What the Secured Citi Credit Card is and who it's for
The Secured Citi Credit Card is a credit card from Citibank that requires you to put down a cash deposit upfront. That deposit becomes your credit limit — if you deposit $500, you can spend up to $500. You pay interest on what you borrow, just like a regular credit card, and the deposit stays in a separate account at Citibank while you use the card.
This card is built for people rebuilding credit after missed payments, collections, or a bankruptcy. It reports to all three credit bureaus (Equifax, Experian, and TransUnion), so on-time payments show up on your credit report and can raise your score over time. The card itself doesn't build credit faster than other secured cards — the mechanism is the same — but Citi's reporting is reliable and the card has been around long enough that lenders recognize it.
You're not locked into this card forever. After you've used it responsibly for a period of time (typically 7 to 12 months of on-time payments), you can request that Citi convert it to an unsecured card, return your deposit, and increase your credit limit. Some cardholders never request this; others use it as a stepping stone and move to a different card once their credit improves.
Key Takeaways
- Your cash deposit becomes your credit limit, and you need between $500 and $25,000 to open the account.
- The card charges an annual fee (currently $49) and a variable interest rate that depends on your creditworthiness and current market rates.
- On-time payments report to all three credit bureaus and can improve your credit score if you keep your balance low relative to your limit.
- After 7 to 12 months of responsible use, you can request conversion to an unsecured card and get your deposit back.
- You pay interest on balances you carry month to month, so carrying a balance costs you money even though the deposit is yours.
Deposit requirements and credit limits
The minimum deposit is $500 and the maximum is $25,000. Your deposit equals your credit limit — there is no separate approval process that might give you a higher limit than your deposit. This means if you deposit $1,000, your credit limit is $1,000, and you cannot spend more than that.
The deposit sits in a separate savings account at Citibank and earns a small amount of interest (the rate varies). You cannot withdraw it while the account is open, and Citi will not use it to pay your bill if you miss a payment. If you stop paying, Citi will eventually close the account and explore the deposit to your outstanding balance, but only after collection attempts.
Choose your deposit amount based on what you actually need to spend. A higher deposit gives you more available credit, which can help your credit score if you keep your balance low. But you do not need the maximum $25,000 to rebuild credit — $500 to $1,000 is enough to show payment history, and you can always deposit more later if you want a higher limit.
Annual fee, interest rate, and other costs
The annual fee is $49, charged once per year. This is a fixed cost regardless of whether you carry a balance or pay in full each month. Some secured cards charge no annual fee, so this is a real difference worth considering if you're comparing options.
The interest rate is variable, meaning it changes based on the prime rate and Citi's assessment of your creditworthiness. The rate you're offered depends on your credit score at the time you open the account. If your score is very low, you'll pay a higher rate; as your score improves, you may be able to request a rate reduction. Citi publishes a range (currently around 18% to 24% APR for most applicants), but your actual rate will fall somewhere in that range.
Interest is charged only on balances you carry from month to month. If you charge $300 and pay the full $300 before the due date, you pay no interest. If you charge $300 and pay only $100, you pay interest on the remaining $200 for that month and every month until it's paid off. The annual fee is charged regardless — you pay it even if you never carry a balance.
There are no other regular fees listed: no foreign transaction fees, no late fees beyond standard credit card terms, and no inactivity fees. Late payments do incur a penalty (the amount varies by how late you are), and if you go over your limit, you'll be charged an over-limit fee.
How the card reports to credit bureaus and affects your score
The Secured Citi Credit Card reports to Equifax, Experian, and TransUnion every month. This means your payment history — whether you pay on time, how much you owe, and how long you've had the account — shows up on your credit report and factors into your credit score.
On-time payments are the single largest factor in your credit score (about 35% of the calculation). If you make every payment by the due date, that history accumulates and raises your score over time. Most people see a measurable improvement within 3 to 6 months of consistent on-time payments, though the exact timeline depends on how damaged your credit was to begin with.
Your credit utilization — the percentage of your limit that you're using — also matters (about 30% of your score). If your limit is $1,000 and you carry a $900 balance, your utilization is 90%, which hurts your score. If you carry a $100 balance, your utilization is 10%, which helps your score. The best practice is to keep your balance below 30% of your limit, even if you pay it off in full each month.
