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For those aiming to establish or rebuild their credit history, the Citi Secured Mastercard serves as a practical and straightforward option. This secured credit card is designed specifically for individuals with little to no credit history or those looking to recover from past financial challenges. As a secured card, it requires a refundable security deposit that serves as collateral and determines the credit limit. By using the Citi Secured Mastercard responsibly, cardholders can gradually improve their credit score and potentially qualify for better credit products in the future.
In this comprehensive review, we will explore the key features, benefits, and drawbacks of the Citi Secured Mastercard to help you determine if it’s the right fit for your credit-building needs.
The Citi Secured Mastercard is a secured credit card designed to help users build or rebuild their credit. Like other secured cards, it requires a refundable security deposit that acts as collateral for the account. This deposit determines the credit limit, which ranges from $200 to $2,500, based on the amount you choose to deposit.
The card reports to all three major credit bureaus—Equifax, Experian, and TransUnion—allowing cardholders to establish a positive credit history as they make on-time payments and keep their balances low. One of its standout features is the lack of an annual fee, which makes it a cost-effective choice for credit building.
No Annual Fee
Many credit-building cards charge an annual fee, adding an extra cost for users who are focused on improving their financial health. The Citi Secured Mastercard, however, charges no annual fee, making it more accessible and affordable for individuals who are budget-conscious.
High Credit Limit Potential
The Citi Secured Mastercard allows for a security deposit up to $2,500, offering a relatively high credit limit for a secured card. This can be advantageous for cardholders who want a higher limit to keep their credit utilization ratio low, a key factor in improving credit scores.
Straightforward Credit-Building Tool
With regular reporting to all three major credit bureaus, this card provides a direct way for users to establish a positive credit history. Making timely payments and keeping balances low will contribute positively to the cardholder’s credit profile.
Easy Application Process
Applying for the Citi Secured Mastercard is relatively simple. Approval is primarily based on the ability to fund the security deposit rather than on a high credit score, making it accessible for individuals with limited or poor credit history.
Security Deposit is Refundable
The security deposit is not a fee; it serves as collateral and is refundable if the account is closed in good standing or if Citi transitions the cardholder to an unsecured card.
No Rewards Program
Unlike some other secured credit cards, the Citi Secured Mastercard does not offer a rewards program. Cardholders will not earn cash back, points, or miles on their purchases, which can make the card less appealing for those who want to earn rewards while building credit.
Requires a Security Deposit
While the security deposit is refundable, it is still an upfront expense that some users may find challenging. Additionally, the deposit does not earn interest while held by Citi.
High APR for Carrying a Balance
The card’s APR is 29.99% (variable), which is relatively high. Carrying a balance can lead to significant interest charges, so it’s essential to pay off the balance in full each month to avoid paying interest.
No Automatic Upgrade Path
Some secured credit cards, like the Discover it Secured, offer a path to upgrade to an unsecured card after a period of responsible use. The Citi Secured Mastercard does not have a clearly defined upgrade path, so cardholders may need to apply for a different Citi credit card once their credit improves.
The Citi Secured Mastercard is a good option for individuals who:
Pay Your Balance in Full Each Month
Paying your balance in full each month is critical to avoid interest charges and demonstrate responsible credit behavior. Payment history is a significant factor in your credit score, and making on-time payments will help improve it over time.
Keep Your Credit Utilization Ratio Low
Try to keep your credit utilization ratio below 10%. This means not using more than 10% of your available credit limit at any given time. If your credit limit is $500, for example, aim to keep your balance below $50.
Monitor Your Credit Score Regularly
Citi provides resources for cardholders to monitor their credit scores. Regularly checking your credit score can help you track your progress and ensure that your credit-building efforts are on the right path.
Request a Refund of Your Security Deposit When Closing the Account
If you decide to close your account or qualify for an unsecured credit card, ensure your account is in good standing to receive a refund of your security deposit.
The Discover it Secured Card stands out for offering cash back rewards, which the Citi Secured Mastercard lacks. However, Citi’s card provides a higher potential credit limit of up to $2,500, compared to Discover’s maximum limit of $2,500 as well. Discover also offers a path to an unsecured card, while Citi does not automatically transition cardholders.
Read our review of the Discover it Secured card here.
The Capital One Platinum Secured Credit Card provides more flexible security deposit options, ranging from $49 to $200 for a $200 credit limit, based on the applicant’s creditworthiness. In contrast, the Citi Secured Mastercard requires a deposit that matches the desired credit limit. Both cards report to all three credit bureaus, but Capital One offers the potential for automatic credit line increases, while Citi does not.
Read our review of the Capital One Platinum Secured Card here.
The OpenSky Secured Credit Card does not require a credit check, making it a suitable option for those with very poor credit. However, it charges an annual fee, whereas the Citi Secured Mastercard does not. Both cards are designed for credit building, but Citi’s no-annual-fee policy makes it a more affordable choice in the long run.
Read our review of the OpenSky Secured Card Here.
The application process for the Citi Secured Mastercard is relatively straightforward:
The Citi Secured Mastercard offers a straightforward and cost-effective way to build or rebuild credit. Its lack of an annual fee and the ability to choose a higher credit limit make it an attractive option for those who need a credit-building tool without the added costs of a rewards program. However, its high APR and absence of a clear upgrade path to an unsecured card may be limitations for some users.
If you are committed to responsible credit use and prefer a no-annual-fee card with a focus on building credit, the Citi Secured Mastercard is worth considering as a foundational step toward better financial health.
Affiliate and Relationship Disclosure: Credit Mileage may receive compensation from affiliate links included in this post at no extra cost to you. This helps support our mission of providing quality financial education and resources. Additionally, Credit Mileage has a direct business relationship with eCreditAdvisor, which may be mentioned or linked in our content. Our opinions and recommendations remain our own, and we only promote products or services that we believe offer value to our readers. We currently do not have any credit card affiliate links on our website.
Editorial note: The views expressed in this article are solely those of the author and do not reflect the opinions of any bank, credit card company, airline, or hotel chain. None of these organizations have reviewed, approved, or endorsed the content in any way.
Legal and Financial Advice Disclosure: Credit Mileage is not a law firm, and this article is not intended to provide legal or financial advice. This information is meant purely for educational purposes. We strive to offer accurate and up-to-date information, but it is not a substitute for professional financial or legal advice. Always consult with a qualified attorney or financial advisor before making any decisions regarding your financial situation.
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