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Stability switch bank cards might be a good way to mitigate debt. When you have a stability on one other card that is costing you cash as a result of curiosity prices, you’ll be able to switch it over and pay it down whereas avoiding curiosity, normally for 15 to 21 months. 

With the Citi Simplicity Card, you get 0% introductory APR for 21 months from the date of first switch, then 16.99% to 26.99% variable APR (stability transfers should be accomplished inside four months of account opening). Nevertheless, take into account that, with the lengthy supply interval, comes a major stability switch price of 5% ($5 minimal), whereas most playing cards cost 3%.

The cardboard additionally options an introductory 0% APR for purchases for 12 months from the date of account opening (then 16.99% to 26.99% variable), which you would use to finance a big buy. However contemplating the cardboard presents no rewards, you would be higher off utilizing this card for a stability switch after which utilizing one other card to generate a return in your spending.

The Simplicity doesn’t have an annual price, so contemplate pairing it with a rewards bank card. That approach, you would use the Simplicity to knock out some bank card debt whereas nonetheless incomes rewards through one other card.

On this article

• Introductory APR on stability transfers​
• Introductory APR on purchases​
• Different card advantages​
• Comparable playing cards​
• FAQs​

Introductory APR on stability transfers

The primary characteristic of the Citi Simplicity is its introductory 0% stability switch APR for 21 months from the date of first switch (then 16.99% to 26.99% variable).

Should you switch a stability after which proceed to make purchases with the cardboard, it may take longer to repay. 21 months is an efficient period of time for the intro stability switch promotion, however you do not need to get snug and neglect how a lot time you may have left, including new purchases all of the whereas, after which find yourself not with the ability to pay it down in time. 

To keep away from curiosity completely, you will need to be certain that to make all your minimal funds on time and repay the entire stability earlier than the promotion ends.

It is vital to notice that you need to switch your stability inside 4 months of opening your account to reap the benefits of the introductory APR, so your software should be well timed. Citi additionally does not permit stability transfers from one Citi bank card to a different.

One other issue to think about is the Citi Simplicity’s stability switch price. Whenever you switch over a stability from one other card, you will pay a portion of that stability. On this case, both $5 or 5% of the switch, whichever is larger.

Why use a stability switch?

A stability switch is a superb instrument towards debt. Should you’re accruing curiosity on a bank card stability, you’ll be able to transfer it to a card just like the Citi Simplicity and pay it down quicker whereas avoiding curiosity prices.

Cardholders can allocate the cash they might usually be spending on curiosity prices towards the stability so as to eliminate it faster.

Simply be certain you are paying greater than the minimal every month to make sure you will pay down the stability inside the given time interval. A great way to determine how a lot it’s best to pay is to divide the bank card stability by the variety of months you may have for the intro APR supply. 

For instance, if in case you have a stability of $3,000 with 21 months to pay it down, it’s best to pay no less than $143 every month. However simply to be protected — and in case your funds permit it — pay slightly further simply to essentially be certain you will get the stability down in time.

Is the excessive stability switch price price it?

As a rule, a stability switch price pales compared to the price of the curiosity prices from the opposite bank card. With the Simplicity, if in case you have a stability of $3,000 on one other card, you’d must pay $150 to maneuver it over. There are playing cards which have a decrease price (see the comparable playing cards part beneath), however they could additionally include a shorter supply interval.

So should you as an alternative transferred $3,000 to a card with a 3% stability switch price that supplied 15 months to pay it down at 0% curiosity, for instance, you’d find yourself paying $90 in stability switch charges. Nevertheless, you would want to pay extra every month so as to pay it off in time. 

That is high quality in case your funds can help you allocate more cash towards the stability, however should you’re not ready to try this, paying the bigger price to get an extended interval is likely to be the higher selection. If you cannot repay the stability inside the promotional interval, it will begin to accrue curiosity, costing you much more in the long term.

There are some stability switch playing cards with out stability switch charges, however they’re seldom a more sensible choice, both as a result of different charges or a shorter time-frame to pay the stability down.

