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The information for the following product(s) has been collected independently by Business Insider: BankAmericard® Secured Credit Card, Bank of America® Customized Cash Rewards Secured Credit Card. The details for these products have not been reviewed or provided by the issuer.
The BankAmericard® Secured Credit Card serves to establish or rebuild credit using a security deposit that you provide as your credit limit.
Business Insider experts compared this product to the best secured credit cards and found it lacking in comparison because cardholders do not earn rewards, nor do they have the option of automatically upgrading to an unsecured card down the line.
BankAmericard® Secured Credit Card Overview
The BankAmericard® Secured Credit Card does not have an annual fee, which is a positive. Many secured cards charge you for the privilege of having them. But there's also no rewards program or welcome offer, a benefit competing secured cards increasingly feature.
Bank of America is one of the largest banks, so having a positive payment history on this card that gets reported to the three main credit bureaus can boost your credit score. However, other secured card options offer periodic account reviews and upgrades to unsecured cards, while this card doesn't guarantee either benefit.
This card's security deposit requirement is low, and the APR is on the higher side. Other secured cards offer rewards and a variety of credit limits, so shop around unless you're loyal to Bank of America: There are better secured credit cards available on the market.
$0
26.24% variable
No Credit History, Poor
- Build credit with responsible use over time and you may qualify to have your security deposit returned
- No annual fee
- Minimum security deposit of $200
- Card doesn’t earn rewards and offers few benefits
- Foreign transaction fees
- The information related to the BankAmericard® Secured Credit Card has been collected by Business Insider and has not been reviewed by the issuer.
- No annual fee
- Opt-in to receive your FICO® Score updated monthly for free
- Minimum security deposit of $200 (maximum of $5,000) required to open an account
BankAmericard® Secured Credit Card Rewards
The BankAmericard® Secured Credit Card does not earn any rewards, nor does it come with a welcome offer, also known as a sign-up bonus.
BankAmericard® Secured Credit Card Key Features and Benefits
The BankAmericard® Secured Credit Card offers a low security deposit and high APR. But we should also point out what the card doesn't offer: an automatic path to an unsecured credit card.
While Bank of America says it will "periodically review your account" to return your security deposit, the issuer doesn't provide a timeframe when you can expect those reviews, like Discover or Capital One. The issuer also makes no mention of a credit line increase, or potential to upgrade to an unsecured Bank of America card down the road. That's a huge missed opportunity for those hoping for an unsecured credit line or credit increase.
Security and Credit Building
The BankAmericard® Secured Credit Card will appear on your credit profile shortly after you open the card.
All of your activities on this card will impact your payment history, credit mix, and credit utilization. If you don't already have a credit card, consistent positive updates could be just what you need to turn your credit around.
Holding this card is also your chance to demonstrate that you can responsibly use your credit and make payments on time. You'll want to use 30% or less of your available credit, and 10% if you can help it, to maintain the best credit utilization ratio. For 10% credit usage, that would mean spending $20 or less on a $200 credit line at any given time.
To start, you could put a subscription service or two on the BankAmericard® Secured Credit Card and set up autopay. That would be an easy way to send all the right credit signals: on-time payments, low utilization and regular usage.
Free FICO® Score
A nice feature is free access to your FICO credit score, updated monthly when you opt in. That'll help you keep track of your credit score, and can offer encouragement as your credit behaviors start to reflect on your score.
Mobile Wallet
The BankAmericard® Secured Credit Card works with digital payment technology including Apple Pay, Google Pay and Samsung Pay. This is the most secure way to pay, and it's contact-free — just tap your phone or watch on the payment terminal.
$0 Fraud Liability
If there's a fraudulent transaction made by someone else on your account, you're covered when you file a claim.
Checking Account Overdraft Protection
If you have a checking account with Bank of America, you can link the BankAmericard® Secured Credit Card for overdraft protection. This is a handy benefit for Bank of America customers that prevents declined purchases or returned checks with no transfer fees.
BankAmericard® Secured Credit Card Annual Fees and APR
Minimum and Maximum Deposit Requirements
This card requires a security deposit minimum of $200 cash, up to a maximum of $5,000.
