Citi Simplicity Review: Extended Intro APR and Minimal Fees, but No Rewards

Citi Simplicity Benefits

There aren’t a ton of Citi Simplicity benefits, but it’s still a strong contender within its product category.

Extended Intro APR Period

The primary reason to consider the Citi Simplicity Card is its extended intro APR period on purchases and balance transfers.

You can receive a 0% Intro APR on purchases for 12 months and 0% Intro APR on balance transfers for 21 months, then 17.99% – 28.74% (Variable) APR.

That means you can transfer a balance to your new Citi Simplicity Card and pay it off over close to two years without accruing interest, so long as you make your minimum payment on time each month. If you’re struggling to pay off high-interest debt, this is one of the best ways you can do it.

There’s a balance transfer fee of 3% of the transferred amount if you complete the transfer within four months of account opening. If you transfer a balance after that, you’ll pay 5% of each transfer. The minimum balance transfer fee is $5 in either case.

Limited Fees

When you’re a Citi Simplicity Card holder, you won’t pay an annual fee, late fees or a penalty rate if you make a late payment. However, you’re still subject to fees for cash advances and returned payments. As with any credit card, it’s important to practice solid financial habits so you can avoid paying fees and boost your credit score.

Citi Simplicity Drawbacks

You Won’t Earn Rewards

The main benefit of being a Citi Simplicity Card holder is the opportunity to pay off debt interest-free. That lengthy low APR window comes at a cost — you won’t earn any rewards as a cardholder: no cash back, no Citi ThankYou® points and no rewards of any other kind. This is the primary reason I stopped using the Citi Simplicity Card once I was established on my financial journey.

Foreign Transaction Fees

As with some no-annual-fee cards, the Citi Simplicity Card charges a foreign transaction fee of 3% of each purchase transaction in US dollars. This makes it a poor card for international travel; instead, pack a card that doesn’t charge foreign transaction fees when you venture abroad.

Who Is the Simplicity Card Best For?

The Citi Simplicity Card was my very first credit card. This might seem like an unexpected choice, but it was a card that my parents got and added me to as an authorized user. It allowed me to learn about credit and responsible financial habits when I was in high school without the worry of late payment fees or annual fees.

Overall, this card is best for someone who needs some help paying off credit card debt. The perks are pretty minimal once you’ve paid off your debt, but it’s worth it if you’re trying to become debt-free.

Let’s do some math. Suppose you have a $10,000 balance on a credit card that you are struggling to pay off. If your interest rate is 22%, and you can pay $500 per month toward your balance, it’ll take you 26 months to pay it off — and you’ll pay over $2,500 in interest over that time frame.

Or, you could transfer that balance to the Citi Simplicity Card. Yes, you’ll need to pay an upfront fee of $300 (3% of the balance). Then, you get 21 months to pay it off interest-free, provided you make your minimum payment on time each month. If you make the same payment of $500 per month, you’ll pay off your balance entirely in the interest-free window, including the balance transfer fee. You’ve saved yourself over $2,000 in interest and paid off your balance five months faster.

Additionally, it provides an extended window where you can make some large purchases and pay them off over time. However, several other cards offer extended intro APR periods on purchases and also provide rewards.

Is It the Right Card for You?

The Citi Simplicity Card is worth considering if you:

• Have a high-interest debt you need to pay off
• Need time to pay off expensive purchases
• You’re new to credit and worried about being charged fees

Alternatives to the Citi Simplicity Card

If you don’t think the Citi Simplicity Card is right for you, there are other options out there, including:

• Chase Freedom Unlimited®: If you want to earn rewards while keeping a low intro APR window, you should consider the Chase Freedom Unlimited. Cardholders can take advantage of a 0% Intro APR on Purchases and Balance Transfers for 15 months, then 18.74% – 28.24% Variable. You’ll also earn a minimum of 1.5% cash back on all purchases, plus a $200 welcome bonus after spending $500 on the card in the first three months from account opening.
• U.S. Bank Shield™ Visa® Card: If you want a longer low intro APR window, consider the U.S. Bank Shield Card. You’ll receive 0% intro APR on purchases and balance transfers for 24 billing cycles. After that the APR is variable, currently 17.49%-28.49%. That’s one of the longest offers on the market. You’ll also earn 4% cash back on prepaid air, hotel and car reservations booked through the U.S. Bank Rewards Center.