Key takeaways
- The Citi® Diamond Most popular® Card is likely one of the finest steadiness switch bank cards in the marketplace in the present day due to its 0 p.c intro APR supply on steadiness transfers for 21 months, with a variable APR of 18.24 p.c to twenty-eight.99 p.c variable APR after.
- This card may very well be an excellent match for shoppers who want as a lot time as doable to repay bank card debt, however because it does not supply rewards or worthwhile advantages, it will not supply a lot worth after the intro supply ends.
- If you happen to do not want a considerable period of time to repay your debt, you would possibly need to think about a bank card with a shorter intro steadiness switch supply that additionally gives long-term worth within the type of rewards or different advantages.
Citi is an promoting companion.
The Citi® Diamond Most popular® Card is what private finance consultants would possibly name a no-frills card. There are not any related rewards or thrilling advantages that you just’d be dying to brag about to your pals, and the cardboard’s design is quite easy.
Nonetheless, the dearth of a rewards program is particularly placing. Everybody loves rewards playing cards, in spite of everything — 59 p.c of all adults within the U.S. carried at the least one of their pockets in 2021, in keeping with Bankrate’s most up-to-date knowledge on the subject. So why would anybody accept a “rewardless” card just like the Citi Diamond Most popular?
Rewards bank cards aren’t for everybody
At first look, getting money again or factors for purchases you’ll want to make anyway appears to be a no brainer. What might presumably go fallacious?
Bank card rewards are nice, however provided that you’re in a position to pay your bank card payments in full to keep away from curiosity. In any other case, the mathematics doesn’t work.
— Ted Rossman | Bankrate Bank card Analyst
It’s simple to see why. The typical bank card at present expenses over 20 p.c in curiosity — but the standard money again return is simply 1 to 2 p.c on most purchases. So in case you’re carrying a steadiness, the money again you earn gained’t make a lot of a distinction.
“When you have bank card debt,” Rossman says, “your finest guess is to prioritize your rate of interest. Signing up for a 0 p.c steadiness switch card can pause that curiosity clock for a lot of months to come back.”
‘I used to be delighted to get authorized’
Chaim Geller, founding father of HelpMeBuildCredit.com, nonetheless talks concerning the Citi Diamond Most popular with affection. “I used to be delighted to get authorized for [a] card with an 18-month 0 p.c [intro] APR, which was the supply on the time,” Geller says. The Citi Diamond Most popular now features a 0 p.c intro APR supply on steadiness transfers for 21 months and on purchases for 12 months (18.24 p.c to twenty-eight.99 p.c variable APR thereafter).
Earlier than he bought the Citi Diamond Most popular, Geller was utilizing one other bank card with a 20 p.c rate of interest, which he describes as being brutal.
“After I purchased my home,” Geller remembers, “I accrued a ton of bank card debt for construction-related purchases. I seen that, when paying the minimal fee, most of my fee was going towards the curiosity, however the precise debt was not happening a lot.”
Once you solely make minimal funds each month, it’s a sure-fire method to see your debt snowball and spin uncontrolled. Geller advises that, in case you carry a steadiness from month to month, bear in mind to all the time pay as a lot as you’ll be able to. No matter you’ll be able to afford to pay past the minimal could prevent 1000’s in the long term.
The best way out of debt
In some unspecified time in the future, Geller felt he couldn’t ignore his mounting bank card debt any longer. He began searching for a method to finish that scenario as soon as and for all, and that’s when he discovered the Citi Diamond Most popular. On the time, its introductory APR supply for steadiness transfers was for 18 months — however that was all he wanted.
He sat down and got here up with a plan. He would apply for the cardboard, switch his steadiness, repay his debt throughout the intro APR interval and by no means carry a steadiness ever once more.
“I lastly bought a chance to essentially knock down the bank card steadiness interest-free,” says Geller. “And I wasn’t going to blow it. I favored the Citi Diamond Most popular as a result of my funds totally went towards paying down the precise debt. I used to be lastly in a position to sort out my bank card debt, and it was a lifesaver!”
Stay disciplined in paying off your steadiness
Once you switch your steadiness, Geller stresses that it’s vital to stay disciplined. Try to be cautious to not make new debt whereas paying off your steadiness as a result of the second your 0 p.c intro APR interval is over, the curiosity in your unpaid balances will instantly kick in.
Presently, the Citi Diamond Most popular comes with an 0 p.c intro APR supply on steadiness transfers for 21 months and on purchases for 12 months (after that, the variable APR is eighteen.24 p.c to twenty-eight.99 p.c). Whereas benefiting from the intro APR supply for brand spanking new purchases could also be tempting, doing so has its drawbacks. Shopping for new stuff — particularly big-ticket objects — while you’re making an attempt to repay debt signifies that you’ll danger rising your debt additional.
Geller believes in maintaining issues easy. He used the Citi Diamond Most popular to pay down his debt throughout the intro APR interval, and he used money or a special bank card for his on a regular basis bills. And he made certain to pay it off each month, too.
If you happen to don’t want 21 months, there are different playing cards with decrease charges
The Citi Diamond Most popular has a steadiness switch payment of 5 p.c (or $5, whichever is larger). This payment is on the excessive finish; many steadiness switch playing cards include a 3 p.c payment as a substitute. If you happen to don’t want 21 months to repay your debt, there are a lot of steadiness switch playing cards out there which have a decrease steadiness switch payment than this card.
“After I utilized for the Citi Diamond Most popular, the [intro APR] supply was 18 months,” Geller says. “I knew I’d possible want all [of] that point to do away with my debt. But when 12 or 15 months is sufficient for you, you possibly can save [money by choosing a card] with a decrease steadiness switch payment.”
Is the Citi Diamond Most popular a keeper?
It’s been years since Geller paid off his debt, however he has no plans to ditch the cardboard, though he has little interest in the essential Citi Diamond Most popular advantages supplied.
“If a card doesn’t cost an annual payment, I often wish to preserve it open so it helps me construct credit score,” Geller explains. “However I’d solely use it sparingly each once in a while to maintain it energetic, because it doesn’t earn rewards and there are not any worthwhile advantages.”
The underside line
The Citi Diamond Most popular Card is just not an acceptable selection for money again or rewards hunters. It gained’t assist shoppers get into a elaborate airport lounge or present them with cellphone protection. Nonetheless, in the best arms, it will possibly save a client a considerable sum of money by offering a 0 p.c intro APR on steadiness transfers for 21 months, which may also help shoppers repay debt which may have accrued excessive curiosity with different playing cards. In fact, be aware that the common variable APR of 18.24 p.c to twenty-eight.99 p.c kicks in after the intro interval ends.
Nonetheless, earlier than you make the leap, make sure to evaluate the Citi Diamond Most popular with different Citi bank cards or the highest steadiness switch playing cards to see if there’s one which higher matches your wants.
