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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)