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

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Whether you want 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 balance transfers, carries a decent intro APR offer for new purchases, charges no annual fee and gives cardholders with good to excellent credit a chance at a relatively low ongoing APR.

All of these features could make the Citi Diamond Preferred worth it for you, but it largely depends on your goals. 

If you’ve accrued a large balance on another card, the Diamond Preferred could be just what you need to minimize interest charges as you pay off debt. But if you’re more focused on financing new purchases or earning rewards, a cash back or rewards card with a longer intro APR period on new purchases may be a better fit.

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: 17.99 percent to 28.74 percent (variable)

Current welcome offers

Like most balance transfer cards, the Citi Diamond Preferred does not come with a welcome offer. Though the card previously offered new cardholders as much as $150 in statement credits after spending $500 in the 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 intro APR offer is worth holding, even if only for the duration of the intro period. Luckily, the Citi Diamond Preferred Card’s introductory offer tops the chart for longest intro APR offers. 

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, severely limiting 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 feature could be useful should you need a personal installment loan down the line. The catch is Flex Loans are available by invitation only — 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 purchase amount, choose from one to five equal monthly payment plans.

Citi Entertainment

If you pay with your Citi card, you can get early or VIP access to thousands of experiences like concerts, sporting events, dining and more thanks to Citi Entertainment. While this feature is not a make-or-break component of the Citi Diamond Preferred Card, it’s a decent perk if you enjoy live events, special access and unique experiences. It’s especially useful if you’re eying an event that’s sure to sell out quickly. Cards like this can help secure your tickets before they’re publicly available.

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. This minor perk is unlikely to save you a ton of money — but it’s welcome nonetheless.

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

You’ll enjoy a 0 percent intro APR on balance transfers for your first 21 months and on purchases for your first 12 months (17.99 percent to 28.74 percent variable APR thereafter). Balance transfers must be completed within four months of account opening, which gives you nearly two years to chip away at transferred debt and up to a year to pay off new 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). In fact, some of the best cash back cards offer lengthy intro APR offers for new purchases. If you don’t have debt to transfer, but plan to take some on with new purchases, a cash back card like that may be a better fit for you. On top of giving you a potentially longer introductory APR period, you may also earn rewards for your purchases.

The Citi Diamond Preferred Card also 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 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. 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 to 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.

If you’re carrying credit card debt and facing high interest charges each month, a balance transfer card like the Citi Diamond Preferred could be a big help in paying down your balance. 

Transferring your balance can help you save on interest as you chip away at debt and give you a time-based incentive to pay off your debt. While you might not be able to pay off your entire balance during a card’s introductory period, having a deadline for a 0 percent intro APR can be a great way to motivate monthly payments.

Here’s a look at how much you could save on interest by transferring a balance to the Citi Diamond Preferred, assuming you have average credit card debt (around $5,000), an average APR on your current card (around 20 percent) and make fixed monthly payments of $240. 

Based on data from Bankrate’s balance transfer calculator and minimum payment calculator, you could pay off your debt five months earlier and save nearly $800 in this example. Your only extra cost with the Diamond Preferred would be the 5 percent balance transfer fee.

*Then an ongoing APR of 17.99 percent to 28.74 percent (variable)

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 that features minimal cardholder perks and lacks a rewards program. It offers an intro APR on both balance transfers (made within the first 60 days) and new purchases. While the card’s lower ongoing APR is a plus, its real advantage is the longer intro APR on new purchases. The Diamond Preferred card’s condensed intro APR on new purchases comes up short by comparison.

Along with more favorable intro APR periods and a lower ongoing APR, the BankAmericard has a lower balance transfer fee: just 3 percent. Looking at the total cost of a balance transfer, the BankAmericard may have the edge. It’s also the obvious choice if you need more than a year to pay off new purchases or plan to carry a balance after your intro APR period ends.

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 intro balance transfer APR period (balance transfers must be within the first four months). After your introductory period ends, the Double Cash also provides a similarly-low ongoing interest rate.

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 add an extra $150 due to the 5 percent balance transfer fee. The Double Cash card’s 3 percent balance transfer fee would result in a lower added amount ($90). This detail may make choosing between the Citi Diamond Preferred and Citi Double Cash easier for many cardholders.

Best cards to pair with this 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 want a low-maintenance way to earn rewards without worrying about whether your purchases will qualify.

Alternatively, the Wells Fargo Active Cash® Card pairs wonderfully with any balance transfer card. This cash rewards card includes a long introductory APR on purchases. Paired with the Citi Diamond Preferred, the Wells Fargo Active Cash’s intro APR offer and cash rewards on purchases can round out your credit card strategy.

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 time away from interest payments. 

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 more worthwhile options 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 more favorable intro APR periods on purchases as well.