Is The Citi Diamond Preferred Card Worth it?

Whereas it isn’t a sensible choice in the event you’re hoping to earn rewards in your spending, the Citi® Diamond Most well-liked® Card might be value it if it’s good to consolidate debt from different playing cards because of its unbelievable 0 p.c introductory annual share charge (APR) supply on stability transfers for 21 months from account opening (18.24 p.c to twenty-eight.99 p.c variable APR thereafter).

It’s one of many longest provides available on the market. A shorter 0 p.c intro APR supply on purchases — 12 months — can also be featured with the identical ongoing APR after the interval ends. Plus, the Citi Diamond Most well-liked doesn’t have an annual charge.

If you happen to’re hoping to switch high-interest balances and consolidate debt, or if you’d like a card that allows you to save on curiosity whenever you make new purchases for a restricted time, this stability switch bank card must be on the high of your record.

So, is the Citi Diamond Most well-liked value it? Effectively, everybody’s circumstances are a bit completely different, however listed here are some causes to contemplate this high stability switch card in addition to some causes you may need to take a look at different choices.

When is the Citi Diamond Most well-liked value it?

Earlier than you resolve if the Citi Diamond Most well-liked is value making use of for, it’s good to assume over all of its advantages and the way they could apply to your scenario. Listed below are a couple of eventualities the place this card may be nicely value it, both within the brief time period or over the long term:

You will have loads of high-interest debt to consolidate

If you qualify for the Citi Diamond Most well-liked, you’ll get a 0 p.c intro APR on stability transfers for 21 months from account opening (transfers should be accomplished inside 4 months of account opening), adopted by a variable APR of 18.24 p.c to twenty-eight.99 p.c. This supply makes it doable to consolidate high-interest bank card debt and probably pay it off rapidly with out including curiosity costs to your stability through the introductory time interval.

Financial savings instance

So, how a lot are you able to save with the Citi Diamond Most well-liked? For probably the most half, this is dependent upon how you intend to make use of it. Think about the next instance, holding in thoughts that the cardboard costs a stability switch charge of 5 p.c (or $5, whichever is larger):

Think about you’ve $8,000 in bank card debt at a 21 p.c APR, and also you simply created a finances that may assist you to pay $450 monthly towards your stability. At this charge, you could possibly repay this debt in 22 months and you’ll fork out $1,667 in curiosity throughout that point, in line with our bank card debt payoff calculator,

Now think about you transferred that debt to the Citi Diamond Most well-liked to get a 0 p.c intro APR for 21 months (18.24 p.c to twenty-eight.99 p.c variable APR thereafter). Doing so would require a stability switch charge of $400, so you’ll begin the method owing $8,400. Nevertheless, the identical $450 month-to-month fee would go away you debt-free in about 19 months and you’ll pay $0 in curiosity alongside the best way.

So, even with the stability switch charge, the Citi Diamond Most well-liked might allow you to save greater than $1,200 and repay your debt three months earlier.

You need to make a big buy and pay it off over 12 months

The Citi Diamond Most well-liked additionally comes with a 0 p.c intro APR supply on purchases for 12 months from account opening (adopted by a variable APR of 18.24 p.c to twenty-eight.99 p.c), so it may be helpful if you wish to purchase one thing costly and pay it down slowly over the primary yr.

You would use the cardboard to purchase new furnishings and even electronics like a brand new pc or gaming system. You would additionally use the cardboard to pay for vacation spending after which pay down your stability over 12 months, interest-free.

Avoiding an annual charge is essential to you

One other Citi Diamond Most well-liked profit is that it has no annual charge, so it’s a card you may plan to maintain for the lengthy haul. Whilst you might not need to use it after the intro APR supply ends, holding a card for a very long time might help improve your credit score rating by lengthening the typical age of your credit score historical past. If you happen to hold the cardboard’s stability at $0 after you pay down your debt, that may even assist cut back your credit score utilization ratio, which is one other essential determinant of your credit score rating.

When is the Citi Diamond Most well-liked card not value it?

Whereas the Citi Diamond Most well-liked is certainly value it in some eventualities, there are a couple of notable areas the place it comes up brief. Think about these cases the place you may very well be higher off with a distinct bank card altogether:

You need to reduce charges

We talked about how the Citi Diamond Most well-liked costs a 5 p.c stability switch charge (minimal $5) upfront, however you need to know this charge is on the upper finish. The very fact is, some high stability switch playing cards cost decrease stability switch charges (usually 3 p.c), and the distinction in charges may be within the tons of of {dollars} relying on how a lot debt you must consolidate.

Think about our earlier instance of an $8,000 switch. The distinction between a 5 p.c stability switch charge and a 3 p.c charge is $160 ($400 vs. $240).

Rewards are essential to you

Do not forget that the Citi Diamond Most well-liked doesn’t supply any rewards for spending, whereas many different playing cards with a 0 p.c intro APR on purchases or stability transfers do. If you happen to’re prepared to accept an intro APR supply of as much as 15 months as a substitute of 21, you’ll discover a vary of standard money again bank cards that allow you to earn rewards for spending and beneficiant sign-up bonuses — lots of that are featured on our record of one of the best 0 p.c intro APR bank cards.

You don’t need to pay international transaction charges

It’s additionally value noting that the Citi Diamond Most well-liked costs a international transaction charge of three p.c. So, in the event you plan on touring overseas, you need to think about using a distinct card.

Must you get the Citi Diamond Most well-liked card?

Getting the Citi Diamond Most well-liked makes probably the most sense if you wish to consolidate and pay down high-interest debt and wish so long as doable to repay that debt.

With that stated, there are different 0 p.c intro APR bank cards to contemplate in the event you can handle with a shorter intro interval, together with ones that allow you to earn rewards in your purchases. Some standard playing cards to contemplate on this area of interest embody the Uncover it® Money Again and Chase Freedom Limitless®. Right here’s extra info on every:

• The Uncover it Money Again provides an intro 0 p.c APR for 15 months on each purchases and stability transfers (then 17.24 p.c to twenty-eight.24 p.c variable APR)
• The Chase Freedom Limitless additionally provides an intro 15 months of 0 p.c APR on purchases and stability transfers (then 20.49 p.c to 29.24 p.c variable APR)

As you switch high-interest balances over, take into accout how a lot you’ll must pay every month to ditch your debt earlier than the 0 p.c intro APR ends. Do the mathematics and determine how a lot you’ll must pay through the intro APR supply timeline, then get severe about sticking to your plan. In any case, any remaining balances will probably be charged the common variable APR charge of 18.24 p.c to twenty-eight.99 p.c after 21 months are up.

This identical planning applies to any giant purchases you’re seeking to repay over time, however remember the fact that the Citi Diamond Most well-liked provides a shorter intro APR supply for purchases.

The underside line

The Citi Diamond Most well-liked is finest for a particular sort of shopper — somebody who plans to hold a stability and hopes to pay as little as doable to take action. This will apply to big-ticket objects charged to a card or debt consolidated from different bank cards.

Needless to say this card is geared towards shoppers with good or glorious credit score. In case your credit score rating wants work and you recognize you may’t qualify, it’s possible you’ll need to take a look at bank cards for honest credit score or low credit score.

There are quite a few causes to fall in love with the Citi Diamond Most well-liked — however it’s essential to contemplate all angles (together with the upper stability switch charge and nonexistent rewards choices), and examine the cardboard towards different high stability switch card choices earlier than submitting your software.