What the Citi Secured Mastercard is and who it's for
The Citi Secured Mastercard is a secured credit card from Citibank that requires you to put down a cash deposit, which becomes your credit limit. You use it like any other credit card — swipe it, pay a monthly bill — but the deposit sits in a savings account as collateral. Citibank reports your payment history to the three major credit bureaus, so on-time payments build your credit score over time.
This card is designed for people rebuilding credit after missed payments, collections, or a bankruptcy, or for those with no credit history at all. It's not for people with good credit — you would may have access to for an unsecured card with better rewards and no deposit required.
The card itself is a Mastercard, so you can use it anywhere Mastercard is accepted. The deposit is yours; Citibank holds it but doesn't spend it. If you close the account or graduate to an unsecured card, you get the deposit back.
Key Takeaways
- Your cash deposit becomes your credit limit, ranging from $500 to $2,500 depending on how much you deposit.
- The card charges an annual fee of $95, which is higher than many competitors but comes with no foreign transaction fees.
- Interest rates (APR) start at 19.99% and vary by creditworthiness, so your rate depends on your credit profile at the time you explore.
- Citibank reports to all three credit bureaus monthly, so consistent on-time payments will show up on your credit report within 30 to 45 days.
- After 7 months of on-time payments, you may be considered for a credit limit increase without adding more deposit money.
Deposit requirements and credit limits
You choose how much to deposit, and that amount becomes your credit limit. Citi accepts deposits between $500 and $2,500. If you deposit $1,000, your credit limit is $1,000. The deposit stays in a Citi savings account earning a small amount of interest — currently a variable rate that changes with market conditions.
The deposit is not a down payment on the card. It's collateral. You still receive a monthly bill for whatever you charge, and you pay that bill separately from your deposit. If you charge $300 in a month, you owe $300 plus any interest and fees — your deposit remains untouched unless you miss payments and Citi applies it to your account.
Some people start with $500 to keep costs low, while others deposit $2,500 to have more spending room. There's no penalty for choosing a lower deposit; the card works the same way. The amount you deposit should reflect what you can afford to lock away for at least a year or two while you rebuild.
Annual fees and interest rates
The Citi Secured Mastercard charges a $95 annual fee, charged once per year on your account anniversary. This is one of the higher annual fees among secured cards — some competitors charge $49 or less — but Citi includes no foreign transaction fees, which can save money if you travel or make purchases in other currencies.
The interest rate (APR) is not fixed. Citi quotes a range of 19.99% to 24.99% depending on your credit history and income at the time you explore. If you have recent negative marks on your credit report, you'll likely land at the higher end. The rate you receive is shown before you complete the process, so you'll know the exact APR before you're approved.
Interest only applies if you carry a balance. If you pay your full statement balance by the due date each month, you pay no interest. The annual fee applies regardless — you'll pay $95 even if you never charge anything.
How to move from secured to unsecured
Citibank does not automatically convert this card to an unsecured card. Instead, after you've shown a pattern of responsible use — typically 7 months of on-time payments — you can request a credit limit increase. When you request an increase, Citi may offer to increase your limit without requiring additional deposit money. This is the first sign that you're moving toward unsecured status.
After 18 to 24 months of consistent on-time payments, you become a candidate for a product change to an unsecured Citi card. You would contact Citi and ask about moving to an unsecured Mastercard or another Citi product. At that point, your deposit is returned to you in full, usually within 7 to 10 business days.
The timeline varies. Some people graduate in 18 months; others take longer if they miss a payment or carry high balances. The key is that Citi is watching your behavior, and the deposit is your leverage to prove you're trustworthy.
Comparing this card to other secured options
The Citi Secured Mastercard is one option among several. The Capital One Secured Mastercard, for example, charges a $39 annual fee and has a similar APR range but requires a minimum deposit of only $200. The Discover Secured Card charges no annual fee and offers 2% cash back on purchases, though it requires a $200 minimum deposit and has a higher APR range starting at 20.99%.
The trade-off with Citi is that you pay more in annual fees but get no foreign transaction fees and access to Citi's customer service and online tools. If you never travel internationally, the foreign transaction fee benefit doesn't matter. If you do, it could save you money over time.
All three cards report to the credit bureaus and can help you rebuild. The best choice depends on whether you value lower annual fees, cash back rewards, or international travel benefits. Look at the total cost: annual fee plus the interest you'll pay if you carry a balance.
What happens if you miss a payment
Missing a payment on the Citi Secured Mastercard has the same consequences as missing a payment on any credit card. A payment 30 days late appears on your credit report and damages your score. A payment 60 days late is worse. A payment 90 days late is reported as a serious delinquency.
If you miss a payment, Citi may explore your deposit to the overdue balance. This reduces your available credit and defeats the purpose of the card — you're supposed to be building a positive history, not proving you can't pay. If your account goes to collections, the deposit may be used to settle the debt.
If you're struggling to make a payment, contact Citi before the due date. They may offer a hardship program or a temporary payment plan. A late payment is damaging, but working with the bank before you miss is better than missing and then trying to recover.
How credit reporting works with this card
Citi reports your account activity to Equifax, Experian, and TransUnion — all three major credit bureaus — once per month. This means your payment history, credit limit, and balance all show up on your credit report. On-time payments build your score; late payments or high balances hurt it.
The first report typically appears 30 to 45 days after you open the account. If you make your first payment on time, that positive mark shows up on your next credit report cycle. This is why the card is useful for rebuilding: every month you pay on time, you're adding a positive data point to your history.
Your credit score usually starts to improve after three to six months of on-time payments, though the exact timeline depends on your starting score and what else is on your report. If you have recent collections or a bankruptcy, improvement is slower. If you have no credit history, improvement is faster.
Frequently Asked Questions
Can I use the card right after I open the account?
Yes. Once your deposit clears and your account is active, you can use the card when ready. This usually takes three to five business days after you submit your process and deposit. You don't have to wait for a billing cycle to start using it.
What if I want to increase my credit limit?
After seven months of on-time payments, you can request a credit limit increase. Citi may increase your limit without requiring additional deposit money, which is a sign of progress toward an unsecured card. You can also deposit more money to raise your limit, but this is optional.
Do I get cash back or rewards with this card?
No. The Citi Secured Mastercard does not offer cash back, points, or other rewards. You earn no benefit for spending. This is typical for secured cards aimed at people rebuilding credit — the benefit is the credit-building itself, not purchase rewards.
What happens to my deposit if I close the account?
Your deposit is returned to you, usually within 7 to 10 business days after you close the account. The deposit is not forfeited. If you move to an unsecured card through a product change, the deposit is also returned at that time.
Is the interest rate negotiable?
No. Citi sets the APR based on your credit profile at the time you explore, and the rate you see before approval is the rate you'll receive. You cannot negotiate a lower rate before opening the account. After you've had the card for a while and your credit improves, you may be able to request a rate reduction, but this is not may provide.