Secured Credit Card Bofa: Is It the Right Choice for Your Credit Score

The Secured Credit Card BofA is an attractive option for those looking to rebuild their credit score. It requires a security deposit, which becomes your credit limit.

By making regular payments, you can demonstrate responsible credit behavior and improve your credit utilization ratio. This is crucial for a healthy credit score.

The credit limit on a Secured Credit Card BofA is determined by the security deposit you make. For example, if you deposit $500, your credit limit will be $500.

BofA reports your payment history to the three major credit bureaus, which can help you build credit over time.

For more insights, see: Credit Card Numbers with Security Code

The Bank of America Custom Cash Secured Card has some great features that can help you build credit and earn rewards.

You'll get bonus rewards categories, which can help you earn more points or cash back on your purchases.

Spending caps on rewards means you'll only earn rewards up to a certain amount, so be mindful of your spending.

To see if your account qualifies for the bonus rewards categories, you'll need to check your account status.

Curious to learn more? Check out: Secured Credit Card Fund with Checking Account

The BankAmericard Secured Credit Card offers a flexible credit limit, allowing you to choose your own credit limit and deposit the corresponding amount.

The card's upgrade potential is a significant benefit, as it allows you to earn your way to an unsecured card or a higher credit line after a history of responsible use.

You'll need to wait for a review to initiate the upgrade, which may be done automatically or at your request.

This secured credit card does not offer rewards on daily spending or specific bonus categories.

The card has no annual fee to open and hold, and it does not incur foreign transaction fees if you use it overseas.

Discover more: Does a Secured Credit Card Build Credit Faster than Unsecured

To get started with the Bank of America Customized Cash Rewards Secured Credit Card, you'll need to deposit at least $200 as collateral to Bank of America. This will give you access to the card's benefits and features.

You can deposit a maximum of $5,000, which will increase your credit line accordingly. However, keep in mind that you won't get automatic credit line increases with this card.

For your interest: How Much Will Secured Credit Card Raise My Score

The card reports to all major credit bureaus, including Transunion, Experian, and Equifax, which will help you build credit as long as you use it responsibly. This means you can track your credit progress and see how your payments and usage affect your credit score.

Just remember to stay well below your credit limit and pay your bills in time and preferably in full to get the most out of this card's benefits.

At Business Insider, our credit card experts take the time to thoroughly review and compare secured credit cards like the BankAmericard® Secured Credit Card to ensure you get the most accurate information.

We consider a range of criteria to assess the security and benefits of each card, including the security deposit required to utilize the card and the potential for upgrade to an unsecured card.

Our experts understand the importance of flexibility in a secured credit card, which is why we look for cards with flexible credit limits that can accommodate cardholders' financial needs.

A fresh viewpoint: Contactless Credit Card Security

We also consider the upgrade potential of each card, including the time it takes to initiate the upgrade and whether it's automatic or requires a cardholder request.

The BankAmericard® Secured Credit Card offers a range of benefits, including the potential for upgrade to an unsecured card after a period of responsible use.

Here's a breakdown of the key benefits of the BankAmericard® Secured Credit Card:

Our team of experts is dedicated to providing you with the most accurate and up-to-date information to help you make informed decisions about your finances.

The interest and fees associated with a secured credit card from Bank of America can be a bit overwhelming, but don't worry, I've got the lowdown.

The Bank of America Custom Cash Secured Card has a variable interest rate of 28.24%, which can change based on certain economic conditions. This means your interest rate can fluctuate over time.

If you don't pay your balance in full each month, you'll be charged this interest rate on any remaining balance. This is significantly higher than the average credit card interest rate.

Additional reading: M&t Secured Credit Card

You'll also want to be aware of the different interest rates associated with your card, including the cash advance APR, which is also 28.24%.

Here are the interest rates you should know:

In addition to interest rates, you should also be aware of the fees associated with your card. These can include a foreign transaction fee of 3% of the US dollar amount of each transaction, a balance transfer fee of 3% of the amount of each transaction, and a cash advance fee of 3-5% of the amount of each transaction, depending on the type of advance.

You'll also be charged a late payment fee of up to $40 if you don't pay your bill on time.

Applying for the BankAmericard Secured Credit Card is a straightforward process, but it does require some extra steps due to its secured nature. The application is similar to other personal credit cards, but you'll need to fund your account with a security deposit to establish the credit line.

To start, have your personal information ready, including your address, Social Security number, and income information. This will make the application process smoother.

Enter your personal details into the application, estimating your income as closely as possible. It's essential to be honest and accurate when filling out the application.

Review the application to ensure everything is complete and accurate. This step is crucial to avoid any delays or issues with your application.

Funding the account is a unique requirement for secured cards, and it protects the card issuer from risk in case you default on payments. You'll need to fund the account when you open the card.

