Why Citi Secured Credit Card Had Been So Popular Till Now?

by Pustaka Ilmu October 05, 2021 Post a Comment

In many ways, CITI secured credit cards and other secured credit cards closely resemble the CITI platinum card, the premier credit card in the CITI credit card portfolio. However, there are many significant differences between the two cards. One of the major differences is the reward structure. Here we take a look at some of the differences between these two cards to help you determine which one best fits your needs.

Unlike the CITI platinum card, the CITI secured credit card rewards only on purchases with your plastic. Because CITI secured credit cards are really just different from regular unsecured credit cards in that you need to have a non-issue, good credit history is required. As such, it's quite rare to discover one that provides extremely lucrative rewards and perks. The Discover it Secured Credit Card allows cardholders to earn 2% back at all gas stations and restaurants over the course of a year and then 1% back on all other future purchases automatically.

The Discover card features an introductory rate of zero percent APR for up to twelve months on balance transfers, and afterward, fees and charges start to taper off considerably. CITI offers cash rewards on every dollar that is spent, but these cash rewards are only earned when purchases are made with your CITI secured card. For example, if you want to purchase a certain amount of gas, you would simply use your CITI secured card to pay for the gas. You would receive a bill at the end of the month that would indicate your payments and your gas would be free.

This system works quite well for most consumers, but there are a couple of downsides. One is that cash rewards that are earned through purchases are considered as income by CITI, and thus are subject to federal and state taxation. This means that not all rewards can be claimed. Another downside associated with CITI secured credit cards is that the company has the right to suspend or terminate your account for any reason at any time without warning. In addition, you will only receive credit card statements containing basic information about your purchases, which do not provide any details about the cash incentives that you've earned.

The upside to CITI secured card is the ability to build your credit score, which will take some time. During this time, your credit limit will increase automatically each month, giving you the extra spending power once your score begins to rise. You'll also begin receiving offers for things such as store discounts, airline miles, and even cash back, which is great for encouraging you to continue using the credit card you've been issued. In addition, since your score will rise as you make payments on time, you will start seeing your interest rate decrease over time. With these advantages, there really isn't any reason to use a CITI secured card to pay for items you don't need to buy.

While CITI secured credit cards allow consumers to build their credit score, some people have problems with their foreign transaction fees. While many people will see an increase in their credit score as their debt decreases, others find that CITI's fees prevent them from receiving the benefits they deserve. For these people, CITI offers a complementary program called the Linked Accounts Program that allows them to link their CITI credit card to their various other accounts, increasing their spending power both now and in the future. As long as you follow the rules set forth by CITI, this program is beneficial to every consumer.

Because many consumers are concerned about rising interest rates, some experts recommend taking out a cash rewards credit card instead. These cash rewards credit cards provide consumers with a way to build up their credit score while avoiding making any additional payments on their CITI secured credit card. Instead of accruing more debt, consumers can use their cash bonuses to pay down their debt, taking their credit limit down a few notches. By continuing to use their cash bonuses, consumers can build up their credit and reduce their current debt load. Plus, CITI will continue to issue them with new credit cards with either a zero or low interest rate for as long as they maintain their good payment history.

Some experts also recommend transferring all of your checking and savings accounts to CITI so you are using all available credit to pay for your purchases. While CITI secured credit cards do come with a higher interest rate than many other companies, if you use them responsibly, you can actually save money. If you transfer all your accounts to a CITI secured Mastercard, you will be able to pay off your balance much faster, which will allow you to pay off your debt much sooner than if you carried over your balances from one of the many other credit cards.