New credit card aims to minimize 'gotchas'

It's a credit card that grants three wishes: no late fees, no penalty rate and one interest rate for purchases, transfers and advances.

But the revamped Simplicity card introduced Monday by Citigroup has one drawback: a 16.99 percent interest rate.

The card will be marketed to those who are juggling busy schedules and want a credit card with simple terms, said Jud Linville, chief executive of Citi Cards. "It lets them not have to worry that they're going to be late on a payment."

But as attractive as the card's features may sound, the interest rate is higher than the average rate on the market of 14.40 percent last week, according to Bankrate.com, which tracks financial data. So if you're prompt with payments but tend to carry a balance, a low interest rate is likely a bigger priority than the perks offered by Citi's new card.

The Simplicity card also doesn't offer rewards, which can be a deal breaker for some. Or it may turn out you won't qualify for the card. Citi declined to specify what type of credit background is required. But CardHub.com, which lets consumers search and compare card offers, lists the Simplicity card for those with "excellent" scores of 720 or higher.

Customers who have the older version of the Simplicity card won't automatically receive this new model. But they can call customer service to see if they qualify for a switch.

The revamped card comes at a time when issuers face a new regulatory environment. A new federal agency for policing financial products, the Consumer Financial Protection Bureau, officially opened its doors just last week. The agency has said a top priority is making credit card agreements easier to read.