Secure credit card is alternative for keeping the debt in check. Some people do not have a chance to obtain unsecure or traditional credit card due to several reasons. The bank or card issuer cannot afford to take high risk for lending money to clients with bad credit history. That is why Citi Secured Credit Card comes into the right place.
Everything about Citi Secured Credit Card
Traditional credit card is similar to loan without collateral. To cover cost and risk, the bank adds high rate for interest that needs to be paid regularly. However, credit card has the term called minimum payment, which means you have obligation to pay more than minimum limit in order to maintain debt balance. This is also, what you do for Citi Secured Credit Card.
Secured credit card uses safety deposit as collateral. It ensures the bank that you are able to pay the debt. If cardholder cannot fulfill payment agreement, the bank will take payment from this deposit. It is practical option to keep the risk as low as possible.
There are the reasons why banks or card issuers do this thing, including Citi. Firstly, credit card application requires document and record about debt, payment, income, expenses, and everything related to financial situation. You will have bad score if all of them go wrong. In fact, Citi Secured Credit Card is the option only for people with low credit that means they have experience with unsecured one.
Secondly, deposit from Citi Secured Credit Card acts as credit limit. Citi offers deposit between $200 and $2,500 for single account. You pay deposit $200 which means you cannot spend more than such amount. You may improve this limit by paying more as long as it’s still in that range. To apply this card, you should fulfill requirements such as income statement, debt recorded, etc.
Moreover, you need to open account as secured credit card from Citi and it can be done from any branches. After that, Citi creates credit card account then evaluate credit application. It takes one or two weeks until all process are done. Money for deposit will be taken from bank saving from Citi account. Therefore, you are ready to utilize Citi Secured Credit Card.
Features and Benefits of Citi Secured Credit Card
Unlike regular credit card, Citi does not give annual or other fee. Moreover, you do not receive cash or point when holding this card. Keep in mind that primary reason for having Citi Secured Credit Card is good credit score. You need to focus for maintaining and improving it, instead of pursuing coin. Spend money wisely and pay more than minimum to get good report.
Besides the basic functions, Citi also provides several features or services on this card. It establishes system to protect customers from identity theft. You can report to Citi customer service when there is fraud or mistake during transaction. The other facilities such as insurance, and travel assistance are also available for clients who have Citi Secured Credit Card. Moreover, you might receive opportunity to upgrade the card in order to receive the better service.