The Citi Simplicity® Card, issued by Citibank (C) is a new balance transfer card that I would recommend to those of you who are looking for a low interest credit card to help you save money on interest rates for card balances you currently hold. This MasterCard (NYSE:MA) offers a 0% intro APR on purchases and balance transfers for 21 months, which allows you to pay off your existing card balance or any purchases on this card at 0% interest rate during the first 21 months (12.99% - 22.99% variable APR thereafter, based on your creditworthiness). I'm actually impressed that this Citi Simplicity® Card differs from other credit cards in the market as it doesn't charge any late fees, or increase your APR when you miss a payment due date. So if you like a little bit of leeway when it comes to making your card payments, this new Citi Simplicity® Card will prove to be friendlier to your wallet.
For your convenience, I've done a full review of the Citi Simplicity® Card below, so that you can see the pros and cons of this low interest credit card before applying for it.
Things We Like About This Card
No annual fee - ever. You don't have to pay a single dollar of annual fees to use this card!
0% introductory APR on balance transfers for the first 21 months. If you think you will be able to pay off your balance in 21 months, then this is an ideal card since it allows you to do so without you having to pay a single cent of interest. This means that you have 21 months to pay off your debt without having to pay any interest fees. Remember that this introductory period will only apply as long as your transfers are done in full during the first four months of opening your account. After this introductory period, you will have a 12.99% - 22.99% variable APR, depending on your creditworthiness. There is a balance transfer fee of $5 or 3% of the amount of each transfer (whichever is more). Do note that you can only transfer an amount not exceeding your credit limit, including the balance transfer fee of 3%.
0% introductory APR on purchases for 21 months. For anything you purchase with this card for the first 21 months, you won't have to pay any interest even if you carry a balance from month to month. This will be particularly helpful if you have plans to buy something expensive such as a vacation package or a new TV. After this fixed 0% APR introductory period, there will be a 12.99% - 22.99% variable APR (depending on your creditworthiness).
No late fees - ever, if you make a payment after the due date. Most other cards charge you a late payment fee ($35 average).
No penalty rate - ever. This is a benefit that very few cards offer. You need not worry about incurring penalty interest rates when you don’t make your minimum payments on time, or if you go over your credit line. Most other credit cards charge a penalty APR of 29.99% when you make a late payment or exceed your credit line, so this is a deal you don't want to miss!
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Our Least Favorite Things About This Card
Balance transfer fee. The Citi Simplicity® Card is a very useful balance transfer card thanks to the 0% intro APR on purchases and balance transfers for 21 months it offers (12.99% - 22.99% variable APR depending on your creditworthiness after that). But you do have to pay a balance transfer fee of either 3% of the amount of each transfer or $5, whichever is greater.
The Citi Simplicity® Card is a good balance transfer card for those of you who would like to transfer your existing balances and stop paying any interest. This card offers a 0% intro APR on purchases and balance transfers for 21 months (almost 2 years!), which gives you the opportunity to pay off your balances in full during those 21 months without having to pay any interest, as well as purchasing big-ticket items at 0% interest. Even after that there will be a 12.99% - 22.99% variable APR on purchases and balance transfers based on your creditworthiness.
In my opinion, the most attractive feature of this card is that it does not charge any late fees or penalty APR when you make late payments or spend more than your available credit line. Your 0% intro APR will not be taken away, or be raised to a penalty interest rate, which is what almost all other credit cards will do. Remember though that you should always strive to pay on time so as not to accumulate debt.
It’s a good card for people who want to get out of credit card debt sooner. I would highly recommend it to those of you who want to enjoy the benefits it has to offer. As you can see, the Citi Simplicity® Card, with no hidden fees or penalty APR, is a very simple and uncomplicated card, and thus I think it lives up to its name “Simplicity”.