What the Citi Secured Credit Card is and who it's for
The Citi Secured Credit Card is a credit card issued by Citibank that requires you to put down a cash deposit as collateral. The deposit becomes your credit limit — if you deposit $500, your credit limit is $500. You use the card like any other credit card: make purchases, receive a monthly bill, and pay it back. The deposit stays in a separate account and earns a small amount of interest while it sits there.
This card is designed for people rebuilding credit after missed payments, collections, or a long period without credit activity. It reports to all three major credit bureaus (Equifax, Experian, and TransUnion), so responsible use — paying on time and keeping your balance low — shows up on your credit report and can raise your score over time.
The card is not for people with good credit looking for rewards or low interest rates. It also is not a savings account; the deposit is locked away and you cannot withdraw it while the account is open, though you earn interest on it.
Key Takeaways
- Your cash deposit becomes your credit limit, and you earn interest on the deposit while the account is open.
- The card charges an annual fee of $95, which is higher than many other secured cards but typical for Citi products.
- The interest rate (APR) is not fixed and varies based on your creditworthiness at the time you open the account.
- After 7 to 12 months of on-time payments, Citi may convert your account to an unsecured card and return your deposit.
- You can request a credit limit increase after 6 months, which may not require an additional deposit.
Deposit requirements and credit limits
Citi requires a minimum deposit of $500 and a maximum of $25,000. The deposit amount you choose becomes your credit limit. If you deposit $1,000, you can charge up to $1,000 on the card. You do not have to deposit the maximum; many people start with $500 or $750 to keep their cash tied up to a minimum.
The deposit earns interest at a rate set by Citi, which changes over time. Currently, the rate is low — typically under 1% annually — but it is better than leaving the money in a non-interest-bearing account. The interest is credited to your deposit account, not to you as cash, so it compounds within the locked deposit.
You can increase your deposit (and therefore your credit limit) at any time by adding more money. This is useful if you need more available credit as your situation improves. However, you cannot withdraw any part of the deposit while the account is open.
Annual fee and interest rate
The Citi Secured Credit Card charges a $95 annual fee, due every year you keep the account open. This fee is charged to your account, so you will see it on your monthly statement. Unlike some secured cards that charge $25 to $50 per year, Citi's fee is on the higher end of the market.
The interest rate (APR) is variable and depends on your credit profile at the time you open the account. Citi does not publish a fixed rate; instead, you receive a range during the process process. If your credit is very poor, you may be offered a rate in the 18% to 22% range. If your credit is slightly better, the rate may be lower. The rate can change after you open the account if Citi adjusts its prime rate or your account status changes.
The $95 annual fee makes this card more expensive than some competitors. However, if you pay your balance in full each month, you avoid interest charges entirely, and the fee becomes your only cost. If you carry a balance, the combination of the annual fee and interest can add up quickly.
How the conversion to unsecured status works
One of the main reasons to use a secured card is to eventually graduate to an unsecured card, which does not require a deposit. Citi states that after demonstrating responsible use — typically 7 to 12 months of on-time payments and low credit utilization — the bank may convert your account to an unsecured Citi card and return your deposit.
The conversion is not automatic and is not may provide. Citi reviews your account periodically and decides whether to offer conversion based on your payment history, credit score improvement, and overall creditworthiness. When the conversion happens, your deposit is returned to you, usually within 7 to 10 business days. Your credit limit may stay the same or increase, depending on Citi's assessment.
If Citi converts your account, the card itself may change. You might be moved to a different Citi card product with different terms, fees, or benefits. Read the conversion offer carefully to understand what you are agreeing to. Some people find the new card has a lower annual fee or better terms; others find it does not.
Credit limit increases and how to request them
After 6 months of on-time payments, you can request a credit limit increase. Citi may grant the increase without requiring an additional deposit, which means your credit limit goes up but your original deposit stays the same. This is valuable because it gives you more available credit without locking up more cash.
To request an increase, call the number on the back of your card or log into your Citi account online. Citi will review your account and may conduct a hard inquiry into your credit report. A hard inquiry can lower your credit score slightly, so do not request increases too frequently. Space requests at least 6 months apart.
Citi is not obligated to grant your request. The bank looks at your payment history, credit score, and income to decide. If you have missed payments or your credit score has dropped, your request may be denied.
Comparing the Citi card to other secured options
The Citi Secured Credit Card is one option among several secured cards on the market. Other common choices include the Capital One Secured Mastercard, the Discover Secured Credit Card, and the OpenSky Secured Visa Card. The main differences are the annual fee, the interest rate, the minimum deposit, and the likelihood of conversion to unsecured status.
The Capital One card charges a $39 annual fee (lower than Citi) but has a similar interest rate range. The Discover card also charges $0 annual fee in the first year and $35 thereafter, and it offers cash back on purchases — a benefit the Citi card does not have. The OpenSky card has no credit score requirement and accepts deposits from people with very poor credit, but it charges a higher annual fee.
The Citi card's main advantage is that it is issued by a major bank with a strong reputation, and Citi has a history of converting secured accounts to unsecured status. The main disadvantage is the $95 annual fee, which is higher than most competitors. If you are cost-conscious, comparing the total cost over 12 months (annual fee plus interest, if you carry a balance) across a few options is worth your time.
How to use the card responsibly to rebuild credit
Opening a secured card is the first step; using it correctly is what actually rebuilds your credit. The most important rule is to pay your bill on time, every month. Payment history makes up 35% of your credit score, so even one late payment can set back your progress. Set up automatic payments for at least the minimum due, or set a phone reminder on the due date.
The second rule is to keep your balance low — ideally under 30% of your credit limit. If your limit is $500, try to keep your balance under $150. This shows lenders that you can manage credit responsibly and do not rely on borrowing to the maximum. Credit utilization makes up 30% of your credit score, so this matters significantly.
The third rule is to use the card regularly but not recklessly. Make small purchases — groceries, gas, a subscription — and pay them off in full each month. This creates a visible payment history without costing you interest. Avoid large purchases or carrying a balance unless you have a specific reason and a plan to pay it off quickly.
Frequently Asked Questions
Can I get my deposit back before the card converts to unsecured?
No. Your deposit is locked in the account for as long as the account is open. You cannot withdraw it, and closing the account to get the money back defeats the purpose of rebuilding credit. You have to wait for Citi to convert the account or close it on their terms.
What happens if I miss a payment on the Citi Secured Card?
A missed payment is reported to the credit bureaus and damages your credit score. It also may trigger a late fee (typically $25 to $35) and cause your interest rate to increase. If you miss a payment, contact Citi when ready to bring the account current. One late payment can set back credit rebuilding by months.
Does the Citi Secured Card offer any rewards or cash back?
No. The Citi Secured Credit Card does not offer cash back, points, or travel rewards. It is a basic card designed for credit rebuilding, not for earning benefits. If rewards matter to you, the Discover Secured Card offers 1% cash back on all purchases.
How long does it take to convert from secured to unsecured?
Citi typically reviews accounts after 7 to 12 months of on-time payments. Conversion is not may provide and depends on your credit score improvement and payment history. Some people convert in 7 months; others take 12 months or longer. There is no way to speed up the process.
Can I use the Citi Secured Card if I have very bad credit or no credit history?
Yes. The Citi Secured Card does not have a minimum credit score requirement, so people with poor credit, no credit history, or recent collections can open an account. However, Citi does conduct a credit check and may deny the process if you have recent fraud, identity theft, or unpaid debts with Citi itself.