Citi Secured Review: Good for Building Credit and Moving On

The Citi® Secured Mastercard® is a little different from other secured credit cards: It's designed specifically for those with no credit or limited credit, not bad credit. And if you're eligible, it's a good choice, too, since it charges an annual fee of $0 and reports to all three major credit bureaus. It can help you establish good credit if you use it to borrow responsibly and pay on time.

But it falls slightly short of the best secured credit cards, in part because it can take up to 18 months for the issuer to determine if you're eligible to have your deposit returned early. And you have to pay the full $200 deposit within 14 days of opening the account, which can be a stretch for some.

Key features of the Citi® Secured Mastercard®

• Card type: Secured.

• Annual fee: $0.

• Security deposit: $200 minimum, $2,500 maximum.

• Sign-up bonus: None.

• Rewards: None.

• Interest rate: The ongoing APR is 22.49% Variable APR.

Benefits of the Citi® Secured Mastercard®

No Annual fee

Unlike some secured cards on the market, this one charges an annual fee of $0. While you have to provide a security deposit of at least $200 to open the card, that money will be returned to you when you close the card in good standing.

That makes it preferable to many unsecured cards that target people with no credit and pile on outrageous fees — annual fees of up to $99, monthly fees and even application fees.

Reports to all three credit bureaus

While Citi doesn’t outline a direct path to qualifying for an unsecured card as a next step, this card is designed to help you build credit. If you make on-time payments each month, they will be reported to the three major credit bureaus — Equifax, TransUnion and Experian — and allow you to build your credit history over time. Then you will be able to apply for other credit cards that require good to excellent credit and come with rewards and other perks.

Drawbacks of the Citi® Secured Mastercard®

Not available to applicants with bad credit

If you have bad credit, you likely won't qualify for this card. You also might not qualify with certain negative marks on your credit report. The card requires, for example, that you not have experienced bankruptcy in the past two years. Bad credit isn’t an obstacle for qualifying for other great secured cards, though, such as the Secured Mastercard® from Capital One and the Discover it® Secured. More on those cards below.

Deposit needs to be funded Relatively quickly

This card requires a security deposit, or collateral, of at least $200. That's about standard among secured cards. But it needs to be paid within 14 days of opening the account, and for some, that might not be quite enough time.

The Secured Mastercard® from Capital One offers more flexibility. With this card, you may qualify for a security deposit of $49, $99 or $200, which you can pay in installments within 35 days of approval. The annual fee is also $0.

Relatively Long timeline for Getting Upgraded

With the Citi® Secured Mastercard®, your account will be automatically reviewed within 18 months of opening to determine if you're eligible to have your deposit returned early and continue using the card as an unsecured card. But that can be a long wait.

If you're interested in getting upgraded automatically on a faster timeline, the Discover it® Secured card would be a stronger choice. Discover starts automatically reviewing your account at eight months to see if you qualify for an upgrade. If you get upgraded, you can continue to use your card and your security deposit will be refunded. The annual fee is $0.

For other options, see our roundup of the best secured credit cards as well as NerdWallet's best credit cards page.

Is the Citi® Secured Mastercard® right for you?