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Citibank is one of the world’s largest banks, and the company now offers a secured credit card called its Citi Secured MasterCard. Designed for those just starting out who do not have credit, it’s also available for those who want to rebuild their credit. Unlike other similar cards, it does not have an annual fee. Citibank only offers the one type of secured credit card.

Annual Percentage Rate

citibank-secured-credit-card-1The annual percentage rate (APR) is a set 22.24% on both all purchases and balance transfers. Balance transfers let card holders transfer a portion of the balance due on another card or the entire balance to this car. Based on the APR charged on that other card, holders may find that they can save money on the interest charged. The APR for cash advances is 25.49%, but this percentage only applies to customers who take out a cash advance from an ATM with this card. Citibank bases its APR on current market conditions and can increase or decrease that percentage based on market factors.

Penalty APR

Citibank charges something called a penalty APR of up to 29.99% that it can apply to certain accounts. Those with poor credit or a bad credit score who still qualify for the secured credit card may pay a higher interest rate because of their credit. Citibank also has the right to charge this higher amount when a card holder makes a late payment or when the company returns the payment to the card holder. This usually occurs when the card holder has insufficient funds in his or her account to cover the payment. As with the standard APR rate, Citibank has the right to change the penalty rate based on market conditions.

Fees

citibank-secured-credit-card-6While the Citi Secured MasterCard does not come with an annual fee, card holders may face other fees. Citi charges a balance transfer fee of whichever is highest between $5 or 3% of the total amount of the transfer. Those taking out a cash advance against the card will pay the higher amount between $10 or 5% of the total advance. Those making purchases in a foreign country will pay a fee equivalent to 3% of the total amount spent.

Penalty Fees

In addition to increasing the APR for a late payment, Citibank will also charge a $35 late payment fee. The company also charges a $35 fee for any returned payments. Citibank follows a standard billing cycle and requires that all card holders pay the balance due within 23 days of the closing date of the last cycle.

Credit Lines

Citibank requires that those approved for a secured credit card put down a deposit equal to the amount they want to spend. The minimum amount a card holder can put down is $200, but Citibank lets them put down a maximum of $2,500. To qualify for a secured credit card from Citibank, card holders must complete the application, receive approval for a card and secure the card with a minimum financial deposit.