Citi Double Cash Review: Too Good to Be True?

With no annual fee and the opportunity to earn cash back twice, the Citi Double Cash card beats out many cashback credit cards. But are there catches? Read on for the full details.

With the Citi Double Cash, you get 1% cash back on purchases plus ANOTHER 1% cash back as you make payments for those purchases, whether in full or in installments.

THIS CARD IS A GOOD FIT IF...

• You don't want to keep track of rotating categories, but you love to know you're getting double the rewards.

• Your spending is varied and you want to go be rewarded the same for all purchases.

• You need to consolidate your debt and want an introductory balance transfer APR to help you do some catching up.

Let's go over how this card works, its benefits, and its potential downsides.

CASH BACK: HOW CITI DOUBLE CASH WORKS

The Citi Double Cash gives you the opportunity to earn cash back twice.

Here's how it works:

Each time you make an eligible purchase, you'll receive 1% cash back. As you make payments, you will then receive another 1% cash back, whether you pay in full or in installments (as long as you pay at least the minimum).

There are no seasonal rotating rewards, so you don't have to worry about keeping track of them and remembering to enroll. You'll just automatically earn cash back on everything you purchase using the card. And there are no limits on the amount of cash back you can earn. Double Cash offers an excellent reward rate, so if your spending is varied, this could serve well as your primary card.

Once you start accruing rewards, they are easy to understand (no need to decipher what points or miles equal). You'll see "Cash back on purchases" and "Cash back on payments" on your statement.

Alternate Pick: Sign-Up Bonus

Chase Freedom Unlimited - Enjoy 6.5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).

INTRO APR ON BALANCE TRANSFERS

Besides the great cash back rate, the Citi Double Cash is also great for those who have debt on other cards and want to really make a dent in it.

If you have other credit cards with balances and a high interest rate, the Citi Double Cash card's attractive 0% intro APR on balance transfers for 18 months is a good incentive to transfer your balance. After the introductory period, the APR will be 18.99% - 28.99%* (Variable), depending on your creditworthiness.

Please note that there's a 3% transfer fee or $5, whichever is greater (standard for many credit cards). For example, if you transfer $1,000 from one card and $3,500 from another, it will cost you $135 in balance transfer fees to make the $4,500 transfer. Still, that could be a much lower amount than you would have paid in interest on the other cards. Just make sure you have a plan to pay off the balances before this introductory period ends.

More Citi Double Cash Perks

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• Flexible rewards redemption: After you reach at least $25 in rewards, you can redeem your cash back (which is a low minimum compared to some other cards). You can get your cash back in the form of a check, a credit on your balance, or as a gift card from a list of retailers that have partnered with Citi.

• No late fee for paying late, once: This is a small little perk that could come in handy. Most of us are guilty of forgetting to pay a bill from time to time. Citi Double Cash will give you a pass and not charge a late fee for the first late payment.

Drawbacks of the card

Here are some points you should consider:

• No sign-up bonus: Cash back with no annual fee is a pretty good reward rate, and in exchange for this, there is no sign-up bonus, which may turn off some people looking for an immediate large reward.

• You could potentially get more back with another card: If you do not mind keeping track of rotating reward categories, you could possibly earn higher rewards with another cash back credit card. Cards such as Chase Freedom and Discover It offer 5% cash back on certain categories every 3 months up to a quarterly maximum (requires free activation). But this largely depends your lifestyle and spending habits, so it's worth doing a comparison check before you apply.

• Rewards expire: If you forget to redeem your rewards, remember that you'll lose them if you don't use this card in 12 months. If this isn't your go-to card and you forget about it, you could end up losing your rewards. See credit cards with no expiration on rewards.

• No intro APR on purchases: There is no intro APR on purchases, so this card is suited for those who pay their balance in full each month. The APR is quite high from 18.99% - 28.99%* (Variable). If you tend to carry a balance, you would probably be better off with a low interest credit card instead as the amount you'll pay on interest will defeat the purpose of the cash back.

• 3% foreign transaction fee: This card does charge a 3% fee when you use it overseas, so if you're planning on traveling abroad, it's best to have a no-foreign-transaction fee card, such as the Sapphire Preferred, in your wallet.

Chase Freedom Unlimited

See Current Promotion >>

HOW IT COMPARES

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Before signing up for Citi Double Cash, it's smart to compare it to some similar credit cards to see which better fits your needs.

If you want a bonus:

Chase Freedom Unlimited: Unlimited 1.5% cash back on every purchase. This is a lower rewards rate than Citi Double Cash.

Both are great cash back cards, so see what your immediate needs are (Citi Double Cash vs Chase Freedom Unlimited). If you're planning on making large purchases soon, maybe you'll like the breathing room offered by Freedom Unlimited.

To start, check out the latest promotion.

If you want more cash back in specific categories:
Chase Freedom: Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases.

This card takes a little bit of work to use because you'll have to keep track of these categories and make sure you're charging your purchases accordingly. But if the categories match your lifestyle, you have the potential to earn a lot more cash back. Plus, there's a signup bonus:

Read our detailed comparison of the two cards.

If the above categories don't match your lifestyle:
Discover it®: The Discover It is very similar to the Chase Freedom in the way the rewards work; the main difference is the categories. So compare and see which ones match your lifestyle more. The Discover It also offers a bonus twist: it will match all the cash back you've earned within the first 12 months after account opening. It's a good choice if you're planning on making large purchases soon.

More Offers to Consider::

• If you want to travel more: Citi Double Cash vs Chase Sapphire Preferred

BOTTOM LINE

To recap, here are the main pros and cons when considering Citi Double Cash:

Pros:

• 1% cash back on purchases plus ANOTHER 1% cash back as you make payments for those purchases
  
• Introductory 0% APR on balance transfers for 18 months. After that, the APR is 18.99% - 28.99%* (Variable)
  
• No annual fee

Cons:

• No intro APR on purchases
  
• No sign-up bonus
  
• Rewards expire if card is not used in a year

The generous cash back rewards rate makes the Citi Double Cash a great choice. If your spending is varied and you don't want to keep track of rotating categories, this is one of the highest cash back reward rate you can get. The no annual fee just adds the cherry on top.

Because of the introductory APR on balance transfers for 18 months, it's also a useful card if you have existing debt and want to make a dent in it. If you do use the card to make a balance transfer, keep in mind that there's no intro APR period for purchases.

Plan to pay off your balance in full each month to best use this card.