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)
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