Eighteen months without interest is the headline on Fifth Third’s new Truly Simple Credit Card, which the bank announced on Tuesday, Sept. 1. The 0% introductory APR applies to purchases and to balance transfers, and the card has no annual fee.
The bottom line is what happens next. Once the intro period ends, any leftover balance moves to a variable APR of 18.49% to 29.49%, set partly by the applicant’s creditworthiness. Applicants have to clear Fifth Third’s credit review to get the introductory offer at all.
The fee that does not go away
Zero interest does not mean zero cost. Each balance transfer carries a fee of $5 or 4% of the amount moved, whichever is greater. CardRates ran the numbers on a cardholder with $8,000 spread across two cards charging 24% APR. Moving that debt costs $320, so the balance starts at $8,320. Left alone, the old balance would pile up about $160 in interest in the first month, which means the fee could pay for itself within a few months. To retire the $8,320 inside the intro window, the cardholder would need to pay about $463 a month for 18 billing cycles, assuming no new purchases, fees or charges.
Miss the deadline and the math turns. Interest starts building on whatever remains, at the reset rate.
Where it sits in the market
Eighteen months is not the longest window around, though it is in the running. CardRates pointed to Wells Fargo Reflect at 21 months and the Discover it Balance Transfer card at 15, which puts Fifth Third in the middle. The outlet’s caution: the number of free months is only part of the picture, because the transfer fee, the eventual rate and a payment the borrower can afford decide how much gets saved.
The card runs on the Mastercard network, and cardholders manage transfers and automatic payments inside Fifth Third’s mobile banking app. There is no rewards program of its own. Instead, Fifth Third says a Mastercard benefit tied to Instacart can be worth more than $120 a year to eligible cardholders, available through Jan. 31, 2027.
Fifth Third is using the launch to simplify its card lineup around two jobs. Its 1.67% Cash/Back card handles rewards on everyday spending. Truly Simple is meant for customers who want to finance a purchase, consolidate debt or cut interest costs.
“People are looking for practical and reliable ways to manage debt,” said Ben Hoffman, the bank’s chief strategy officer and head of consumer products. The timing fits a crowded debt market: CardRates put U.S. credit card balances at $1.26 trillion after a $21 billion rise in the second quarter.
Sources
- Fifth Third Introduces Debt Consolidation Card (PYMNTS)
- Fifth Third Launches Card With 18-Month 0% Intro APR (CardRates)