Bank of America doesn't offer automatic credit line increases for this card. Instead, you'll need to put down a higher security deposit to increase your credit line.
Annual Fee
The BankAmericard® Secured Credit Card has an annual fee of $0 — no cost to hold this card.
APR Rates and Other Associated Fees
Although this card's APR isn't as high as that of other secured cards, it's still pretty high. Because of this, you'll want to pay your card in full every billing cycle to avoid interest and avoid dinging your credit.
- Regular APR: 26.24% variable for purchases and balance transfers
- Introductory APR: None
- Balance transfer fee: 4%
- Foreign transaction fee: 3%
- Late payment penalty fee: Up to $40
- Cash advance APR: 29.24%
- Cash advance fee: 4%
BankAmericard® Secured Credit Card Pros and Cons
Advantages of the BankAmericard® Secured Credit Card
Having no annual fee is a plus, and so is gaining free access to your credit score on a monthly basis. However, these aren't revolutionary benefits any more.
Credit lines for this card go up to $5,000 with a security deposit of the same amount, which is a considerable sum of cash to tie up. If you plan to deposit that much money to get a secured credit card, you should consider alternative cards that offer better returns, such as the Bank of America® Customized Cash Rewards Secured Credit Card , reviewed below.
Potential Drawbacks and Considerations of the BankAmericard® Secured Credit Card
If you prefer a lower credit line, not earning any rewards won't be too meaningful. But if you want to put up a bigger security deposit, you can find other secured cards that will earn rewards and even include a welcome offer.
Not having a clear path to credit line increases or another of Bank of America's unsecured cards is a big downside—but if you just want a card to build some positive credit history and don't care about that, this one will do the trick.
Who Should Get The BankAmericard® Secured Credit Card? Ideal Candidates
If you're looking for a secured card to build your credit, but don't want to be drawn in by the allure of a rewards program, you can use the BankAmericard® Secured Credit Card to manage your spending without incurring an annual fee on the card.
Best Usage Scenarios to Maximize Benefits
Because the BankAmericard® Secured Credit Card is a secured card, you'll want to pay extra attention to your credit utilization ratio by making sure you keep your balance low.
For best success, you'll want to pay off the card in full whenever your balance starts to climb. The best way to do so is by charging a few small recurring charges, such as subscriptions on the card, and then paying off the full amount once the charges clear.
BankAmericard® Secured Credit Card Reviews and Ratings
Our experts reviewed online forums such as Reddit and FlyerTalk to see what everyday consumers had to say about the BankAmericard® Secured Credit Card.
Many people reported instant approval, even with late payments in the past. A couple more noted it was easy to increase the credit line with a funds transfer or call to customer service, which is encouraging.
There are other solid data points about 100-plus credit score increases, with one cardholder reporting that their score boost took place after only six months of having the BankAmericard® Secured Credit Card.
However, other cardholders said their cash security deposits were never returned, although it's unclear what the specific situations were. That's why we always recommend keeping a close eye on your transaction activity so you can make sure getting the card actually helps you.
Common Praises and Complaints
As noted, the card is making good on its promise to build (or rebuild) credit—so that's extremely positive. And while Bank of America doesn't explicitly note any path to an unsecured card, a couple of users still reported success with getting an unsecured card.
Most complaints are about not being able to get approved for this card. Even though the BankAmericard® Secured Credit Card is designed for building credit, if your payment defaults or other incidents are very recent, you might not be approved. At that point, you could try another card or see if starting a banking relationship with Bank of America could help.
BankAmericard® Secured Credit Card Comparison
We compared the BankAmericard® Secured Credit Card to other secured cards to give you an idea of how it stacks up. You'll see that all three of the cards compared offer more benefits for cardholders than the BankAmericard® Secured Credit Card does.
Bank of America® Customized Cash Rewards Secured Credit Card vs. BankAmericard® Secured Credit Card
Bank of America has several other secured credit cards, including the Bank of America® Customized Cash Rewards Secured Credit Card. This $0-annual-fee card offers a rewards program and no foreign transaction fees, making it more beneficial for the cardholder than the BankAmericard® Secured Credit Card.
