Citi Simplicity Credit Card Gives A Break to Late Payers

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Citi

Simplicity Credit Card Gives A Break to Late Payers

Citi

has announced a new line of credit cards that promise no late

fees to tardy payers. The Citi "Simplicity" line of

cards, including a standard low interest credit card plus cards

offering cash or merchandise rewards, allows cardholders to

miss their due dates without penalty -- provided the credit

cards get used for new purchases or cash advances during the

billing period in question.

While

the Simplicity cards may be a boon to those who generally pay

on time but occasionally miss the due date, check the credit

card terms carefully. Simplicity cardholders will not be charged

late fees as long as the card is continually used. However,

late fees will be charged if a payment is not received on time

and the card is not used during that period.

While

there is no "catch" with the Simplicity cards, the

same advice applies as that given about the new no-fee Clear

from American Express card launched this week. No late fees

does not mean no interest, so if you are habitually late or

allow your card to reach its credit limit because of the freedom

the card allows, you could still end up paying substantial interest

or over-the-limit fees down the road. And don't do anything

that triggers the card's default rate of the Prime Rate plus

23.99% -- which would mean an over-30% APR at present rates.

Published 10/18/05 (Modified 01/21/13)