Introductory APR on purchases

The Citi Simplicity Card introductory APR covers purchases as nicely, that means you’ll be able to forestall curiosity prices in your new purchases slightly than on transferred balances. However this selection offers you a lot much less time to repay your stability: The introductory 0% APR on purchases lasts for 12 months, after which you can be topic to a 16.99% to 26.99% variable APR after that. However as a result of the Citi Simplicity does not characteristic any rewards, it would be finest to make use of one other card for purchases.

As an alternative, contemplate pairing this card with a flat-rate rewards card with no annual price, just like the Citi® Double Money Card or Wells Fargo Lively Money® Card. 

You need to use the Simplicity to assist get rid of some bank card debt, after which use both of these playing cards to earn a return on vital purchases like fuel or groceries. The Lively Money even options an introductory 0% APR for purchases and qualifying stability transfers for 15 months from account opening (then 17.24%, 22.24% or 27.24% variable APR), so that you’d be capable to keep away from curiosity prices on each the Simplicity and the Lively Money.

Different card advantages

The Citi Simplicity does not supply a lot outdoors of the chance to make the most of a stability switch or finance a big, deliberate buy (although one other card can be the higher selection for the latter). 

There is not a welcome bonus or any rewards, and few different perks outdoors of the usual fraud safety. It is an extremely easy card finest used to assist alleviate the strain you is likely to be feeling from bank card debt.

Citi markets the cardboard as having fewer charges than different playing cards, however it nonetheless has stability switch charges, international transaction charges, penalty charges and money advance charges to concentrate on. Nevertheless, as long as cardholders are making their funds on time, there should not be any points.

Comparable playing cards

Take into account these various playing cards to the Citi Simplicity. Every one brings one thing helpful to the desk, along with that includes stability switch alternatives.

U.S. Financial institution Visa® Platinum Card

The U.S. Financial institution Visa® Platinum Card is arguably one of the best stability switch bank card presently accessible. Just like the Simplicity, U.S. Financial institution Visa Platinum has no annual price and offers cardholders the chance to switch a stability from one other card after which pay it down at 0% introductory curiosity over 20 billing cycles (then 16.74% to 26.74% variable). It additionally options the identical introductory APR supply for brand spanking new purchases.

The introductory interval on stability transfers is one month lower than what the Simplicity options, however it additionally carries a barely decrease stability switch price. The U.S. Financial institution Visa Platinum’s price is 3% of the switch or $5 minimal, whichever is larger, in comparison with the Simplicity’s 5% or $5 minimal.

Along with providing a decrease stability switch price, cardholders will get a number of further perks with the U.S. Financial institution card, together with cellular phone insurance coverage (as long as they pay their cellphone invoice with the cardboard) that protects towards harm and theft, and the flexibility to test their VantageScore credit score rating from TransUnion.

So not solely does it supply a number of further bells and whistles in comparison with the Simplicity, however cardholders may lower your expenses ought to they select to make the most of a stability switch due to its decrease price.

For extra particulars, see our full evaluation of the U.S. Financial institution Visa Platinum Card.

Wells Fargo Mirror® Card

The Wells Fargo Mirror Card is one other sensible choice should you’re available in the market for a stability switch card. Cardholders get an intro 0% APR for purchases and qualifying stability transfers for 18 months from account opening (then 15.24% to 27.24% variable). Nevertheless, you’ll be able to prolong that interval to as much as 21 months from account opening by paying the minimal stability on time through the intro and extension intervals. 

It has an introductory stability switch price of three% ($5 minimal) for 120 days from account opening earlier than growing to as much as 5% ($5 minimal). Contemplating it is advisable to provoke any transfers inside the first 120 days from account opening, you will need to wait to use for this card till you are able to make the stability switch..

The Wells Fargo Mirror comes with cellular phone safety (you will must pay your cellphone invoice with the cardboard to qualify) and roadside dispatch, giving it slightly extra utility than the Simplicity. Aside from that it is fairly comparable. So should you’re searching for a card that provides a number of further perks with a low introductory stability switch price, contemplate this card over the Simplicity.

FAQs

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