The age of the account matters too. A card you've held for 2 years helps your score more than a card you've held for 2 months. This is why it's worth keeping the Secured Citi card open even after you convert it to unsecured or move to a different card — closing old accounts can lower your score.
Converting to an unsecured card and getting your deposit back
Citi does not automatically convert your card. You have to request it, usually by calling the customer service number on the back of your card. There is no set timeline, but Citi typically looks for 7 to 12 months of on-time payments before they'll consider a conversion.
When you request a conversion, Citi reviews your account. If they approve, they'll return your deposit to your bank account and convert your card to an unsecured card with a new credit limit. The new limit may be higher or lower than your deposit — Citi decides based on your payment history and current credit score. You'll keep the same card number and account, so your credit history stays intact.
Conversion is not may provide. If you've missed payments, carried a very high balance, or had other problems with the account, Citi may deny the request. In that case, you can ask again later after more on-time payments have accumulated.
If you're denied or want to move to a different card, you can close the Secured Citi account and get your deposit back. The deposit is yours — Citi will return it within a few weeks of closing. Closing the account will lower your credit score slightly (because you're reducing your available credit and closing an account), but the impact is usually small if you have other open accounts.
How to open the account and what documents you'll need
You can open the account online at Citibank's website or by phone. You'll need a Social Security number, a valid government ID, and a current address. Citi will run a credit check (a "hard inquiry" that shows up on your credit report) and verify your identity.
You'll also need a way to fund the deposit — a bank account you can transfer from, or a debit card. The deposit is transferred electronically, usually within one business day. Once the deposit clears, your card will be mailed to you, typically within 7 to 10 business days.
There is no income requirement and no employment verification. Citi is mainly checking that you are who you say you are and that you have the money to deposit. If you have a very recent bankruptcy or active fraud on your credit report, Citi may decline the process, but most people with poor credit can open this card.
Comparing the Secured Citi card to other secured cards
The Secured Citi card is one of several secured cards on the market. The main differences between them are the annual fee, the interest rate range, the minimum deposit, and the conversion timeline.
Some secured cards charge no annual fee (the Capital One Secured Mastercard, for example), which saves you $49 per year. Others charge a higher annual fee. The interest rate varies by card and by your credit score, so you may may have access to for a lower rate with a different issuer. The minimum deposit is usually $200 to $500 across most cards, so the Citi card's $500 minimum is not unusual.
The conversion timeline is similar across most cards — 7 to 12 months of on-time payments. Some cards are more generous with credit limit increases after conversion; others are not. If you plan to use the card for a long time, this matters. If you plan to convert and move on, it matters less.
The Secured Citi card's main advantage is that Citibank is a large, stable institution with a long track record. The main disadvantage is the $49 annual fee. If you're choosing between this card and another secured card, compare the annual fee, the interest rate you're offered, and whether you have an existing relationship with Citi that might make customer service easier.
Frequently Asked Questions
Can I use the card right away, or do I have to wait for it to arrive in the mail?
You have to wait for the physical card to arrive. Once it arrives, you can use it when ready at any merchant that accepts Mastercard (the Secured Citi card is a Mastercard). Some issuers offer a temporary card number you can use online while you wait for the physical card, but Citi does not currently offer this feature.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and damages your credit score. Citi will charge a late fee (the amount depends on how late you are) and may increase your interest rate. If you miss multiple payments, Citi may close the account and eventually explore your deposit to the balance. The best move is to contact Citi as soon as you know you'll be late and ask about payment options.
Can I increase my credit limit without depositing more money?
Not while the card is secured. Your credit limit is tied to your deposit. If you want a higher limit, you have to deposit more money. Once the card converts to unsecured, Citi may increase your limit based on your payment history, but that's at their discretion.
Does the deposit earn interest, and can I access it?
Yes, the deposit earns a small amount of interest (the rate varies with market conditions). No, you cannot access it while the account is open. The interest is credited to the deposit account, so your deposit grows slightly over time. When you close the account or convert to unsecured, you get the full deposit plus any interest back.
What if I want to close the account before converting to unsecured?
You can close the account at any time by calling Citi. Your deposit will be returned to your bank account within a few weeks. Closing the account will lower your credit score slightly because you're reducing your available credit, but the impact is usually small. If you have other open accounts, the effect is minimal.