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When you’re struggling with debt, opening a new credit card might not be the first strategy you think of to try to pay down existing balances. However, a tool like the Citi® Diamond Preferred® Card could be a solid resource to help you reduce credit card debt when you manage the balance transfer process in a responsible way.
Below are five reasons the Citi Diamond Preferred is great for paying down debt.
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Citi® Diamond Preferred® Card
BLUEPRINT RATING
Our ratings are based on specific use cases for each card. We compared this card to others in the same category and developed our rankings based on this criteria, along with our editorial input. Note that although we chose this card as the best in its category, the right card for you will depend on your own financial circ*mstances.
BLUEPRINT RATING
Our ratings are based on specific use cases for each card. We compared this card to others in the same category and developed our rankings based on this criteria, along with our editorial input. Note that although we chose this card as the best in its category, the right card for you will depend on your own financial circ*mstances.
Welcome Bonus
N/A
N/A
Annual Fee
$0
Regular APR
18.24% – 28.99% (Variable)
Credit Score
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
(700 – 749) Good, Excellent
Editor’s Take
Pros
- New applicants receive four months to complete qualifying balance transfers and get intro APR financing.
- 21 months of intro APR financing from the date of the first transfers.
- No annual fee.
Cons
- Only 12 months of intro APR financing on new purchases.
- No rewards.
- No meaningful card benefits outside of the intro APR.
Most balance transfer credit cards with intro APR offers require qualifying transactions to be completed within 60 days of account opening. However, the Citi Diamond Preferred lets you complete balance transfers within a full four months of account opening.
Card Details
- 0% Intro APR for 21 months on balance transfers from date of first transfer and 0% Intro APR for 12 months on purchases from date of account opening. After that the variable APR will be 18.24% – 28.99%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
- There is a balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater
- Get free access to your FICO® Score online.
- With Citi Entertainment®, get special access to purchase tickets to thousands of events, including concerts, sporting events, dining experiences and more.
- No Annual Fee – our low intro rates and all the benefits don’t come with a yearly charge.
1. Lengthy introductory APR period on balance transfers
One of the biggest perks the Citi Diamond Preferred card has to offer is its 0% APR intro offer. New cardholders can enjoy 0% intro APR for 21 months on eligible balance transfers from the date of the first transfer and 0% intro APR for 12 months on purchases from date of account opening. After that, the variable APR will be 18.24% to 28.99%. Balance transfers must be completed in the first four months. A balance transfer fee of either $5 or 5% of each transfer, whichever is greater, applies. Even though the card comes with almost a two-year balance transfer introductory APR period, there is one small downside. The Citi Diamond Preferred card also features a balance transfer fee of 5% of each balance transfer; $5 minimum.. Some competitors offer balance transfer fees as low as 3% by comparison. So, it’s important to crunch the numbers and make sure your balance transfer still makes good financial sense even with this added cost.
The average credit card interest rate on accounts that assessed interest was 22.75% in Q4 2023 according to the most recent Federal Reserve data. If you’re carrying a balance on your credit card that you can’t afford to pay off quickly, the potential savings from a balance transfer could outweigh the cost of any balance transfer fees in many scenarios. This may be especially true if you’re carrying a large amount of credit card debt.
To get the most benefit possible from the intro balance transfer APR period on your Citi Diamond Preferred Card, it’s wise to make a plan to pay off all of the debt you transfer before your introductory rate expires.
For example, if you transfer $12,000, your balance would be $12,600 after the additional balance transfer fee. In this scenario, you want to pay off at least $600 per month ($12,600 ÷ 21 months = $600 per month) assuming you didn’t use the account for any additional charges.
2. No annual fee
There’s nothing wrong with paying an annual fee on a credit card as long as you’re receiving benefits that offset the cost of that expense. But if you open a credit card for the primary purpose of reducing debt, finding a no-annual-fee card could be higher on your priority list.
On a positive note, the Citi Diamond Preferred card features no annual fee. So, you don’t have to worry about incurring additional costs from the card issuer while you’re working to eliminate debt.
3. Free FICO® Score
A big perk of paying down credit card debt is that doing so can save you money by avoiding interest charges. Yet reducing your credit card balances might have another benefit as well — the potential for credit score improvement.
When you pay down your credit card balances, it will often lower your credit utilization ratio. This can have a positive impact on your credit score.
As you work to improve your credit score, the Citi Diamond Preferred card has a feature that can make tracking your progress easier — free FICO® Score access. Cardholders can view their FICO Score online anytime.
Furthermore, when you access your FICO Score through your Citi Diamond Preferred card portal, only a soft credit inquiry occurs. Soft credit inquiries do not cause any damage to your credit score. You can check your credit score as often as you desire without fear of any potential credit damage.
4. Pre-qualification tool
A balance transfer credit card, like the Citi Diamond Preferred card, could help you reduce high-interest debt. Yet before you can use this type of card in your debt elimination strategy, you must first be able to satisfy a card issuer’s criteria to open a new account. If you have a bad credit score or certain types of negative information on your credit report, you might need to improve your credit before you can qualify for this type of financing.
In general, you need at least a good credit score to qualify for the best balance transfer credit cards. If you’re not sure whether you’re eligible for a credit card offer, like the Citi Diamond Preferred, using a pre-qualification tool could help set your mind at ease before you fill out an official application. Pre-qualifying doesn’t guarantee a card issuer will approve your application, but it tends to be a good sign.
Not every credit card issuer offers a pre-qualification tool. But Citi does. Therefore, it’s possible to see if you can pre-qualify for a Citi Card, including the Citi Diamond Preferred, with only a soft inquiry on your credit report.
5. Due date flexibility
When you open a Citi Diamond Preferred card, the card issuer offers some flexibility where your due date is concerned. You can select from available payment due dates at the beginning, middle or end of the month.
Having the ability to choose a due that fits into your budget can be helpful, especially if you’re working to reduce debt. You can find a date that makes the most sense for you without causing unnecessary financial stress.
Is the Citi Diamond Preferred card right for you?
The Citi Diamond Preferred card could be a good fit if you’re looking for a balance transfer credit card that offers a lengthy introductory APR period. The intro APR offer on balance transfers could provide you with nearly two years to pay down debt.
Yet you’ll need good to excellent credit to qualify for this offer. So, if you have credit challenges, you may want to work on those first before you apply.
On the other hand, people who are interested in earning generous welcome bonuses or rewards on their everyday spending may want to consider other credit card offers. The primary benefit that the Citi Diamond Preferred card has to offer is its introductory offer on balance transfers and new purchases.
Frequently asked questions (FAQs)
Citi doesn’t disclose the exact credit limits it assigns to cardholders. Like many other card issuers, Citi may base your credit limit upon factors such as your credit score, credit history, income and other details.
Yet there are reports from cardholders online of credit limits ranging between $500 to over $10,000 for the most creditworthy borrowers.
There is no annual fee associated with the Citi Diamond Preferred card.
The Citi Diamond Preferred card features a 0% intro APR for 21 months on eligible balance transfers from the date of the first transfer and 0% intro APR for 12 months on purchases from date of account opening. After that, the variable APR will be 18.24% to 28.99%. Balance transfers must be completed in the first four months. A balance transfer fee of either $5 or 5% of each transfer, whichever is greater, applies. Thanks to the generous intro APR period, you might be able to save a bundle on interest depending on the amount of your balance transfer.
