Citi Simplicity with Rewards Reviews
Summary - The Citi Simplicity Rewards Card is Citibank's latest reward credit card based on the Thank You Redemptions Network reward program. The unique feature about this card (and all Simplicity Cards) is that as long as you make a purchase or cash advance (excluding balance transfer) within the same billing period, you will not be charged a late fee if you make late payments. But as a reward credit card, you may want to explore other Citibank reward credit cards as well. Read on...
Reward Formula - With the Citi Simplicity Rewards Card, you earn one point for every dollar you spend on the card. You can earn up to 75,000 points in one calendar year. However, for the first year, you can earn 5 points for every dollar you spend at standalone drugstores and gas stations. You also get 10,000 points if you make your first purchase within 3 months of getting the card.
No late fees? - The unique feature of the Citi Simplicity Card is that if you make a late payment, your fees will be waived if you have made a purchase or cash advance during the same billing period. Balance transfers do not apply. However, take note that in general, late payments will be reported to the credit bureaus. Hence, you should avoid late payments at all cost.
Fees - The Citi Simplicity Rewards Card has no annual fee. You get an introductory apr of 0% for balance transfer for 12 months from the date of your first transfer. And you also have 12 months to make the first balance transfer. The apr is quite low at prime rate plus 5.49%. The average daily balance method (including new purchase) is used to calculate monthly balance.
Other Features - The Citi Simplicity Card has features that cardholders should be taking advantage of. You can set up automatic payments so that payments can be taken from your bank account automatically. If you do this, you do not have to worry about late fees. You can also choose to receive email alerts on your bills and set up online payments. Citi also offers a free Identity Theft Solutions benefit to all cardholders. This service involves monitoring your card activities for fraudulent uses and also working with the credit bureaus if you become a victim of identity theft.
Citi Simplicity With Rewards Peer Comparison
There are a few cards that we can compare this card with. The first is obviously their own Citi Diamond Preferred Rewards and the Citi PremierPass Card. Other competitors card like the Amex Blue, Chase Flexible Rewards Card and BOA Power Rewards also comes to mind. So let's get the ball rolling.
Versus Citi Diamond Preferred Rewards Card - This card is essentially the same as the Diamond Preferred Rewards Card. The only difference is the late fee waiver feature. Otherwise, aside from the design, it is identical. Update - the Citi Diamond Preferred Rewards Card has been replaced by the Citi ThankYou Preferred Card.
Versus Citi PremierPass Card - The PremierPass Card has a no annual fee version and an annual fee version. We shall compare this to the no annual fee version. The big difference between both cards is that the PremierPass Card allows you to earn Citi ThankYou points not just on stuff that you buy, but also from the miles that you fly (you obviously have to use the card to pay for your tickets). Hence, the PremierPass Card has more "points earning capacity" especially if you fly a lot. Other than that, the reward program is the same. Update - The Citi PremierPass Card has been replaced by the Citi ThankYou Premier Card
Versus Chase Flexible Rewards Card - The Chase Flexible Rewards Card is the reward card from Chase. Unlike the Simplicity Card, you only earn one point per dollar spent on the card. Comparing these two cards becomes essentially a comparison between the two reward programs. The Citi ThankYou's program has the slight edge here because it has a better travel portal and also more rewards than the Chase reward program. So this round goes to the Citi Simplicity. Update - The Chase Flexible Rewards Card has been replaced by the Chase Sapphire Card and their Ultimate Rewards program has taken a great leap forward and is one of the best today. In contrast, Citi is having issues with their online travel tool because it is being powered by Expedia.com and presently, American Airline flights are not on their portal.
Citi Simplicity With Rewards - Is the Late Fee Waiver The Main Feature?
Conclusion - The key selling point of this card is the late fee waiver feature. Other than that, this card is no different from Citi's own Diamond Preferred Rewards Card. To avoid late fees, the best thing to do is to actually set up an automatic payment with Citibank so that your credit card payment is automatically deducted from your bank account each month. However, for those who insist on sending a check or to pay bills online manually, this is a very useful feature. (Note however, that late payments will still be reported to credit bureaus which will affect your credit scores).
Hence, there are tradeoffs with this card compared to other Citibank cards. If the late fee waiver feature is very important to you and you want to earn rewards with your credit card, then the Citi Simplicity Rewards Card is made just for you. However, if you always pay your bills on time and do not consider the late fee waiver feature important, then you should also consider the other cards which we compared this card with as possible alternatives depending on your spending habits and reward preferences.
Update - Just as fast as this card was introduced, it was quickly withdrawn from the market (with no explanations). But I suspect the "no late fee" feature is considered deceptive because as we mentioned earlier, you will damage your credit card very fast if your payments are always late.
Positives
- Late fee waiver
- No annual fee
- 0% apr for 12 months (balance transfer)
- Can only 5 points on purchases at standalone gas stations and drugstores, but not supermarkets
- 5 points can only be earned during the first year
Negatives
| Citi Simplicity Rewards Card | |
| Cost/Fees/Interest rates | |
| Introductory rate | 0% APR on balance transfers for 12 months from date of transfer. Transfers can be made within 12 months. |
| Annual Fees | No annual fee |
| Purchase APR | Prime Rate plus 5.49% |
| Balance Transfer APR | Prime Rate plus 5.49% |
| Cash Advance APR | Prime Rate plus 14.99%, min 19.99% |
| Penalty/Default Rate | Prime Rate plus 23.99% |
| Min Finance Charge | $0.50 |
| Grace Period | 20 days |
| Balance Calculation Method | Average Daily Balance (including new purchases) |
| Balance Transfer Fee |
3%, min $5.00, max $75.00 No balance transfer fee for introductory offer |
| Cash Advance fee | 3% ,min $5.00 |
| Over-the-credit-limit fee | $35.00 |
| Late Payment fee |
No late fee if a purchase or cash advance is made within the same billing cycle. Balance transfers are not counted. $15.00 - less than $100 $29.00 - $100 to $1000 $39.00 - $1000 and above |