What the Citi Secured Credit Card Does

The Citi Secured Credit Card is a card issued by Citibank that requires you to put down a cash deposit, which becomes your credit limit. You use it like a regular credit card — make purchases, receive a statement, pay a bill each month — but the deposit sits in a savings account as collateral. Citi reports your payment history to all three credit bureaus, so on-time payments build your credit score over time.

The card has no annual fee and no foreign transaction fees. Interest rates start at 19.99% APR, which is typical for secured cards but higher than what you would pay with an unsecured card. After you demonstrate responsible use — usually 7 to 12 months of on-time payments — you can request to graduate to an unsecured card, at which point Citi returns your deposit.

This card is designed for people rebuilding credit after a gap in history, a missed payment, or a low starting score. It is not the cheapest secured option available, but Citi's size and stability mean the card works smoothly in practice, and the path to graduation is clear.

Key Takeaways

  • Your cash deposit becomes your credit limit, ranging from $500 to $2,500, and Citi holds it as collateral in a separate savings account.
  • The card charges 19.99% APR with no annual fee, and Citi reports all activity to the three major credit bureaus each month.
  • After 7 to 12 months of on-time payments, you can request graduation to an unsecured card and get your deposit back.
  • You need a Social Security number, a U.S. mailing address, and a valid government ID to open an account.
  • The deposit earns no interest, so you are paying for credit-building rather than earning a return on your money.

How the Deposit and Credit Limit Work

When you open the account, you choose a deposit amount between $500 and $2,500. That amount becomes your credit limit when ready. For example, if you deposit $1,000, you can charge up to $1,000 on the card each month. The deposit sits in a Citi savings account and earns no interest.

You cannot withdraw the deposit while the account is open and in good standing. If you close the card or default on payments, Citi may explore the deposit to your balance. The deposit is separate from your monthly bill — you pay interest on what you charge, not on the deposit itself.

Your credit limit does not increase automatically. Some cardholders report that Citi has offered to raise their limit after several months of on-time payments, but this is not may provide. You can request a limit increase by calling customer service, though Citi may require an additional deposit.

Interest Rates, Fees, and Costs

The card carries a single APR of 19.99%, which applies to all balances. There is no annual fee, no late fee, no foreign transaction fee, and no cash advance fee. Late payments do incur interest charges at the standard rate, and if you miss a payment by more than 30 days, Citi will report it to the credit bureaus.

The 19.99% rate is not the lowest among secured cards. Some competitors, like the Capital One Secured Mastercard, offer rates as low as 19.99% to 27.99% depending on creditworthiness, and a few offer lower starting rates. However, Citi's rate is fixed and does not vary based on your credit score at the time of opening.

Because the deposit earns no interest, you are essentially paying for the privilege of building credit. If you carry a balance, interest accrues daily. To minimize cost, pay your full statement balance each month. If you cannot, make the largest payment you can afford — even small payments on time build your credit score faster than larger payments made late.

Credit Reporting and Score Impact

Citi reports your account activity to Equifax, Experian, and TransUnion each month. This means every on-time payment, your credit utilization ratio (how much of your limit you use), and your account age all factor into your credit score. The card typically appears on your credit report within one to two billing cycles after opening.

Your payment history is the single largest factor in your score — about 35% of the calculation. Making your minimum payment on time, every month, is the fastest way to improve. Keeping your balance low relative to your limit (ideally under 30% of your credit limit) also helps. For example, if your limit is $1,000, keeping your balance under $300 signals responsible use.

Most people see their score begin to rise within three to six months of consistent on-time payments. The improvement accelerates as your account ages and your payment history lengthens. After 12 months, many people have improved enough to graduate to an unsecured card or to may have access to for better terms elsewhere.

Graduation to an Unsecured Card

Citi does not publish a specific timeline for graduation, but most cardholders become may be able to access after 7 to 12 months of on-time payments. When you are ready, you can call Citi and request conversion to an unsecured card. Citi will review your account history and may run a new credit check.

If approved, Citi returns your deposit to the bank account you used to fund it, usually within 7 to 10 business days. Your new unsecured card may have a higher credit limit, a lower APR, or both — though this depends on your credit score at the time of conversion and Citi's current offers. Some cardholders report graduating to a limit of $2,500 or higher with a lower rate.

If Citi denies your conversion request, you can reapply after another few months of on-time payments. There is no penalty for asking, and the request does not hurt your credit. Some people choose to keep the secured card open even after graduating, to maintain a long account history and a low utilization ratio.

How to Open an Account

You can open an account online at Citi's website or by phone. You will need a valid government-issued ID (driver's license, passport, or state ID), your Social Security number, and a U.S. mailing address. Citi will ask for your income, employment status, and housing situation.

The process process takes about 10 to 15 minutes online. Citi will give you an when ready decision in most cases. If approved, you will need to fund your deposit within a set timeframe — usually 10 days — by transferring money from a bank account. Once Citi receives the deposit, your card ships within 7 to 10 business days.

Citi will perform a hard inquiry on your credit report, which temporarily lowers your score by a few points. This inquiry stays on your report for two years but stops affecting your score after about six months. If you are denied, you can reapply after addressing the reason — usually a very low score, recent delinquency, or insufficient income.

Comparing the Citi Card to Other Secured Options

The Citi Secured Credit Card competes mainly with the Capital One Secured Mastercard and the Discover Secured Credit Card. All three require a deposit, report to all three bureaus, and offer a path to graduation. The main differences are in rate, fees, and features.

Capital One's card has a variable APR starting at 19.99% to 27.99% (depending on creditworthiness), no annual fee, and a $200 to $2,000 deposit range. Discover's secured card has a variable APR of 19.99% to 25.99%, no annual fee, and a $200 to $2,500 deposit range. Discover also offers 1% cash back on all purchases, which Citi does not.

The Citi card's fixed 19.99% rate is competitive if you have very low credit, because you know exactly what you will pay. If your score is slightly higher, Capital One or Discover may offer you a lower rate. If cash back matters to you, Discover is the better choice. If you want simplicity and a well-known issuer, Citi is solid. Compare your likely approval rate and rate at each issuer before deciding.

Frequently Asked Questions

Can I use the card right away after opening the account?

No. You must fund your deposit first, and Citi must receive and process it. Once the deposit clears — usually 3 to 5 business days — your card is activated. Your physical card arrives 7 to 10 days later, but you can often use the card number online or add it to a digital wallet before the physical card arrives.

What happens if I miss a payment?

A payment 30 days late will be reported to the credit bureaus and will damage your score. Citi may also charge a late fee (though the card terms do not list a specific amount). If you miss multiple payments, Citi may close the account and explore your deposit to the balance. Contact Citi when ready if you cannot pay on time.

Can I increase my credit limit without adding more money?

Citi does not automatically increase your limit. You can call and request an increase, but Citi will likely ask for an additional deposit. For example, if you want to raise your limit from $1,000 to $1,500, you may need to deposit an extra $500. Some cardholders report that Citi has offered unsolicited limit increases after several months of on-time payments, but this is not may provide.

Does the deposit earn interest?

No. Your deposit sits in a Citi savings account and earns no interest. You are paying for access to credit-building, not for a return on your money. This is standard across secured cards.

What if I want to close the account?

You can close the account at any time by calling Citi. If your account is in good standing with no balance, Citi will return your deposit within 7 to 10 business days. If you have an outstanding balance, you must pay it off first. Closing the account will not hurt your credit score, but it will reduce your average account age over time, which may lower your score slightly.