Citi Custom Cash Card Review–5% Cash Back with No Rotating Categories

Snapshot

• Cash Back Rewards: Up to 5% cash back with no rotating categories
• Signup Bonus: Earn $200 cash back once you spend $750 within the first 3 months of account activation
• Intro APR: 0% APR on balance transfers and purchases for 15 months. After that, the variable APR will be 16.74% - 25.74%%.
• Annual Fee: $0

Editorial Review

The new Citi Custom Cash Card is unique among credit cards that pay up to 5% cash back. Until now, these cards used rotating categories every quarter. And you have to signup for them or you don’t get the 5%. On top of all that, you are limited to the categories the credit card issuer selects each quarter.

Citi has solved each of these shortcomings, as you’ll see below. And they’ve done it with a card that charges no annual fee, offers a solid signup bonus, and extends a 0% APR on both purchases and balance transfers for 15 months. After that, the variable APR will be 16.74% - 25.74%%.

Pros & Cons

Pros

• Sign-up bonus
• 5% cash back
• Unlimited 1% cash back on all other purchases
• $0 annual fee
• 0% Intro APR for first 15 months

Cons

• Earning cap every billing cycle on 5% cash back ($500)
• Foreign transaction fee

Rewards

The Citi Custom Cash Card rewards structure is a first of its kind. Cardholders earn 5% cash back on up to $500 in spending each billing cycle in one category. Here’s the good news. You don’t have to pick the category in advance. Citi picks it for you based on which category you spent the most. Here are the categories eligible for the 5% cash back rate:

• Restaurants
• Gas Stations
• Grocery Stores
• Select Travel
• Select Transit
• Select Streaming Services
• Drugstores
• Home Improvement Stores
• Fitness Clubs
• Live Entertainment

All other purchases earn 1% cash back. Note that unlike other 5% cash back cards, you don’t have to signup, eligible categories don’t change each month or quarter, and you are not limited to one or two categories chosen by the credit card issuer.

Here’s a summary of the rewards structure.

• Earn 5% cash back on an eligible category up to $500 every billing cycle
• 5% eligible categories: Restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, live entertainment
• Earn unlimited 1% cash back on all other purchases
• ThankYou® points can be redeemed as statement credits, through direct deposit, at Amazon, on gift cards, travel, and more
• There is no minimum amount for redeeming rewards
• There is no rewards earning cap

Introductory Interest Rates

The intro APR is 0% for the first 15 months on both purchases and balance transfers. Note that the balance transfer fee is 5% or $5, whichever is great. As such, this is not a great balance transfer card, as other options, including those from Citi, charge a 3% balance transfer fee. Of course, the fee doesn't apply on the 0% for purchases.

Who the card is best for

The card is ideal for those looking to earn cash back rewards. Specifically, it’s perfect for those who will spend at least $500 a month in one of the 5% eligible categories. With no annual fee and a healthy signup bonus, the card is a sold choice for everyday purchases.

Who might want a different card

You might want to consider a different card if any of the following apply:

• You charge more than $2,000 a month to a credit card
• You want a 0% balance transfer

Alternatives

There are alternatives to the Citi Custom Cash Card worth considering. As noted, this card takes direct aim at the 5% rotating category cards. In this category, the biggest competitor is the Chase Freedom Flex. While it does have rotating categories, it also offers enhanced rewards in certain spending categories that do not change. In addition, for those who charge more than $2,000 a month or may not max out the 5% category, the Citi Double Cash may be a better bet.

Citi Custom Cash vs Citi Double Cash

One question is whether the new Citi Custom Cash is a better deal than the Citi Double Cash. The answer depends on how much one charges to the card each month and in which categories.

Let’s assume that you will spend at least $500 in one of the 5% categories each month with the Citi Custom Cash. With that assumption, the breakeven monthly spend is $2,000. At that spend, both cards generate $40 a month in cash back. Spend less than $2,000, and the Citi Custom Cash is the winner. Spend more than $2,000 and the Citi Double Cash takes the lead.

Why? Well, with Citi Double Cash the math is easy. $2,000 x 2% = $40 (this assumes you pay your bill in full each month. Pay over time and you’ll earn the second 1% with Citi Double Cash when you pay).

With Citi Custom Cash, you’ll earn $25 on the $500 spent in the 5% category ($500 x 5%). The remaining $1,500 earns 1%, or $15, giving us a total of $40.

Citi Custom Cash vs. Amex Blue Cash Preferred

An interesting comparison is with Blue Cash Preferred (BCP). The BCP is best known as a grocery store rewards card that pays 6%. This reward rate is capped at $6,000 a year, after which the card pays 1% at grocery stores. BCP, however, also comes with an annual fee. As such, the Citi Custom Cash could be a reasonable alternative for those looking to avoid an annual fee. Keep in mind thought that the BCP does pay high rates in categories beyond groceries.

Approval Odds

Credit card companies consider a number of factors when evaluating an application. These factors may include income, debt, existing credit cards and, of course, the applicant's credit score.

While credit card issuers do not publish the criteria for approval, we collect publicly available data on credit scores for those who have been either approved or denied for a credit card. Keep in mind that we cannot verify this information and an issuer's credit score requirements can change over time.

• Approved (06/10/2021): 724 (Experian)--$7,800 credit limit
• Approved (06/10/2021): 728 (Equifax)--$7,800 credit limit
• Approved (06/10/2021): 792 (Experian)--$8,000 credit limit
• Approved (06/10/2021): 813 (TransUnion)--$6,500 credit limit
• Approved (06/12/2021): 809 (Experian)--$11,600 credit limit
• Approved (06/10/2021): 809 (Equifax)--$6,500 credit limit
• Approved (06/10/2021): 783 (TransUnion)--$3,400 credit limit
• Approved (06/14/2021): 714 (Experian)--$3,500 credit limit
• Approved (06/13/2021): 759 (Experian)
• Denied (06/10/2021): 810 (Equifax)