Cardholders earn Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings. Earn 2% cash back when shopping at grocery stores and wholesale clubs. You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%. Earn 1% cash back from all other purchases., and are eligible for an automatic upgrade after a period of healthy financial activity.
The security deposit and other benefits are the same as the BankAmericard® Secured Credit Card, so there's no reason why you shouldn't choose this one instead, unless you absolutely don't want a rewards program to tempt you into overspending. Learn more about this card in our Bank of America Customized Cash Rewards Secured credit card review.
Discover it® Secured Credit Card vs. BankAmericard® Secured Credit Card
The Discover it® Secured Credit Card only requires a $200 security deposit minimum, just like the BankAmericard® Secured Credit Card.
This card also has a $0 annual fee, and earns rewards on select categories of spend: 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter, then 1%) and 1% cash back on all other purchases. Discover will also match all the rewards you earn during your first cardmember year, doubling your cash back — a common Discover card benefit for new cardholders.
The Discover it® Secured Credit Card also comes with access to your FICO Score and $0 fraud liability, and Discover is known for its friendly customer service.
Finally, Discover reviews your account after only seven months to see if you can upgrade to an unsecured card and get your security deposit back.
Capital One Platinum Secured Credit Card vs. BankAmericard® Secured Credit Card
If you want to start with an extremely low security deposit, the Capital One Platinum Secured Credit Card offers an option for credit lines of just $49, $99, or $200, once again with a $0 annual fee and no foreign transaction fees (rates and fees). Capital One offers the opportunity to get an unsecured card and consideration for a higher credit line after just six months.
There are no rewards to earn on this card, so that's not a consideration here. But the lower cash deposit requirement may appeal to some applicants, while the lack of foreign transaction fees can be a boon for others.
BankAmericard® Secured Credit Card Application Process
Step-by-Step Guide to Applying for the BankAmericard® Secured Credit Card
The application for the BankAmericard® Secured Credit Card is similar to that for other personal credit cards, except you'll need to fund your account with a security deposit upon opening—this establishes the credit line.
Other than that, have your personal information ready, including your address, Social Security number and income information, and then:
- Enter your personal details — Fill out the application to the best of your knowledge. It's important to estimate your income as closely as possible.
- Review the application — Make sure everything is complete and looks accurate.
- Fund the account — This requirement is unique to secured cards, and protects your card issuer from risk in case you default on payments.
- Get your decision — If you're approved, you should receive your card in the mail in about 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—the bank is required to provide this within 30 days of application.
BankAmericard® Secured Credit Card Approval Odds and Tips for a Successful Application
Because the BankAmericard® Secured Credit Card is a secured card, Bank of America will heavily focus on your credit history and current income when evaluating your application.
Fill out the application form as honestly as possible, and be responsive if the bank requests any additional documentation. Having any prior bank relationship with Bank of America, such as a checking account or loan, may help your case.
Finally, don't overextend your cash reserve in pursuit of a higher credit limit. While having a bigger credit line is better for your utilization ratio, you don't want to commit funds you need just to have a credit card.
BankAmericard® Secured Credit Card Frequently Asked Questions
Why You Should Trust Us: How We Reviewed the BankAmericard® Secured Credit Card
Business Insider's credit card experts reviewed the BankAmericard® Secured Credit Card against other secured credit cards by considering the following criteria:
Security deposit — Is the credit limit on the card flexible enough to accommodate cardholders' financial needs? How much cash will the cardholder need to deposit with the card issuer in order to utilize this secured credit card?
Upgrade potential — Can the cardholder earn their way to an unsecured card or a higher credit line after proving a history of responsible use? If so, how long will the cardholder have to wait to initiate the upgrade? Does the review take place automatically or does the cardholder need to initiate the request?
Rewards — Does the card earn rewards on daily spending or specific bonus categories?
Annual fee and other costs — Does this card cost anything to open and hold? Will the cardholder incur foreign transaction fees if they use it overseas?
Read more about how we rate credit cards at Business Insider.
