Citi Cards is introducing a new card to U.S. consumers that offers a single rate across all purchases, balance transfers and cash advances, does not charge late fees and has no penalty rate.
Citi’s move was in response to the company’s survey that indicated that forgetting a due date and late fees were the top reasons that more than half of consumers have been late to pay a bill.
In addition to a single rate for all purchases, cash advances and balance transfers, the new Citi Simplicity Card offers a single rate for all borrowing and spending. Card holders pay no annual fees, late fees or penalty rates. In addition, Citi promises no wait for live customer service.
Citi said it is responding to consumers’ desire for a simplified credit experience and is allowing the new cardholders to customize their payment due date and set e-mail and text payment notification alerts based on their preferences and needs.
The survey revealed that consumers’ biggest challenges are taking time for oneself, managing finances and managing the household.
"Consumers' desire for solutions that simplify is clear – and the Citi Simplicity Card is designed to make it easier for clients who are short on time, yet focused on responsible financial management," Jud Linville, the CEO of Citi Cards, said. "Every busy life needs a little simplicity — for the person paying household bills, managing multiple schedules and demands, we're giving peace of mind through a simple and straightforward card that has a single rate and removes the stress of late fees and a penalty rate."