BankAmericard® Secured Credit Card Review: High Credit Limits with No Annual Fee

Quick Review

The BankAmericard® Secured is a secured credit card, meaning you’ll need to pay a security deposit upfront to open an account. Despite the fact that you’ll need to shell out a few bucks in the beginning, this card offers plenty of benefits to borrowers with short or troubled credit histories.

Here are the key features that stand out about the BankAmericard® Secured credit card:

• Upfront deposit required: The BankAmericard® Secured requires a security deposit of $200–$5,000. The $200 minimum deposit may be a big financial commitment if you’re on a tight budget, but you’ll be able to get your money back later.
• Low ongoing costs: Most cards available to borrowers with poor or insufficient credit come with high interest rates and fees. While you’ll need to pay a deposit upfront, you’ll eventually get that money back, and you won’t have to pay any annual or maintenance fees to keep the card going, making it a relatively low-cost card.
• Free credit-building tools: To help you establish, strengthen, or rebuild your credit, Bank of America will give you free monthly FICO score updates, access to educational materials on financial and credit-related topics, and the option to sign up for text or email payment alerts to help you keep your account in good standing.
• Potential to upgrade your card: Bank of America will periodically review your account history. If you’ve demonstrated responsible account management, they’ll return your security deposit to you, essentially transforming your BankAmericard® Secured card into an unsecured card.

Pros & Cons

Who Is the BankAmericard® Secured Credit Card Best For?

Just about anyone with less-than-perfect credit can benefit from the BankAmericard® Secured card because of its wide range of credit limits and lack of maintenance fees. However, it’s particularly well suited to the following groups of people:

• People with damaged credit: The BankAmericard® Secured card is easier to get than an unsecured card, and you can qualify even with very poor credit. You’ll get access to free FICO scores and credit-building tools, and accounts are reported to all three major credit bureaus, giving you everything you need to quickly fix your credit.
• First-time credit builders: Since there’s no annual fee and you can upgrade to an unsecured card later, the BankAmericard® Secured card is ideal for starting your credit journey. Even after you achieve good credit, you can allow the account to age and further improve your credit score at no extra cost.
• 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 serve as a good source of protection.

What the Crowd Says

The BankAmericard® Secured credit card tends to receive slightly positive reviews across the board from major review websites and cardholders alike. Experts will tell you that it’s a safe choice all around. Current cardholders are a bit more divided—depending on who you ask, the BankAmericard® Secured is either an excellent credit-builder card or one based on false promises.

What Major Publications Say

All the top credit card review websites agree that the BankAmericard® Secured credit card is a solid choice for anyone looking to establish or repair their credit due to the lack of annual fees and credit-building potential.

However, virtually all professional reviews warn against the card’s relatively high APR and advise prospective applicants to explore all their options first since there are better secured credit cards out there with lower interest rates and better perks.

What Cardholders Say

Difficulty Graduating the Card

Despite the fact that Bank of America advertises that you can get your security deposit back on your BankAmericard® Secured credit card after 12 months of on-time payments, disappointed cardholders will warn you that this isn’t necessarily the case.

The most common complaint from actual customers is that they never got their deposit back or graduated to an unsecured credit card, even after demonstrating responsible account management by paying all their credit card bills on time and maintaining a low balance.

Users report that Bank of America won’t give any details about how long it will take or what you’ll need to do to get your deposit back, but it seems you can’t ask for it back on your own. Instead, they’ll review your account at regular intervals—and if you don’t meet their requirements at the one-year mark, you could be in for a long wait before they review your account again.

Customer Service Complaints

One downside that cardholders mention is the hassle of getting through to a customer service representative who knows how to deal with questions and issues related to the  BankAmericard® Secured card. When you call up customer service, you may be rerouted several times before you’re finally connected with the correct department.

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Rates & Fees

Fees

• Annual fee: $0
• Wire transfer fee from a non-financial institution: $10 or 5% of the transfer amount (whichever is greater)
• Balance transfer fee: $10 or 3% of the transfer amount (whichever is greater)
• Cash advance fee (direct deposit or check): $10 or 3% of the transaction amount (whichever is greater)
• Cash advance fee (ATM withdrawals and cash equivalent purchases): $10 or 5% of the transaction amount (whichever is greater)
• Foreign transaction fee: 3% of the transaction amount
• Late payment fee: Up to $40

Interest Rates

• Purchase APR: 24.99% (variable)
• Balance transfer APR: 24.99% (variable)
• Cash advance APR: 27.99% – 29.99% (variable)
• Penalty APR: None

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Rewards

Just because the BankAmericard® Secured card isn’t eligible for Bank of America rewards doesn’t mean you won’t be able to find a credit card with rewards, even if you have a very low credit score or no credit history at all.

If you plan on regularly using your credit card for purchases, then it’s worth checking out rewards credit cards that are on the market before committing to a no-rewards card like the BankAmericard® Secured card.

