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The Citi® Double Cash Card is a brand new cash back card from Citi. And it’s a good one! But too bad there’s no sign-up bonus. But you could downgrade an existing Citi card to the Citi Double Cash card!
That’s because with this card you will earn 1% cash back on all your purchases AND another 1% cash back on payments.
Unfortunately, you will NOT get a sign-up bonus with this card. But it’s still 1 of the best cash back cards out there!
But how does the Citi Double Cash card compare to other cash back cards?
Citi Double Cash Card
In addition to the unlimited cash back you can earn with the Citi Double Cash card, there is also NO annual fee.
But there are some restrictions.
Here are the details on how you earn cash back rewards points:
- Earn 1% cash back on all spending
- Earn another 1% cash back when you make payments, as long you meet the minimum payment on your monthly statement
- NO cash back on credit card fees, interest, cash advances, money orders, and balance transfers
- Cash back expires if there is no activity on your card for 12 months
- You lose your rewards when you close your account
Again, you must meet the minimum payment for the month to earn 1% cash back on your payments. So let’s say you have $1,000 worth of charges for the month and the minimum payment is $20, but you only pay $15. You won’t earn the 1% cash back on your $15 payment for the month.
You earn 1% cash back payments whether you pay in full or over time. So if you pay $500 on your $1,000 bill in December and the other $500 in January, you will earn $5 cash back ($500 payment x 1% cash back for payments) in December and $5 cash back in January.
Note: You should pay your bill in FULL each month! Because carrying a balance and paying interest can negate any savings you get with a rewards credit card and you could wind up in debt!
How to Redeem Your Cash Back
Once you spend and make payments on the card, here’s how you redeem your cash back:
- Have at least $25 cash back rewards to redeem
- Cash back is available when statement closes
- Cash back can be mailed as a check, credited to your statement, or for gift cards
Earning miles and hotel points can be more valuable than earning cash back. That’s because, if for example, you have 100,000 American Airlines miles you can buy a Business Class round-trip ticket to France to see the lavender fields.
If you spent $100,000 over time on the Citi Double cash card, would only earn you $2,000 in cash back. Which won’t get you that business class ticket!
While airline miles and hotel points can have a higher dollar value (depending on how redeem them), what matters is what’s most useful to you. I like to earn both because the miles can get you to France, but the cash back can help you pay for meals, local transportation, and other activities during your trip.
Is This a Good Deal?
Here’s how the Citi Double Cash card compares to some other cash back cards:
|Cash Back Cards||Cash Back||NO Cash Back Limit||NO Categories||NO Annual Fee||Foreign Transaction Fee||Sign-up Bonus|
|Citi Double Cash||1% for spending and 1% for payments||✓||✓||✓||3%||X|
|Barclaycard Arrival Plus||2.2% when redeemed for travel||✓||✓||Annual fee waived the 1st year, then $89||X||40,000 Arrival miles ($400 to $440) when you spend $3,000 within 3 months|
|Capital One® Spark® Cash for Business||2%||✓||✓||Annual fee waived the first year, then $59||X||$500 after spending $4,500 within the first 3 months|
While the Citi Double Cash card doesn’t have a sign-up bonus like the Barclaycard Arrival Plus card, it also doesn’t have an annual fee. So you never have to cancel this card, which will help establish a good relationship with the bank.
The Capital One Spark Cash for Business card, earns an unlimited 2% cash back on all spending. To qualify you must have a business. The Capital One Spark gives you a $500 bonus after you spend $4,500 within the first 3 months.
But after the 1st year you’ll have to pay a $59 annual fee while the Citi Double Cash card has NO annual fee.
The Citi Double Cash card has a good combination of NO cash back limits, NO spending categories (i.e. all spending gets 2% cash back), and NO annual fee. The Fidelity Visa card has all this AND a lower foreign transaction fee.
But if you’re looking for the best cash back card for everyday spending with no annual fee, the Citi Double Cash card is a strong contender. Even better if you can downgrade an existing Citi card to the new Double Cash card.
Citi’s new Double Cash card will give you 1% cash back on all spending and another 1% on credit card payments. There is NO limit to the amount of cash back you can earn, NO spending categories, and NO annual fee. So this is a great long-term cash back card!
The drawbacks are the 3% foreign transaction fee (so I would NOT use this card overseas) and there is no sign-up bonus. But for folks looking to get cash back on regular spending, this is a great card to consider!