It’s not unusual for a flat-rate cash back credit card to offer 1.5% back, or even 2% back, for every $1 spent. But 2.5% cash back? That’s an exceptional rewards rate – and if that appeals to you, you may want to consider the .
No card is perfect, and this one is no exception. Drawbacks include qualifying for an Alliant Credit Union membership, no sign-up bonus and a few requirements that stand in the way of earning 2.5% cash back. There are workarounds for the membership and the requirements may be doable for some. Read on to learn more about and see if it’s right for you.
Exceptional cashback rate
You can earn . After that, you’ll earn 1.5% cash back, which is still quite good.
Doesn't charge an annual fee
With an annual fee of , the will help keep more money in your pocket.
No foreign transaction fee
While this isn’t a travel card, it’s one you can take with you when business or pleasure takes you outside of the United States because when it comes to foreign transaction fees, there are . Additionally, as a Visa Signature card, it offers a number of benefits, including travel and purchase protections, from Visa.
Low APR for those who qualify
While paying interest negates any cash back earned, an emergency may make it necessary to carry a balance. It’s good to know that the has a regular APR that’s on the lower end of the spectrum – (variable).
2.5% cash back comes with a catch
Being approved for the doesn’t mean that you automatically earn 2.5% cash back on your first $10,000 in purchases each billing cycle. You first need to qualify for “Tier One” rewards which is the 2.5% rate. Others qualify for “Tier Two” rewards, which give you 1.5% cash back.
Qualifying for the higher rate is achievable by doing a few things:
No sign-up bonus
Many cash back credit cards come with a sign-up bonus if you meet a certain spending target within the first few months of card ownership. These can be a big help if you’re looking to take advantage of such an offer to offset the cost of a large purchase. Unfortunately, the doesn’t offer a sign-up bonus.
You must join a credit union
The is issued by Alliant Credit Union, which has corporate headquarters in Chicago but is a digital credit union. Membership is available to those who work for or are retired from an Alliant partner; a domestic partner or immediate family of an Alliant member; or if you live or work in one of Alliant’s eligible communities.
However, there’s a workaround that opens up membership to anyone. You can join Foster Care to Success (FC2S) and Alliant will pay the $5 membership fee on your behalf. Now you’re qualified for membership.
Lacks a 0% intro APR
This is not the card to choose if you need to finance a large purchase or make a balance transfer with a 0% APR credit card. With the you will pay the regular (variable) from day one.
| Credit Cards | Our Ratings | Annual Fee | Intro Purchase APR | Regular APR | |
|---|---|---|---|---|---|
Citi Double Cash® Card
|
$0 | N/A | 18.24% - 28.24% (Variable) | ||
Citi Custom Cash® Card*
|
$0 | 0% intro APR for 15 months on Purchases | 18.24% - 28.24% (Variable) | ||
Wells Fargo Active Cash® Card*
|
$0 | 0% intro APR for 12 months from account opening | 19.24%, 24.24%, or 29.24% Variable APR |
The Citi Double Cash® Card comes with not only a sign-up bonus but also you earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
The card has a $0 annual fee and offers an intro APR of 0% intro APR for 18 months on Balance Transfers. After, a 18.24% - 28.24% (Variable) applies. Unlike the , there’s no credit union to join, nor cap on what you earn.
For those who don’t mind a more complex rewards program, or if you mainly use your credit card to make one type of product like gas or groceries, the $0 annual fee Citi Custom Cash® Card may be for you. You can earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases.
The card comes with a sign-up bonus and the following intro offers: 0% intro APR for 15 months on Purchases, then an APR of 18.24% - 28.24% (Variable) and 0% intro APR for 15 months on Balance Transfers on balance transfers, then an APR of 18.24% - 28.24% (Variable).
The Wells Fargo Active Cash® Card has a $0 annual fee and a sign-up bonus. As a cardholder, you’ll earn unlimited 2% cash rewards on purchases. With long intro APR offers, this card is good for financing big purchases since you’ll get a 0% intro APR for 12 months from account opening from account opening on purchases. After that, a 19.24%, 24.24%, or 29.24% Variable APR applies.
Balance transfers also come with a 0% intro APR for 12 months from account opening on qualifying balance transfers. After that, a 19.24%, 24.24%, or 29.24% Variable APR applies.
If you’re willing to go through the extra steps of joining a credit union and meeting the requirements needed to earn the 2.5% cash back rate, the is a great card to have. Even if you do charge more than $10,000 a month, you will still be earning more than most cash back cards.
However, if you don’t want to jump through the hoops, or if you’re looking for a card with an intro APR offer on purchases and balance transfers, there are better options, like the Citi Double Cash® Card or Citi Custom Cash® Card.
The information related to the Citi Custom Cash® Card and Wells Fargo Active Cash® Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
