Citi Diamond Preferred Card Review: An Excellent Choice for Debt Consolidation
If you’re looking for a credit card to help you manage and pay down existing debt, the Citi® Diamond Preferred® Card could be a great option. This card offers one of the longest 0% intro APR periods for balance transfers, making it a solid choice for debt consolidation. While it doesn’t offer rewards or a welcome bonus, its low-cost financing and potential for significant interest savings can make it an attractive option for many consumers.
Key Takeaways:
- Ultra-Long Intro APR: The Citi Diamond Preferred card boasts a 0% intro APR for 21 months on balance transfers, one of the longest offers available. Combine this with a 0% intro APR on purchases for 12 months, and you have a powerful tool for building your credit and saving on interest.
- No Annual Fee: One of the most significant benefits of the Citi Diamond Preferred is its lack of an annual fee. This means you can take advantage of the card’s features without paying any recurring costs.
- Balance Transfers Within Four Months: You have four months from account opening to complete balance transfers, giving you ample time to optimize your strategy.
- Trade-offs: The card doesn’t offer rewards or a welcome bonus, making it less desirable for everyday spending or those seeking bonus perks. Also, the 5% balance transfer fee is on the higher end of the industry standard.
Welcome Bonus
The Citi Diamond Preferred Card offers a 0% intro APR on balance transfers for 21 months from the date of the first transfer. You also get a 0% intro APR for 12 months on purchases from the date you open the account.
While the 21 months of 0% intro APR makes this card a standout for balance transfers, the 5% transfer fee (with a $5 minimum) is on the higher end of the spectrum. It’s crucial to calculate how much the card will save you in interest, factoring in the balance transfer fee, to determine if the card suits your needs.
The 12-month intro APR for purchases is decent, but you can find rewards credit cards that offer even longer introductory periods for purchases. Consider the features of other cards if you’re only looking for financing on new purchases.
Rates and Fees
The Citi Diamond Preferred Card doesn’t require an annual fee, a major perk for those seeking a low-cost option. However, it does carry a 3% foreign transaction fee on purchases made outside the U.S. The variable APR for the card ranges from 18.24% to 28.99%, depending on your creditworthiness.
Alternatives to the Citi Diamond Preferred Card
Here are a couple of credit cards that share similarities with the Citi Diamond Preferred Card:
Citi Diamond Preferred Card vs. Wells Fargo Reflect® Card
Both the Citi® Diamond Preferred® Card and the Wells Fargo Reflect® Card offer introductory APRs on both balance transfers and new purchases. The key difference comes down to the lengthy introductory period the Reflect offers on purchases.
The Wells Fargo Reflect offers a 0% intro APR for 21 months on balance transfers from the date you open the account (after that, it switches to a variable APR of 18.24%, 24.74% or 29.99%). Comparable to the Citi Diamond Preferred, the Reflect card has a 5% balance transfer fee ($5 minimum) and a 120-day window to complete transfers from account opening.
Where the Reflect shines is its introductory APR on purchases. It offers a 0% intro APR for 21 months from account opening (then a variable APR of 18.24%, 24.74% or 29.99% applies), offering nine months of interest-free financing on purchases.
The Wells Fargo Reflect also provides additional protections, such as cell phone protection (when you pay your monthly cell phone bill with the card) and roadside dispatch.
Citi Diamond Preferred Card vs. Citi Simplicity® Card
The Citi® Diamond Preferred® Card and Citi Simplicity® Card share key features, with the primary difference being a crucial fee structure.
The Citi Simplicity offers cardholders a 0% intro APR for 12 months on purchases from account opening and a 0% intro APR on balance transfers for 21 months from the date of the first transfer (after which it shifts to a variable APR of 19.24% to 29.99%).
The Citi Simplicity has a slightly higher variable APR but a lower balance transfer fee. Its intro fee is 3% of the amount transferred ($5 minimum) during the first four months of account opening, after which it rises to 5% of the transfer amount ($5 minimum).
Both cards offer excellent options for balance transfers, but the lower fees on the Citi Simplicity make it a slight edge for those wanting to pay down debt quickly.
Is the Citi Diamond Preferred Card Right for You?
The Citi Diamond Preferred Card excels at providing interest savings, especially for those with existing debts. The lack of rewards and a welcome bonus means that it might not be the best fit for everyday spending or those searching for additional perks.
Pros:
- Longest Intro APR for Balance Transfers
- Interest-Free Financing on Purchases for One Year
- No Annual Fee
Cons:
- No Rewards Program
- No Welcome Bonus
- Limited Additional Benefits
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