What Are the Fees Associated With the Citi Secured Mastercard?
- Annual fee: The Citi Secured Mastercard doesn’t charge an annual fee.
- Balance transfer fee: The Citi Secured Mastercard has a balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater.
- Cash advance fee: The Citi Secured Mastercard has a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater.
- Foreign transaction fee: This card has a 3% foreign purchase transaction fee in U.S. dollars.
- Late payment fee: The late payment fee for this card can be up to $40.
- Returned payment fee: The Citi Secured Mastercard can have a returned payment fee of up to $40.
What Is the Citi Secured Mastercard’s APR?
The Citi Secured Mastercard has an APR of 22.49% (Variable) for purchases.
Comparisons With Other Credit Cards
Both cards charge no annual fee and require a security deposit to establish an account. Although the cards come with high annual percentage rates, the rate on the Citi Secured Mastercard is lower. Neither card offers a rewards program, but Capital One Platinum Secured Credit Card reviews your account after six months for a credit limit increase and could require a smaller deposit.
Annual fee: The Citi Secured Mastercard has an annual fee of $0, and the Capital One Platinum Secured Credit Card has an annual fee of $0.
Rewards: Neither card offers a rewards program.
Sign-up bonus: Neither card offers a sign-up bonus.
Benefits: Both cards offer account alerts, 24/7 customer service and $0 liability on unauthorized charges. Citi Secured Mastercard includes Citi Identity Theft Solutions, and the Capital One Platinum Secured Credit Card includes Eno, the Capital One assistant.
The Discover it Secured Credit Card allows you to build or rebuild credit and earn rewards for card spending, but the Citi Secured Mastercard does not have a rewards program. You can earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases quarterly and then 1% back on all other purchases, plus Discover matches the cash back you earn in the first year. The APRs and benefits of these cards are similar.
Annual fee: Neither card charges an annual fee.
Rewards: You will not earn rewards with the Citi Secured Mastercard. With the Discover it Secured Credit Card, you can earn 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.
Sign-up bonus: Neither card offers a sign-up bonus. But with the Discover it Secured Credit Card, all the cash back you’ve earned in the first year is matched.
Benefits: Identity theft solutions and free monthly FICO credit scores come with the Citi Secured Mastercard. The Discover it Secured Credit Card includes free monthly access to your FICO credit score, free overnight card replacement and the ability to freeze your account if your card is lost or stolen. Both cards include $0 liability on unauthorized charges.
Questions About the Citi Secured Mastercard
Q: Is the Citi Secured Mastercard a good card?
A: If you are eligible for the card, it can be a good choice to help you build credit when used responsibly. The card charges no annual fee and returns your security deposit as long you close the account in good standing.
You will need to pay a security deposit of at least $200, which is equal to your credit limit, to open the account.
The card’s high interest rate means you will want to pay off your card each month. As you pay your bill on time and keep your balance low, you should eventually be able to improve your credit and upgrade your card.
Q: What credit score do you need to qualify for the Citi Secured Mastercard?
A: Applicants must meet the issuer’s credit criteria, which includes a review of income and debt. You must not have any bankruptcies on your record in the last two years.
Q: Is the Citi Secured Mastercard the best secured credit card?
A: The best secured credit card helps you improve your credit to access better credit options. The Citi Secured Mastercard can be a tool to build credit when you have little to none, reporting monthly to all three credit bureaus. You will need to find another card to rebuild credit, though, if you have had bankruptcies in the last two years.
If you’re eligible for the card, you will need to pay a security deposit of at least $200 to open the account. You won’t pay an annual fee, but the card charges a high APR, which means you should never carry a balance to avoid interest. Paying on time is key to building credit and dodging the penalty APR.
This card doesn’t earn rewards on purchases, and look out for the foreign transaction fee if you are traveling abroad. At the same time, free online access to your FICO score can help you monitor your credit-building progress and know when you might be ready to transition to an unsecured credit card.
Q: Is the required security deposit worthwhile?
A: Paying the security deposit may be worth it if you need a starter card and you prefer a simple, low-cost approach to building credit. Yes, you pay a $200 security deposit to open the account if you meet the credit criteria, but you don’t pay an annual fee.
The Citi Secured Mastercard doesn’t offer rewards or a lot of bells and whistles, but it’s an easy way to build your credit with all three bureaus and then step up to another card.
Should You Get the Citi Secured Mastercard?
- You need to build credit.
- You can afford at least a $200 security deposit.
- You plan to pay off the balance monthly and can do without card rewards.
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