Secured cards generally have either a high annual fee or high interest rates (although some have both). The Citi Secured MasterCard has one of the lowest interest rates in the secured card area but a high annual fee.
Who The Citi Secured MasterCard Is For
People who don't have a credit history, been turned down for credit card, or are rebuilding their credit.
Credit Rating Required
- Poor or Bad (Below 660)
About the Citi Secured MasterCard
Pros
- Low interest rate.
- No minimum income required.
- No co-signer required.
Cons
- High annual fee.
- Security deposit required (minimum $200).
Rewards
- None.
APRs
- 13.24 percent variable on purchases and balance transfers.
- Penalty interest rate: 27.24 percent.
Fees
- Annual fee: $29.
- Balance transfer fee: 3 percent of balance.
- Late payment fee: $15 to $39.
- Over-the-limit fee: $39.
Citi Secured MasterCard Credit Card Review
At $29, the Citi Secured MasterCard card has one of the higher annual fees among secured cards. But it also has one of the lowest interest rates, at 13.24%. Whether this card is the right one for you, really depends on your behavior - whether pay your balances in full each month or not.
With the Citi Secured MasterCard your security deposit is invested in a certificate of deposit (CD) and earns interest. With today's low interest rate on savings, your CD probably won't earn a lot of money. Still, something is better than nothing. And not all banks pay interest on credit card security deposits - make sure yours does.
The required security deposit is a minimum of $200 and you can deposit up to $5,000.
As with any other secured card, it's important to remember that your security deposit doesn't cover your credit card purchases. You're still responsible for making at least the minimum monthly payment (although you should always pay more than that). It will be critical for you to make this payment on time to build or re-build your credit.
Recommendation
Since this card carries a high annual fee but a low interest rate, I would recommend this card if you're more inclined to carry a balance rather than pay your card in full each month. If you're going to use your card for purchases and don't expect to carry a balance, you're better off getting a card with a lower annual fee but higher interest rates.