What the Citi Cash Advance card does

The Citi Cash Advance card is a rewards card that gives you cash back on purchases rather than points or miles. You earn a flat percentage of cash back on every purchase you make, and that cash back appears as a credit on your monthly statement. There is no separate redemption step — the cash back automatically reduces what you owe.

This card is designed for people who want straightforward rewards without tracking categories or bonus structures. You spend, you earn a percentage back, and the math stays the same every month. The card also typically includes fraud protection and purchase protection, which means if an unauthorized charge appears or a purchased item arrives damaged, you can dispute it and the card issuer will investigate.

Key Takeaways

  • The Citi Cash Advance card earns a flat cash back rate on all purchases, with no bonus categories to track.
  • Cash back posts as a statement credit automatically, so you do not have to redeem it separately or watch it expire.
  • Annual percentage rate (APR) and annual fees vary by the specific version of the card, so you should check the current terms before opening an account.
  • Like all credit cards, this card reports to the three major credit bureaus, so on-time payments help your credit score and missed payments harm it.
  • Cash back earned is taxable income in the eyes of the IRS, though most cardholders do not report it because amounts are typically small.

How cash back works on this card

When you use the card to buy something, the merchant charges the card issuer, and the card issuer charges you. At the same time, the card calculates your cash back as a percentage of that purchase amount. That percentage is locked in — it does not change based on what you bought or where you bought it.

The cash back appears on your monthly statement as a credit. If you spent $500 in a month and earned 1.5% cash back, you would see a $7.50 credit applied to your balance. This happens automatically; you do not need to log in to a rewards portal or submit a redemption request. If you carry a balance, the cash back reduces what you owe. If you pay in full, the cash back reduces your next bill.

Cash back does not expire as long as your account remains open. However, if you close the card, any unredeemed cash back is typically forfeited, so keep that in mind if you are thinking about canceling.

Annual fees and interest rates

Citi offers multiple versions of cash back cards, and the terms differ. Some versions have no annual fee, while others charge $95 or more per year. A card with an annual fee usually offers a higher cash back rate to offset that cost — for example, a card with a $95 annual fee might earn 2% cash back, while a no-fee version earns 1.5%.

The APR — the interest rate you pay if you carry a balance — also varies by card version and your creditworthiness. A typical range is 16% to 24% APR for purchases, though the exact rate depends on your credit score and history. If you carry a balance, interest charges will quickly outpace any cash back you earn, so this card works best if you pay your statement in full each month.

Some versions offer an introductory APR period, which means a lower or zero interest rate for a set number of months (often 6 to 12 months). This applies only to purchases made during the promotional period, and the regular APR kicks in after that window closes.

How this card affects your credit

Opening a new credit card triggers a hard inquiry on your credit report, which temporarily lowers your score by a few points. This inquiry stays on your report for about two years but stops affecting your score after roughly six months.

Once the account is open, the card issuer reports your payment history and balance to Equifax, Experian, and TransUnion — the three major credit bureaus. Paying on time every month helps your credit score. Missing a payment or paying late damages it, sometimes significantly. Carrying a high balance relative to your credit limit also hurts your score, even if you pay on time, because it raises your credit utilization ratio.

If you close the card later, the account stays on your credit report for about 10 years, and it continues to affect your score during that time. Closing a card also removes that credit limit from your available credit, which can raise your overall utilization ratio and lower your score.

When this card makes sense and when it does not

This card works well if you spend consistently, pay your balance in full each month, and want a straightforward rewards structure with no categories to track. If you spend $10,000 per year and earn 1.5% cash back, you get $150 back — a real benefit for doing nothing different than you already do.

This card does not make sense if you carry a balance regularly. Interest charges at 16% to 24% APR will cost you far more than any cash back you earn. It also does not make sense if you are trying to rebuild credit, because opening a new account and a hard inquiry can slow your progress. If you already have several open credit cards, adding another one raises your total available credit, which can help your utilization ratio — but only if you do not increase your spending.

If you spend heavily in specific categories — groceries, gas, dining — a card with bonus categories might earn you more cash back than a flat-rate card. For example, a card that earns 3% on groceries and 1% on everything else will beat a 1.5% flat-rate card if most of your spending is groceries.

Tax implications of cash back

Cash back is technically taxable income. The IRS considers it a rebate or discount on your purchase price, not a gift. However, credit card issuers do not report cash back to the IRS unless it exceeds $20,000 and you have more than 200 transactions in a year — a threshold almost no individual cardholder hits.

Because of this, most people do not report cash back on their tax return, and the IRS does not pursue it. That said, if you are self-employed or run a business, you may want to track cash back separately, because the rules can differ depending on how you structure your business and whether the card is used for business or personal expenses.

Comparing this card to other cash back options

Citi is not the only issuer offering cash back cards. American Express, Chase, Bank of America, and Capital One all have versions. The differences come down to the cash back rate, annual fee, introductory offers, and whether the issuer reports to all three credit bureaus (most do, but it is worth confirming).

A card with a higher cash back rate but an annual fee is only worth it if your annual spending is high enough that the cash back exceeds the fee. For example, a 2% cash back card with a $95 annual fee breaks even at $4,750 in annual spending. Below that, a no-fee 1.5% card is better. Above that, the higher-rate card wins.

Some cards also offer bonus cash back for the first few months — for example, 5% cash back for the first three months, then 1.5% after. These bonuses can add up quickly if you have planned spending, like a home renovation or a large purchase you were going to make anyway.

Frequently Asked Questions

Does cash back count as income for government benefits?

Cash back is not typically counted as income for means-tested benefits like SNAP, Medicaid, or housing information, because it is a discount on your own spending, not money received from an outside source. However, rules vary by program and state. If you receive means-tested benefits, contact the program directly to confirm.

What happens to my cash back if I close the card?

Any cash back that has already posted to your account (appeared as a statement credit) is yours to keep. Any cash back that has not yet posted is forfeited when you close the card. To avoid losing cash back, wait until your statement closes and the cash back posts before you cancel.

Can I transfer my cash back to another card or bank account?

Most Citi cash back cards do not allow you to transfer cash back to a bank account. The cash back appears only as a statement credit. Some premium cards offer the option to redeem cash back as a check or deposit, but this varies by card version. Check your card's terms or call the customer service number on the back of your card to confirm what options you have.

Does opening this card hurt my credit score?

Opening the card triggers a hard inquiry, which temporarily lowers your score by a few points. The inquiry stops affecting your score after about six months. Over time, if you pay on time and keep your balance low, the card will help your score by adding to your payment history and available credit. If you miss payments or carry a high balance, it will hurt your score.

What is the difference between this card and a rewards card that gives points?

Cash back is simpler: you earn a percentage of your spending back as a dollar credit. Points require you to track a separate currency, log into a rewards portal to redeem, and figure out what your points are worth. Cash back is when ready and automatic. Points can sometimes be worth more if you redeem them strategically (for example, using airline points for premium cabin flights), but cash back is more straightforward for most people.