Citi Simplicity Card Review | Best Balance Transfer Credit Cards
Citi Simplicity Card Review | Best Balance Transfer Credit Cards
If you’re looking for a credit card that doesn’t try to confuse you with terms that are impossible for non-lawyers to understand, buried deep in the fine print, you might want to take a look at the Citi Simplicity credit card: it is a basic, no-frills credit card. If approved, you’ll get a line of credit without many of the complications that are usually associated with credit cards. The marketing pitch suggests that this credit card eliminates many of the hassles inherent in dealing with credit card balances, and that you get fast, person-to-person customer service. So let’s dig deeper!
First off, let it be clear that at first glance the Citibank Simplicity credit card looks like a great option for anyone carrying a balance on higher-rate credit cards, or simply trying to avoid interest charges in the near term. The card looks really good because, in case you didn’t know, one of the biggest complaints consumers had about credit cards is hidden fees. Right off the bat, the Citi Simplicity offers a long introductory period (21 months) for the 0% APR on purchases and balance transfers, and no over the limit fees or late payment fees. This alone suggests that you’re not dealing with the usual credit card offerings by other issuers.
Pros
0% Intro APR on Balance Transfers and Purchases for 21 months (matched only by other Citibank credit cards). It doesn’t take a genius to realize that the easiest way to save money on interest is to move your balances from cards with higher interest rates to one that charges no interest. The Citi Simplicity® Card features an excellent introductory APR period that gives you almost two years without interest! As a cardholder, you’ll enjoy 0% APR for 21 months on purchases and 0% APR on balance transfers for 21 months from the time you opened your card account. After this introductory APR period expires, you’ll enjoy a low, variable APR (16.99%, subject to change). With the Simplicity, you get a break for nearly two years, so even after the 3% transfer fee, this is a huge savings. Most balance transfer offers charge much higher rates on purchases, so they can still charge you interest to offset the 0% interest promo on your transfer. With the Simplicity, however, you avoid paying interest on anything during the promo period, making it that much easier to pay all your cards off and move on. The average daily balance method (including new purchase) is used to calculate monthly balance.
No late fees or rate hikes when you miss a payment due date or go over your credit limit. Most credit cards will charge you the maximum legal late fee ($35) the first chance they get. The Simplicity, however, has managed to do away with this practice, so if you slip up on one of your payments, you won’t get hit with a damaging fee. Also, your APR will not change if you’re late making a payment. Most of the time, these rates are as high as 29.99%, and they rarely ever get revised down. Now this does not mean that you’re allowed to miss payments at will, but instead that you might be forgiven one late payment here or there. Remember, your late fee gets added to your balance and generates interest if you don’t pay off your balance every month. Late fees can get VERY expensive.
No wait time for live help, 24/7. Never again will you call in for help and wait for a human being to pick up on the other end. This card allows you to avoid frustrating, automated voice recordings when you make a customer service call. Citi representatives are standing by 24/7, and you’ll never have to sit and wait for your call to be answered. As a cardholder, just verify your account number and say “representative.” You’ll be put right through.
No annual fee. There is no annual fee for the Citi Simplicity® Card. This one is pretty self-explanatory.
Fraud protection. Citi also offers a free Identity Theft Solutions benefit to all cardholders. This service involves monitoring your card activities for fraudulent uses and also working with the credit bureaus if you become a victim of identity theft.
Billing dispute resolution. Citi will also help you with billing dispute resolution where if you can’t resolve a problem with a retailer, Citi can step in and help on your behalf (for purchases you made on the card). If you are shopping online and don’t want to give your actual credit card number, Citi can give you a virtual number that will be used for that one purchase to help keep your account safe.
Travel benefits. Lost Luggage Coverage: up to $3,000 for you and your dependents if your entire common carrier fare is charged to your card. If you can’t take or continue a trip you paid for with your card, you are eligible for $1,500 in Trip Cancellation/Trip Interruption coverage. You also get automatic travel accident insurance and a rental carrier’s collision loss/damage waiver insurance is not necessary. Citi will also help you replace lost or stolen travel documents and emergency cash and can help refer you to doctors and lawyers worldwide.
Price Protection. This is a rare perk. Basically it covers you if the advertised price of an eligible item you bought drops in price within 60 days. Citi will refund you the difference in price, up to $250. There are a few exclusions and rules with this, such as internet purchases.
Retail Purchase Protection. If you buy something and it is damaged or stolen within the first 90 days, then Citi has your back if it’s a covered item under eligible circumstances. There’s up to $1,000 in protection per claim.
Extended Warranty. Decline retailers’ extended warranties: on qualified purchases made with this credit card, the manufacturer’s or store warranty will essentially be duplicated up to 12 months extra. For example, if the regular warranty was for 12 months then with the card, you would get an additional 12 months of coverage through Citi. As expected, this doesn’t cover everything you buy. When you apply and are approved, the benefits guide detailing the conditions of coverage will be mailed to you.
NO fees on cash advances; this is the only card where quick cash can be a good idea. If you want to withdraw money from an ATM using this credit card, your cash advance APR will be 16.99%, which is lower than that charged by other credit cards, which is around 19%.
Grace period; the grace period listed for the Citi Simplicity® Card is at least 23 days. No interest charges will be applied for purchases during those days.
Cons
Balance transfer fee is $5 or 3% of the amount of each transfer, whichever is greater. If you do make a balance transfer, there is a fee of 3% (which happens to be the only fee associated with this card). We must admit, though, that this is on the low end of the scale, as most card products charge between 3% and 5% of the balance transfer amount as a fee. Balance transfers need to be made within four months of opening your card account in order to get the low rate.
No rewards program. Consumers looking to maximize their credit card spending should look elsewhere. You won’t be able to earn rewards points with your purchases, although you can earn extra cash totaling 10% of the purchases you make with your Citi Simplicity card.
High interest rate. The regular 16.99% APR is relatively high even compared to many of the rewards credit cards on the market. You should also be careful when you do miss a payment. Because your interest charges are calculated based on that interest rate, your credit card balance stands to rise pretty quickly if you forget to make your monthly payments.
Credit score requirements. Generally, you must have good to excellent credit to qualify for the card. Based on the FICO score recommendation, and accounting for the fact that the exact credit requirements may fluctuate with market conditions or creditor policy changes, excellent credit normally means scores from 720 to 850. This FICO score is recommended for a higher chance of approval, but it is not required, as there are a number of other factors that this issuer may also consider when making decisions for approval.
Returned-payment fee of up to $35.
Bottom Line:
This card is a smart choice for those who want to consolidate balances, or for anyone who tends to incur late payment charges or over-the-limit fees. If you’re paying back credit card debt across several cards, you might want to get this uncomplicated balance transfer card. You get access to a handful of features that are pretty rare, and there is no other card that we know of that offers the same combination of money-saving, stress-relieving perks.
However, if you are a super credit card user who likes to take advantage of rewards programs to get cash back, free travel and other perks, the Simplicity card won’t fulfill your needs. Similarly, if you don’t have a habit of missing payments or maxing out your credit line, consider other options: a low-interest credit card if you’ll carry a balance or a cash back credit card if you always pay your balance in full.
Even though this card has no rewards program, it’s a great card for people who want to get out of credit card debt sooner. It’s highly recommended to those who want to enjoy the benefits it has to offer.