Travel

Citi Diamond Preferred card assessment: A very good choice for these with bank card debt

February 27, 2023

219

Citi is a TPG promoting companion.

Citi® Diamond Preferred® Card overview

The Citi® Diamond Preferred® Card would not earn rewards. Instead, it is geared towards folks trying to keep away from curiosity whereas paying down bank card debt by way of a protracted introductory APR supply. While that might be a fantastic profit, it is value evaluating the cardboard to different playing cards with decrease stability switch charges and that supply rewards alongside the way in which. Card ranking*: ⭐⭐½

*Card ranking relies on the opinion of TPG’s editors and isn’t influenced by the cardboard issuer.

Each month you carry a stability in your bank card, you may pay curiosity primarily based in your card’s annual proportion charge. If you are struggling to get forward on funds and scale back debt, a bank card providing a 0% introductory APR on stability transfers may help you.

You’ll keep away from paying curiosity in your debt after transferring your stability to the brand new card out of your current card, doubtlessly saving lots of of {dollars} in curiosity every month.

The Citi Diamond Preferred Card has a longer-than-average introductory APR, which is right when attempting to pay down debt. However, that comes on the expense of not having a rewards program on the cardboard and paying a higher-than-average stability switch charge.

Is this the fitting card for you? Let’s have a look.

Citi Diamond Preferred Card welcome supply

There isn’t any bonus for brand new candidates on the Citi Diamond Preferred to earn further money again or factors. Instead, the worth of this card will come from cash you save by lowering your curiosity.

New candidates can obtain an introductory 0% APR supply on stability transfers for 21 months from the date of the primary switch, although transfers have to be accomplished inside 4 months from account opening. After the introductory interval, a variable APR of 17.49%-28.24% will apply, primarily based in your creditworthiness.

The introductory 0% APR additionally applies to purchases made inside 12 months of account opening. After the introductory interval, a variable APR of 17.49%-28.24% applies (primarily based on creditworthiness).

Note that the Citi Diamond Preferred has a stability switch charge of $5 or 5% of the quantity of the switch, whichever is bigger. Other playing cards with introductory stability switch presents have a 3% charge, so 5% is excessive. Transferring a $10,000 stability would incur $500 in charges.

You additionally can not switch a stability increased than your credit score restrict, so contemplate this once you apply for a brand new card and plan to switch a excessive greenback quantity.

Earning rewards on the Citi Diamond Preferred Card

Unfortunately, you will not earn any factors, miles or money again with the Citi Diamond Preferred Card. Instead, the cardboard is concentrated on serving to you pay down debt by way of a protracted introductory APR interval for purchases and stability transfers.

That stated, there are playing cards providing 0% introductory APR intervals whereas nonetheless offering rewards on new purchases (you will not earn rewards or money again on stability transfers). Examples embody the Bank of America® Customized Cash Rewards bank card and Citi® Double Cash Card.

Redeeming rewards on the Citi Diamond Preferred Card

As you will not earn any rewards, you don’t have anything to redeem. Consider this trade-off as you get monetary savings by way of a 0% APR supply and evaluate the worth of cash saved to the worth of rewards you may earn from one other card (by way of on a regular basis spending or a welcome bonus) to see which is healthier to your scenario.

Citi Diamond Preferred Card advantages

The principal advantage of the Citi Diamond Preferred is its 0% introductory APR. On high of saving lots of or hundreds of {dollars} per 12 months as a result of a diminished rate of interest, this contactless bank card presents two extra advantages.

You’ll get free entry to your FICO credit score rating, serving to you monitor your rating as you utilize the Diamond Preferred card that will help you pay down your bank card debt quicker.

You’ll additionally obtain entry to Citi Entertainment, which supplies particular entry to unique occasions or early presales on tickets, similar to Citi Entertainment did with Beyoncé tickets.

Since this card would not have an annual charge, it would not supply further perks like prolonged guarantee safety, rental automobile insurance coverage or misplaced baggage insurance coverage to your travels. If you are in search of these advantages, you could want a journey rewards bank card as an alternative.

Which playing cards compete with the Citi Diamond Preferred Card?

This is not the one bank card with a 0% introductory APR supply. Here’s a take a look at a number of different playing cards to see if one other supplies extra worth for you.

If you desire a stability switch with a decrease charge: The Bank of America Customized Cash Rewards bank card presents a 0% introductory APR for 18 billing cycles on purchases and for any stability transfers made inside 60 days of account opening. Afterward, the variable APR is eighteen.24%-28.24%, and there’s a stability switch charge of three% (with a minimal of $0). You’ll additionally earn 3% money again in your high spending class every month and will not pay an annual charge. For extra data, take a look at our full assessment of the Customized Cash Rewards card.
If you wish to earn rewards on purchases additionally: The Citi Double Cash Card has no annual charge and a 0% introductory APR on stability transfers (however not purchases) for 18 months. After the introductory interval, the variable APR is eighteen.49%-28.49%. Balance transfers have a 3% charge (minimal of $5) for the primary 4 months, then 5% (minimal of $5). You’ll earn Citi ThankYou factors with this card, which you’ll money out or can use with journey companions to economize on a trip. For extra data, take a look at our full assessment of the Citi Double Cash.
If you need further money again plus a stability switch: The Discover it® Cash Back Credit Card has no annual charge and a 0% introductory APR for stability transfers and purchases for 15 months. There’s a 3% stability switch charge and a variable APR of 16.24%-27.24% after the introductory interval. You’ll additionally earn as much as 5% again on purchases, plus Discover will match your money again on the finish of the primary 12 months. For extra data, take a look at our full assessment of the Discover It Cash Back card.

For extra choices, take a look at our full lists of the greatest bank cards with no annual charge, the greatest bank cards with 0% APR and the greatest stability switch bank cards.

The data for the Discover it Cash Back card has been collected independently by The Points Guy. The card particulars on this web page haven’t been reviewed or offered by the cardboard issuer.

Is the Citi Diamond Preferred Card value it?

Those who’re extra curious about slicing curiosity whereas paying down debt could also be prepared to open a bank card that does not have a welcome bonus and would not earn rewards. While different playing cards have higher earnings, the Citi Diamond Preferred has an extended introductory APR interval (21 months), which may offer you huge financial savings in the long term.

Bottom line

Avoiding curiosity for 21 months may make it easier to scale back stress and get monetary savings when you’ve got important bank card debt. However, you’ll pay a charge to switch your stability(s) to the Citi Diamond Preferred.

It’s additionally value contemplating whether or not you may be authorized for a brand new bank card when you’ve got important debt, as this may convey your credit score rating down. However, these trying to get out of bank card debt could also be prepared to forgo rewards and sign-up bonuses in favor of some extra months of not paying curiosity.

Apply right here: Citi Diamond Preferred Card