The Citi Diamond Preferred Card comes with a $150 sign-up bonus
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The Citi® Diamond Preferred® Card has been a solid option for those looking for a credit card with a low introductory APR period, giving new cardholders a way to fund new purchases or perform a balance transfer and save on interest charges. Now the card has launched a welcome offer where you can earn money alongside the 0% APR period.
However, like any other financial product, this card requires careful planning to fully maximize its potential.
Select breaks down the bonus, card features, and how you can use the card to its full potential.
Citi Diamond Preferred Credit Card Welcome Bonus
Once you’ve been approved for the Citi® Diamond Preferred® Card, you can earn a $150 credit after spending $500 on purchases within the first 3 months of account opening.
Although this bonus is middle of the road compared to other cash back credit cards, many introductory 0% APR cards are not known to have a welcome bonus, especially one with this long period. 0% APR intro credit for balance transfers.
For example, the US Bank Visa® Platinum Card offers 0% introductory APR for the first 20 billing cycles on balance transfers and purchases (then 14.74% – 24.74% variable). The 0% introductory APR applies to purchases and is valid for the first 20 billing cycles. The 0% introductory APR applies to balance transfers made within 60 days of account opening and is valid for the first 20 billing cycles, but it does not offer a welcome bonus.
So if you’re earning interest on another credit card, using a balance transfer offer like this and easily scoring $150 could be a smart financial move. Note that to earn the bonus you will need to make new purchases on the card, as balance transfers will not count towards the required spend.
Citi® Diamond Preferred® Card
Get $150 credit after spending $500 on purchases within the first 3 months of account opening
0% for 21 months on balance transfers; 0% for 12 months on purchases
Balance Transfer Fee
5% of each balance transfer; $5 minimum
Foreign transaction fees
Citi Diamond Preferred Credit Card Features
The card comes with several features, but the most notable are the 0% APR offers. When you are approved for the card, you will have:
- 0% introductory APR for 21 months on balance transfers (variable APR is 13.99% – 23.99% after)
- 0% introductory APR for 12 months on purchases (variable APR is 13.99% – 23.99% after)
This means that as long as you pay the minimum payment each month and on time, you will not accrue any interest charges during the promotional period. Keep in mind that for each balance transfer, you will have to pay $5 or 5% of the total transferred balance, whichever is greater. And to be eligible for the 0% introductory APR on balance transfers, balances must be transferred within the first four months of card membership.
Plus, the card has no annual fee, gives you the ability to select your payment due date for your monthly statement, and $0 liability for any unauthorized charges.
Apart from the welcome bonus, this card does not earn any cashback or rewards for on-going spending.
How to Maximize a 0% Introductory APR Credit Card
A 0% intro APR credit card is a great tool for financing a major purchase or consolidating existing credit card debt.
For example, let’s say you have $5,000 in home improvement purchases to make and you want to pay it off over time. By putting purchases on the Citi Diamond Preferred, you can slowly pay it off over 12 months without accruing interest. However, if you put that same fee on the Chase Sapphire Preferred® card, you’ll pay a variable interest rate ranging from 16.24% to 23.24%. Even at the low end, you’ll pay $375 in interest over the 12 months. At the top end, it would be $538. So, by using the right card, you can save a lot.
If you currently have revolving credit card debt, a balance transfer could save you hundreds of dollars. If you transfer that same $5,000 from the Sapphire Preferred to the Citi Diamond Preferred, you’ll have 21 months to pay it back without accruing interest. And even though you’ll be charged a $250 balance transfer fee, the money you’ll save in interest charges will more than cover the fee. If you pay $5,000 over 21 months with a card that has an APR of 16.24%, you’ll end up paying $695 in interest.
At the end of the line
Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.