A few years ago, the Citi Dividend MasterCard was one of the highest yielding cash back credit cards available. It offered a full 5% cash back on gas, groceries, and drug store purchases, plus 1% cash back on everything else. A lot has changed in the world of cash back credit cards since then and the Citi Dividend Card, like its competitors, has scaled back the amount you earn year round.
Citi Dividend MasterCard Review
Presently, the Citi Dividend Mastercard offers the longest 0% introductory deal on balance transfers and purchases among its peers. At 15 months, this is one of the better 0% APR credit card offers on the market. Consumers looking to consolidate credit card debt via balance transfers or those who will be taking on new debt can benefit significantly from this feature.
A second major perk is a $100 sign up bonus awarded to new customers that spend $500 within three months of becoming a cardmember. Combined with the ultra-long 0% introductory rate, this feature makes the Citi Dividend card a good option for consumers seeking low rates now, but also want to earn rewards down the road.
Apart from these initial perks, this is a pretty standard cash back credit card. With the Citi Dividend Mastercard you earn 1% cash back on every purchase, plus 5% cash back in categories that change every three months.
The main issue with the Citi Dividend MasterCard is redeeming your cash back. Unlike many other cards that let your redeem your cash in $25 intervals, or after about $2,500 of spending, you need to accumulate $50, or spend about $5000 to get your cashback. The $100 cash back bonus offer makes the first redemption easy, but consumers who don’t spend heavily may find it takes a while to earn enough cash to make a redemption. However, unlike the Chase Freedom Card, there is no quarterly limit on 5% cash back. Thus, for example, if grocery store purchases qualify for 5% cash back in a quarter and $1,000 is spent, $50 in cash back is earned, enough to make a redemption.
Similar Cash Back Credit Cards
For some consumers, the Capital One Cash Card may be a better option than the Citi Dividend Mastercard. The Capital One No Hassle Cash Rewards card offers 1% cash back on everything, then a 50% bonus on cash back earned every year. This adds up to a 1.5% cash back on every purchase with no need to schedule purchases around rotating 5% cash back categories.
The Chase Freedom card is similar to the Citi Dividend card in that it too has rotating 5% categories that change every three months. However, you can redeem cash back once $25 is earned. The lower redemption threshold is good for consumers who don’t spend heavily, but, like the Capital One Cash card, this card also isn’t very generous in the 0% rate department.
You can learn more about the Citi Dividend card in the Citibank credit card section of CardWisdom where you can review credit card offer details and apply via online credit card applications.
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