Citi Rewards Platinum 0% balance transfer for 24 months
Citi is the third bank to offer a 0% balance transfer for 24 months during the post-Christmas period.
If you transfer a balance to the Citi Rewards Platinum credit card, you could repay your post-Christmas debts without collecting interest for up to two years. The 0% for 24 months offer is Citi’s longest balance transfer promotion on the market followed by the interest-free for 12 months offer available on the Citi Rewards Classic card.
Citi isn’t the only bank ramping up balance transfer offers to prepare for the competitive debt consolidation period in January, though. In December, we reported that Westpac and NAB had both launched 0% for 24 months balance transfer credit card deals. While these cards all have the same balance transfer offer, it’s the other fees and rates that can help you determine which one is the best way to consolidate your debts.
When you move your debt from your existing card to the Citi Rewards Platinum credit card, you’ll be charged a balance transfer fee of 1.5%. This is lower than the Westpac Low Rate and NAB Premium cards which charge a 2% and 3% balance transfer fee respectively. Depending on the size of your debt, this fee could impact which card you apply for. For example, if you have a debt of $10,000, the balance transfer fee will be $150 on the Citi card and double that at $300 on the NAB card or $200 for the Westpac card.
While the Citi card has a lower balance transfer fee, it is less competitive when looking at the revert rate and annual fee. When the 24-month promotion ends, any remaining balances on the Citi Rewards Platinum Card will attract the standard cash advance interest rate of 21.74% p.a. While the NAB Premium Card has the same revert interest rate, the Westpac Low Rate has a lower revert balance transfer rate of 13.49% p.a. So if you’re worried you won’t be able to pay your balance in full during the 24-month promotional period, go for a card with a lower revert balance transfer rate to reduce your potential interest costs.
As well as the revert interest rate, it’s also important to compare standard costs such as the annual fee. The Citi Rewards Platinum credit card has a reduced annual fee of $199 for the first year, reverting to $249 p.a. thereafter. This means your annual fee costs would reach almost $450 by the time the balance transfer promotion ended. Meanwhile, the NAB Premium Card has a lower annual fee of $90 p.a. and the Westpac Low Rate Card boasts the lowest yearly fee of $59 p.a. Regardless of the card you choose, you need to make sure that the interest savings from the 0% period outweigh this annual fee to get value from the card.
The Citi Rewards and NAB Premium card have higher annual fees and revert rates than the Westpac Low Rate card because they come with more extra features such as reward programs and complimentary travel insurance. So, if you plan to use the card beyond the balance transfer offer, the extra features outweigh the costs of the card. Otherwise, if you want to concentrate on repaying your debt and then will either close your card or continue using it for purchases only, the Westpac Low Rate card might be a wiser option.
If you do decide to take advantage of the Citi Rewards offer, you’ll need to apply and receive approval by 17 March 2017. You can only transfer up to 80% of your available credit limit from non-Citi credit cards, loans or store cards. This also excludes credit cards from IMB, Suncorp, CUA, Bank of Queensland and Virgin.
You can see our review guide for a full list of rates and fees to decide whether or not the Citi Rewards Platinum card can help you consolidate your post-Christmas debt this new year.
- Why “no interest” credit cards are really “monthly fee” cards
- CBA announces zero interest credit card CommBank Neo: How does it compare?
- NAB StraightUp: How credit cards are changing in a buy now pay later world
- 8 personal finance habits to get more out of life
- How to make the most of American Express Shop Small in 2020