Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.
Citi is an advertising partner
the Citi® Diamond Preferred® Card has been a solid option for those looking for a credit card with a low APR introductory period, giving new cardholders a way to fund new purchases or perform a balance transfer and save on fees of interest. 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.
After being approved for the Citi® Diamond Preferred® Cardyou can get $150 credit after spending $500 on purchases in the first 3 months after opening the account.
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 U.S. Bank Visa® Platinum Card the card offers 0% 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.
Earn $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% APR for 21 months on balance transfers (variable APR is 13.99% – 23.99% after)
- 0% APR for 12 months on purchases (variable APR is 13.99% to 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 large purchase or consolidate 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 placing purchases on the Citi Diamond Preferred, you can pay it back slowly over 12 months without accruing interest. However, if you put those same fees on the Chase Sapphire Preferred® Card, you will pay interest 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.
Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.