How Do You Feel about the Citi Simplicity Card?

If I were to apply and they were to accept me, it would be a form of forgiveness. This card represents a significant milestone, having been over seven years since I first encountered an offer in the monthly statement enclosure. The same offer led to my first briefcase, a beautiful burgundy leather briefcase with a self-adhesive brass ‘office’ plate attached to it. Reflecting on that time, it feels like a symbolic path to rebuilding my credit and financial responsibility.

Good and Not So Great

The Good:

No interest on Purchases for 12 months No interest on Balance Transfers for 21 months No Late Fees No Penalty Rate No Annual Fee

The Citi Simplicity card offers several attractive benefits, making it appealing for those seeking a no-interest period on purchases and balance transfers without the burden of annual fees. However, there's a notable drawback, which is its lack of rewards programs. Many modern credit cards come packed with generous rewards, but the Citi Simplicity card does not offer any such incentives. This alone is enough to dissuade potential applicants, as it fails to provide motivation or financial benefits beyond the introductory period.

The Bad:

There are several drawbacks that make the Citi Simplicity card less appealing than other options. Notably, it doesn't offer any form of rewards, which can be a significant drawback for many cardholders. This includes cashback, travel rewards, or other perks that make using a card more attractive. Additionally, the card does not provide any early redemption options, unlike many other cards that allow users to redeem points or miles at a certain threshold.

Considerations for Balance Transfers

One of the key features of the Citi Simplicity card is the 0% interest on balance transfers for 21 months. If you currently owe money on other credit cards and plan to transfer that debt, it's important to consider the cost associated with doing so. While the 0% interest rate is beneficial, there is a 5% fee charged on all balance transfers. Meaning, if you transfer $5,000 in credit card debt, you'll incur a $250 fee. This can offset the initial savings, especially if you plan to transfer a large amount of debt.

Therefore, if your debt is substantial, the Citi Simplicity card might not be the most cost-effective solution. It's crucial to weigh the convenience of the no-interest period against the additional cost of the balance transfer fee.

Alternative Card Recommendations

Here are a few cards I would recommend instead:

Discover it? Balance Transfer: This card offers a 0% interest period on all transfers for up to 21 months, plus 5% cash back at select locations like gas stations and grocery stores. It's a great option for those looking to save on transfers and earn rewards. American Express Platinum Card: This premium card comes with an incredible welcome bonus, a 200 annual travel credit, and airport lounge access. It provides premium benefits that the Citi Simplicity card does not. Chase Sapphire Preferred Card: This card allows you to earn 60,000 points worth $750 when you spend $4,000 on the card in the first 3 months, and it offers 5% cash back. It's a fantastic choice for those who frequently travel or shop at certain stores.

Each of these cards offers unique benefits that address specific needs and preferences, making them better suited for various types of cardholders.

Final Thoughts

The Citi Simplicity card does offer some attractive introductory offers, especially if you need a no-interest period on your credit card balances. However, the lack of rewards can be a significant drawback. Depending on your financial situation and goals, other cards may provide more value. For those with significant debt and looking for a no-interest period, it's essential to carefully weigh the potential savings against the balance transfer fee. Consider alternatives like the Discover it? Balance Transfer, American Express Platinum, or Chase Sapphire Preferred Card, which offer more value and benefits.