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Review of the Citi® Diamond Preferred Rewards® Card
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| Written by renxue
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| January 21, 2008 13:25
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Summary - We recommend the Citi® Diamond Preferred Rewards® Card to those looking for a reward card. The best feature of this card is that you can earn 5 points for every dollar you spend at standalone supermarkets, gas stations and drugstores (known as "everyday purchase items") for the first 12 months. This is important because just spending $5,000 in this category earns you 25,000 points, which is enough to get you a free airline ticket. The other main highlights of this card are :
You earn 5 points for every dollar you spend on "everyday purchases" for the first 12 months There is no annual fee
Let's take a closer look at this card
Reward Formula - The Citi Diamond Preferred Rewards Card lets you earn a high 5 points for every dollar you spend on standalone supermarkets, drugstores and gasoline stations for the first 12 months. You earn 1 point for every dollar you spend on other purchases. After 12 months, you will earn 1 point for every dollar you spend on all purchases. You can earn up to 75,000 points in a year and points expire in 5 years. New cardholders will get 6,000 bonus points.
Annual Fee and APR - There is no annual fee for this credit card. The APR varies depending on your credit. The APR is as low as P+4.49%. This credit card uses the average daily balance method (including new purchases) of calculating monthly balance. New cardholders get a 0% APR deal on balance transfers for 12 months.
ThankYou Redemptions Network Program - The ThankYou program is a great all round reward program. But a couple of features standout. Firstly, it has a unique travel rewards program for airlines. Cardholders have two choices. Firstly, have a variable option plan where they can book any ticket or itinery online through expedia. The number of points required to redeem for your ticket purchases will depend on the price. But you will have the flexibility to book any tickets you want.
The other options is the fixed price option whereby the number of points for a particular destination is fixed. At this moment, the ThankYou Redemptions have one of the best deals in the market. For example, you only need 20,000 points for an airline ticket within the continental US or Alaska versus 25,000 points for most program. With this program, you need to book your tickets through a thankyou specialist over the phone. There are also no seat limits, blackout dates, advance booking requirements or saturday night stays requirements.
However, to qualify for the fixed price option, you either have to a Salomon Smith Barney FMA client, have a citibank account or have an eligible citicard. Unfortunately, the Citi Diamond Preferred Rewards card is not an eligible card for the fixed option.
Verdict - We recommend the Citi® Diamond Preferred® Rewards Card to those looking for a credit card with a good all round reward program. However, if you want to take full advantage of the fixed price option in the travel rewards program, you should either open a citibank account or get a card like the Citi® ProfessionalSM Card, which is eligible for the fixed flight option.
Though it has 12 month 0% introductory offer for balance transfers, there is a balance transfer fee you have to pay. If you are looking for a card solely for balance transfers, then the Citi® Home Rebate Platinum Select® MasterCard® is the card to get as it has no balance transfer fee for the introductory period.
Positives
No Annual Fee Earn 5 points for every dollar spent on standalone supermarkets, drugstores and gas stations for the first 12 months Thank You Redemptions network is a solid reward program
| Citi® Diamond Preferred Rewards® Card | | Reward Benefits | | Bonus Points | 6,000 points after first purchase | | Miles Accumulation | 5 points for every $1 spent at supermarkets, drug stores and gas stations for first 12 months
1 point per $1 spent on other purchases | | Caps on Rewards | 75,000 points per calendar year | | Expiration | 5 years from end of calendar year which they were earned | | Other Benefits | Online Account Access
Online account statements
automatic bill payment | | Cost/Fees/Interest rates | | Introductory rate | 0% APR for 12 months (balance transfer).
Balance transfer can be done within 12 months and 0% will apply from date of transfer | | Annual Fees | none | | Purchase APR | As Low as Prime Rate plus 4.49% | | Balance Transfer APR | As Low as Prime Rate plus 4.49% | | Cash Advance APR | Prime Rate plus 14.99%, min is 19.99% | | Penalty/Default Rate APR | Greater of Prime Rate plus 23.99% or 28.99% | | Min Finance Charge | $0.50 | | Grace Period | 20 days | | Balance Calculation Method | Average Daily Balance (including new purchases) | | Balance Transfer Fee | 3%, min $5.00 | | Cash Advance fee | 3% min $5.00 | | Over-the-credit-limit fee | $35.00 | | Late Payment fee | $15.00 - up to $100
$29.00 - $100 to $250
$39.00 - more than $250 |
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