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Credit Pacific Service Union Citibank recently launched a new credit card that takes away an important sting felt by many consumers: late fees. In an unusual move, the bank is now offering consumers "permanent forgiveness" for late payments and will no longer assess the customary $39 late fee when a payment arrives after the due date. While the offer sounds great on surface, if you dig a little deeper you will soon learn that there are some things about the new Citi Simplicity card that can cost you more money in the long run. Let's take a closer look at what this credit card issuer is really offering with its new card.

Prepaid cards are electronic cards which allow card holders to access funds deposited to an account. A prepaid card can be used to withdraw money or pay for goods and services. Unlike a credit card, which extends a line of credit, prepaid cards are more similar to debit cards. Prepaid card holders can only spend the money they load on the card. Since no credit is extended to prepaid card holders, interest and overdraft fees are avoided.

Credit First Service Union The Problem

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Card Credit Mobile Service Consumer advocates have long cried foul when it has come to credit card late fees and penalties. Not only would you be assessed a one time late fee ranging from $29 to $39 if your payment arrived late, but your interest rate could be permanently increased to the default rate, typically as high as 29% annually. This "double whammy" further made it difficult for you, the credit card holder, to ever pay down debt.

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Card Credit Discover Service Citibank's Solution

Why carry Credit Cards when you can use Obopay Credit cards allow people to purchase items immediately, and pay for them later. Instead of having money removed directly from a bank account, as is the case with debit cards, a credit card purchase is paid for by the credit card issuer and the credit card holder pays back the issuer in full at the end of the month, or with interest added minimal monthly payments. Also, responsible use of credit cards helps in building a good credit history, which aids in attaining loans, insurance, and other important services from financial institutions.

Credit Public Service Union In a bold marketing move, Citibank - one of the largest issuers of credit cards in the world - came up with its Citi Simplicity card in response to criticism levied by consumer advocates at the industry and at the bank personally. The new card, with no annual fee and no late fees, is designed for card holders who have been bitten by the late fee bug. No longer will you, as a card holder, have to worry if the check you sent off just before the payment due date arrived on time. With the Citi Simplicity card, a late arriving payment will be credited and no late fee assessed.

Late fees add up quickly and can be avoided with careful planning. Completing our easy Cash Central ® membership application will get you on the right page to avoiding hefty additional fees. For example, a late utility bill can lead to a service restart fee. Coupled with a late credit card payment or bounced check, that penalty could add up to $60 or more in fees. Not to mention the effects of a negative score on credit ratings and the possible loss of the utility. In situations like this, payday advances could save you anywhere from $ $80, as well as the ding on your credit.

Card Credit Processing Service Taking a Closer Look

Center Credit Service Union Within Citibank's offer are a few things that you should understand before you make the switch:

Card Credit Service Wireless 1. A late fee will not be charged to your account, but your interest rate may surge to the default rate. The default rate, in this case, can be as high as 29%! That's bad news for you especially if you had a fixed low rate previously.

Credit Security Service Union 2. You could also get a false sense of security by incorrectly believing that paying late regularly doesn't harm you in some other ways. For instance, consistently forwarded late payments can become part of your credit report, thereby negatively affecting your ability to purchase a car or a home down the road at a favorable interest rate. Important to note, a higher interest rate can add thousands of dollars to the purchase of a new home.

Credit Report Service 3. Finally, Citibank will waive the late fee only if you promise to continue to use the card. This is bad news for you especially if you are trying to reduce your balance each month without having to purchase something new, which simply adds to your balance.

Blogspot Com Christian In all, the Citi Simplicity card has much more to it than what meets the eye. For some people, the new card is a welcome change especially if you are one who pays off his balance in full each month. If you aren't, the Citi Simplicity card may cost you much more in the long run. Should you fall into this second category, it would be better for you to keep your existing card or shop for a new card with other features and more favorable requirements.

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Credit Federal Service Union Ed Vegliante runs the website http://www.credit-card-surplus.com , a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers including the Citi Simplicity Card.

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