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The finest thing that you can do with your credit card is to constantly pay your entire balance in full and on time. If you don’t pay your balance completely, you’ll sustain interest on the average day-to-day balance of every one of your fees. And if your payment isn’t made on time, you’ll be charged a late cost, and your card’s rate of interest will be raised to exactly what’s called the charge interest rate.

But there’s one credit card on the marketplace that’s made to help cardholders avoid these problems, a minimum of briefly. The Citi Simplicity® Card provides new candidates 18 months of interest complimentary financing on both brand-new investments and balance transfers. In addition, cardholders are never based on late costs or a charge interest rate.

How This Card Works

New cardholders are offered 0 % APR promotional financing on new purchases and balance transfers, however there’s a 3 % balance transfer charge. Qualifying balance transfers need to be made within four months of opening an account, and cardholders must still make regular monthly minimum repayments.

Cardholders can use the balance transfer offer to pay down existing debt. For instance, someone with $5,000 worth of financial obligation on a card that fees 18 % interest will incur $657 in interest if paying $314 a month for 18 months. However if that same cardholder transferred the balance to this card, they’d incur a $150 balance transfer charge, however then just have to pay $286 a month for the exact same 18 months. Even after considering the balance transfer cost, that cardholder would be conserving a total amount of $507 in interest. And in addition, brand-new investments made during that 18-month duration can also be settled interest complimentary throughout that time.

After the marketing funding terms end, interest will accumulate at the conventional rate, which will be 12.99 % to 21.99 %, depending on your creditworthiness.

Other Benefits

Despite its name, this card is anything but a no-frills product. For instance, acquisitions are covered by a prolonged warranty program that includes one year to manufacturer’s guarantees of 3 years or less. Cardholders likewise receive a retail acquisition protection policy against theft or damages within 90 days of investment, for approximately $1,000. Lastly, all acquisitions are qualified to take part in Citi’s Cost Rewind program that’ll refund the difference in rate of any investment that’s readily available for $25 less within 30 days.

Costs

There’s no yearly charge for this card, and there are no late costs. Nonetheless, there’s 3 % balance transfer cost and a 3 % foreign transaction cost added to all fees processed outside of the United States.

Pros

18 months of 0 % interest is the longest offer of its kind currently on the marketplace. If a cardholder uses this offer as component of a comprehensive strategy to settle as much debt as possible, this can be a superb offer. In addition, every one of the purchase protection strategies can be beneficial as well. Finally, it’s nice to see a bank take a less punitive strategy by removing late fees and penalty rate of interest.

Cons

Customers shouldn’t interpret Citi’s kindness as an invite to be reckless. Even without late fees and penalty rate of interest, making late repayments is a bad routine that’ll hurt your credit score. Furthermore, those who use promotional financing provides to delay paying off their debt will at some point see this practice catch up with them with ravaging results.

Who This Card Is Best For

This is the card for those who understand that they’ve actually not been utilizing charge card along with they must have. I’m talking about those of us with credit card financial obligation – roughly two-thirds of Americans, as well as those who often make a repayment late.

I strongly urge such cardholders to utilize a card like this as an opportunity to alter lenient credit practices for good, not as tool to continue the same patterns. Start avoiding late payments today by establishing automatic electronic costs repayment with your bank. Produce a reasonable budget plan that pays off as much of your credit card financial obligation as possible within 18 months. And then get a card like this one so you can conserve hundreds of dollars in interest, late costs, and charges.

It depends on you to get yourself from debt, however the Citi Simplicity® Card can be a valuable tool to help you do so.