What the Citi Diamond Preferred card offers
The Citi Diamond Preferred is a no-annual-fee card designed for people building or rebuilding credit. It reports to all three credit bureaus, which means your payment history can help raise a low credit score over time. The card comes with a cash deposit requirement — you put money down as security, and that deposit becomes your credit limit.
There is no rewards program, no sign-up bonus, and no perks like travel insurance or purchase protection. What you get instead is a straightforward path: use the card responsibly, make on-time payments, and Citi may convert it to an unsecured card (one without a deposit requirement) after a period of good behavior. The card charges interest on balances you carry, like any credit card.
Key Takeaways
- You must deposit $500 to $2,500 of your own money upfront, which becomes your credit limit and stays frozen in a savings account.
- The card reports to all three credit bureaus, so on-time payments build your credit history from the ground up.
- There is no annual fee, no rewards, and no sign-up bonus — the value is in the credit-building opportunity, not the card benefits.
- After consistent on-time payments (usually 7 months or longer), Citi may convert the card to unsecured status and return your deposit.
- Interest rates are higher than cards for people with established credit, reflecting the risk Citi takes on newer borrowers.
How the deposit and credit limit work
When you open the account, you choose how much to deposit between $500 and $2,500. That amount becomes your credit limit — if you deposit $1,000, you can charge up to $1,000 on the card. Your deposit sits in a Citi savings account earning a small amount of interest, but you cannot touch it while the account is open.
The deposit protects Citi if you stop paying. It is not a fee you lose; it is your own money held as collateral. If you close the account or Citi closes it, you get the deposit back (minus any unpaid balance on the card). If you want a higher limit later, you can request an increase, but you will need to add more money to your deposit.
Interest rates and fees to expect
The card carries a variable interest rate, which means it changes based on the prime rate. Because you are rebuilding credit, the rate is higher than what someone with excellent credit would pay — typically in the range of 18% to 24%, though the exact rate depends on your credit profile and current market conditions. Citi will tell you the specific rate when you review your offer.
There is no annual fee, no late fees if you pay on time, and no foreign transaction fees. If you miss a payment, Citi charges a late fee (the amount varies by state and Citi's current terms). If your payment is 60 days or more late, the interest rate can jump to a penalty rate, which is even higher.
Building credit with this card
The main reason to open this card is that Citi reports your payment history to Equifax, Experian, and TransUnion. Every on-time payment adds to your credit history, and over time, a record of on-time payments raises your credit score. The card also shows up on your credit report as an active account, which helps your credit mix (the variety of credit types you use).
To see results, you need to use the card and pay the bill on time every month. Carrying a balance (paying interest) does not help your score more than paying in full — in fact, paying in full is better because it keeps your credit utilization low (the amount you owe compared to your limit). If you charge $300 on a $1,000 limit and pay it off each month, you are using 30% of your limit, which is good for your score.
When Citi converts the card to unsecured status
After you have made on-time payments for a certain period — usually at least 7 months, though it can take longer — Citi reviews your account. If your payment history is clean, they may offer to convert the card to a regular unsecured card. When that happens, your deposit is returned to you, and you keep the card with the same account number and credit limit (or a higher one if Citi increases it).
Conversion is not automatic, and Citi does not may provide it will happen. The decision depends on your payment record and how you have used the card. If you have missed payments or carried a very high balance, conversion may take longer or may not happen at all. You can contact Citi to ask about your account status, but there is no way to force the conversion.
Who this card makes sense for
This card is built for people with little to no credit history or those recovering from past credit problems. If you have never had a credit card, a secured card like this one is often easier to open than an unsecured card. If you have had late payments or collections in the past, a secured card gives you a fresh start and a way to prove you can manage credit responsibly.
This card is not the right choice if you already have good credit — you would may have access to for unsecured cards with rewards, lower interest rates, and better terms. It is also not ideal if you cannot afford to lock up $500 to $2,500 in a deposit or if you know you will carry a balance and pay interest, since the high rate makes that expensive.
How to compare this card to other secured options
Other banks offer secured cards with similar structures: Capital One Secured, Discover Secured, and U.S. Bank Secured are common alternatives. The differences usually come down to deposit range, interest rate, whether the card reports to all three bureaus, and how quickly the bank converts to unsecured status. Some cards offer a small rewards rate (like 1% cash back) even in secured form, though the Citi Diamond Preferred does not.
Before you open any secured card, check whether it reports to all three credit bureaus — if it only reports to one or two, your credit-building progress will be slower. Also look at the interest rate range and whether the bank has a clear path to conversion. Reading customer reviews can tell you how long conversion typically takes and whether the bank is responsive if you ask about your account.
Frequently Asked Questions
Can I use the card right away after I open it?
Yes. Once your deposit is received and your account is set up, you can use the card when ready. Citi typically processes the deposit within a few business days, and you can start charging and building credit history right away.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and damages your credit score. Citi charges a late fee, and if the payment is 60 or more days late, your interest rate increases to a penalty rate. Missing payments also makes conversion to unsecured status much less likely.
Can I increase my credit limit without adding more money?
Not on this card. To raise your limit, you must increase your deposit. Some other secured cards allow limit increases without additional deposits after a period of good payment history, so this is one area where the Citi Diamond Preferred is less flexible than some competitors.
What if I want to close the account — do I get my deposit back?
Yes, you get your deposit back when you close the account, as long as you have paid off any balance on the card. If you have an unpaid balance, Citi uses part of your deposit to cover it before returning the rest to you.
Does this card have a rewards program?
No. The Citi Diamond Preferred does not earn cash back, points, or miles on purchases. The card is designed purely for credit building, not for earning rewards. If you want rewards and have credit strong enough to may have access to, you would need a different card.