Citi® Diamond Preferred® Card review 2022

Citi® Diamond Preferred® Card Overview

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Whether you’re paying off debt with a balance transfer or financing a new purchase, the Citi® Diamond Preferred® Card can be a lifesaver. The card offers long-term APR benefits on purchases and transfers, no annual fee, and the chance of a relatively low ongoing APR for cardholders with good to excellent credit ratings, which may make the card good value for money.

The Citi Diamond Preferred Card’s long-term introductory APR is hard to beat, making this card a solid choice if you think it will take a long time to clear your balance. However, you can save even more (if you have big spending) by getting a card with a lower transfer fee and a longer introductory purchase APR. Also, aside from a slightly lower ongoing interest rate after the introductory APR ends, the card has little long-term viability due to its modest benefits and lack of ongoing rewards. Fortunately, the new statement welcome offer is a rare selling point, and one of the best of the few cards with this offer. The cash value of the introductory bonus gives the Diamond Preferred more leverage, which helps offset higher transfer fees and makes it one of the ultimate options for cashing out your funds.

What are the advantages and disadvantages?

Benefit

One of the longest 0% introductory APR periods available for balance transfers: 21 months (balance transfers must be made within the first four months)
No annual fee
One of the few balance transfer cards that offers a welcome bonus on statement balances – $150 after spending $500 in the first three months – and offers higher cash value than direct competitors
Ongoing APR may be reduced by 13.99% to 23.99% (variable APR) for cardholders with good to excellent credit history

Cons

The low 12-month 0% APR on introductory purchases (up from 18 months) puts the already niche Diamond Preferred in a more balanced transfer-oriented role
A transfer fee of 5% (or $5, whichever is higher) is on the high end of the usual range (3% to 5%).
Potentially low ongoing APR (variable APR) of 13.99% to 23.99% does not provide a low enough ongoing value to justify holding the card after the balance transfer is complete.
3% foreign transaction fee
No ongoing rewards program to limit your value once the balance is paid.

Learn more about current map offers

Quick Highlights

Reward rate: none
Welcome Offer: $150 in credit after $500 in purchases within the first three months
Annual fee: $0
Purchase Introduction APR: 0% for 12 months
Balance Transfer Introduction APR: 0% for 21 months
Fixed APR: 13.99% to 23.99% (variable)

Current Welcome Offers

Few prepaid debit cards offer introductory cash benefits, but the Citi Diamond Preferred’s addition of $150 in statement credit after only $500 in purchases in the first three months is a revitalizing opportunity for the prepaid debit card market. Diamond Preferred can certainly use it as the 5% transfer fee is higher than most. If you’re transferring a balance of $3,000 or less, this introductory offer covers the cost in full.

If you double your required spend to $1,000 in the first 90 days with a BankAmericard® credit card (the only other major competitor that earns an introductory bonus at the bar), that’s the same as the $100 statement credit you’ll get It’s more cost-effective than a statement line of credit. Considering BankAmericard’s offerings have made it one of the top players in the card market, this evolution of the Citi Diamond Preferred puts it in the top league for prepaid debit cards. However, BankAmericard’s welcome offer can cover higher transfer balances, up to $3,333, as it includes a lower 3% transfer fee, which means this competitor may still be an option for some cardholders better choice.

However, the main introductory benefits of the Citi Diamond Preferred Card are the current introductory APR of 0%, balance transfers (first 21 months) and purchases as a card member (first 12 months) (13.99% to 23.99%) . Variable annual percentage rate thereafter). .Balance transfers must be completed within four months of account opening. This gives you more than a year to pay off a designated debt or pay for a purchase without paying interest.

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Although the Citi Diamond Preferred Card has historically had a longer introductory period for APR purchases (most recently 18 months), 12 months is still a solid offering. However, this reduction puts the Citi Diamond Preferred in a more balance-transfer-oriented role compared to its previous fully interest-free card status. This is a bit disappointing, especially since other well-known balance transfer cards offer matching introductory purchases and balance transfer APR terms equal to 15 months or more.

For example, the Wells Fargo Reflect℠ Card currently offers one of the longest 0% introductory APR periods for initial account purchases and qualifying balance transfers – up to 21 months, with minimum payments on time during the introductory period (13.24% to 25.24% thereafter variable APR) — and a much better deal than what the Diamond Preferred currently offers. In fact, this restructuring could make the no-annual-fee cash-back credit card a more valuable option for many cardholders in the long run.

If you need to pay down debt or strategically maintain a balance on new purchases, moving to the Citi Diamond Preferred Card may be a good option. Just make sure you complete the transfer within four months of opening the account and pay at least the minimum amount each month to protect your credit (preferably paying more than the minimum amount to ensure you don’t have a balance). , when the introductory APR period ends).

