Bank of America® Customized Cash Rewards Secured Credit Card
Overview of the Bank of America® Customized Cash Rewards Secured Credit Card
The Bank of America® Customized Cash Rewards Secured Credit Card is designed to help individuals build or rebuild their credit history while enjoying the perks of a cash-back rewards program. As a secured card, it requires a security deposit that acts as your credit limit, making it a suitable option for those who may have limited or poor credit history. This card allows you to earn cash back on purchases, which is a unique feature for secured credit cards, generally known for their focus on credit building rather than rewards.
Key Features and Benefits
One of the standout features of the Bank of America® Customized Cash Rewards Secured Credit Card is its cash-back rewards structure. Cardholders can earn 3% cash back on a category of their choice, which includes options such as gas, online shopping, dining, travel, drug stores, or home improvement. Additionally, cardholders earn 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined grocery and wholesale club purchases each quarter, and 1% on all other purchases. This tiered rewards system provides cardholders with the opportunity to maximize their earning potential based on their spending habits.
Security Deposit and Credit Limit
The credit limit for the Bank of America® Customized Cash Rewards Secured Credit Card is determined by the amount of the security deposit made at the time of opening the account. The minimum deposit required is $300, and this deposit can go up to $4,900. This flexibility allows cardholders to choose a limit that meets their needs while ensuring they can manage their spending effectively. Importantly, the security deposit is refundable if the account is closed in good standing, making it a low-risk option for those looking to improve their credit score.
Building Credit with Responsible Use
Using the Bank of America® Customized Cash Rewards Secured Credit Card responsibly can significantly impact your credit score. Regular, on-time payments are reported to the three major credit bureaus, helping to establish a positive credit history. Cardholders are encouraged to keep their credit utilization low, ideally under 30% of their credit limit, to further enhance their credit profile. By maintaining a healthy credit behavior, cardholders may eventually qualify for unsecured credit cards, leading to more significant rewards and benefits.
Fees and Interest Rates
Like most secured credit cards, the Bank of America® Customized Cash Rewards Secured Credit Card comes with various fees and interest rates. The annual fee is waived for the first year, making it an attractive option for new users. However, after the first year, there is a $19 annual fee. The card has a variable APR based on the Prime Rate, which can range from 15.74% to 25.74%. It's crucial for potential cardholders to understand these fees and rates to avoid unnecessary costs and ensure they can manage their payments effectively.
Conclusion: Is It Right for You?
The Bank of America® Customized Cash Rewards Secured Credit Card is an excellent choice for individuals looking to build or rebuild their credit while enjoying the benefits of cash back rewards. Its flexible rewards program, combined with a straightforward security deposit structure, makes it accessible for many consumers. If you are committed to using the card responsibly and making timely payments, this card can serve as a valuable tool in your financial journey. However, if you are looking for a card with no annual fees or lower interest rates, you may want to explore other options available in the market.