Posted on June - 24 - 2011
Review: The New Citi Simplicity Credit Card
After a multi-year hiatus, the Citi Simplicity card has been retooled and relaunched. The new Simplicity card retains many of its former features – it has no annual fee, no late fees, and no over the limit fees – while incorporating a few new benefits, the most notable of which is an interest rate that will not increase when consumers miss a payment or spend beyond their credit limit. These features are complimented by an ultra-long 0% introductory rate on both purchases and balance transfers that lasts 21 months.
The Citi Simplicity card is clearly targeted towards consumers who want a no frills credit card that offers protection against late fees and the interest rate increases that often accompany them. The Simplicity card’s terms and conditions are very much in line with the card’s name. A single 16.99% variable interest rate is offered to all approved applicants as is the aforementioned 21 month 0% introductory period that covers balance transfers and new purchases. This is a departure from other cards, nearly all of which offer a range of potential interest rates – i.e. 11.99% to 20.99% – as well as some cards that offer complicated 0% introductory rates that are often shorter than advertised and not revealed until after consumers submit applications.
The Citi Simplicity card is extremely similar to both the Citi Platinum MasterCard and the Citi Diamond Preferred Card. All three cards offer industry leading 0% rates on purchases and balance transfers for 21 months and carry no annual fees. With the Citi Platinum and Diamond Preferred cards, however, consumers do have a shot at lower interest rates: both cards offer long term variable rates starting at 11.99%. Consumers who don’t qualify for the lowest rate are then offered the same APR available on the Simplicity card, 16.99%. Those that don’t qualify for that rate are offered a rate of 20.99%.
Consumers with excellent credit are likely better off opting for the Platinum or Diamond cards, as they can most likely benefit from the lower long term rates offered. Consumers with good, but not great credit will likely be better off with Simplicity, as the straightforward long term interest rate pricing ensures that consumers aren’t hit with rate shock after gaining approval.
As far as value credit cards go, Simplicity ranks right up there with the Citi Platinum Select and Citi Dividend cards. Citibank is the only credit card company currently offering generous, 21 month 0% rates and, although they do offer potentially lower rates on their other value based offerings, their Simplicity card is the only offer on the market that waives late fees and provides protection against interest rate increases.
Ultimately, choosing between Citi’s three value cards is like flipping a coin. If you have excellent credit and want a lower rate, then the Platinum and Diamond card’s are the best option. However, if you want protections against fees and don’t want to risk getting a potentially higher rate, then Citi Simplicity is likely your best bet.
Below you can compare all three offers and apply online. You can also learn more about current low rate offers by visiting the 0% APR balance transfer section of our website.
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