Finally, there’s a credit card that offers meaningful rewards not just for spending money, but for paying off your balance.
Citi’s new DoubleCash card offers 1% back on every purchase when you buy and an additional 1% back when you pay.
The additional 1% kicks in regardless of whether you pay your bill in full or carry a balance that you pay off gradually, as long as you at least make the minimum payment each month.
But the bonus works best when you pay in full and on time.
Cost of financing with DoubleCash
|Intro interest rate||Standard APR||National Average APR|
|0% for 15 months||12.99%-22.99%||15.06%|
Here’s how the cash back system works.
Suppose you charge $1,600 for the billing cycle.
You’ll earn 1% of $1,600 on your purchases, for a total of $16.
When your bill arrives, you can make the minimum payment (let’s say $40), a partial payment (let’s say $800) or pay your balance in full ($1,600).
Depending on how much you pay, you’ll either receive an additional 1% of $40 ($0.40), 1% of $800 ($8), or 1% of $1,600 ($16).
If you only make the minimum payment or a partial payment now, you’ll receive the remaining 1% cash back later when you pay off the rest of your balance.
You will not earn 1% cash back from paying interest charges you accumulate if you carry a balance, nor will you earn cash back from paying any late fees.
But if you forget to make a payment, Citi won’t charge you a late fee the first time.
This card doesn’t have a sign-up bonus, but it does have a promotional 0% APR on purchases and balance transfers for 15 months.
Balance transfers have a 3% fee and must be completed within four months of opening your account to be eligible for the 0% promotional rate.
You don’t earn rewards on balance transfers, however.
After the introductory period, the APR will be 12.99% , 17.99% or 22.99% variable, depending on your credit score.
The foreign transaction fee is 3% of the U.S. dollar amount, so this isn’t an ideal card for traveling.
The card has no annual fee.
This card’s 2% cash back is competitive with other leading rewards cards, and there’s no limit to how much you can earn.
Unlike other credit cards that offer more than 1% cash back, such as the Discover It card and the Chase Freedom card, the Citi DoubleCash card doesn’t have rotating bonus categories.
While you won’t have the opportunity to earn 5% back in certain spending categories each quarter, you also won’t have to keep track of or sign up for these rotating offers or wonder whether you’ve maxed out your bonus cash back, since you typically only earn 5% back on up to $1,500 in purchases.
With DoubleCash, you’ll simply earn 2% back all the time when you pay your balance in full.
Find the offer at www.citi.com/credit-cards.
Then compare it with the other cash back credit cards in our database.