Introduction

The Citi Diamond Preferred Credit Card could save you a lot of trouble if you need to make a balance transfer or buy something new with credit. The Citi Diamond Preferred may be worthwhile if you can take advantage of the card's lengthy introductory APR offer on purchases and balance transfers, avoid the card's $95 annual fee, and have good to excellent credit, which allows you to qualify for a lower ongoing APR.

This card could be a good option if you anticipate needing a considerable amount of time to pay off your balance due to its lengthy introductory balance transfer APR. However, you could save more money if you got a card with a 0% intro APR on purchases and a 0% balance transfer fee (if you have big expenses on the horizon). However, after the introductory APR expires, the card's modest benefits and absence of ongoing rewards make it difficult to recommend as a long-term financial solution.

Pros Explained

Its most valuable feature is the Citi Diamond Preferred Card's longest promotional period of 0% APR on purchases and balance transfers. Balance transfers made within the first four months of card membership are eligible for a 0% APR for 21 months, while purchases are eligible for a 0% APR for 12 months. After an initial 0% APR period, the variable APR will be between 15.99% and 25.99%, based on the borrower's credit history.

Citi Private Pass gives cardholders access to VIP packages, presale tickets, and other perks and experiences, including access to concerts and sporting events. Ticket and package purchases typically require cardholders to pay, but free tickets and other perks are occasionally available. The features and benefits available with this card are well worth the minimal cost of maintaining an account each year.

Cons Explained

Those who take advantage of the card's balance transfer offer will be charged a fee of either $5 or 5% of the amount transferred. You may not have to pay a fee if you transfer a balance to your new card during the introductory period. The balance transfer fee should be weighed against the potential interest savings before applying for the card. A 3% foreign transaction fee is charged on all purchases made with this card outside of the United States. Other credit cards are better suited for overseas purchases because they don't impose a foreign transaction fee, such as the Capital One VentureOne card and the Chase Sapphire Preferred card.

It Doesn't Earn Rewards

After you've paid off your balance, the Citi® Diamond Preferred® Card doesn't provide you with many benefits to keep using it. However, the Discover it® Cash Back has a competitive introductory APR and excellent ongoing rewards. For the first 15 months, purchases and balance transfers are offered a 0% introductory APR. After that, the standard rate is 13.49%-24.49% Variable. Previous bonus categories have included eating establishments, food stores, warehouse clubs, gas stations, and more. There's no yearly charge at all.

It Charges Late Fees

Most credit cards also impose these fees, but Citi has a sister card that does not. If you're late on a payment, the Citi Simplicity® Card won't charge you anything. These safeguards are great for cardholders who occasionally forget their PIN or other security information (although paying late can still potentially hurt your credit scores). The introductory APR on the Citi Simplicity® Card is a generous 0%. If that doesn't work for you, you can find more credit card options on NerdWallet's top picks page.

There's A High Balance Transfer Fee

When you make a transfer with your Citi® Diamond Preferred® Card, you'll pay an unusually high 5 percent of the total amount transferred. You can find cards with lower fees if you're willing to settle for a shorter 0% intro APR on your transfer. An example is the U.S. Bank Visa® Platinum Card, which charges a 3% balance transfer fee but has a 0% intro APR on purchases and balance transfers for the first 20 billing cycles. The ongoing APR is then a 16.74%-26.74% Variable.

Security Features

In terms of safety, Citi Quick Lock is remarkable. Stopping cash withdrawals and purchases is an option if you can't find your card. When the card is locked, automatic payments, such as bill pay, continue as usual. Your card can be unlocked, or a replacement can be requested if you lose it. A fraud alert can be placed on your TransUnion account with the assistance of Citi's Identity Theft Solutions. A hacked account can be located and reported to the authorities with its help.

Conclusion

Things happen sometimes. Unexpected costs may exceed your savings at that time, forcing you into debt. A balance transfer credit card could be a useful and cost-effective option when the initial debt is on a high-interest credit card. Try out Citi's Diamond Preferred Card.