The most popular feedback I receive when reviewing cards pertains to fees. Most users seem to be allergic to annual fees, balance transfer fees, and others, regardless of the quality of the rewards program or bonus offer. Even when the rewards overshadow the fees, consumers shy away. I do believe you shouldn’t pay any fee you shouldn’t have to pay, though, and when there is a rewards program available without fees, the cards with fees are less attractive. Citi has caught onto the aversion to fees, and has launched a new card that has fewer types of fees than most.
The Citi Simplicity® Card is perfect for the conscientious credit cardholder, with a 0% introductory APR on both purchases and balance transfers for 18 months. Balance transfers do trigger balance transfer fee of 3% of each balance transfer; $5 minimum, but that can still make balance transfers from high-APR cards worthwhile. After the introductory period, purchases and balance transfers are subject to a variable APR currently between 12.99% – 21.99%, based on your creditworthiness.
The Citi Simplicity Card has a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater and the APR on cash advances is the same low 12.99% – 21.99% variable APR that’s charged for purchases.
The Citi Simplicity Card does not carry an annual fee, late payment fee or penalty rate – ever. For example, if a cardholder is on vacation overseas and forgets to schedule an automatic payment, Citi will not charge the $25 to $39 late fee common on almost any other card. In addition the card does not carry an over limit fee. If you are using the credit card in an emergency (after your emergency fund is exhausted, naturally) and need to exceed your credit limit, Citi will not charge a fee. Although Citi is not charging its customers of this card for these actions, there still may be a penalty eventually. For those who pay late (or not at all) or exceed their limit often, Citi may choose to close the account.
The Citi Simplicity Card was designed to take the stress out of owning a credit card, just as the name of the card implies. You won’t find a rewards program with this card, but for cardholders who are interested in paying as little in interest and fees as possible, this is one of the best cards out there. Any consumer who uses credit to make ends meet may want to consider applying for the Citi Simplicity Card.
Updated July 22, 2013 and originally published July 1, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.