Citi Simplicity vs. Chase Freedom
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Credit cards with no annual fees are favorites with many cardholders. While some don’t find any value in these fees, others simply refuse to pay for the privilege of using a credit card when there are so many cards offered at no cost.
Two of the top no-fee cards on the market are the Citi Simplicity and the Chase Freedom, yet both of them are designed to appeal to a different type of cardholder. So let’s take a look at these two cards, and find out which one makes the most sense for your needs.
Citi Simplicity® Card – No Late Fees Ever
The Chase Freedom card takes a different path in appealing to lovers of cards with no annual fee. In this case, Freedom is a rewards card that offers 5% cash back on up to $1,500 spent each quarter on purchases from featured retailers. For example, in the third quarter of 2015 (July-September), the eligible retailers include both gas stations and Kohl’s stores. 1% cash back is earned on all other purchases, with no limits and no expiration.
In addition to offering rewards, Freedom also comes with both a sign-up bonus and a promotional financing offer. New cardholders receive $150 cash back after spending just $500 within their first three months of card membership. Finally, new cardholders receive 0% APR financing for 15 months on both new purchases and balance transfers, with a 3% balance transfer fee. After that rate expires, the standard rate is 17.24%-25.99%, depending on creditworthiness.
How These Cards Compare
The Citi Simplicity® Card – No Late Fees Ever is a great card for those who are struggling with credit card debt, and need to take a break from interest charges for as long as possible by transferring a balance from one card to another. Receiving 21 months of 0% APR financing on balance transfers and 12 months on purchases is significantly longer than the financing offer provided to Chase Freedom cardholders. Simplicity is also the card for those who may have been burned in the past by late payment fees and penalty interest rates. We all make mistakes, but being late on a single payment should not be extremely costly.
On the other hand, Chase Freedom excels at offering cash back rewards at the exceptional level of 5%. And even though its financing offer is not as generous, it makes up for it by giving new customers $150 in cash back. In fact, Freedom’s Blueprint program makes it a good card for those who would like to save money on interest when they occasionally need to finance a particular purchase.
So in the end, Citi Simplicity® Card – No Late Fees Ever is the choice for those trying to control their debt, interest charges, and fees, while Chase Freedom is an outstanding pick when you are more focused on earning cash back rewards.
The information for the Chase Freedom has been collected independently by LowCards.com. The product details on this page have not been reviewed or provided by the bank advertiser.