There has been great interest in the Citi Simplicity Rewards Card with no late fees. People can't believe it. No late fees? That's right. No late fees. Russ Nauta, CEO of online credit information portal Credit Card Outlet, explains how late fees are avoided with this new card. "The whole process is pretty simple. All you have to do to avoid late fees is use your card once during each billing cycle. This card is completely innovative as you don't get penalized for potential problems you could face that are out of your control. For example, postal delays during storms and processing delays."

In addition to no late fees, the Citi Simplicity Rewards Card offers a rewards program and membership into the ThankYou Network. This is how the rewards program works. Consumers earn 5 ThankYou points for every dollar spent at gas stations and drugstores for 12 months. After the first year, they receive one point for every dollar spent. They also receive 1 point for every dollar spent everywhere else. Consumers also receive 10,000 bonus points after they make their first purchase within three months of receiving their new card. These points are redeemable for a $100 gift card to one of their favorite stores or restaurants.

Despite the many appealing, consumer friendly elements of these Citibank credit cards, one important element not to overlook is the potential default rate. Missing a payment or two by a couple of days will probably leave your account in good standing. However, if you do not pay your bill for 30 or more days, you may end up getting charged with a 25% or higher interest rate.

So much for the simplicity life? Well, not exactly. If you pay your Citi Simplicity card as you would any other credit card, you get all the convenience and value the Simplicity card offers: a 0% interest rate, and, of course, no late fees. However, you cannot treat you monthly bill lightly. Yes, you can pay late. But pushing the envelope could stick you with a very high interest rate.