Improving your credit score while enjoying rewards doesn’t have to be complicated. The Bank of America® Customized Cash Rewards Secured Credit Card offers a tailored approach for those looking to build or rebuild their credit.
Combining a robust cashback program with tools for credit growth, this card empowers users to take control of their financial journey. With no annual fee and flexible rewards categories, it delivers exceptional value for individuals committed to responsible money management.
Benefits and Advantages of the Bank of America Cash Rewards Secured Credit Card
Cash Back Rewards Tailored to You
One of the standout features of this card is its customizable rewards program. Cardholders earn:
- 3% cash back in a category of their choice, such as gas, online shopping, dining, travel, drug stores, or home improvement stores.
- 2% cash back at grocery stores and wholesale clubs.
- 1% cash back on all other purchases.
With the ability to change your 3% category each month, you can maximize rewards based on your spending habits. This flexibility sets it apart from other secured cards like the Discover it® Secured Card, which offers flat cash back rates but lacks category customization. By tailoring rewards to your lifestyle, the Bank of America Cash Rewards Secured Credit Card provides a unique edge for those looking to earn as they build credit. This flexibility ensures you’re always getting the most out of your purchases.
No Annual Fee
Unlike many secured cards, this one comes with no annual fee, making it a cost-effective choice for those on a tight budget. Over time, this saves users significant amounts, especially when compared to cards with annual fees ranging from $39 to $99, commonly found in the secured card market.
Build Credit with Responsible Use
The card reports to all three major credit bureaus: Experian, Equifax, and TransUnion. Consistent on-time payments and smart credit utilization can significantly boost your credit score over time. For example, many users have reported credit score increases of 50 to 100 points within a year of responsible card use, demonstrating the card’s impact.
Online and Mobile Tools
Bank of America offers robust digital tools, including an easy-to-use mobile app, account alerts, and spending insights. These features help you stay on top of your finances and make informed decisions about your spending. The app also allows users to set up automatic payments, view their rewards balance, and receive reminders about billing due dates, adding a layer of convenience to the experience.
Things to Consider Before Applying
Requirements
- Security Deposit: A refundable deposit of $300 to $4,900 is required to open your account, depending on your creditworthiness. The deposit amount directly determines your credit limit, meaning a higher deposit can provide more spending flexibility. This structure not only ensures responsible credit use but also helps users build a positive credit history by mirroring the behavior of traditional credit cards.
- Credit History: This card is designed for individuals with limited or damaged credit histories.
- Income Proof: Applicants may need to demonstrate a reliable source of income to qualify. This ensures that users can manage payments responsibly without overextending their budgets.
Potential Drawbacks
- High APR: The card’s variable APR may be costly if you carry a balance. It’s crucial to pay off the full balance each month to avoid incurring high-interest charges.
- Rewards Cap: The 3% and 2% cash back categories have a combined quarterly limit of $2,500 in purchases. After reaching this cap, all purchases earn 1% cash back. For high spenders, this limitation might reduce the overall reward potential.
- Foreign Transaction Fees: This card is not ideal for international travel, as it charges a 3% fee on foreign transactions. Frequent travellers may benefit more from no-foreign-transaction-fee cards.
Fees and Rates
Understanding the costs associated with the Bank of America Cash Rewards Secured Credit Card is essential. Here are the key details:
- Annual Fee: $0.
- APR: A variable APR applies to purchases, which can range based on the user’s credit profile.
- Late Payment Fee: Up to $40.
- Foreign Transaction Fee: 3% of the transaction amount.
- Refundable Deposit: Minimum $300. Deposits are held as collateral but can be refunded when transitioning to an unsecured card.
How to Apply for the Bank of America Cash Rewards Secured Credit Card
Applying Online
Step 1 – Visit the official website of the Bank of America Cash Rewards Secured Credit Card:
Step 2 – Click on the “Apply Now” button to be directed to the application form.
Step 3 – Read the Instructions and Provide Personal Details: Fill out the form with your name, address, Social Security number, and other required information.
Step 4 – Select Your Deposit Amount: Choose a refundable security deposit amount based on your credit needs and eligibility.
Step 5 – Submit Your Application: Review the terms and conditions and complete the submission.
Step 6 – Approval Timeline: Most applications are processed within a few days, but in some cases, instant decisions may be available.
Applying Through the Mobile App
- Note: At this time, applications for the Bank of America® Customized Cash Rewards Secured Credit Card cannot be completed through the mobile app. However, once your application is approved, you can manage your account, monitor transactions, and access your FICO® Score through Bank of America’s Mobile Banking app.
In-Person Application
If you prefer a face-to-face experience, visit your nearest Bank of America branch. Speak with a representative who can guide you through the application process and answer any questions you might have.
Contact Information
For assistance, Bank of America offers several customer service options:
- Phone: Call the number on the back of your card or visit the website to see available phone numbers.
- Website: Access the Bank of America support center for detailed FAQs.
- Mobile App: Use the app to send secure messages or chat with a representative.
- In-Person: Visit a local Bank of America branch for personalized assistance.
Frequently Asked Questions about
1. Does the card require a credit check?
Yes, a soft credit inquiry is conducted during the application process.
2. Can I upgrade to an unsecured card?
Yes, with responsible use, Bank of America may review your account for potential graduation to an unsecured card.
3. How does the security deposit work?
The deposit is refundable and serves as your credit limit. It will be returned if you close your account in good standing or upgrade. However, the deposit does not earn interest while held by the bank.
4. What happens if I miss a payment?
Missing payments may result in late fees and negatively impact your credit score. Setting up automatic payments can help avoid this.
5. Can I customize my rewards category every month?
Yes, you can change your 3% cash back category monthly through the online portal or mobile app, allowing you to align rewards with changing spending habits.
