Citi® Diamond Preferred® Card review: Is it the “preferred” Citi balance transfer card?

Citi is an advertising partner

Whether you’re looking to pay off debt with a balance transfer or finance new purchases, the Citi® Diamond Preferred® Card could be a lifesaver. The card comes with a lengthy introductory APR offer on both purchases and balance transfers, charges no annual fee and gives cardholders with good to excellent credit a chance at a relatively low ongoing APR, all of which could make the Citi Diamond Preferred worth it for you.

That said, the card offers little in the way of long-term value beyond its potentially low ongoing APR, featuring few perks and no rewards program.

Quick highlights

• Rewards Rate: None
• Welcome Offer: N/A
• Annual Fee: $0
• Purchase Intro APR: 0 percent for 12 months
• Balance Transfer Intro APR: 0 percent for 21 months
• Regular APR: 17.24 percent to 27.99 percent (variable)

Current welcome offers

Like most balance transfer cards, the Citi Diamond Preferred does not carry a welcome offer. Though the card has previously offered new cardholders as much as $150 in statement credits after spending $500 in their first three months, this bonus has not been a regular feature and may not return to the card anytime soon. 

While the lack of a bonus offer is disappointing, a balance transfer card’s 0 percent intro APR offer is more important than its rewards program or bonuses. Luckily, the Citi Diamond Preferred Card’s introductory offer is solid. You’ll enjoy a 0 percent intro APR on balance transfers for your first 21 months and on purchases for your first 12 months (17.24 percent to 27.99 percent variable APR thereafter). Balance transfers must be completed within four months of account opening.

That gives you more than a year to chip away at transferred debt or cover purchases without paying interest. That said, the Citi Diamond Preferred Card has previously featured an even longer intro APR period for purchases in the past (18 months, most recently), and other prominent balance transfer cards offer longer intro APR periods on purchases (typically at least 15 months).

If you need to pay down debt, opting for a balance transfer with Citi could be a great option. Just be sure to complete your transfer within four months of opening your account and pay at least the minimum balance due each month to protect your credit score (and, ideally, pay more than the minimum to ensure you’re not left with a balance when the intro APR period ends).

Without a doubt, the main benefit of the Citi Diamond Preferred Card is its long intro APR period on balance transfers. The card is noticeably thin on other perks and carries no ongoing rewards program, which severely limits its long-term value. Still, the Citi Diamond Preferred offers a handful of benefits worth mentioning.

Citi Flex Loan

Citi Flex Loans allow you to borrow money against your Citi card credit limit at a fixed rate and pay it back over a set period of time, with no additional fees, application or credit inquiry required. This could be a useful tool should you need a personal installment loan down the line. The catch is you must be targeted for a Citi Flex Loan by the issuer — they’re not available for all cardholders. Cardholders may also have the option to finance Amazon.com purchases with Citi Flex Pay and, depending on the size of the purchase, choose from one to five equal monthly payment plans.

Citi Entertainment

Citi Entertainment can get you early or VIP access to thousands of experiences like concerts, sporting events, dining and more when you pay with your Citi card. While this is not a make-or-break feature of the Citi Diamond Preferred Card, it’s a decent perk if you enjoy live events, special access and unique experiences.

Citi Easy Deals

Citi Easy Deals are a collection of discounts and daily deals on everyday purchases, including local offers from restaurants and retailers. Depending on how much you spend per year, you can also unlock promotions for gift cards, magazines, travel, merchandise and more. Again, this is a minor perk that’s unlikely to save you a ton of money — but it’s welcome nonetheless.

The Citi Diamond Preferred Card also comes with fairly standard features like contactless payments.

The Citi Diamond Preferred Card carries no annual fee and could offer cardholders with good to excellent credit a decent ongoing APR, but it could prove costly if you have a big balance to transfer, fail to pay off your balance during the introductory period or can only qualify for its high-end APR. Keep these rates and fees in mind as you consider whether the card is a good fit:

• • Balance transfer fee: To take advantage of this card’s balance transfer offer, you’ll need to pay a balance transfer fee of 5 percent of the amount you want to transfer (or $5, whichever is higher). Five percent is on the high side of the spectrum, and since many cards charge 3 percent, a lower fee may make up for a shorter intro APR.  Check out Bankrate’s credit card balance transfer calculator and see how the math shakes out for you.

• • Foreign transaction fee: The card charges a foreign transaction fee of 3 percent for purchases made abroad and from international merchants, so it’s not the best choice for frequent international travelers

• • Ongoing APR: The Citi Diamond Preferred offers a wide range of potential APRs, depending on your creditworthiness. While the card’s low-end variable APR of 17.24 percent is a bit lower than the average credit card APR, the high-end variable APR of 27.99 percent is very high indeed. In either case, carrying a balance will be costly, so do your best to pay off any new purchases or transferred balances before the end of the card’s introductory APR period.

While dependent on your financial situation, the balance transfer fee and ongoing APR could land towards the higher end of the spectrum for balance transfer cards (the standard balance transfer fee is 3 percent). However, the foreign transaction fee is the industry standard among non-travel cards.

Unfortunately, the Citi Diamond Preferred card’s lack of ongoing features means it falls into balance transfer cards’ common trap: not providing much incentive to hold onto the card after settling your balance. Since the card features no rewards or perks after the first year, any ongoing value you’ll gain from the Citi Diamond Preferred card will come from the time and money you’ll save via its zero-interest periods — though that can be a sizable sum.

*Pre-transfer card data based on the average credit card debt, average credit card interest rate (at time of writing), minimum ongoing variable APR and the minimum monthly payment to pay off the balance within the transfer card’s intro APR period factored into Bankrate’s balance transfer calculator and credit card payoff calculator for comparison.

A handful of cards match the Citi Diamond Preferred Card’s intro APR offer, with a few offering additional benefits like cash back rewards or a lower ongoing APR.

Citi Diamond Preferred Card vs. BankAmericard credit card

The BankAmericard credit card is also primarily a balance transfer card, and while it features minimal cardholder perks and no rewards program. It offers a 0% intro APR on both balance transfers (made within the first 60 days) and new purchases for 21 billing cycles (16.24% - 26.24 variable APR after that).

This is an even bigger perk when you consider the Diamond Preferred’s higher 5 percent balance transfer fee compared to the BankAmericard’s 3 percent transfer fee (min $10). Looking at the total cost of a balance transfer, the BankAmericard may have an edge if you have a high balance or need more time to pay off new purchases.

Citi Diamond Preferred Card vs. Citi Double Cash Card

Since the Citi Diamond Preferred Card is primarily suited for balance transfers, it doesn’t carry much value after you’ve paid off your balance. In fact, it may be worth choosing the Citi® Double Cash Card over the Diamond Preferred since it earns an excellent cash back rate on top of its competitive 18-month 0 percent intro balance transfer APR (balance transfers must be within the first four months). After your introductory period ends, the Double Cash also provides a similarly-low ongoing APR of 18.24 percent to 28.24 percent (variable).

Since the Double Cash earns up to 2 percent flat-rate cash back — 1 percent when you buy, plus 1 percent when you pay off purchases — its rewards-earning potential can easily outweigh the savings and three extra months of an intro balance transfer APR you would get with the Diamond Preferred. For instance, paying off a $3,000 balance in 21 months with a $150 monthly payment using the Diamond Preferred card would cost you $150 due to the 5 percent balance transfer fee. The Double Cash card’s 3 percent balance transfer fee would result in a lower cost ($90) with minimal added cost from the three fewer months of intro APR. This may make the choosing between the Citi Diamond Preferred and Citi Double Cash easier for many cardholders.

Best cards to pair with the Citi Diamond Preferred Card

The Citi Diamond Preferred Card offers no rewards program, so pairing it with a no annual fee rewards credit card could be a great way to earn points or cash back on some of your spending. Depending on your spending habits, you can opt for a card that offers outsized rewards in a specific category or stick with a flat-rate card to earn rewards on every purchase you make. However, whittling down your balance should be your top priority.

The Citi Double Cash Card is a great flat-rate option, offering up to 2 percent cash back on every purchase (1 percent when you buy and another 1 percent when you pay off those purchases). This card is ideal if you’re looking for a low-maintenance way to earn rewards without worrying about whether your purchases will qualify.

The Chase Freedom Flex℠, meanwhile, requires a bit of work, as you’ll have to enroll in a bonus category each quarter to earn rewards. However, the card may be worth the trouble as it gets you 5 percent cash back in rotating bonus categories each quarter you activate (on up to $1,500 in spending per quarter, then 1 percent). Plus, you’ll also earn a consistent 5 percent back on travel booked through Chase Ultimate Rewards and 3 percent on dining and drugstore purchases.

If you need to pay down debt or finance purchases, the Citi Diamond Preferred Card should be a good fit. Though it carries a high 5 percent balance transfer fee and comes with little in the way of ongoing rewards or cardholder perks, the Citi Diamond Preferred Card should get the job done if your goal is to tackle debt, avoid interest charges as long as possible and enjoy some room to breathe. 

That said, its shortened intro purchase APR and limited long-term value may make no annual fee rewards cards with slightly shorter intro APR periods a more worthwhile option before and after you’ve paid off your balance. If you need the longest period possible to pay down your balance, the Diamond Preferred is still solid, but other balance transfer-focused cards offer comparable intro APR periods on purchases as well.