The popular Citi Dividend Platinum Select underwent a name change, and will now go by the Citi® Dividend World MasterCard® – $100 Cash Back. This doesn’t affect the terms of the credit card – it’s a cosmetic change. It’s one of the best balance transfer credit cards out there, because it offers a long 12-month intro period with no interest as well as a solid rewards program. While longer 0% interest periods do exist (the Citi Diamond Preferred, Simplicity and Platinum Select give 18 months interest-free) there’s no better combination of rewards and balance transfer/purchase APR promotions.
|Citi® Dividend Platinum Select® Visa® Card|
|Annual Fee||Signup Bonus||APR , Variable*||APR Promotions|
|$0*||$100 cash back after $500 in purchases within the first 3 months of account opening.||12.99%-22.99%* (Variable)||0% Intro APR for 12 months on Balance Transfers and Purchases*|
Citibank, master of balance transfers
Citi dominates our rankings of the best balance transfer credit cards – you have to go down to #5 to find a non-Citi card. They offer ridiculously long intro periods (see: Citi Platinum Select and Diamond Preferred, which used to offer 24 months of 0% purchase and balance transfer APR but recently cut it down to a mere 18) and a 3% balance transfer fee, lower than the 5% many other cards try to charge. Those two percentage points make a substantial difference: if you transfer $5,000 in credit card debt, you’ve saved $100.
The Citi® Dividend World MasterCard® – $100 Cash Back has a shorter introductory period than the Simplicity, Diamond Preferred and Platinum Select – 12 months to their 18. And the balance transfer fee is 3% for all of these, no matter how long the intro period is. So if you have a lot of credit card debt or are making a large purchase and need the full 18 months to pay it off, then the Dividend probably isn’t the right card for you. But if you can pay off your debts in 12 months, it’s definitely worth your while, since you can also earn some rewards in the process.
Balance transfers meet rewards
A major draw of the Dividend, nee Citi Dividend Platinum Select, is that it offers rewards in addition to having an intro period. You get $100 cash back if you spend $500 in the first 3 months, in addition to ongoing rewards.
It’s a 5% bonus rewards card, so you earn 5% cash back on bonus categories that rotate quarterly. Right now (the third quarter, from July 1st to September 30th), Citi gives 5% back on hotels, airlines and car rentals. You also get 1% cash back on everything else. However, rewards are capped at $300 a year, a fairly restrictive limitation. So it can’t hold a candle to other 5% cards like the Chase Freedom, which caps bonus rewards at $300/yr but puts no limits on total annual rewards you can earn.
So in all, the Dividend isn’t the best choice if you want to maximize your rewards or need a lot of time to pay off your credit card debts. However, if you want a little bit of both, it’s one of the few credit cards that lets you earn rewards while paying no interest for an extended period of time.