Why I love the Citi Diamond Preferred

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Earning rewards or receiving cash back with your credit card can be fun. But if you’re carrying a balance, paying it off more quickly with a balance transfer card may be even more impactful.

The Citi® Diamond Preferred® Card as a great option for paying down a balance from another credit card. While the card doesn’t come with exciting benefits or exceptional rewards, it offers a strong intro APR on balance transfers and potentially lower ongoing APRs.

 “If you have credit card debt, your best bet is to prioritize your interest rate,” says Ted Rossman, Bankrate credit card analyst. “Signing up for a 0 percent balance transfer card can pause that interest clock for many months to come.”

‘I was delighted to get approved’

Chaim Geller, founder of HelpMeBuildCredit.com, still talks about the Citi Diamond Preferred with affection. “I was delighted to get approved for [a] card with an 18-month 0 percent [intro] APR, which was the offer at the time,” Geller says. The Citi Diamond Preferred now includes a 0 percent intro APR offer on balance transfers for 21 months and purchases for 12 months (then 17.49 percent to 28.24 percent variable APR).

 Before he got the Citi Diamond Preferred, Geller used another credit card with a 20 percent interest rate, which he describes as brutal.

 “When I bought my house, I accumulated a ton of credit card debt for construction-related purchases,” Geller remembers. “I noticed that, when paying the minimum payment, most of my payment was going toward the interest, but the actual debt was not going down much.”

The way out of debt

At some point, Geller felt he couldn’t ignore his mounting credit card debt any longer. He started looking for a way to end that situation once and for all, and that’s when he found the Citi Diamond Preferred. At the time, its introductory APR offer for balance transfers was for 18 months — but that was all he needed.

 He sat down and devised a plan. He would apply for the card, transfer his balance and pay off his debt during the intro APR period, but he would never carry a balance again.

 “I finally got an opportunity to really knock down the credit card balance interest-free,” says Geller. “And I wasn’t going to blow it. I liked the Citi Diamond Preferred because my payments fully went toward paying down the actual debt. I was finally able to tackle my credit card debt, and it was a lifesaver!”

Remain disciplined in paying off your balance

When you transfer your balance, Geller stresses that remaining disciplined is important. You should be careful not to make new debt while paying off your balance because when your 0 percent intro APR period is over, the interest on your unpaid balances will immediately kick in.

 While taking advantage of the intro APR offer for new purchases may be tempting, doing so has drawbacks. Buying new stuff — especially big-ticket items — when you’re trying to pay off debt means you’ll risk increasing your debt further.

Geller believes in keeping things simple. He used the Citi Diamond Preferred to pay down his debt during the intro APR period, and he used cash or a different credit card for his everyday expenses. He also made sure to pay it off every month.

 When you only make minimum payments every month, it’s a sure-fire way to see your debt snowball and spin out of control. Geller advises that if you carry a balance from month to month, always pay as much as you can. Whatever you can pay beyond the minimum may save you thousands in the long run.

If you don’t need 21 months, there are other cards with lower fees

The Citi Diamond Preferred has a balance transfer fee of 5 percent (or $5, whichever is higher). This fee is on the high end; many balance transfer cards come with a 3 percent fee instead. If you don’t need 21 months to pay off your debt, ​​many balance transfer cards with a lower balance transfer fee than this card are available.

 “When I applied for the Citi Diamond Preferred, the [intro APR] offer was 18 months,” Geller says. “I knew I’d likely need all [of] that time to get rid of my debt. But if 12 or 15 months is enough for you, you could save [money by choosing a card] with a lower balance transfer fee.”

Is the Citi Diamond Preferred a keeper?

It’s been years since Geller paid off his debt, but he has no plans to ditch the card, even though he does not get much out of the Citi Diamond Preferred’s benefits.

“If a card does not charge an annual fee, I usually like to keep it open so it helps me build credit,” Geller explains. “But I would only use it sparingly every now and again to keep it active, as it doesn’t earn rewards and there are no worthwhile benefits.”

The bottom line

The Citi Diamond Preferred Card is not a suitable choice for cash back or rewards hunters. It won’t help you get into a fancy airport lounge or provide you with cellphone coverage.

However, in the right hands, it can save you a substantial amount of money by providing a 0 percent intro APR on balance transfers for 21 months (followed by a 17.49 percent to 28.24 percent variable APR), which can help you pay off debt that might have accrued high interest with other cards.

 Still, before you take the plunge, be sure to compare the Citi Diamond Preferred with other Citi credit cards or the top balance transfer cards to see if there is one that better fits your needs.

 This page was originally published in early 2024 and still contains relevant interview quotes from that time. The rest of the article has since been updated.

The information about the Citi® Diamond Preferred® Card has been collected independently by Bankrate. The card details have not been reviewed or approved by the issuer.