Citi Custom Cash Card details
Citi Custom Cash℠ Card
The Citi Custom Cash℠ Card starts you off with a welcome bonus and a reasonable minimum spending requirement: Citi Custom Cash℠ Card. That works out to an average of $250 a month, which should be attainable for most people just with regular spending.
The card's real strength is in its 5% categories, and how easy Citi makes it to earn this bonus. There are no rotating categories to track and no enrollment required (unlike some competing cards like the Chase Freedom Flex℠ and Discover it® Cash Back), so the Citi Custom Cash℠ Card is a great pick if you prefer simplicity.
You'll earn 5% cash back (5x Citi ThankYou points) on the eligible category you spend the most in each billing cycle, on up to $500 in total spending (then 1%), and 1% back (1x Citi ThankYou points) on all other purchases. The 1% return on other purchases isn't exciting, but the 5% back categories span a wide range of everyday expenses.
You might notice some of these categories are familiar — many of the best rewards credit cards, for example, earn a bonus on travel purchases, or at restaurants, supermarkets, and gas stations. However, a few categories are sprinkled in here that don't typically earn a bonus with most top cards, such as home improvement stores, fitness clubs, and live entertainment.
If you don't have a lot of other cards that earn a higher bonus in any of these categories, using the Citi Custom Cash℠ Card for your regular spending and enjoying 5x rewards in your top monthly category is a straightforward approach. But if you have other cards in your wallet, you'll want to be a little more strategic.
For example, you might already use the Blue Cash Preferred® Card from American Express to earn 6% back at U.S. supermarkets (on your first $6,000 in spending each year, then 1% back), 6% cash back on select U.S. streaming services, and 3% back on U.S. gas stations and transit (cash back is received in the form of Reward Dollars). You'd be better off using the Citi Custom Cash℠ Card for purchases that don't earn a bonus with the Blue Cash Preferred® Card from American Express, like travel or home improvement stores, where you'd otherwise be earning 1x points or 1% back.
The great thing about the Citi Custom Cash℠ Card is that it allows you to switch up your card strategy as your expenses change. One month your travel expenses might be higher than usual because you're going on a trip, so using the Citi Custom Cash℠ Card to max out the 5% travel category would be a good play. But the next month, you might have a DIY project that costs you some money, so shifting your spending at home improvement stores to the Citi Custom Cash℠ Card makes sense.
As long as you have the means and a plan to pay off your purchases before the introductory APR expires, using a 0% APR credit card can help you save money on interest.
Pair the Citi Custom Cash Card with other Citi cards
If you already earn Citi ThankYou points with cards like the Citi Premier® Card, Citi Prestige® Card, or Citi® Double Cash Card (which allows you to convert rewards to Citi ThankYou points), the Citi Custom Cash℠ Card would be a great addition to your collection.
You'll get the biggest edge if you have the Citi Premier® Card or Citi Prestige® Card, because having one of these cards unlocks the ability to transfer points to the full list of Citi airline transfer partners, like JetBlue, Singapore Airlines, and Air France-KLM.
Consider this scenario if you have these three cards — Citi Premier® Card, Citi® Double Cash Card, and Citi Custom Cash℠ Card:
Citi Premier® Card: Earn 3x points on dining, groceries, gas, air travel, and hotels
Citi® Double Cash Card: Earn 1% back when you buy, and 1% when you pay on all purchases (effectively 2% back or 2x points on everything)
Citi Custom Cash℠ Card: Earn 5x points on the eligible category you spend the most in each billing cycle (up to $500 in spending, then 1x)
By making the Citi Premier® Card your primary card in its 3x categories, shifting other purchases based on your current spending habits to the Citi Custom Cash℠ Card to earn 5x each month, and filling in the gaps by using the Citi® Double Cash Card for everything else, you're guaranteed to earn a bonus on all your spending, and anywhere from 3x to 5x points in the most common spending categories.
Citi Custom Cash℠ Card
Jasmin Baron is an associate editor at Personal Finance Insider, where she helps readers maximize rewards and find the best credit cards to fit their lifestyles. She has covered credit cards, points and miles, and loyalty programs for over seven years, and she's a Certified Educator in Personal Finance (CEPF).
