Citi Double Cash Credit Card and Target Redcard from Amex

Earlier last month, Citi started issuing a new type of credit card which has a very good design and offers a 2% cash back effectively. They broke this into the standard 1% cash back on purchases and another 1% cash back once the statement balance is fully paid. It is a slightly clever marketing ploy while encouraging and rewarding those who pay the bills on time. Other banks such as Fidelity Amex or Barclaycard Arrival have long offer similar 2% cash back on all purchases.

The significant advantage that Citi has over all others is as follows:

1. MasterCard Network which has a pretty wide acceptance compared to the Amex network.

2. No annual fee on this card.

We covered some of this card here. It is not too exciting but still something that could be added to your arsenal. I guess if a good chunk of us do not apply for this card, at some point, due to small numbers and marketing targets to be met, the sales team at Citi would be forced to offer at least few thousand bonus points as a way to attract few big spenders.

In all, this seems to be a good deal for those who just want to swipe away without worrying too much of the credit cards as to which one would fetch maximum rewards at a given time. Honestly, there is not much too much difference. At the high-end, you have the Amex preferred with 6% cash back on groceries and this card gives you 2%. If you smartly apply for big bonus cards and divvy up your spend on other 5% cards, there is hardly a difference. In most cases, you could actually even come out ahead in 2% cards. Then there is this obvious psychological ease in not having to think too much about which credit cards to use at which stores.

Citi card link for those who are interested is here. This is a direct link to the citi bank website.

Another update is the Target RedCard. This is similar to the Amex Bluebird or Serve card. Amex used to offer a Target prepaid card while Target had its own Redcard which fetches 5% returns. This is a totally different and brand new prepaid card issued by Amex and the intention is to operate along similar lines as Serve card. So far, the findings with Target Redcard has been that it is reloadable with your credit card in any Target Location. That is a cheap, quick and efficient way to complete minimum spending requirements, though not necessarily to gain points. For those, you still have to rely on drugstores or grocery stores among others. So in all, it is a great addition to the roster of prepaid cards. Will have to wait and watch as to where to fit it in one’s overall strategy. For now, I would suggest to hang in tight on one’s Bluebird or Serve card while targeting big bonus spend cards that are likely to emerge starting next month till end of holiday season.