Full Review of Citi Diamond Preferred Credit Card
Extended 0% APR offer
Special access to concerts, sporting events, and VIP packages
No annual fee
5% balance transfer fee
3% foreign transaction fee
Pros Explained
- Extended 0% APR Offer: The biggest advantage of the Citi Diamond Preferred card is its long-term introductory rate on purchases and balance transfers. Cardholders currently pay 0% APR for 21 months on balance transfers made during the first four months of card membership and 0% on purchases for 12 months. When the introductory period ends, the regular rate ranges from 17.99% to 28.74%, depending on creditworthiness.
- Special Access to Concerts, Sporting Events, and VIP Packages: Cardholders receive access to exclusive VIP packages, presale tickets to events, and other perks like exclusive experiences through Citi Entertainment.
- No Annual Fee: With no annual fee, access to this card's features and benefits represent a good value.
Cons Explained
- 5% Balance Transfer Fee: Cardholders who take advantage of the balance transfer offer will pay a fee of $5 or 5% of the transferred amount, whichever is greater. Some competing cards waive the balance transfer fee during the introductory offer. Before applying for this card, consider the cost of the balance transfer and make sure the interest savings are worth the cost.
- 3% Foreign Transaction Fee: When making non-U.S. purchases with this card, cardholders will pay a foreign transaction fee of 3%. Plenty of other cards, like the Capital One VentureOne card and Chase Sapphire Preferred card, don't charge a foreign transaction fee and might be better suited for spending overseas.
Who This Card Is Best For
The Citi Diamond Preferred card is best for someone looking to reduce debt using a 0% APR balance transfer. The 21-month introductory period provides a substantial amount of time to pay down high-interest debt. You should run the numbers and verify that the interest savings will outweigh the 5% fee for the debt you plan to transfer.
Additionally, the card can be a good choice for consumers who value entertainment experiences and presale tickets. With this card’s access to Citi Entertainment, cardholders can purchase tickets to concerts and events before they're available to the general public, as well as buy exclusive packages with VIP experiences.
How to Make the Most of This Card
This card doesn't offer much in the way of cardholder benefits, and there's no rewards program. What this card does offer is a way to put a dent in your credit card debt.
Let's say you have $10,000 in debt on a credit card charging 20.92%, the average interest charged to accounts with balances, according to the Federal Reserve. Let's compare two approaches to eliminating that debt: paying it down with the current credit terms or moving it to this card.
- Existing card (20.92% interest rate): To pay of the debt in 21 months, you will have to make 21 monthly payments of $572.76, paying a total of $12,027.90 (or interest of $2,027.90). This assumes the card's interest rate does not increase (or decrease) during this time.
- Citi Diamond Preferred (0% interest, $500 transfer fee): To pay off the debt in 21 months after transferring it to this card, you will have to make 21 monthly payments of $500, paying no interest but a $500 fee (which is added to the loan balance).
By taking advantage of the balance transfer, you will save $1,527.90 in interest expenses while eliminating the debt. And you will have done so making smaller monthly payments. Of course, for this plan to work, you have to stick with it, and resist charging more to either credit card.
Citi Diamond Preferred Credit Card's Outstanding Benefits
- Citi Identity Theft Solutions
- Virtual account numbers for shopping online or by mail
- FICO Score access each month
- Citi Entertainment services
Standard Benefits
- $0 liability fraud protection
- EMV chip technology
- Automatic account alerts
- 24/7 customer service
Cardholder Experience
Citi was 6th out of 11 national card issuers in J.D. Power's 2022 Credit Card Satisfaction Study. The bank received a below-average score.
Citi cardholders have access to a number of financial tools, including early warning of fraudulent activity, the ability to quickly lock stolen or misplaced cards, and access to a monthly FICO Score. Citi also offers a concierge service to help with travel, shopping, and exclusive experiences.
Customer service can be reached for help through online chat (after you log in to your account) and 24/7 at (800) 950-5114.
Security Features
Citi offers a number of security features to help provide cardholders with peace of mind. You receive automatic account alerts and early fraud warnings, as well as monthly access to your FICO Score.
Citi Quick Lock allows you to block cash advances and purchases if you can’t locate your card. Automatic payments, like bill pay, continue while the card is locked. If you find your card, you can unlock it, but if you don’t, you can have a new card sent to you.
Citi offers Identity Theft Solutions, which helps you place a fraud alert on (and monitor) your TransUnion account. It can help you find if other accounts are compromised and advise you on reporting the breach to law enforcement. You can also create virtual credit card numbers for shopping online worry-free.
Fees to Watch Out For
There aren't a lot of fees with this card, and the lack of an annual fee is a nice benefit. However, if you get this card for the balance transfer introductory rate, be aware of the 5% fee (minimum of $5). Additionally, this card comes with a penalty rate of up to 29.99% on top of a late payment fee, so paying on time is important.
If you're looking for a card to take with you when you travel overseas, be aware of the foreign transaction fee, which is 3% of each purchase transaction in U.S. dollars.
Final Verdict
The generous 21-month 0% APR on balance transfers makes the Citi Diamond Preferred card a good choice if you're planning to accelerate debt repayment. You have more time to pay down the principal, and if the interest savings are enough to overcome the balance transfer fee, this card can be a good fit.
However, if you're looking for more traditional rewards, there are better choices. If you like the idea of accessing Citi cardholder benefits while getting cash back, the Citi Double Cash card offers unlimited 1% cash back when you make purchases, plus another 1% cash back when you pay off the purchases.