CITI DIAMOND PREFERRED CREDIT CARD REVIEW [UPDATED 2018]
With a low annual percentage rate (APR) on both balance transfers and purchases, the Citi Diamond Preferred credit card is a great choice for people looking to consolidate their debt and reduce the amount of interest they’re paying.
The main benefit of owning the Citi Diamond Preferred card is the low interest rate. Beyond that, this credit card has few bells and whistles. But the low interest rate and $0 annual fee should appeal to people who want a credit card that won’t cost them much to use and will help them eliminate debt as fast as possible.
It’s an ideal credit card for people looking to reduce the amount of credit cards they have and pare down to one single card.
- No annual fee
- You get 0% APR on any and all purchases for 18 months
- Also get 0% APR on balance transfers for 18 months
- After introductory APR term expires, you’ll pay APR of 15.24% to 25.24%
- APR on cash advances is 27.49%
- Penalty APR on missed and late payments of 29.99%
There’s no reward program attached to the Citi Diamond Preferred card and you won’t get a signup bonus of any kind for choosing this credit card. What you will get is no annual fee ever, plus some very attractive introductory APR, or interest rates.
First, you’ll get 0% APR on any and all purchases for 18 months from the date of account opening. That’s a full year of no interest charged on the card. Additionally, you’ll get 0% APR on balance transfers for 18 months from date of the first transfer. Keep in mind though that all balance transfers must be completed within four months of activating the credit card.
The length of time in which the 0% APR applies distinguishes the Citi Diamond Preferred credit card. Similar cards typically offer 0% introductory APR for 12-15 months. Some cards only offer 0% APR for the first 60 days you own the card.
It’s rare to find a credit card, such as the Citi Diamond Preferred, that provides 0% APR beyond 12 months. So take advantage and use that time to reduce the principle balance on the credit card as much as possible before interest starts being applied.
As mentioned, there are no annual fees with the Citi Diamond Preferred credit card. And this is not an introductory offer. With this particular credit card, you’ll never pay an annual fee – ever.
With other cards, the $0 annual fee often applies only for the first year and then a regular annual fee kicks in that you must pay every 12 months just for using the credit card. Not so with the Citi Diamond Preferred card, which is nice for people who are intent on saving money and better managing their debt load.
The Citi Diamond Preferred card provides 0% APR on all purchases for 18 months and 0% APR on balance transfers for the first 18 months, which allows people to relax and not think about the interest they’re paying for more than a year.
However, once that introductory APR term expires, cardholders are subject to APR ranging from 15.249% to 25.24%, dependent on their credit history and score. This APR rate is a little lower than similar credit cards designed to help people consolidate debt. Other cards charge APR starting as high as 16%.
Also, the APR is variable, which means it will likely fluctuate with the prime lending rate or at the card issuer’s discretion.
Also important to keep in mind is that you’ll pay higher APR on cash advances at 27.49% and the penalty APR charged for making a late payment, or if your payment is returned, is 29.99%.
So be mindful of taking cash off this credit card and keep updated on when payments are due. To truly use this credit card to your advantage you’ll want to keep the interest payments as low as possible.
Again, there aren’t a lot of features with the Citi Diamond Preferred card. It’s a fairly basic credit card. That said, cardholders do benefit from a few perks such as special access to tickets for concerts, sporting events, restaurants, and complimentary movie passes.
This credit card also comes with protection against identity theft, enhanced security when using the card overseas, a promise of $0 liability on any and all unauthorized charges, and the ability to choose to pay your bill on any available date at the beginning, middle or end of the month.
WHO SHOULD NOT GET THIS CARD
The Citi Diamond Preferred credit card is not for people who want to earn travel rewards or reward points that they can use to buy merchandise.
This is a credit card for people who want to transfer balances from other credit cards and loans, consolidate that debt, and pay it down as quickly as possible in an interest-free environment.
People who enjoy collecting rewards and accumulating points should seek out another type of credit card. The Citi Diamond Preferred credit card is not for you.
ALTERNATIVE CARD: THE CHASE SLATE CREDIT CARD
A comparable credit card to the Citi Diamond Preferred is the Chase Slate card, which is also designed to help people consolidate debt and get out of the red.
The Chase Slate card provides cardholders with an introductory APR of 0% on both purchases and balance transfers for 15 months. That makes it slightly inferior to the Citi Diamond Preferred card when it comes to the intro APR on purchases and balance transfers.
Once 15 months has passed, the Chase Slate card charges an APR of 16.99% to 25.74% variable, which is higher than the APR charged on the Citi Diamond Preferred card. As with the Citi Diamond Preferred, the Chase Slate has no annual fee and comes with few extras beyond the favourable APR.
If you’re someone with a good salary who wants a high-end credit card that provides maximum cash back benefits, then the Scotia Momentum Visa Infinite is the card for you. Few other cash back rewards credit cards offer more ways to accumulate rewards than this card.
Just remember that there are strings attached in the form of an annual fee, interest rates that are on the high side, and a minimum income requirement.