Those of you just starting out can’t get the best cards. And the same goes for those with poor credit. Instead, people in this group can get a secured card — one that typically requires a security deposit that assures the bank that you will be paying your balances in full and on time. The Citi® Secured MasterCard® is such a product, requiring a minimum deposit of $200, that in turn is converted into a credit limit for cardmembers. It also comes with a rather high APR of 22.24%, a hard-to-love annual fee of $25, and a few shopping and travel benefits. Here are the details…
- $200 minimum security deposit
- Shopping and travel benefits
- 22.24% variable APR on purchases and balance transfers
- $25 Annual Fee
How It Works?
Deposit: The Citi Secured MasterCard® requires a security deposit ranging from $200 to $5,000, which is held in a Collateral Holding Account for 18 months and will not earn interest. Once you are approved, you received a card with a credit limit in the amount of your security deposit.
Improve your credit rating: Your account activity is reported to the major credit bureaus and paying your balances on time could help improve your credit rating.
Travel and shopping benefits: Although we are talking about a secure (rather than “regular”) card, the Citi Secured MasterCard® does come with a few perks. Cardmembers benefit from Worldwide Travel Accident Insurance, Worldwide Car Rental Insurance, Trip Cancellation & Interruption Protection, as well as Extended Warranty, Damage & Theft Purchase Protection, and $0 Liability on Unauthorized Charges.
APR: 22.24% variable on both purchases and balance transfers.
Annual fee: $25
Costs
- 22.24% variable APR on purchases and balance transfers
- 3% Balance Transfer Fee ($5 minimum)
- 3% Foreign Transaction Fee
- $25 Annual Fee
Pros
- Shopping and travel benefits which are seldom included with secured cards.
Cons
- Annual fee – which we can’t justify alongside included deposit requirement. It should be either one or the other.
- High APR – though that’s typical with secured cards since they are used by people with poor or no credit rating whatsoever.
Is This The Card For You?
If you are just starting out or have a poor credit rating, you don’t have much choice. You can check out other options and eventually opt for the card with a lower APR. As far as Citi is concerned, this is their only secured card. It has a rather high APR and annual fee of $25 (which we would like to be $0). But they don’t ask us about their products. You can get a few additional details and even sign-up for the Citi Secured MasterCard® from the link below.