The
BankAmericard® Secured Credit Card is a pretty good credit card for people with bad credit (a credit score below 640) who want to minimize the cost of rebuilding their credit standing. It has a
$0, and it reports to the major credit bureaus each month, giving you the chance to add positive information to your credit reports. Plus, the security deposit you’re required to place is fully refundable, unlike fees on other cards.
5 Key Things to Know About the BankAmericard Secured Card
No rewards.
The biggest downside to this offer is the lack of rewards. Unlike with the
Bank of America® Customized Cash Rewards Secured Credit Card,
Bank of America® Travel Rewards Secured Credit Card and
Bank of America® Unlimited Cash Rewards Secured Credit Card, the BankAmericard Secured Card does not give points or cash back in return for making purchases. It does have a slightly lower APR than those other options but not by much.
No annual fee.
This Bank of America secured credit card, also known as the BankAmericard Secured Card, doesn’t charge the expensive monthly- or one-time fees for which many bad-credit credit cards are known. This gives you the chance to rebuild your credit without spending extra money, considering the security deposit you’ll need to place is refundable.
Low security-deposit requirement.
The BankAmericard Secured Credit Card requires a minimum security deposit of
$200. The amount of your deposit will act as your credit limit. For example, if you deposit $300, your credit limit will be $300.
You can get your deposit back when you close your account and pay off any lingering balance, if not sooner.
Potential to become unsecured after 12 months.
Most secured credit cards won’t return your security deposit until you close your account, but this Bank of America secured card is a bit different. If you manage your account responsibly for the first year – above all else, that means paying your monthly bills on time – Bank of America may elect to give your deposit back while allowing continued use of your account.
That’s a nice incentive, but it’s worth noting that your credit standing may improve enough by that time that you can qualify for an unsecured credit card. So make sure to
check your credit score for free on WalletHub before deciding to keep your account open past the 12-month mark.
Far from ideal for carrying a balance.
The BankAmericard Secured Credit Card has a high APR, even compared to the average for a secured card (
21.76%). So it doesn’t make sense to carry a balance from month to month, even if you get your deposit back and thus no longer have to pay interest on what amounts to a loan you’ve given yourself.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
