An explanation of the Citi® Diamond Preferred® Card.
There are no benefits associated with the Citi® Diamond Preferred® Card. Instead, it is aimed at consumers who wish to steer clear of interest charges while simultaneously reducing their credit card debt and benefits from a lengthy introductory APR deal. Even though this may be a significant advantage, it is important to consider whether or not this card is the best option available given the balance transfer fees and benefits it provides. *This card has a rating of 12.
*The card rating is determined solely by the editors at TPG and is not subject to any influence from the card issuer.
If you carry a balance from month to month on your credit card, you will be charged interest according to the annual percentage rate that is associated with your card. If you are having trouble getting ahead on your payments and reducing your debt, you may benefit from using a credit card that provides a 0% introductory APR on balance transfers.
After transferring the balance from your previous card to the new card, you won't be responsible for paying any interest on the debt you owe, which will save you possibly hundreds of dollars in interest charges each month.
When it comes to paying off debt, the Citi Diamond Preferred Card's starting APR is significantly higher than the average, making it an excellent choice. On the other hand, this comes with the penalty of not having a rewards programme associated with the card and of incurring a balance transfer fee that is greater than the norm.
Do you think this is the best card for you to use? Let's have a peek.
Related: Here are three trustworthy methods for paying off your credit card debt
The welcome offer for the Citi Diamond Preferred Card
On the Citi Diamond Preferred card, there is no sign-up offer for new customers that allows them to earn additional cash back or points. Instead, the value of this card will come from the money you save thanks to the reduction in the interest you have to pay on your balance.
Transfers must be completed within four months of the account being opened to be eligible for the promotional offer of a 0% APR on balance transfers for 21 months from the date of the first transfer. Following the promotional period, you will be subject to a variable APR ranging from 17.49% to 28.24%, depending on your creditworthiness.
Also, the promotional APR of 0% applies to purchases made within the first year after an account is opened. After the introduction period, the annual percentage rate (APR) will range from 17.49% to 28.24%. (Based on creditworthiness).
Related: the most effective method for paying down your credit card balance
Be aware that the balance transfer fee for Citi Diamond Preferred is either $5 or 5% of the amount being transferred, whichever is greater. Some cards that offer introductory balance transfer promotions charge a fee of 3%, so a fee of 5% is quite steep. If you were to transfer a balance of $10,000, it would cost you $500 in fees.
When you apply for a new card and intend to transfer a large dollar amount, you should take into consideration the fact that you cannot transfer a balance that is greater than your credit limit.
Obtaining benefits using the Citi Diamond Preferred Card.
However, if you use the Citi Diamond Preferred Card, you won't earn any points, miles, or cash back for your purchases. Instead, the card's primary purpose is to facilitate the reduction of an existing debt by providing a lengthy introductory APR term for both new purchases and balance transfers.
Having said that, there are cards available that provide introductory periods of 0% APR and still provide rewards on new purchases. However, you won't receive points or cash back on balance transfers with these cards. There are credit cards such as the Bank of America® Personalized Cash Rewards Card and the Citi® Double Cash Card, as two examples.
When it comes to the Citi Diamond Preferred Card, the redeeming reward is a breeze.
You do not have anything to redeem because you will not get any rewards. Consider this trade-off as you save money through an offer of a 0% annual percentage rate (APR), and compare the value of the money you saved to the value of the rewards you might earn from another card (through everyday spending or a welcome bonus) to determine which card is better for your situation.
Related question: how much do the points and miles add up to? valuations performed each month by TPG
Advantages of using a Citi Diamond Preferred Card
The Citi Diamond Preferred card's main selling point is its introductory APR of 0% for the first year. This contactless credit card provides two extra benefits in addition to the savings of hundreds or thousands of dollars per year that are possible as a result of the decreased interest rate.
Related: here are six things you can do this year to boost your credit score.
You will get free access to your FICO credit score, which will assist you in keeping track of your score as you make use of the Diamond Preferred card to assist you in paying off your credit card debt more quickly.
You'll also have access to Citi Entertainment, which gives members early access to ticket presales and special opportunities to attend exclusive events, similar to what Citi Entertainment did with Beyoncé ticket presales.
Because this card does not charge an annual fee, additional benefits such as extended warranty protection, rental car insurance, or lost luggage insurance for your travels are not included in the card's benefits package. If you want those benefits, you might be better off applying for a credit card that offers travel rewards instead.
Which other credit cards are in the running to challenge the Citi Diamond Preferred Card?
There are other credit cards available that also come with an introductory APR of 0%, unlike this one. Take a look at the following cards to determine whether or not one of these offers a better deal than the others do for you.
- If you wish to transfer a balance yet pay a reduced cost, you can do the following: The introductory annual percentage rate (APR) for the Bank of America Tailored Cash Rewards credit card is 0% for the first 18 billing cycles on purchases and for any balance transfers done during the first 60 days of opening an account. After that, the variable APR ranges from 18.24% to 28.24%, and the fee for transferring a debt is 3% (with a minimum charge of $0). You will not be required to pay an annual fee and will be eligible to receive 3% cash back each month on your top spending category. Check out our comprehensive review of the Personalized Cash Rewards card for more information on this topic.
- If you also wish to receive incentives on purchases, you can do the following: The Citi Double Cash Card does not charge an annual fee and offers an introductory APR of 0% for the first 18 months on balance transfers (but not on purchases). Following the initial promotional period, the variable APR ranges from 18.49% to 28.49%. Transferring a balance incurs a cost of 5% (minimum of $5) after the first four months, at which point it drops to 3% (minimum of $5). Using this card will earn you Citi ThankYou points, which may be redeemed for cash or used in conjunction with Citi's travel partners to receive discounts on future trips. Check out our comprehensive review of the Citi Double Cash for additional details.
- If you are interested in receiving additional cashback in addition to transferring a balance, the Discover it® Cash Back Credit Card is a good option for you because it does not charge an annual fee and offers a 0% introductory APR for balance transfers and purchases for the first 15 months. After the introductory period, the variable APR will range from 16.24%-27.24%, and there will be a balance transfer fee of 3%. You can earn up to 5% cash back on purchases, and Discover will match the cash back you earn after the first year. Other benefits include: Check out our comprehensive review of the Discover It Cash Back card for further background information.
Check out our comprehensive listings of the best credit cards that do not charge an annual fee, the best credit cards that offer 0% interest on debt transfers, and the best credit cards overall for further choices.
Related: Consolidating and paying off your credit card debt: how to do it
The information for the Discover it Cash Back card was obtained by The Points Guy through their independent research. The information regarding the card that can be found on this page has not been reviewed or supplied by the entity that is the issuer of the card.
Is it worthwhile to get the Citi Diamond Preferred Card?
Those who are more concerned with lowering their interest rates while paying off their debt could be willing to apply for a credit card that does not come with a sign-up bonus and does not earn rewards points. Even while other cards provide more earnings potential, the Citi Diamond Preferred has a longer introductory APR term (21 months), which might result in significant cost savings throughout the card's lifetime.
Bottom line
If you have a substantial amount of credit card debt, avoiding interest charges for 21 months could help you reduce stress and save money. However, to transfer your balance(s) to Citi Diamond Preferred, you will be required to pay a charge.
If you have a substantial amount of outstanding debt, you should examine whether or not you will be approved for a new credit card. This could hurt your credit score. But individuals who are serious about paying off their credit card debt might be ready to forego rewards and sign-up bonuses in exchange for a few additional months during which they will not be required to pay interest.
Applying can be done here: Credit Card Citi Diamond Preferred