No More Late Fees?

Fortunately, some credit card companies are starting to lighten up — at least a bit — on these demands.

On Tuesday, Citigroup launched the Citi Simplicity card, which waives late fees as long as you make at least one purchase during each billing period. The card is also flexible on the payment due date — you can choose your billing date to be in the beginning, middle or end of the month. And in terms of perks, it lets you choose between a low APR, a cash-back rebate or a rewards program where you earn points redeemable for goodies.

Last week, American Express rolled out Clear — a credit card that doesn't have any late, over-the-limit or balance transfer fees, and comes with a rewards program that automatically sends you a $25 American Express gift card each time you spend $2,500.

Neither card charges an annual fee.

Sounds great, right? Be warned: just because you won't be charged a late fee doesn't mean you won't be penalized for chronically late payments. That's because most credit card companies — these two included — trigger their so-called default rates if you fail to make an on-time payment more than once or twice in any six- or 12-month period. These penalty rates can run higher than 30% annually. (The exact terms of the default rate are specified in your card's terms and conditions statement.)

Worse yet, as with other credit cards, any payment that's more than 30 days late will be reported to the credit bureaus, which in turn will likely cause your other credit card companies to hike their rates as well, thanks to a sneaky practice called "universal default." (For more on that, click here.)

"[Eliminating late fees] is a step in the right direction, but obviously the credit card companies haven't gone far enough to address these exorbitant penalty-pricing practices," says Curtis Arnold, founder of CardRatings.com, a credit card information web site. Of course, if you never carry a balance, this won't matter much.

If you're the type who occasionally makes a payment a day or two late, these cards will spare you the fee. But you shouldn't consider them a free ride. Here are the details of the two offers.