This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Citigroup 'Simplicity" Card Simply Expensive

Stocks in this article: C

NEW YORK ( TheStreet) -- Citigroup's (C - Get Report) new "Simplicity" credit card is simply more expensive, but that does not mean it will not be a hit with customers.

Citi has tapped into the frustrating experience for most credit card customers who find themselves slapped with surprise fines and fees that are often tucked away in the fine print.

The latest card keeps it simple for borrowers by doing away with the litany of fees and multiple interest rate charges that is typically associated with cards. There will be no late fees or rate hikes if you miss a payment or go over your credit limit, no penalty rates and no annual fees, according to a Citi statement.

There will also be only one single interest rate that is applied to all transactions from purchases to cash advances. If you are wondering where the catch is, the rate, wait for it, is a variable APR (annual percentage rate) of 16.99%, higher than the average of 14.40% according to Bankrate.com

According to cardhub.com, the card is being issued to those with an excellent credit score of 720 or more- the kind of borrowers who do not fall behind on their payments anyway and therefore rarely have to pay late fees or bear penalty rates.

Still, it is a brilliant marketing gimmick. Few borrowers seem to pay attention to the interest rate. If they did, they would pay their bills on time and carry as little balance on them as possible.

Banks have been ramping up credit card operations despite a languishing economy as consumers continue to rack up debt. Consumer credit increased by $5.08 billion in May, according to the Federal Reserve.

--Written by Shanthi Bharatwaj in New York



>To contact the writer of this article, click here: Shanthi Bharatwaj.

>To follow the writer on Twitter, go to http://twitter.com/shavenk.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs