Credit cards are indispensable financial tools, offering rewards and benefits tailored to different spending habits. In this blog, we’ll compare two top-tier cash-back credit cards in the United States: the Citi® Double Cash Card and the Discover it® Cash Back Card. Both are excellent choices, but they cater to distinct financial strategies. Let’s dive into the details to help you choose the one that’s right for you.
Citi® Double Cash Card
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Annual Fee: $0
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Rewards Structure:
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2% cash back on all purchases (1% when you buy, 1% when you pay off the balance).
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Sign-Up Bonus: None currently offered.
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Intro APR:
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0% intro APR on balance transfers for 18 months (then variable APR of 18.99% – 28.99%).
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Other Perks:
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No caps or categories to track.
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Balance transfer fee: 3% of the amount transferred (minimum $5).
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Citi Entertainment access for exclusive events.
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Discover it® Cash Back
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Annual Fee: $0
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Rewards Structure:
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5% cash back on rotating categories (up to $1,500 per quarter, activation required).
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1% cash back on all other purchases.
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Sign-Up Bonus: Discover will match all cash back earned in the first year.
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Intro APR:
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0% intro APR for 15 months on purchases and balance transfers (then variable APR of 17.24% – 28.24%).
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Other Perks:
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No foreign transaction fees.
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Freeze It® feature to prevent new purchases if you misplace your card.
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Free access to your FICO® Credit Score.
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Key Comparisons
1. Rewards Program
Citi® Double Cash:
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Straightforward 2% cash back on all purchases makes it ideal for users who want simplicity and consistent rewards.
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No need to track categories or activate rewards.
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Discover it® Cash Back:
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5% cash back offers higher earning potential but requires activation and is limited to specific categories, which change quarterly.
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Categories often include everyday spending areas like gas, groceries, and online shopping.
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2. Sign-Up Bonus
Citi® Double Cash:
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Lacks a sign-up bonus, which might deter users seeking immediate value.
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Discover it® Cash Back:
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The first-year Cashback Match effectively doubles all rewards earned, making it one of the most lucrative first-year offers available.
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3. Introductory APR
Citi® Double Cash:
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Offers 18 months of 0% APR on balance transfers, making it a strong contender for consolidating existing debt.
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Discover it® Cash Back:
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Provides 0% APR for 15 months on both purchases and balance transfers, appealing to those planning new purchases.
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4. Fees
Citi® Double Cash:
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Charges a 3% foreign transaction fee, making it less attractive for international travelers.
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Discover it® Cash Back:
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No foreign transaction fees, a significant advantage for overseas spending.
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5. Long-Term Value
Citi® Double Cash:
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Best for users who want consistent, predictable rewards with no spending caps.
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Discover it® Cash Back:
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Ideal for maximizing rewards in rotating categories, particularly during the first year.
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Who Should Get Each Card?
Citi® Double Cash Card:
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Perfect for those seeking simplicity and consistency.
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Ideal for users who prefer flat-rate rewards and want a straightforward cash-back card without tracking categories.
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Excellent for consolidating high-interest credit card debt due to the lengthy balance transfer intro APR.
Discover it® Cash Back:
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Best for users who can maximize the 5% cash back categories and are willing to track and activate rewards each quarter.
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A great choice for first-year cardholders looking to take advantage of the Cashback Match program.
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Ideal for international travelers who want to avoid foreign transaction fees.
Final Thoughts
Both the Citi® Double Cash Card and the Discover it® Cash Back card are exceptional options in the cash-back category, but they serve different purposes:
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If you value simplicity and consistent rewards, the Citi® Double Cash Card is your go-to.
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If you’re willing to put in the effort to maximize rewards and want the most bang for your buck in the first year, the Discover it® Cash Back card stands out.
Assess your spending habits and financial goals before making a decision. With either card, you’ll enjoy great rewards and no annual fee, making them both excellent additions to your wallet.