You’ve worked so hard to build your good credit.
You’ve still got debt, but it’s manageable. You have a plan to pay it all off– if only that dreaded interest would stop slowing you down!
If this sounds like you, it may be in your best interested to transfer your other debts with high interest and fees to another credit card.
Instead of taking two steps forward with each payment and one step back with added interest, you can pay off debt faster by moving your other balances to a card with low or even $0 APR.
CitiBank is one of the top worldwide banks. They offer such a variety of different cards, each with different minimum required credit scores and different benefits. Today, we’re going to be looking at one card from CitiBank that offers low APR for any debts transferred to it in the first four months of opening the account.
Read on to learn the pros and cons of the Citi Diamond Preferred card.
As the Diamond Preferred name would suggest, this card is for those with good to excellent credit.
By becoming a member of CitiBank, getting this card would mean access to Citi Concierge travel benefits, Citi Private Pass for select events, and the peace of mind that comes with excellent security from fraudulent charges.
If you love to travel, joining CitiBank comes with the added benefit of bank locations and ATMs worldwide. Citi is the leader in global banking. That means fewer transaction fees and accidental fraud warnings when traveling abroad.
The Citi Diamond Preferred card is just one of the dozens of options CitiBank provides. What immediately sets this card apart is the minimum credit score needed to request it, and its focus on long periods of no APR.
Rather than offer small increments of cash back rewards or member reward points for every dollar spent, Citi Diamond Preferred helps you pay off existing credit debt faster. Theoretically, you can save money and pay off debt faster if you transfer existing balances from your other cards to this one, pay no interest at all for 21 months.
21 months is by far the longest $0 APR period of other similar bank cards. But is everything about the Citi Diamond Preferred card make it worth the hype? Let’s take a moment to balance the pros and cons…
There are many potential benefits that come with requesting the Citi Diamond Preferred card.
As mentioned, if you transfer debt within the first four months of getting your card, you will pay no interest or fees for having a balance each month for almost two years. This is excellent news for people with good credit and a plan in place to make regular payments on their remaining credit card balances.
Even better, this card also will not charge any APR on any new purchases you make for the first year of opening the card.
Pros at a glance:
- $0 APR on balance transfers for first 21 months from the first transfer, as long as all transfers are made within the first 4 months of card ownership
- $0 APR on purchases made with this card for the first 12 months of ownership
- $0 liability for unauthorized purchases and protection by Citi Identity Theft Solutions
- No annual fee
- Free access to FICO scores
As you can see, the benefits of this Diamond Preferred card are more behind the scenes than most are used to.
This card is meant to save you from costly fees and interest in the long run, not reward you immediately for every purchase.
There are no cash back or membership point rewards for this card. The only remarkable benefit is saving interest on new purchases for 12 months and on transferred debt for 21 months.
Cons at a glance:
- After the first 12 month and 21 month APR grace periods, the variable APR will be 14.49% – 24.49%, based on creditworthiness
- There is a balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater
- No cash back or member point rewards
The balance transfer fee by itself could be a deal breaker for some applicants. If you do the math and notice the 5% balance transfer fee would be the same or more than the APR you’re already being charged, it’s not worth it.
You also should not get this card if you want to consolidate debt, but you don’t have a concrete plan to pay a transfer fee and all the debt within 21 months. As soon as that introductory $0 APR rate ends, you’re right back to paying interest on your remaining balance.
The Verdict on the Citi Diamond Preferred Card
Assuming you have excellent credit and can be strategic with debts, this card is great. But if you’re unsure how much you’d actually save after fees and the 21 months are over, you don’t need the Citi Dimond Preferred.
- This card grants access to standard Citi Bank Member rewards, but other than that offers no cash back or points for purchases
- You can use this card to pay off debts from other cards or other loans with $0 APR for the first 21 months, after a 5% transfer fee
Verdict: If you don’t need or don’t want to consolidate existing debt, there’s no need to get this card!
Find one with better daily benefits that fit your lifestyle.
Like this review?
Check out our blog for more helpful credit card reviews and expert advice on credit management. Whether you are looking for a personal loan no credit check or bad credit loan, we have the information and advice to help you make the best decisions!