In the continually evolving realm of credit cards, the Citi® Secured Mastercard® distinguishes itself as a dependable instrument for individuals seeking to establish or enhance their credit history.
Within this comprehensive review, we thoroughly explore the card’s features, advantages, potential drawbacks, and essential details, aiming to equip you with the necessary insights to make a well-informed decision in your credit journey.
Overview
Designed specifically for individuals with limited credit history, no credit, or those new to credit, the Citi® Secured Mastercard® is a tailored solution.
Emphasizing simplicity and credit-building, this no-annual-fee card provides essential features that prove instrumental in facilitating the journey towards achieving financial well-being.
By catering to those at the early stages of building their credit, the card aims to offer a user-friendly and effective tool for establishing a positive credit history.
Key Features
- Credit Needed: Limited History, No Credit, New-to-Credit
- Annual Fee: $0
- Intro Offer: N/A
- Best Features:
- Easy qualification with no credit history
- No annual fee
- Free monthly FICO credit score access
Drawbacks
- Security deposit required: $200 to $2,500, held for 18 months
- High APR: 26.74% (variable)
- No rewards program
Application Process
Following approval, it is imperative to provide a security deposit, which ranges from $200 to $2,500, within 14 days to activate the account. Citi conducts a comprehensive account review after 18 months, evaluating eligibility for the return of the initial deposit based on the cardholder’s credit behavior during this period.
This meticulous process ensures a thorough assessment of the cardholder’s credit management, potentially leading to the return of the security deposit and fostering a positive credit-building experience.
Pros and Cons
Pros
- Easy Qualification: The approval process is designed to be accessible, allowing individuals to qualify even without an established credit history.
- No Annual Fee: Enjoy the benefit of owning a card that comes with a $0 annual fee, contributing to cost savings over time.
- FICO Score Access: Gain complimentary monthly access to your FICO score, providing valuable insights and facilitating the monitoring of your credit progress.
Cons
- Security Deposit Requirement: A security deposit is mandatory, and the funds are held for a period of 18 months, with no interest earned during this time.
- High APR: The card carries a relatively high APR of 26.74% (variable) on purchases, which can impact the overall cost of credit.
- No Rewards Program: Unfortunately, the card does not offer a rewards program, limiting the potential for earning rewards on your spending.
Fees and Rates
- Annual Fee: $0
- Balance Transfer Fee: $5 or 5% of each transfer, whichever is greater
- Cash Advance Fee: $10 or 5% of each cash advance, whichever is greater
- Foreign Transaction Fee: 3%
- Late Payment Fee: Up to $41
- Returned Payment Fee: Up to $41
These fee details provide transparency and insight into potential costs associated with the card.
Comparisons
- Citi® Secured Mastercard® vs. Capital One Platinum Secured Credit Card:
- Both have no annual fee and require a security deposit.
- Citi® offers a lower APR but lacks rewards.
- Capital One reviews for credit limit increases after six months.
- Citi® Secured Mastercard® vs. Discover it® Secured Credit Card:
- Citi® focuses on credit building, while Discover it® offers rewards.
- Both have no annual fee and similar APRs.
- Discover it® matches cash back in the first year.
FAQs
- Is the Citi® Secured Mastercard® a good card?
- Yes, for those aiming to build credit responsibly, given its no-annual-fee structure and potential deposit return.
- What credit score is needed to qualify?
- Applicants must meet issuer criteria, including income and a lack of bankruptcies in the last two years.
- Is the required security deposit worthwhile?
- Yes, if seeking a straightforward, low-cost approach to building credit without rewards.
Conclusion
The Citi® Secured Mastercard® stands out as a valuable tool specifically designed for credit-building purposes, providing simplicity and transparency throughout the process.
While it may not include rewards, the card’s emphasis on promoting responsible credit usage makes it a highly viable option, especially for individuals actively pursuing financial empowerment and looking to establish or improve their credit history in a straightforward manner.
