A balance transfer credit card can be a valuable tool when trying to pay off credit card debt. This niche card allows you to lock in 0% APR transfer debt for a limited time, and most cards don’t charge an annual fee to take advantage of this. But there are a number of variables in balance transfer cards worth noting, including the fact that some introductory APR offers last much longer than others.
Two of the best balance transfer cards on the market today are the Discover it® Cash Back and the Citi® Diamond Preferred® Card. Read on to find out how they compare.
Main details
| Discover it Cash Back | Citi Diamond Preferred | |
|---|---|---|
| Bono de bienvenida | Discover will match all rewards earned during the first year | None |
| Tasa de recompensas |
|
None |
| Intro APR | 0% intro APR on purchases and balance transfers for 15 months (followed by a variable APR of 12.24% to 23.24%) | 0% APR on purchases for 12 months and on balance transfers for 21 months (followed by a variable APR of 13.99% to 23.99%) |
| Cuota anual | $0 | $0 |
Discover the highlights of cashback and Citi Diamond Preferred
Although both cards offer 0% APR for a limited time, you may want to choose one based on your specific goals.
Welcome Bonus Winner: Find It Cash Back
Discover it Cash Back doesn’t offer a traditional welcome bonus, but Discover essentially doubles any rewards you earn at the end of your first year of card membership. So if you get a $300 cash back reward, Discover will match that amount and add another $300 to your reward balance after the first 12 months are up.
By contrast, the Citi Diamond Preferred offers no welcome bonus. Discover it Cash Back is the clear winner in this category due to its reward potential (though you’ll have to wait 12 months for your reward balance to clear).
Bonus Rate Winner: Find It Cash Back
Discover it Cash Back offers quarterly 5% cash back on rotating categories (up to $1,500 in purchases, then 1%; activation required). Some of the rotating bonus categories for 2022 include restaurants, Amazon, and gas stations. You’ll also get 1% back on all other purchases you make with your credit card.
In contrast, Citi Diamond Preferred offers no incentives. With that in mind, Discover it Cash Back is a better option if you want to earn rewards for spending.
Introducing the APR Winner: Citi Diamond Preferred
The Citi Diamond Preferred stands out in this category because you get 0% introductory APR on balance transfers for 21 months (13.99% to 23.99% variable APR thereafter), the longest introductory APR on the market Expect. However, this card only gives you 0% APR for 12 months. In contrast, Discover it Cash Back offers an introductory APR of 0% on balance transfers and purchases for 15 months (variable APR from 12.24% to 23.24% thereafter).
If you have a lot of high-interest debt that needs to be consolidated, the Citi Diamond Preferred’s additional six months of interest-free debt repayment can be a huge benefit. Finally, the 0% APR extension allows you to repay a larger amount before the introductory rate is due, or you can pay a lower amount each month during the introductory period and still be debt free.
Annual Fee Winner: Tie
None of the cards have an annual fee, which is great news for consumers looking to consolidate debt while minimizing all out-of-pocket costs.
Foreign Equity Fee Winner: Find It Cash Back
Like all Discover cards, Discover it Cash Back has no foreign transaction fees. However, the Citi Diamond Preferred charges a 3% fee on overseas purchases. This makes Discover it Cash Back the clear winner in this category.
¿Qué tarjeta es la más rentable?
Discover examples of cashback and Citi Diamond Preferred transfers
Say you have $5,000 in credit card debt. If you choose to use the Citi Diamond Preferred for your balance transfer, you will pay a 5% (minimum $5) balance transfer fee on the $5,000, or $250. You’ll then have 21 months to pay off your debt at an initial 0% APR (with variable APR from 13.99% to 23.99% thereafter). That means you’ll have to start with a balance of $5,250 and pay $250 a month to get out of debt completely by the end of your quote period.
With Discover it Cash Back, you will be charged an introductory fee of 3% for credit transfers, up to a maximum of 5% of each transfer amount thereafter (see conditions). The 3% fee on a $5,000 debt is $150, so you start with a balance of $5,150 and have 15 months to pay off the debt before your offer ends (change from 12.24% to 23.24% per annum thereafter, subject to change ). . Therefore, you must pay $343.33 per month for 15 months to get the debt forgiven before your APR introductory period ends.
Therefore, an additional six months of interest-free debt repayment with the Citi Diamond Preferred can have a significant impact on your debt repayment plan. Despite the higher transfer fee, a longer APR introductory period allows you to pay a smaller amount each month and still pay off your debt before the introductory period ends.
Why should you get cash back on discovering it?
There are several reasons to choose Discover it Cash Back over a similar balance transfer credit card. The main benefit is that this card offers rewards that match Discover after the first year. Here are some other factors to consider:
Beneficios adicionales
If you can’t decide between these two cards, Discover it Cash Back offers some additional benefits that might be worth considering. Some of the benefits include Social Security protection, the ability to easily block and unlock credit cards, $0 fraud liability, 24/7 customer service, and a free FICO score on your credit card statement.
Opción de canje
You can use this card to redeem direct deposit, bank statements, gift cards, or rewards purchased from Amazon or PayPal.
Calificación crediticia recomendada
Discover it Cash Back requires a good credit score, which means you must have a score of at least 670 for the best chance of winning.
Why should you get the Citi Diamond Preferred?
If you’re not a big fan of bonuses and are primarily interested in paying down debt, Citi Diamond Preferred is a better option as you get 0% APR for 21 months (variable from 13.99% to 23.99% effective annual interest rate)). thereafter), which is the longest 0% APR period for balance transfers currently offered. Here are some other reasons to choose this card:
Resultado final
Before you make a plan for debt relief with a balance transfer card, you should first compare all the top 0% introductory APR card deals on the market today. Some cards in this niche offer rewards and welcome bonuses, while others offer longer 0% APR or lower transfer fees. By determining what you’re looking for and comparing cards, you can find the one that best suits your needs and goals.
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