In the saturated market of credit cards, the Citi Double Cash Card stands out as a reliable and rewarding option for consumers. With its low costs, lucrative cash-back rewards, and flexible redemption options, this card appeals to individuals with a fair credit score or better.
In this comprehensive review, we will delve into the features, benefits, drawbacks, and overall value proposition of the Citi Double Cash Card.
Key Features and Rewards
The Citi Double Cash Card offers a straightforward rewards structure that sets it apart from its competitors. Cardholders earn a total of 2% cash back on all purchases, which is double the market average for cash rewards. This cash back is distributed in two stages: 1% when the purchase is made and another 1% when the balance is paid off. This incentivizes responsible credit card usage and prompt bill payment.
Furthermore, the Citi Double Cash Card provides a generous sign-up bonus. New cardholders can earn $200 cash back after spending $1,500 on purchases within the first 6 months of account opening. This bonus offer is fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Annual Fee and APR
One of the most appealing aspects of the Citi Double Cash Card is its $0 annual fee. This eliminates any financial burden for cardholders and allows them to fully enjoy the benefits and rewards without incurring additional costs.
In terms of APR, the Citi Double Cash Card offers an introductory 0% APR on balance transfers for 18 months. After the introductory period, the variable APR ranges from 19.24% to 29.24%, depending on the cardholder’s creditworthiness. It is important to note that the intro APR does not apply to purchases, and interest will be charged on purchases unless the entire balance (including balance transfers) is paid by the due date each month.
Balance Transfers and Fees
For individuals looking to transfer balances from high-interest credit cards, the Citi Double Cash Card provides an attractive option. During the first 4 months of account opening, cardholders can take advantage of a 3% intro fee (minimum $5) for each transfer. After the initial period, the fee increases to 5% (minimum $5) for each transfer. However, it is crucial to remember that balance transfers do not earn cash back.
Foreign Transaction Fees
While the Citi Double Cash Card offers numerous benefits, it does come with a 3% foreign transaction fee. This makes it less favorable for international travelers compared to other credit cards that either have lower foreign transaction fees or waive them altogether.
Redemption Options and Flexibility
The Citi Double Cash Card provides cardholders with a variety of redemption options, allowing them to maximize the value of their rewards. Cash back can be redeemed as a statement credit, deposited into a bank account, or received as a check. Additionally, cardholders have the opportunity to transfer their points to a selection of partners, including JetBlue, Wyndham, and more. This flexibility enables individuals to find the best value for their rewards based on their travel goals and preferences.
High Rewards Rate and Simplicity
The Citi Double Cash Card excels in terms of its high rewards rate and simplicity. With a 2% cash back rate on all purchases, this card surpasses the industry standard of 1% cash back. The double cash back feature, where cardholders earn 1% when they make a purchase and another 1% when they pay it off, motivates responsible credit card usage and timely bill payment.
Additionally, the simplicity of the Citi Double Cash Card is a major advantage. Unlike other cash-back cards that have rotating bonus categories or spending limits, this card offers consistent rewards on all purchases. Cardholders can enjoy the convenience of using the same card for all their transactions without the need to keep track of specific spending categories or limits.
Companion Card Strategy
For individuals who want to maximize their cash back rewards, the Citi Double Cash Card can be paired with a bonus-category credit card. This two-card strategy allows cardholders to earn higher rewards on certain purchases with the bonus-category card while using the Citi Double Cash Card for all other transactions. By adopting this approach, individuals can optimize their cash back earnings and enjoy a superior return on their spending.
Benefits and Perks
The Citi Double Cash Card offers several benefits and perks that enhance the overall cardholder experience. These include:
- High rewards rate: With a 2% cash back rate on all purchases, the Citi Double Cash Card surpasses the industry standard and provides cardholders with substantial rewards.
- Simplicity: The straightforward rewards structure of the Citi Double Cash Card eliminates the need to keep track of rotating bonus categories or spending limits, making it a hassle-free option.
- Flexibility: Cardholders can choose from various redemption options, including statement credits, bank account deposits, checks, and transfers to partner programs, allowing for maximum flexibility and value.
- Travel partners: While the Citi Double Cash Card has a limited number of travel partners, individuals who hold multiple Citi cards can combine points across their accounts. This feature expands the range of redemption options and increases the potential value of rewards.
Drawbacks and Considerations
While the Citi Double Cash Card offers numerous benefits, it is important to consider a few drawbacks and considerations before applying for this card:
- Lack of bonus categories: Unlike some other cash-back cards that offer elevated rewards on specific spending categories, the Citi Double Cash Card does not have any bonus categories. This means that individuals who spend heavily in certain areas, such as dining or groceries, may find other cards more advantageous.
- No introductory APR on purchases: While the Citi Double Cash Card provides an introductory 0% APR on balance transfers, it does not offer the same benefit for purchases. This means that cardholders will accrue interest on new purchases unless the entire balance, including balance transfers, is paid in full each month.
- Foreign transaction fee: The 3% foreign transaction fee on the Citi Double Cash Card makes it less favorable for international travelers. Individuals who frequently travel abroad may benefit from credit cards that either have lower foreign transaction fees or waive them altogether.
Conclusion
In conclusion, the Citi Double Cash Card is a solid choice for individuals seeking a reliable and rewarding credit card. With its 2% cash back rate on all purchases, $0 annual fee, and flexible redemption options, this card offers substantial value. While it may not have the same level of bonus categories or introductory APR on purchases as some other cards, its simplicity and high rewards rate make it an attractive option for individuals looking for a hassle-free credit card experience.