As the BankAmericard® Secured is a secured credit card, a deposit of at least $300 is required to open an account. While the minimum deposit and interest rate for this card are high, it doesn’t charge any annual, monthly, or application fees.
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Quick Review
The BankAmericard® Secured requires a security deposit of $300-$4,900. While this is a relatively high minimum deposit among secured credit cards, the BankAmericard® Secured card offers a big advantage over most other secured cards: no annual fee.
Your initial credit limit will be determined by the amount of security deposit you provide, as well as your income and your creditworthiness. Like most secured credit cards, the BankAmericard® Secured card charges a high interest rate for purchases, balance transfers, and cash advances.
Most cards that are available to borrowers with poor credit or a lack of credit history charge higher rates and fees than other credit cards. Luckily, the BankAmericard® Secured doesn’t charge an annual or any form of maintenance fee, making it relatively low-cost.
Furthermore, the BankAmericard® Secured is designed to help you establish, strengthen, or rebuild your credit. You can access your FICO score monthly through mobile or online banking to keep track of your credit-building progress. The BankAmericard® Secured also provides access to educational materials on topics such as using credit cards responsibly and budgeting. You can sign up for email or text alerts to remind you when payments are due and when they have been paid.
BankAmericard® Secured Credit Card Important Details
Basic Card Details
- APR: 24.99% (variable)
- Annual fee: $0
- Credit card issuer: Bank of America
- Initial credit limit: $300–$4,900
- Security deposit: $300–$4,900
Additional Information
- $0 liability guarantee for fraudulent charges on your account
- Mobile banking and text alerts
- Free FICO score through online or mobile Banking
- Contactless payments
BankAmericard® Secured Credit Card Feature Breakdown
Here’s a list of the notable features of the BankAmericard® Secured credit card.
Fees
- Annual fee: $0
- Purchase fee for a wire transfer from a non-financial institution: $10 or 5% of the amount (whichever is greater)
- Balance transfer fee: $10 or 3% of the amount (whichever is greater)
- Direct deposit and check cash advance fee: $10 or 3% of the amount (whichever is greater)
- ATM, over-the-counter, same-day online and cash equivalent cash advance fee: $10 or 5% (whichever is greater)
- Foreign transaction fee: 3% of the U.S. dollar amount
- Late payment penalty fee: Up to $40
One of the biggest advantages of this card is the fact that it does not charge an annual fee, as many secured cards do. However, there are many other transaction fees, including a foreign transaction fee, which may make this a bad choice for frequent travelers abroad.
Interest Rates
- Purchase APR: 24.99% (variable)
- Balance transfer APR: 24.99% (variable)
- Direct deposit and check cash advance APR: 26.24% variable
- Bank cash advance APR: 29.24% variable
- Penalty APR: None
This card charges high interest rates. If you don’t plan to carry a balance, this won’t be a problem. However, if you’re likely to carry a balance from month to month, you may want to consider a different card with lower interest rates.
Rewards
Unfortunately, the BankAmericard® Secured card does not offer a rewards program. While rewards are less common among secured cards and other credit cards for bad credit, there are cards available offering cash back to poor credit and limited credit borrowers.
Security Deposit
This card requires a security deposit of $300–$4,900. You may qualify to have your security deposit returned as Bank of America periodically reviews your account and credit history and will convert your secured card into an unsecured one if they decide you’ve been a responsible enough borrower.
Credit Limit
Your credit limit is determined by the amount of the security deposit you provide, your income, and your ability to pay your monthly balances. Bank of America doesn’t specify how it determines this, but they likely review your borrowing history to determine your creditworthiness.
Card Upgrade
Bank of America will periodically review your account and decide whether you qualify for a credit card upgrade. Upon upgrading, your security deposit will be refunded to your account.
Again, Bank of America doesn’t divulge its upgrade qualifications, but this is likely decided based on whether you consistently pay your credit card bills on time.
Credit Reporting
Bank of America reports to the major credit bureaus: Equifax, Experian, and TransUnion. Credit reporting is an important part of credit building and rebuilding, as the information that is voluntarily shared with bureaus is used to update your credit score.
Application
To apply for a Bank of America credit card, you will need to provide your personal information, including your Social Security number and annual income. You can apply online, by mail, or at a financial center, but applications are not accepted by phone.
It will take 7–10 business days to get your credit card once your application has been approved.
Should You Get the BankAmericard® Secured Credit Card?
FinanceJar verdict
As this card has no annual fee, a high potential credit limit, and credit-building features, it’s a good secured card option for those trying to establish or repair their credit history. However, its high interest rates and security deposit along with a lack of rewards mean it’s not a card for everyone. If you carry a balance from month to month, seek a card with a lower APR.
Who is this card for?
- People with bad, limited, or no credit: If your credit score is too low to qualify for an unsecured card, this card is a good option to help you build up your credit score. As it reports to the bureaus and offers free FICO scores, the BankAmericard® Secured credit card can help you quickly repair your credit score.
- Bank of America customers: If you have a checking account with Bank of America, you can opt in to use this credit card as overdraft protection for your account. As overdrafts often cost exorbitant fees, this card could make a good source of protection.
Comparable Cards
See how the BankAmericard® Secured compares to other cards available to borrowers with poor or limited credit.
BankAmericard® Secured Credit Card vs. Discover it® Secured Credit Card
Both of these cards are geared towards people with limited or bad credit, don’t charge annual fees, and require security deposits.
The Discover it® card has a lower minimum security deposit of $200 which can be appealing for those who are unwilling to pay as much as $300 up front. However, the maximum credit limit is $2,500, which is significantly lower than the BankAmericard® maximum of $4,900.
Additionally, the Discover it® Secured card charges a slightly higher interest rate, but this can be offset by the fact that there is a cashback rewards program that offers 2% cash back at gas stations and restaurants and 1% cash back on all other purchases.
So if you don’t frequently carry a balance and want to earn cashback rewards, the Discover it® Secured is likely the better option.
BankAmericard® Secured Credit Card vs. Bank of America® Customized Cash Rewards Secured Card
The Bank of America® Customized Cash Rewards Secured credit card is very similar to the BankAmericard® Secured credit card. They both require a security deposit of $300–$4,900 and don’t charge annual fees.
The Customized Cash Rewards card charges a slightly higher interest rate, but this can be offset by the fact that it also offers a cashback rewards program. You can earn:
- 3% cash back in the category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings)
- 2% cash back at grocery stores and wholesale clubs
- 1% cash back on all other purchases.
This may make the Customized Cash Rewards card a better choice for you, depending on your spending habits.
BankAmericard® Secured Credit Card vs. Capital One Platinum Secured Credit Card
Once again, both of these cards are designed to help you build or improve your credit score. Both also have no annual fee and require security deposits.
However, if the minimum deposit of $300 for the BankAmericard® is too high for you, the Capital One Platinum card can be opened with a $49, $99, or $200 minimum deposit for a $200 credit limit.
It’s important to note that the Capital One Platinum card does have a higher interest rate, so you would not want to frequently carry a balance on this card. Furthermore, the Capital One Platinum Secured card doesn’t charge foreign transaction fees, which might be appealing if you’re a frequent traveler.
