Looking to build up your credit but not sure where to start? Bank of America’s secured credit card is a great option for those looking to establish and/or repair their credit. Not only does it offer competitive rates, but also the flexibility of being able to customize payments and spending limits. In this blog post, we’ll provide an in-depth review of Bank of America’s secured credit card, from features and benefits to pros and cons. Read on to find out if this card is right for you!
Bank of America Secured Credit Card Overview
Bank of America offers a secured credit card that is ideal for individuals who are looking to establish or rebuild their credit. With a deposit of $300-$10,000, you can open a Bank of America secured credit card and enjoy many features and benefits. Some of these include no annual fee, 24/7 customer service, online account management, and access to your FICO® Score updated monthly for free in Online Banking. You can also qualify for an interest rate reduction with responsible credit management.
How the Bank of America Secured Credit Card Works
When you open a Bank of America Secured Credit Card, you’ll need to make a deposit that becomes your credit limit. Your credit limit is equal to your deposit, which can be as low as $300 or as high as $4,900. You can make your deposit with a debit or credit card, or with a personal check.
If you decide to close your account, you’ll get your deposit back, minus any unpaid balances and fees. It usually takes about 30 days for the bank to process your refund.
Your payment history will be reported to the major credit bureaus, so it’s important to make timely payments and keep your balance below your credit limit. If you do that, you’ll start building a good credit history that can help you qualify for better rates and terms in the future.
Benefits of the Bank of America Secured Credit Card
If you’re working on rebuilding your credit, the Bank of America® Secured Credit Card can be a helpful tool. This card reports to all three major credit bureaus, so using it responsibly can help you improve your credit score. And unlike some secured cards, the Bank of America® Secured Credit Card doesn’t require a deposit equal to your credit limit. Instead, you can choose to deposit $100, $200, or $300, which will become your credit limit.
The card does have an annual fee of $39, but that’s relatively low compared to other secured cards (and far lower than the annual fee on many unsecured cards). You also get some nice perks with the card, including cash back rewards and a 0% APR introductory offer on purchases and balance transfers for 12 billing cycles (then 17.24% – 25.24% Variable APR).
Drawbacks of the Bank of America Secured Credit Card
If you’re looking to rebuild your credit history, the Bank of America® Secured Credit Card can be a helpful tool. However, this card also has some potential drawbacks that you should be aware of before you apply.
First and foremost, the Bank of America® Secured Credit Card has a relatively high APR. This means that if you carry a balance on your card from month to month, you’ll end up paying more in interest than you would with other cards. Additionally, this card charges an annual fee of $39, which is higher than most secured cards.
Another downside to this card is that it doesn’t offer any rewards or cash back. So if you’re looking for a way to earn points or cash back on your spending, you’ll need to look elsewhere.
Finally, the Bank of America® Secured Credit Card requires a security deposit equal to your credit limit. So if you’re approved for a $500 credit limit, you’ll need to put down $500 as your security deposit. If you don’t have the cash on hand to do this, you may want to consider another option.
How to Apply for the Bank of America Secured Credit Card
Assuming you would like tips for applying for the Bank of America Secured Credit Card:
1. Research what type of credit card is best for your financial situation and credit score. The Bank of America Secured Credit Card is a good option for those with bad or no credit.
2. Gather the required information. You will need to provide personal information such as your name, address, and Social Security number. You will also need to have your bank account information handy.
3. Apply online or in person at a Bank of America branch. Applying online is faster and usually results in an instant decision. However, you may want to apply in person if you have questions or prefer to speak to someone face-to-face.
4. Wait for a decision from the bank. If you are approved, you will receive your new credit card within 7-10 business days. If you are denied, the bank will provide you with a reason for the denial and some tips on how to improve your chances of being approved in the future.
Alternatives to the Bank of America Secured Credit Card
There are a few alternatives to the Bank of America Secured Credit Card. One option is the Capital One® Secured Mastercard®, which requires a security deposit that’s equal to your credit limit. Another option is the Discover it® Secured, which doesn’t require a security deposit but does have an annual fee. Finally, there’s the Citi® Secured Mastercard®, which has no annual fee but does require a security deposit equal to your credit limit.
Overall, the Bank of America Secured Credit Card is a great option for those looking to build or rebuild their credit. With its low annual fee and generous rewards program, you can get back on track quickly without breaking the bank. Plus, there are plenty of other ways to save with this card, like no foreign transaction fees and access to your FICO score each month. Whether you’re just starting out or getting back into good financial standing after some time away, this card can help you do it with confidence!