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Americans had a combined credit card balance of $986 billion in the first quarter of 2023, according to the Federal Reserve Bank of New York. That figure is astounding on its own, but it’s even more impactful when you consider the average consumer is paying off their share of debt with an interest rate of 20.92%.
If you’ve collected any credit card debt yourself, a balance transfer to a card with an introductory 0% APR could help get rid of it faster. Citi offers a range of balance transfer credit cards that could help you dig your way out -- if you pay over the minimum each month.
What is a balance transfer?
Balance transfers let cardholders move a balance from one card to a new one with the goal of avoiding costly interest charges to help you get out of debt faster. The best balance transfer credit cards offer 0% introductory APR on transfers (and sometimes purchases) for up to 21 months, though they usually come with fees of 3% to 5% of the transferred balance. Although there are credit cards with no balance transfer fees, they generally provide less favorable terms, like a shorter promotional period.
While paying a fee to consolidate your debt may not seem ideal, the interest you’ll save can make it well worth it. Avoiding interest for up to 21 months could save you hundreds or thousands of dollars in interest payments over time depending on how much debt you owe.
And since you’re not paying interest during the card’s introductory period, every penny you pay toward your credit card goes directly toward reducing your debt. This means you could potentially save money while getting out of debt sooner.
The best Citi balance transfer cards
There are several Citi balance transfer cards to consider, but here are the best ones.
Citi Simplicity® Card
The Citi Simplicity® Card* is the best balance transfer card from the issuer. It features a 0% intro APR on balance transfers for 21 months (then 19.24% to 29.99% variable; transfers must be completed within four months of account opening). There’s no annual fee, but there is a 3% introductory balance transfer fee (minimum $5) that applies to balances transferred in the first four months. After that, it goes up to 5% (minimum $5).
If you had $5,000 in credit card debt to consolidate with this card and you transferred the balance within four months to get the 3% fee, you could pay off the $5,150 starting balance you owed with a monthly payment of $246 for 21 months. However, if you can, try to pay a bit more each month to make sure you can pay it down by the end of the promotional period.
This card also comes with a 0% intro APR offer for purchases for 12 months from the date of account opening (19.24% to 29.99% variable APR thereafter) -- but we don’t recommend taking advantage of this while you’re working on your debt.
Citi® Diamond Preferred® Card
The Citi® Diamond Preferred® Card* also offers a 0% introductory APR on balance transfers for 21 months and on purchases for 12 months (then 18.24% to 28.99% variable). Balance transfers must be completed within four months of account opening. There’s no annual fee, but it has a 5% balance transfer fee (minimum $5).
That makes the Citi Diamond Preferred® Card a more expensive balance transfer option than the Citi Simplicity. Paying a 3% balance transfer fee on $5,000 in credit card debt would cost you $150, but a 5% fee would set you back $250.
Citi Double Cash® Card
The Citi Double Cash® Card also comes with no annual fee, and it offers 2% cash back on spending -- 1% when a purchase is made and another 1% when it’s paid off. This card also offers a 0% introductory APR on balance transfers for the first 18 months (then 19.24% to 29.24% variable; balance transfers must be completed within four months of account opening), and a 3% intro balance transfer fee (minimum $5) in the first four months.
However, the balance transfer fee goes up to 5% (minimum $5) after four months of opening your account -- so you’ll want to act quickly.
How to transfer a balance with Citi
Generally, transferring debt to a Citi credit card online is the easiest. The Citi credit card portal lets you initiate a balance transfer request from your online account, and you can also track the status of your transfer.
If you already have your Citi credit card, you can initiate the balance transfer process online through your account management page. Citi notes that balance transfers are typically processed within 10 days for existing card members.
However, if you just signed up for a new Citi balance transfer card, Citi won’t begin processing your request until 14 days after your account has been opened. From there, it can take up to 10 more days for the transfer to be processed.
Citi typically lets cardholders transfer balances up to the credit limits on their account, and it states that there’s no hard inquiry on your credit reports to initiate a balance transfer. However, the amount you can transfer also includes the balance transfer fee you’ll be charged.
If you want to transfer other debts to a Citi credit card with a $10,000 limit and a 5% balance transfer fee, for example, you’ll only be able to transfer up to $9,500 in debt to account for the $500 balance transfer fee that gets added to your balance.
If you’d rather talk to a customer representative, you can also initiate a Citi balance transfer by calling the phone number on the back of your card, or by calling Citi customer service at 1-800-950-5114.
Why would you use a balance transfer?
If you’re carrying credit card debt and paying a high APR, transferring balances to a credit card with a lower rate can help you avoid costly interest charges. Meanwhile, consolidating debt from multiple credit cards and loans down to just one payment each month can also simplify your finances.
Generally, balance transfers make the most sense when you get a 0% intro APR for a long enough time to pay off your full debt. To figure out how much to allocate toward the balance each month, divide the transferred balance by the number of months in the promotional period. Pay slightly more than that number if you can to ensure you can pay it off completely before interest begins accruing again.
Is it worth it to pay a balance transfer fee?
Balance transfer fees may seem unnecessary, but you can consider them a solid investment if you’re serious about debt payoff.
Consider this: If you owe $6,000 across a few credit cards that charge 21% APR, and you’re paying $300 monthly, it would take you 25 months to become debt free. During that time, you’d pay $1,449 in interest.
Instead, you could transfer that debt to a credit card with a 21-month promotional period and a 3% balance transfer fee. You’d be responsible for paying down $6,180 after accounting for the fee. Paying $300 monthly would pay it off within the time frame and save you $1,269.
You can also look for a balance transfer card with no transfer fee, but you may have a shorter introductory period.
Tips for paying off a transferred balance
To get out of debt with a balance transfer, have a concrete plan in place ahead of time. Also, you’ll need to be disciplined when it comes to making the required monthly payment and to avoid new debt.
Consider these tips to get out of debt with a balance transfer card from Citi or any other issuer.
- Divide your debt by the number of months in the intro period to figure out your monthly payment. For example, if you owe $6,000 and have 21 months to pay it off, divide $6,000 by 21 to get a general idea of how much you need to pay monthly.
- Factor in the balance transfer fee. Also remember if the card has a balance transfer fee, it’ll be added to the total balance you need to pay off.
- Keep up on payments from the card you transferred the balance from. Keep making monthly payments on your old credit cards until all debt has been transferred and you have confirmed your old balances are down to $0.
- Don’t make any additional purchases. Make monthly payments on your new card according to the plan you laid out, but refrain from using credit cards for purchases since new spending will make getting out of debt even harder.
- Don’t miss a payment. Make on-time payments to boost your credit score while avoiding late payments and a penalty APR. Also note that, in many cases, missing a payment will cause you to lose your introductory 0% rate altogether.
The bottom line
Citi offers some of the best balance transfer credit cards on the market today, and the card issuer makes it easy to consolidate debt through your online account or over the phone. Just remember that balance transfer fees apply to Citi cards, and that you’ll want to have a solid plan to get out of debt.
You may also want to consider balance transfer offers from other issuers like Chase, American Express and Wells Fargo before you settle on the best balance transfer card for your needs.
*All information about the Citi Simplicity Card and the Citi Diamond Preferred Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
