To qualify for Citi Secured graduation, Citibank must deem your account eligible at its maturity date - 18 months after opening it and every 12 months thereafter. While there are no specific guidelines for how to ensure your Citi Secured graduates to an unsecured card, your credit performance will factor into it. So keeping your account in good standing by paying your bills on time and preferably in full definitely helps. Also, try keeping your credit utilization below 30%. Monitoring your credit score and reviewing your credit reports is also a good idea.
Unfortunately, you cannot request an earlier graduation date for the Citi Secured. You will have to wait until the maturity date. If your account is eligible for graduation, you will be notified by mail at least 30 days prior to maturity. In the event that your account does not graduate, a letter informing you of this matter will be sent out to you 20-30 days before the age of maturity. When a Citi Secured account does not pass graduation, it can either remain secured, or you can close it.
It usually takes 12 to 18 months for a secured card to become an unsecured card, if used responsibly. Exactly how long it takes for a secured card to become unsecured depends on the card issuer, how the account is managed, and whether or not the card even has the capability of graduating in the first place.… read full answer
Credit card graduation is when a secured card’s security deposit is returned to the cardholder and the card, in turn, becomes unsecured. Graduation to an unsecured card could occur in as little as 6 months, but it could also take several years. In addition, some secured credit cards won’t graduate no matter how long you have them or how good your account history is. You can always call the card issuer’s customer service line to see if your secured card is eligible for graduation, though.
Secured card issuers may also review your account once or twice a year to evaluate it for automatic graduation. To maximize your chances of automatic secured card graduation, pay on time each month and keep your credit utilization low. But remember: Graduation is never a guarantee.
Some of the best secured cards that graduate to unsecured are Discover it Secured, Navy Federal nRewards Secured, and First National Bank of Omaha Secured. They all review accounts for possible graduation starting less than 12 months after account opening. If you pay your bill on time every month, keep your credit utilization low, and are generally on good financial behavior overall, you could graduate from secured to unsecured.… read full answer
When your secured card “graduates” to an unsecured card, your credit line no longer needs to be secured with collateral. So when you graduate, the initial deposit you made to open the secured card will be refunded. You may get to keep the same physical credit card, or you may be migrated to another one. Either way, you’ll keep the good credit history you’ve earned with your secured card.
Best secured cards that graduate to unsecured:
Discover it Secured. 8 months
Citi Secured Mastercard. 12-18 months
Capital One Platinum Secured. No set timeframe
Navy Federal nRewards Secured. 6 months
BankAmericard Secured. No set timeframe
First National Bank of Omaha Secured Visa. 11 months
Harley-Davidson Secured. 12 months
Secured credit cards are a great idea for people with damaged or no credit, because they report to at least one major credit bureau every month. If you pay your credit card bill on time, good information will be sent to the bureaus about your account. This will build your credit over time. Secured cards require a refundable deposit, which becomes your credit limit in most cases. Even if the account doesn’t graduate to an unsecured account, you can get your deposit back by closing the secured account.
The Citi Secured card credit limit is $200 to $2,500. Everyone who gets approved for Citi Secured is guaranteed a credit limit of at least $200, though each person’s exact starting credit limit will depend on how much of a security deposit they put down. When you first open the secured card, the amount of your security deposit will be your credit limit.… read full answer
The Citi Secured card credit limit that you start with isn’t necessarily your credit line forever. Citibank will usually allow you to increase your security deposit for a higher credit line. In some cases, they’ll also graduate your secured card to an unsecured card if you’ve used it responsibly. This could get you a higher credit limit, too.
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