Comparing the U.S. Bank Shopper Cash Rewards Card with its rivals in the market
In the world of customizable cash back cards, two standout options are the U.S. Bank Shopper Cash Rewards® Visa Signature® Card and the Citi Custom Cash® Card. Let's take a closer look at these cards and their features.
U.S. Bank Shopper Cash Rewards® Visa Signature® Card
The U.S. Bank Shopper Cash Rewards® card offers highly customizable cash back rewards, allowing you to earn up to 6% cash back at two selected retailers each quarter, plus 3% cash back in an everyday category. However, it comes with a $95 annual fee after the first year and has spending caps on bonus categories.
Pros
- High 6% cash back rate on two chosen retailers from a list of 24, above typical rates from many competitors.
- A generous $250 welcome bonus after spending $2,000 in the first 120 days.
- Flexible redemption options with no minimum on statement credits.
- Includes premium Visa Signature benefits like cell phone insurance, extended warranty, and rental car insurance.
- Earn an additional 5.5% cash back on hotel and car rentals booked through U.S. Bank’s travel portal.
Cons
- Annual fee of $95 after the first year free.
- You must choose bonus categories quarterly to earn the high rates; forgetting to select categories risks earning the default 1.5% back, adding complexity.
- Spending caps of $1,500 quarterly on the 6% categories and the 3% daily category limit rewards potential.
- Foreign transaction fees apply, limiting convenience for travel.
- Requires excellent credit for approval, which can be a barrier for some applicants.
Citi Custom Cash® Card
The Citi Custom Cash® Card offers a sign-up bonus of $200 in cash back after spending $1,500 on purchases in the first 6 months of account opening. It also earns 5% cash back on up to $500 per billing cycle in the top eligible spending category, such as restaurants, gas stations, grocery stores, and more.
Pros
- No annual fee.
- The 5% cash-back rate is applied to a wide range of categories including dining, gas stations, grocery stores, travel, and more.
- Earn 3% back in one everyday category on up to $1,500 in spending per quarter. Eligible categories include wholesale clubs, gas and electric vehicle charging, bills and utilities.
Cons
- The monthly spending cap to earn 5% cash adds up to $6,000 per year, $60 less than the quarterly $1,500 spending cap for the 6% merchants with the U.S. Bank Shopper Cash Rewards® Visa Signature® Card.
- The ongoing APR is 18.24%-28.24% Variable APR.
In summary, both the U.S. Bank Shopper Cash Rewards® and Citi Custom Cash® cards offer unique benefits for customers seeking customizable cash back rewards. The Shopper Cash Rewards card offers the highest cash back rates on customizable categories but with trade-offs including an annual fee, quarterly category selection, and spending caps. The Citi Custom Cash® Card, on the other hand, offers no annual fee and a wide range of categories with a lower maximum cash back rate.
When choosing between these two cards, consider your spending habits, preferred categories, and willingness to manage quarterly category choices and spending caps. If you frequently shop at select retailers and can manage the quarterly category choices, the U.S. Bank Shopper Cash Rewards® card may be ideal. If you prefer a simpler structure with no annual fee and a broader range of categories, the Citi Custom Cash® Card could be a better fit.
Investing in one of these credit cards for finance could lead you to consider the U.S. Bank Shopper Cash Rewards® Visa Signature® Card or the Citi Custom Cash® Card for your business. The Shopper Cash Rewards card, while requiring excellent credit and charging an annual fee, offers a higher 6% cash back rate on customizable categories and a generous $250 welcome bonus. The Citi Custom Cash® Card, free of annual fees, earns 5% cash back on a wide range of categories with a lower maximum cash back rate. Your choice between these cards would depend on your spending habits, preferred categories, and tolerance for managing quarterly category choices and spending caps.
