You may have seen the newest rewards credit card to hit the market: the Citi® Double Cash card (from our partner Citi®), which offers not only 1% in rewards for all purchases but an additional 1% in cash back for all on-time payments made. That’s right, every time you make the minimum payment due, you get another 1% back as each purchase is paid off.
If you’re even slightly familiar with other rewards-based credit cards, you know how novel that concept is.
► There are no rotating rewards categories. (“Should I use my Discover or my Chase for our dinner out? What rewards category will I get points with this month?”)
► There are no varying amounts. (“How much do I get back for gasoline - is it 1% or 2%? What about groceries?”)
Just a simple, easy 2% back for every purchase you make and pay off. You can redeem your earned rewards for statement credit, a check, or gift cards.
Be aware that this card does come with a higher interest rate, so if you don’t usually pay off your credit card balance at the end of each billing cycle, the Citi® Double Cash card is probably not ideal for you; you would pay far more in interest than the 1% cash back you would make on the purchase, even though you would still earn the additional 1% back when you made the payment (as long as you made the minimum payment due).
And, for those who like to “game” the rewards card system and reap the highest possible benefits with their credit card purchases, this is one of the few cards that offers no sign-on bonus, just the plain and simple 2% cash back (1% on purchase and 1% once you've paid it off) with no annual limit to the amount earned and no annual fees.
That being said, Citi’s Double Cash card would be a good backup card for those using other cards that have higher rewards only in certain categories, because they often offer just 1% in rewards for non-featured category spending. For example, the Chase Freedom card may offer 5% back on groceries for three months, but all other spending is only rewarded at 1%; in the meanwhile, the Double Cash card would return 2% on any purchase).
Finally, the Citi® Double Cash card does levy a 3% foreign transaction fee, so it would not be your go-to card if you happen to be overseas.
Overall, for those who want rewards for using their credit cards without the hassle of trying to maximize purchases by category and who pay their balances in full each month, the Citi Double Cash card is tough to beat.
Why not earn 2% in cash back for what you already do?