Citi Simplicity® Card
Citi Simplicity® Card: Details and benefits
This card’s claim to fame: This card charges no late fees, no penalty APR and no annual fee. On top of that, the Citi Simplicity also offers the longest balance transfer intro period on the market.
When you transfer your balance within the first four months of account opening, you’ll have 21 months of zero percent APR to pay off your debt (after that, the APR is 16.24% – 26.24% variable). You’ll also have 12 months of zero percent APR on new purchases (the regular variable APR of 16.24% – 26.24% applies after the intro period).
While you’ll have to pay a five percent balance transfer fee ($5 minimum), having a long window to pay off debt without interest will potentially save you thousands in interest payments.
Is it worth it for you?
The Citi Simplicity is a great option for those who need a longer intro period for balance transfers, but you could save with a different card that charges a lower balance transfer fee. Other top balance transfer cards come with 12 to 18-month intro offer periods and lower fees, which might be more attractive if you can budget a higher monthly payment.
This card doesn’t offer rewards on purchases or a welcome bonus. While that might not make a difference for someone who’s just looking to consolidate debt, it could be a potential dealbreaker if you’re concerned with the long-term value of a credit card.
Many cash back credit cards also offer competitive balance transfer offers, so it’s worth comparing which type of card is right for your lifestyle.
Get the most value from Citi Simplicity
Let’s say you have $4,200 in debt spread across multiple credit cards with an average APR of 17 percent. If you plan to pay off the card within the Citi Simplicity’s balance transfer offer period, here’s how much you could save if you roll the balance transfer fee into your overall debt:
|Monthly payment||Total interest charged||Total payments|
|Without the Citi Simplicity||$232||$685||$4,885|
|With the Citi Simplicity||$210||$0||$4,410|
You would save $475 over the course of 21 months if you consolidated your debt with the Citi Simplicity.
With other balance transfer credit cards, you could save a similar amount, but you would have to pay a much higher monthly payment. A card with a 12-month balance transfer offer and a three percent balance transfer fee, for example, would require a $ monthly payment in order for you to pay off your balance by the end of the intro period.
To get the most value from this card, you’ll want to take advantage of the 21-month balance transfer offer, where you can save hundreds or even thousands of dollars. Once you have consolidated and paid down debt, it’s a good idea to start looking at other cards that offer a strong rewards structure.