If you're approved, you should receive your card in the mail within a week. If you're not instantly approved, you can reach out to Bank of America for more information or wait until you receive a letter in the mail explaining the decision.

Bank of America is required to provide a decision within 30 days of your application.

If you're considering the Bank of America Customized Cash Rewards Secured Credit Card, you might also want to look at some popular alternatives. The OpenSky Secured Visa Credit Card, for example, has a lower regular APR of 24.89% (V) compared to the Bank of America card's 28.24% (V).

The OpenSky Secured Visa Credit Card also has a lower rewards rate, with no cash back rewards offered. However, it does have a lower minimum security deposit of $200, the same as the Bank of America card.

The OpenSky Plus Secured Visa Credit Card, on the other hand, has a higher regular APR of 29.24% (V) and a higher annual fee of $35. However, it also has a rewards rate of 1 - 3% Cash Back.

Here's a comparison of the three cards:

The Bank of America Unlimited Cash Rewards Secured Credit Card also has some notable features, such as earning unlimited 1.5% cash back on all purchases, with no rotating categories or spending limits. This card has a regular APR of 25.24% (V) and a minimum security deposit of $200.

Recommended read: Pnc Cash Unlimited Card

The Bank of America Custom Cash Secured Card has 9 reviews, but unfortunately, no specific ratings or scores are mentioned.

Many people reported instant approval for the BankAmericard Secured Credit Card, even with late payments in the past.

A couple of cardholders found it easy to increase their credit line with a funds transfer or a call to customer service.

Some cardholders reported a credit score increase of 100-plus points, with one cardholder achieving this in just six months of having the card.

There were also reports of cash security deposits not being returned, so it's essential to keep a close eye on your transaction activity.

The Bank of America Unlimited Cash Rewards Secured Credit Card is a solid choice for earning rewards on your purchases. You'll earn 1.5% cash back on all purchases, which is above average for a secured credit card.

To maximize your earnings, choose new categories each quarter for the 5% cash back rewards. You can pick from a list of eligible categories, including fast food, home utilities, and TV/internet/streaming services.

Here are the eligible categories for 5% cash back:

You'll also earn 2% cash back for spending in one eligible category, such as grocery stores/delivery, restaurants, or gas/EV charging stations.

To earn rewards, you need to know the card's earning structure. The Bank of America Unlimited Cash Rewards Secured Credit Card earns a flat 1.5% cash back on all purchases.

This is above average among secured credit cards, but not an industry leader. For example, the U.S. Bank Cash+ Visa Secured Card offers higher cash back rates in specific categories.

You can earn 5% cash back on the first $2,000 in combined eligible purchases each quarter in two qualifying categories. Here are some examples of categories that qualify:

You can choose new categories each quarter. You'll also get 2% cash back for spending in one eligible category, such as grocery stores or restaurants.

Redeeming your rewards from the Bank of America Unlimited Cash Rewards Secured card is a straightforward process. You can choose from several options to redeem your rewards.

You can redeem your rewards as a statement credit to your credit card, which means the rewards will be applied directly to your outstanding balance. This is a great option if you're looking to pay off your credit card balance quickly.

Consider reading: How to Redeem Bofa Travel Rewards

Alternatively, you can deposit your rewards directly into your Bank of America checking or savings account. This is a convenient option if you want to put your rewards towards your savings goals.

You can also redeem your rewards as a credit to your qualifying Merrill Cash Management Account, including 529 accounts. Keep in mind that a minimum $25 deposit applies to 529 accounts.

Automatic redemptions are also available for checking/savings deposits or Cash Management Account deposits, but a minimum $25 deposit still applies.

Here are the redemption options in a nutshell:

One thing to note is that your rewards will never expire as long as your account is open and in good standing.

To use a secured credit card effectively, you need to understand how they work and what to expect. The Bank of America Unlimited Cash Rewards Secured Credit Card has a rating of 3.88 stars out of 5 stars, based on a comparison of its ongoing benefits, earning rate, and minimum security deposit requirements.

The rating was determined by comparing the card's features to those of other competing secured credit cards. This thorough review process ensures that you're getting the best possible deal.

To give you a better idea of how to use a secured credit card, let's take a closer look at the Bank of America Unlimited Cash Rewards Secured Credit Card's features.

The BankAmericard Secured Credit Card is a great option for those with no credit history or poor credit, as it allows you to build credit with responsible use over time.

You can qualify to have your security deposit returned, which is a big plus.

However, the card's APR is on the higher side, so be mindful of that when using the card.

The card also doesn't earn rewards, which might be a drawback for some users.

One of the benefits of this card is that it has no annual fee, which is a common fee associated with many secured credit cards.

You'll need to make a minimum security deposit of $200 to open an account, but the maximum deposit is $5,000.

Here are some key features of the BankAmericard Secured Credit Card: