Citi Simplicity Card is easy, but not cheap

Citigroup launched a revamped Citi Simplicity Card a credit card with an offer that aims to simplify the fees, rates and rules that create hassles for many cardholders.

The Simplicity card has these key features:

• Zero percent introductory APR for 18 months on balance transfers
• Zero percent introductory APR for 18 months on purchases
• After the introductory period, the variable APR will be 12.99% - 21.99% based on your creditworthiness.
• No annual fee - EVER
• No late fees - EVER
• No penalty rates for late payment - EVER
• Save time when you call with fast, personal help, 24 hours a day.
• Single interest rate for all purchases, cash advances and balance transfers

These features make the Citi Simplicity card ideal for people who want more flexibility in payment terms. It's being marketed toward busy people who want more straightforward terms from their credit card. There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater. But while it has its perks, Simplicity doesn't come cheap.

The catch

1. Higher than average APR. Consumers looking for a low interest card may want to look elsewhere. Simplicity's average rate for all purchases, advances and balance transfers is 17.49 percent--significantly higher than the average consumer non-rewards credit card rate of 14.88 percent in mid-July, as reported by IndexCreditCards.com.
2. No rewards. Those who enjoy rewards credit cards will need to look elsewhere.

Citi Simplicity Card

The primary benefit of the Citi Simplicity card is that it offers less complicated terms than many cards, which could be an attractive prospect to cardholders who have been surprised by unexpected fees or have run afoul of the fine print in their contracts. Citi Simplicity® Card has no late fees - a feature of only 5 percent of cards on the market today - and clear terms that Citi claims are easier to read and understand.