Citigroup plans to launch a unique credit card on Monday that comes with no late fees or penalties. The card also boasts a single interest rate for purchases, balance transfers and cash advances, helping it stand out from its competition.
New Card Comes with Simple Terms
Citigroup’s Simplicity card is being marketed to individuals who are juggling busy schedules and want a credit card that has simple terms, such as a flat interest rate each month and no fees to worry about.
Jud Linville, CEO of Citi Cards, told the Associated Press, “It lets them not have to worry that they’re going to be late on a payment. It provides some flexibility.”
Since less than 5 percent of cards come without a late fee and only 8 percent charge a single interest rate for purchases, balance transfers and cash advances, some think this card will be considered a steal. However, because there are a few perceived drawbacks of the card, others say you’ll want to proceed with caution.
Drawbacks of the Simplicity Card
There are a few characteristics of the card that could be considered turnoffs, including:
- Higher interest rate: The card will be issued at a 16.99% APR, which is higher than last week’s average rate on the market of 14.4%. If you pay your balance in full every month, however, the interest rate won’t be as important.
- No rewards: Many consumers are accustomed to having access to credit card rewards. If you are a fan of travel rewards, cash back, retail discounts and more, this may not be the card for you.
- Meant for prime credit customers? Citi did not tell AP what type of credit background is required to obtain the card, but according to CardHub.com, the Simplicity card was listed for those with “excellent” scores of 720 or higher.
Citi has reportedly been testing the card on the market for several weeks in order to gauge interest, but some expect its unique perks to attract consumers looking for a card like this without all of the extra hassles.
