If you are a credit card user currently in debt, there is a powerful option available to reduce or eliminate the interest you are accruing. By transferring existing balances to a new card with a 0% promotional balance transfer offer, you can gain additional time to pay off your debt without incurring additional interest charges.
Citi offers its Diamond Preferred® Card with an industry leading 0% promotional balance transfer promotion.
Key Features
- 0% Intro APR on Balance Transfers & Purchases for 18 months. Citi offers this card with 18 months of 0% financing on both purchases and balance transfers. To qualify, balance transfers must be completed within four months of opening an account, and are subject to a 3% balance transfer fee. After that, the APR will be 11.99%-21.99% based upon your creditworthiness.
- Perks and Benefits. This card does not offer any rewards, such as cash back, points, or travel rewards. Nevertheless, cardholders are eligible to receive a range of benefits, including travel insurance coverage, purchase protection policies, and even a personal concierge service.
- Google Wallet Enabled. Citi offers the first MasterCard to be compatible with Google Wallet, the mobile payment service that uses your smartphone as a credit card.
- Fees. There is no annual fee for this card, but there is a 3% foreign transaction fee on all charges processed outside of the United States.
Advantages
- Long Promotional Financing. Citi’s offer of 18 months of 0% interest on new purchases and balance transfers is one of the longest on the market. Card members will have to pay a 3% balance transfer fee, but even that rate is competitive.
- Travel Assistance and Insurance Policies. Cardholders can utilize a complimentary travel and emergency assistance policy, and will receive trip cancellation and trip interruption insurance on all tickets purchased with their Citi card. This card also includes $3,000 in lost luggage coverage.
- Purchase Protection Policies. Card members will receive several benefits, including price protection, retail purchase protection, and extended warranty coverage.
- Mobile Payments. With the new Google Wallet service, cardholders can simply tap their phone on compatible pay terminals to make a charge.
- VIP Treatment. Cardholders can use Citi’s personal concierge service to make restaurant reservations or travel plans. Citi also offers cardholders access to special events through its Private Pass program.
Disadvantages
- No Rewards. This card does not earn Citi ThankYou points or any other type of reward. Clearly the target audience is those who carry a balance and make balance transfers.
- No Sign-Up Bonus. Many cards are offering hundreds of dollars worth of cash back or loyalty points to new applicants as a sign-up bonus. Citi appears to be offering its generous promotional financing in lieu of such incentives.
- High Standard APR. Like most cards with limited-time promotional interest rates, this card offers a standard interest rate that is slightly higher than average.
- Foreign Transaction Fees. For a card with so many travel-related features, it is unfortunate that Citi still charges this unnecessary 3% fee, especially when there are many credit cards that do not charge foreign transaction fees.
Final Word
If you have dug yourself into a hole with credit card debt, a strong promotional financing offer can be a great way to climb out. Citi’s Diamond Preferred card is one of the more attractive offers on the market, but it can never be a substitute for a workable plan to eliminate your debt. By offering a long 0% financing period and valuable side benefits, the Diamond Preferred is worth serious consideration.
Do you have a Citi® Diamond Preferred® Card? What is your experience with it?