More benefits for cardholders

Without a doubt, the main advantage of the Citi Diamond Preferred Card is its long-term account transfer introductory APR period and introductory bonus. The card is noticeably weak in other perks, and its lack of an ongoing rewards program severely limits its long-term value. Nonetheless, Citi Diamond Preferred offers some notable benefits.

Citi Flexible Loan

Citi Flex Loans allows you to borrow funds from your Citi card credit line at a fixed rate and repay it over a set period of time without additional fees, applications or credit inquiries. This can be a useful tool if you need a personal installment loan later on. The problem is that the card issuer has to contact you to get a Citi Flex loan – not available to all cardholders. Cardholders also have the option to use Citi Flex Pay to fund Amazon.com purchases, choosing between one and five equal monthly payment plans depending on the size of the purchase.

Citi Entertainment

Citi Entertainment gives you early or VIP access to thousands of experiences, including concerts, sporting events, dining and more, when you pay with your Citi card. While this isn’t a make-or-break feature for the Citi Diamond Preferred Card, it’s a nice bonus when you’re enjoying live events, special visits, and unique experiences.

Citi Easy Trading

Citi Easy Deals is a collection of discounts and daily deals on everyday purchases, including local deals from restaurants and retailers. Depending on how much you spend each year, you can also unlock promotions on gift cards, magazines, travel, merchandise, and more. Then again, it’s a small perk that probably won’t save you a ton of money — but it’s still welcome.

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The Citi Diamond Preferred Card also offers fairly standard features, such as contactless payments.

Prices and Fees

The Citi Diamond Preferred Card has no annual fee and may offer a decent ongoing APR for cardholders with good to excellent credit, but this will prove costly if you have a large balance to transfer and cannot or can only withdraw. period is eligible for its high-end APR. When considering whether the card is a good fit, consider these rates and fees:

Balance transfer fee: To take advantage of the balance transfer feature of this card, you must pay a balance transfer fee equal to 5% of the amount you wish to transfer (or $5, whichever is greater). 5% is on the higher end, many cards charge 3%, and the lower fee can offset the shorter introductory APR. However, if you’re transferring $3,000 or less, the higher rates probably won’t be a problem, as the card’s $150 welcome offer can cover that (as long as you spend $500 in the first three months). Check out Bankrate’s credit card balance transfer calculator to see how the math does it for you.
Overseas transaction fee: The card is subject to a 3% overseas transaction fee for overseas purchases, so it is not the best choice for people who travel abroad frequently.
Running an APR: The Citi Diamond Preferred offers a wide range of potential APRs based on your credit history. While the lowest variable APR for the card was 13.99%, slightly lower than the average credit card APR, the highest variable APR was actually very high at 23.99%—nearly 40% higher than the average credit card APR. In either case, carrying a balance is expensive, so try to pay off any new purchased or transferred balances before the card’s introductory period ends.

While it depends on your financial situation, the transfer fee and APR may end up at the higher end of the money transfer card range (standard transfer fee is 3%). However, international transaction fees are the industry standard for non-travel cards.

First year card value vs current value

The Citi Diamond Preferred Welcome Offer with Statement provides more value in the first year than most balance transfer cards. Unfortunately, the lack of ongoing functionality means it still falls into the common pitfall of transferring cards: it doesn’t offer much incentive to keep the card after you’ve settled your balance.

Since the card doesn’t include any rewards or perks that return any monetary value, any ongoing value you can get with the Citi Diamond Preferred Card comes from the time and interest you save during the zero interest period — a substantial amount . If your card issuer classifies your Diamond Preferred as a World Elite Mastercard, you may be eligible for $10 per month in Lyft points (up to a maximum value of $120 per year) after you have taken five Lyft rides during that time. But every eligible Mastercard with the World Elite benefit gets it, so it’s not a Citi-exclusive benefit worth sticking with.

Otherwise, the Diamond Preferred Card will not offer competitive ongoing value after your introductory APR expires. The minimum rolling APR isn’t significantly below average, so the Diamond Preferred may not be the best low-interest credit card to keep after you withdraw your balance compared to the low-interest rewards card.

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Comparison of the Citi Diamond Preferred Card and Other Balance Transfer Cards

While 21-month balance transfer offers are hard to come by right now, a handful of cards can match or exceed the Citi Diamond Preferred Card’s introductory APR offer, and some offer additional benefits like cash-back bonuses or lower ongoing APRs. However, the opportunity to use a balance transfer card to get welcome offers on your bank statement is much more difficult.

Another Citi funds transfer product, the Citi Simplicity® Card, a sibling to the Diamond Preferred, offers more flexibility for those who delay payment dates from time to time, as there is no late fee or penalty interest if you miss a payment ⁠– balance transfer A rare advantage in the card class.

