Want a no surprises credit card?

Is this new credit card for you?

Citigroup on Monday plans to launch a credit card that combines a trio of perks — no late fees, no penalty rate and a single interest rate for purchases, balance transfers and cash advances, Associated Press reports.

The revamped Simplicity card will be marketed to those who are juggling busy schedules and want a credit card with simple terms, AP writes.

But — and there are always buts when you talk about credit cards — there are a few reasons to think twice, AP reports.

For example, the card’s 16.99 percent interest rate is higher than the average rate, AP writes.

The Simplicity card also doesn’t offer any rewards, AP writes. And you may not qualify for the card because of the relatively high credit scores required.

What do you think of this idea? Will you apply or not? Why or why not?

Should other card issuers adopt the idea?

- Henry Unger, The Biz Beat

For instant updates, follow me on Twitter.

15 comments Add your comment

Name (required)

July 25th, 2011
7:23 am

I’m too responsible with my credit cards and don’t live far above my means. I don’t think I’d qualify.

Road Scholar

July 25th, 2011
7:25 am

No. Why? My cards are paid off and have lower interest rates with no annual fee.


July 25th, 2011
8:07 am

Not sure why you would want a card that offers no rewards. I’ll take the airline miles and/or cash back every time. It’s basically free money.


July 25th, 2011
8:21 am

Agree with Name and Road. If you manage your finances correctly, and pay off the CC balances each month, the interest rate could be 99.9% and it still won’t affect you. The only “gimmick” one needs is sensible money management.


July 25th, 2011
8:32 am

“BUT” with all the credit card issued by the big banks have hundreds of
dirty tricks behind the “but” screen. If we question them for their
dirty rip offs when we open the bills, it will take sometimes two hours
to talk with a person, and the person may be talking with us from the
other side of the globe with a totally different accent. Then we get
upsetted and the problem will be further delayed.

Even if issued with zero interest, credit cards can be a big trap for
many consumers through buying unnecessary goods due to our habit of
attraction and impulsive buying nature. None of the banks are in
operation to help the public, but to make fat income through any trick
they can play and apply at the helpless consumers. Avoid credit cards
through any sacrifice possible.

Wednesday Blues

July 25th, 2011
9:04 am

No thanks. No credit cards allowed here!!!


July 25th, 2011
9:17 am

“Avoid credit cards through any sacrifice possible.”

Actually, using a credit card enables me to help other people less fortunate than myself.
I agree with your premise, if you carry a balance or pay any interest. Prior post reveal the secret, pay off your balance every month. I put everything on a Discover card, at year end I have cash reward.Then, I donate the bonus money to my favorite charity. Using the card allows me to do a good thing without any upfront cost to me.


July 25th, 2011
9:46 am

A card with no rewards makes no sense. My Costco AE pays rewards in two ways and we pay it off each month so there is no cost. Even if you do not pay it off, the rewards offset some of your interest cost.


July 25th, 2011
10:01 am

Credit card companies can go jump.


July 25th, 2011
10:05 am

Why bother with credit cards?


July 25th, 2011
10:10 am

Credit Cards stink! CitiGroup and Capital One
are the worst companies in America… It should
be against school policies to allow those thugs
on Campus… Cash or Debit cards only for us…


July 25th, 2011
10:43 am

No thanks. Like others here, I use a CC to manage my finances and because I don’t like to carry a lot of cash – I pay it off at the end of the month, so the ineterest rate is meaningless. I would not use a card without a reward – I only use the one that puts a percentage into my son’s college fund….free money. I have an extremely demanding career and home-life (like many folks here) and yet somehow manage to pay my bills on time every month….put a reminder in your Crackberry if you otherwise get too busy to remember to take care of your bills.

Night Prowler

July 25th, 2011
3:06 pm

For thouse that claim they have no credit cards, how do you rent a car?


July 25th, 2011
9:20 pm

My credit card could have a 1000% interest rate, it wouldn’t cost me a cent because I always, always pay my bill in full every month.

CCs are a wonderful convenience, but if you don’t have the means and the will to stay current and you fall behind you can get into serious trouble.


July 26th, 2011
9:48 am

Mr. Hank: I do agree with you, but the majority of the card holders
don’t have any self-control while buying goods. The vast majority of
them feel like using the credit card is like getting something free,
but when they get the bill, then only feel the pain. Even though we
all have more than enough clothings to wear, but when we see some sale
sign of some clothings, with the credit card handly, we will be buying
them. Credit card in our custody while in the mall is a big temptation
of life for many. How many can win that temptation?