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Key takeaways
- Both the Discover it® Cash Back and Citi® Diamond Preferred® Card are good choices for consumers who want to transfer their existing debt to a card offering an intro APR on balance transfers.
- The Citi Diamond Preferred offers a longer introductory period on balance transfers, but Discover it Cash Back comes with a smaller balance transfer fee and allows users to earn cash back on new purchases.
- Because neither card has an annual fee, the right card for you depends on your goals when getting the card and how you plan to use it.
When you’re trying to pay down credit card debt, a balance transfer credit card can be a valuable tool. Cards in this niche let you secure a 0 percent intro APR for a limited time on transferred balances, and many of these cards don’t charge an annual fee.
But there are plenty of variables among balance transfer cards, including some intro APR offers that last much longer than others.
Two of the best balance transfer cards on the market are the Discover it® Cash Back and Citi® Diamond Preferred® Card.
Main details
| Cards | Discover it® Cash Back | Citi® Diamond Preferred® Card |
|---|---|---|
| Welcome bonus |
|
None |
| Rewards rate |
|
N/A |
| Intro APR | 0% intro APR for 15 months on purchases and balance transfers (followed by a 18.24% – 27.24% Variable APR) | 0% intro APR for 12 months on purchases and for 21 months on balance transfers completed within the first four months (followed by a 17.24% – 27.99% (Variable) APR after) |
| Annual fee | $0 | $0 |
| Foreign transaction fees | None | 3% on foreign transactions |
Discover it Cash Back vs. Citi Diamond Preferred highlights
Although the Discover it Cash Back and Citi Diamond Preferred both offer low intro APRs for a limited time, you may decide to choose one over the other depending on these important factors.
Welcome bonus winner
Rewards rate winner
Intro APR winner
Annual fee winner
Foreign transaction fee winner
Which card earns the most?
Because the Discover it Cash Back offers 5 percent cash back on up to $1,500 spent in quarterly rotating categories (then 1 percent back, activation required) and the Citi Diamond Preferred doesn’t offer any rewards, you’ll earn more with the Discover it Cash Back every time.
However, if your primary goal is to transfer a balance and pay off debt over a long period of time, the Citi Diamond Preferred may be the better card because of the longer intro APR period. Let’s break it down.
Discover it Cash Back vs. Citi Diamond Preferred balance transfer example
Let’s imagine you have $5,000 in credit card debt. If you decide on a balance transfer with the Citi Diamond Preferred, you’ll pay a 5 percent balance transfer fee ($5 minimum) on that $5,000, which is $250. You then have 21 months to pay this balance off.
With the Discover it Cash Back, you’ll pay an introductory balance transfer fee of 3 percent (after which the fee can be up to 5 percent of each transfer amount [see terms]), which comes to $150. This card offers 15 months to pay this balance off.
Here’s how both of these balance transfer scenarios would play out:
| Credit card | Starting balance (after fee) | Intro APR | Months to pay off | Monthly payment | Variable APR (after intro) |
|---|---|---|---|---|---|
| Citi Diamond Preferred | $5,250 | 0 percent for 21 months | 21 | $250.00 | 17.24% – 27.99% (Variable) |
| Discover it Cash Back | $5,150 | 0 percent for 15 months | 15 | $343.33 | 18.24% – 27.24% Variable APR |
As you can see, the Citi Diamond Preferred’s additional six months to pay down debt without interest can make a big difference in your debt payoff plan. Despite the higher balance transfer fee, the longer 0 percent intro APR period will allow you to pay a smaller amount each month and still become debt-free before the intro period ends.
Ultimately, you need to decide whether those extra six months are worth the extra balance transfer fee.
Why should you get the Discover it Cash Back?
There are several reasons to pick the Discover it Cash Back over comparable balance transfer credit cards. The main factor is that this card offers rewards, which Discover matches the first year. Here are some other factors to consider:
Why should you get the Citi Diamond Preferred?
If you’re mostly interested in paying off debt, the Citi Diamond Preferred is a better option. This is because you’ll get a 0 percent intro APR for 21 months on balance transfers made in the first four months (and 17.24% – 27.99% (Variable) thereafter), which is currently one of the longest 0 percent intro APR periods for balance transfers offered. Here are other reasons to pick this card:
The bottom line
Before you craft a plan to get out of debt with a balance transfer card, first compare all the top 0 percent intro APR card offers on the market today. Some cards in this niche offer rewards and welcome bonuses, while others offer a much longer 0 percent intro APR period or lower balance transfer fees.
Deciding what you’re looking for and comparing cards will help you find the best one for your needs and goals.
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