If you have credit card debt, paying it off should be your most important financial goal. One of the tools that you can use to pay down what you owe is a balance transfer. Banks aggressively compete with each other to offer the best introductory balance transfer offers in hopes of securing your business long-term.
Citi offers its Platinum Select MasterCard and Visa with a strong introductory financing offer that will give cardholders extra time to pay down what they owe, without accruing more interest.
Key Features
- Introductory Financing. Citi offers a 0% introductory APR on both purchases and balance transfers for 18 months. Afterwards, the standard interest rates apply. There is a 3% balance transfer fee.
- Citi Extra Cash. While there are no rewards for most purchases, items bought through Citi’s Extra Cash website will earn 10% cash back.
- Google Wallet Integration. This is one of the first cards to offer compatibility with Google Wallet, an innovative mobile payment system that links your credit card to your smartphone.
- Retail Purchase Protection. Items charged to this card are insured for up to $1,000 against theft or accident damage within the first 90 days of purchase.
- Extended Warranty. Purchases will be covered for an additional year beyond the manufacturer’s warranty.
- Travel Insurance. Cardholders’ dependents will receive a benefit if they are the victim of an accident on any common carrier.
- Annual Fee. There is no annual fee for this card.
- Foreign Transaction Fees. All purchases made outside of the United States will be subject to a 3% foreign transaction fee.
Advantages
- Long Introductory Finance Offer. 18 months of interest-free financing on both purchases and balance transfers is one of the longest introductory offers available.
- No Annual Fee. Typically, strong financing offers are found on credit cards with significant annual fees. There are few downsides to applying for a card that doesn’t charge such a fee.
- Mobile Payment Options. The Citi Platinum Select is great for people who would like to start making charges without swiping a card. While the Google Payments option works with your mobile phone, the card also features its own PayPass system that allows you to tap a payment tag on a retailer’s compatible device. When using this option, no signature is required for purchases under $25.
- Purchase Protections and Travel Insurance. For a card with no annual fee, Citi offers a generous array of benefits more commonly found on high-end travel rewards credit cards.
Disadvantages
- Balance Transfer Fee. The 3% fee is in line with other cards, but it is still something to consider before going with this option. Make sure that you will be saving more money than cost of the fee by moving your debts to this card.
- High Interest Rates. Citi seems to be betting that cardholders will not actually be able to pay off their balances before the introductory period expires. In that way, cardmembers will be on the hook for less than competitive interest charges.
- Foreign Transaction Fees. A 3% fee on purchases made outside the country is never justified. There are several good credit cards without foreign transaction fees.
- No Rewards. Granted, those carrying a balance should never be looking for a rewards credit card. But once you get in the habit of paying your balance in full and using credit cards and rewards wisely, it will be prudent to look for a card that gives you some cash back.
Final Word
In the battle against credit card debt, consumers need all the help they can find. 18 months of interest-free financing is an impressive device to reduce costly compounding interest. When combined with a careful plan to reduce spending and pay off a balance, cardholders can retire their debt over a generous time period.
Once you receive this card, your only concern should be adhering to your plan rather than utilizing the introductory period to dig yourself into a deeper hole. This card is a powerful tool, but it is up to you to use it wisely.
Did you transfer your balance to the Citi Platinum Select MasterCard? What has your experience with the card been like so far?
