Citi® Diamond Preferred® Card Review
The Citi® Diamond Preferred® Card is designed to provide cardholders with an extended period of 0% interest on balance transfers and purchases. This feature makes it a valuable tool for those looking to pay down existing debt or make large purchases without the immediate burden of interest charges.
Key Features
Ultra-long 0% Intro APR Period
One of the standout features of the Citi® Diamond Preferred® Card is its 0% Intro APR for 21 months on Balance Transfers and 12 months on Purchases. This extended interest-free period allows you to focus on paying down your balance without accruing additional interest, making it easier to manage and eliminate debt.
No Annual Fee
The card comes with no annual fee, which means you can enjoy its benefits without worrying about an additional yearly charge. This is a significant advantage, especially for those who are cautious about incurring extra costs.
Access to Citi Entertainment®
Cardholders get special access to purchase tickets for thousands of events, including concerts, sporting events, dining experiences, and more through Citi Entertainment®. This perk adds extra value to the card, especially for those who enjoy exclusive experiences.
Pros and Cons
Pros
- No Annual Fee: Enjoy all the benefits of the card without any yearly charges.
- Extended Intro APR Period: One of the longest 0% intro APR periods for balance transfers and purchases on the market.
- Flexibility in Payment Dates: Choose a monthly payment due date that works best for you.
Cons
- No Rewards Program: Unlike many other cards, the Citi® Diamond Preferred® does not offer rewards or a sign-up bonus.
- Requires Good to Excellent Credit: You need a good to excellent credit score (690-850) to qualify.
- High Balance Transfer Fee: The card charges 5% of each transfer, which is higher than some competing cards.
Detailed Review
Interest-Free Period
The most attractive feature of the Citi® Diamond Preferred® Card is its extended 0% intro APR for 21 months on Balance Transfers and 12 months on Purchases. After the introductory period, the variable APR ranges from 18.24% to 28.99%, based on your creditworthiness. This lengthy interest-free period is ideal for consolidating debt or making significant purchases that you plan to pay off over time.
No Annual Fee
Another significant benefit is the absence of an annual fee. This makes the card a cost-effective choice for those looking to manage their debt without incurring additional charges.
Balance Transfer Fee
While the card offers an excellent intro APR period, it’s essential to note the balance transfer fee, which is 5% of each transfer (minimum $5). This fee can add up, especially for larger transfers, so it’s crucial to calculate if the long 0% APR period outweighs the cost of the transfer fee.
No Rewards Program
The Citi® Diamond Preferred® Card does not offer a rewards program. This lack of rewards means that once you’ve paid off your balance, there may be little incentive to keep using the card for everyday purchases.
Comparison with Other Cards
| Feature | Citi® Diamond Preferred® Card | Citi Simplicity® Card | Discover it® Cash Back |
|---|---|---|---|
| Annual Fee | $0 | $0 | $0 |
| Intro APR Period (Balance Transfers) | 0% for 21 months | 0% for 21 months | 0% for 18 months |
| Intro APR Period (Purchases) | 0% for 12 months | 0% for 12 months | 0% for 15 months |
| Rewards | None | None | 5% cash back on rotating categories |
| Balance Transfer Fee | 5% ($5 minimum) | 5% ($5 minimum) | 3% for first 60 days (then 4%) |
| Late Fees | Yes |
Citi® Diamond Preferred® Card vs. Citi Simplicity® Card
Both cards offer similar 0% intro APR periods on balance transfers and purchases. However, the Citi Simplicity® Card stands out by not charging a late fee or imposing a penalty APR for missed payments. This feature makes it a better option for those who might occasionally miss a payment due date.
Discover it® Cash Back
For those looking for rewards, the Discover it® Cash Back offers a solid introductory APR offer along with ongoing rewards. You get a 0% intro APR for 15 months on purchases and balance transfers, and the card earns 5% cash back on rotating quarterly categories on up to $1,500 in purchases each quarter (activation required); 1% on everything else. The annual fee is $0.
Benefits
$0 Annual Fee
The Citi® Diamond Preferred® Card’s $0 annual fee makes it an attractive option for cost-conscious consumers. You can enjoy the benefits of a lengthy interest-free period without worrying about an annual charge.
Long Interest-Free Period
The card offers one of the longest interest-free periods available, providing 0% Intro APR for 21 months on Balance Transfers and 12 months on Purchases. This feature can save you a significant amount in interest payments.
Flexible Payment Dates
Cardholders have the option to choose their payment due date, offering flexibility and making it easier to manage payments according to their schedule.
Drawbacks and Considerations
No Rewards
The card doesn’t offer rewards, which might be a dealbreaker for some. If earning rewards is important to you, consider other options like the Discover it® Cash Back.
High Balance Transfer Fee
The 5% balance transfer fee is on the high side compared to other cards. For example, the BankAmericard® credit card offers a lower balance transfer fee of 3% for the first 60 days from account opening (then 4%).
Late Fees
While most cards charge late fees, it’s worth noting that the Citi® Diamond Preferred® Card does not waive these fees. If you are prone to missing payment due dates, the Citi Simplicity® Card might be a better fit, as it doesn’t charge late fees or impose a penalty APR.
How To Decide If It’s Right For You
If you’re looking to pay down existing debt and need a long interest-free period, the Citi® Diamond Preferred® Card is a strong contender. Its 21-month 0% intro APR on balance transfers is one of the longest available, providing ample time to manage and reduce your debt. However, if rewards and lower balance transfer fees are more important to you, consider exploring other cards.
FAQs
Q: Does the Citi® Diamond Preferred® Card offer any rewards?
A: No, the Citi® Diamond Preferred® Card does not offer rewards or a sign-up bonus. Its primary feature is the long interest-free period for purchases and balance transfers.
Q: What credit score is needed to qualify for the Citi® Diamond Preferred® Card?
A: You will need a good to excellent credit score (690-850) to qualify for this card.
Q: How does the balance transfer process work?
A: You can start by calling the customer service number on the back of the card or request a transfer with your application. It takes at least 14 days after opening an account to complete the process. The total amount transferred must be less than your available credit limit on the Citi® Diamond Preferred® Card, and you can’t transfer debt from another Citi card.
Q: What are the fees associated with the Citi® Diamond Preferred® Card?
A: The card has no annual fee but charges a 5% balance transfer fee (minimum $5). Other fees include a foreign transaction fee of 3% and a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater.
Q: Can I choose my payment due date with the Citi® Diamond Preferred® Card?
A: Yes, the card allows you to choose a monthly payment due date that works best for you.
Q: What is the ongoing APR after the introductory period?
A: After the introductory period, the variable APR for the Citi® Diamond Preferred® Card is 18.24%-28.99%, based on your creditworthiness.
Q: Is there any protection against unauthorized charges?
A: Yes, the card offers $0 liability protection against unauthorized charges, ensuring you are not responsible for any charges you did not authorize.
The Citi® Diamond Preferred® Card is an excellent choice for those looking to manage and reduce debt, thanks to its long 0% intro APR period on balance transfers and purchases. While it lacks a rewards program, the absence of an annual fee and the flexibility in choosing payment dates make it a practical option for those prioritizing debt management. However, if earning rewards or lower balance transfer fees are essential to you, exploring other options might be beneficial.