Citi Diamond Preferred and BankAmericard Credit Cards

The BankAmericard credit card is also primarily a balance transfer card, and while it offers minimal cardholder perks and no rewards program, it also offers a previously unique welcome bonus offer that could make it the perfect choice for your balance transfer or large purchases A very valuable option. In addition to 18 months of 0% introductory APR for funds transfers (within the first 60 days) and new purchases (13.24% to 23.24% variable APR thereafter), the card delivers a statement balance of $100 after spending at least $1,000 in Within the first 90 days of account opening.

This should be a very easy spending threshold to hit and pay for your money transfers with ease. Now that the Citi Diamond Preferred offers a higher bank statement credit limit of $150 in a similar time frame ($500 in purchases within the first three months) with half the output requirement, there is little competition for Bankamericard’s credit transfer value. However, that value difference disappears when you consider that Diamond Preferred’s referral fee percentage is higher than BankAmericard’s 3% referral fee. That means the Diamond Preferred’s welcome offer only covers balance transfers of up to $3,000, while BankAmericard can cover balance transfers of up to $3,333 — if you have a slightly higher balance, BankAmericard will have an advantage, but not as much time as it takes to pay for it.

Unless you’re saving more than $100 in interest costs with the Diamond Preferred for an additional three months, BankAmericard may be a smarter choice, even with a shorter introductory period and a smaller welcome offer.

Citi Diamond Preferred Card and Citi Double Cash Card

Because the Citi Diamond Preferred Card is primarily used for balance transfers, it doesn’t have much value once you withdraw your balance. Might be worth choosing the Citi® Double Cash Card over the Diamond Preferred because of the excellent cash back rate in addition to the competitive 18-month 0% introductory balance transfer APR (balance transfers must be made within the first four months within). Double Cash also offers a similarly low sustained APR of 14.24% to 24.24% (variable) after your introductory period ends.

Because Double Cash Earns a flat 2% cash back – 1 percent on purchases, plus 1% on checkout – its return potential can easily exceed the April savings and an additional three months of transfer introductory credits, and you’ll be Received from Preferred Diamonds. For example, if you are over 21 months and use the Diamond Preferred Card $150 monthly payment to withdraw your $3000 balance, it will cost you $150 due to the 5% introductory fee – meaning you’ll get paid even when you break Welcome offer of $150 (you’ll spend it later). $500 within the first three months). The low transfer fee of the 3% dual cash card alone will result in a lower cost of $90, although the same balance and payment plan will increase the transfer fee of interest by $5.35.

However, let’s say you used your Double Cash card to get 2% cash back on your estimated annual grocery bills in the Costs and Values table above. If you spend $384 a month on groceries, you’ll not only recoup those fees and interest after 21 months, but move forward $65.93 — making Citi Double Cash the better option for many cardholders Select, although it provides a shorter entry year interest rate and there is no cash welcome bonus.

Best Cards to Use with the Citi Diamond Preferred Card

The Citi Diamond Preferred Card doesn’t offer a rewards program, so pairing it with a no-annual-fee rewards credit card can be a great way to earn points or pay back some of your spending. Depending on your spending habits, you can choose cards that offer excess rewards in specific categories, or stick with flat-rate cards to earn rewards on every purchase. However, reducing your balance should be your top priority.

The Citi Double Cash Card is a great flat-rate option that offers up to 2% cash back on every purchase (1% on purchases and another 1% on payments). This card is ideal if you’re looking for a low-maintenance way to earn rewards without having to worry about your purchases being eligible.

The Chase Freedom Flex℠, on the other hand, requires a bit of work, as you have to sign up for a bonus category each quarter to be rewarded. However, this card may be worth it as it earns you 5% cash back on every quarterly rotating bonus tier you activate (and then 1% when you spend up to $1,500 per quarter). Plus, get 5% back on travel with Chase Ultimate Rewards and 3% back on restaurant and drugstore purchases.

Bankrate’s take: Is the Citi Diamond Preferred Card worth it?

If you need to pay off debt or buy financial products, the Citi Diamond Preferred Card should do just fine. Although it comes with a hefty 5% transfer fee and offers cardholders few incentives or perks other than a rare welcome offer (which may just be to help offset the transfer fee), if it’s yours, Citi The Diamond Preferred Card should be able to accomplish work goals, deal with debt, avoid paying as much interest as possible, and enjoy some breathing room.

A shorter introductory purchase APR and limited long-term value may make a rewards card with a slightly shorter introductory APR period a more valuable option before and after you cash out your balance. The Diamond Preferred is still solid if you need as long as possible to clear your balance, but other balance-transfer-focused cards also offer matching (and longer) APR periods for introductory purchases.