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Credit Limit

Your credit limit is determined by the amount you put down as a security deposit. For example, if you pay the minimum deposit of $200 on the BankAmericard® Secured card, then your credit limit will only be $200. Putting down more money upfront will get you a higher starting credit limit.

Getting a high credit limit is particularly important if you want to raise your credit score since your credit line directly affects your credit utilization rate (how much of your available credit you’re using), which is one of the main credit scoring factors.

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Benefits

Card Upgrade

Bank of America will periodically review your account and decide whether you qualify for a credit card upgrade. Once you get an upgrade, your security deposit will be refunded to your account.

According to the card issuer, they’ll make their decision about whether you qualify for a card upgrade based on how well you’ve managed your loans and credit cards and your relationship with Bank of America. The best way to boost your odds of approval is to consistently pay all your credit card bills on time.

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Building Credit

Security Deposit

The minimum security deposit of $200 on this card is pretty standard for a secured credit card, but not many similar cards allow you to put down up to $5,000. This maximum credit limit is ideal if you’re a high earner who wants to quickly boost your available credit.

The purpose of a credit card security deposit is to lower the risk for your creditor (they’ll be able to keep the deposit if you stop making credit card payments). However, rest assured that you’ll get your deposit back later as long as you keep your account in good standing.

Credit Reporting

Bank of America reports to the credit bureaus 3 days after the statement closing date each month. At this point, you’ll see your credit report update with each of the three main credit reporting agencies as they receive new information about your BankAmericard® Secured card account.

Tips for Building Credit

Simply getting the BankAmericard® Secured card isn’t enough to raise your credit score or establish a good credit history. You’ll need to take the following steps to make sure your new credit card is helping rather than hurting your credit:

• Choose the highest deposit you can afford: Having a high credit limit makes it easier to maintain a low credit utilization ratio (if you spend responsibly), which is good for your credit score. If you can afford to do so, put down a larger deposit than just the minimum amount required.
• Keep your account in good standing: Paying all your credit card bills on time and in full won’t just benefit your payment history—it’ll also make you eligible to get your deposit back on your BankAmericard® Secured card, which can help you pay down your debt if you’re carrying a balance.
• Avoid canceling your card: Even after you’ve achieved your credit goals, keep your BankAmericard® Secured card open for as long as possible. This will help your credit score grow long into the future by benefiting the length of your credit history.

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How to Get the BankAmericard® Secured Credit Card

Credit Score Required

Bank of America doesn’t explicitly disclose their credit score requirements for the BankAmericard® Secured card, but they do say that the card is designed for establishing, strengthening, or rebuilding your credit. As such, it’s safe to assume that you can qualify with a low credit score or limited credit history.

How to Apply

To apply for a Bank of America credit card, you’ll need to provide some personal information, including your Social Security number and annual income. You can apply online, by mail, or at a Bank of America branch, but applications are not accepted by phone.

Mailing address for credit card application inquiries:

Bank of America

PO Box 2493

Norfolk, VA 23501-2493

It’ll take 7–10 business days to get your credit card once your application has been approved.

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FAQs

How do you increase your BankAmericard® Secured credit card limit?

Bank of America provides two options for requesting a credit line increase on Bank of America credit cards:

• Online: Sign in to online banking, select your credit card account, and then check your card details under the account summary. If your account is eligible for online credit limit increase requests, you’ll be able to select “request a credit line increase.”
• By phone: If you don’t see the option to request a credit limit increase online, you can call the number on the back of your credit card to ask for a larger credit line.

Since the BankAmericard® Secured is a secured credit card, you may need to increase your security deposit in order to increase your credit line.

Can you get a cash advance with the BankAmericard® Secured card?

You can get a cash advance on the BankAmericard® Secured card, but it will cost you more than a regular transaction.

Credit card cash advances allow you to convert available credit into cash. For this privilege, you’ll need to pay a cash advance fee of $10 or 3%–5% of the advance amount (depending on the type of cash advance), and the amount you borrow will be subject to a higher APR.

When determining the rates and fees you’ll pay, Bank of America distinguishes between two types of cash advances:

• Direct deposits and checks: Funds converted into a direct deposit or check.
• Bank cash advances: ATM, over-the-counter, and same-day online withdrawals as well as money transfers to another person, overdraft protection, and cash equivalent transactions (e.g., buying money orders, foreign currency, travelers checks, lottery tickets outside the United States, casino gaming chips, or bail bonds).

It’s also worth noting that your credit limit for cash advances will be lower than your regular credit card limit.

Can you use the BankAmericard® Secured card for balance transfers?

You can use the Bank of America secured credit card for balance transfers, where you move debt from one credit account to another.

You will need to pay a balance transfer fee of $10 or 3% of the transfer amount and an APR of 24.99% (variable).

What’s the grace period on the BankAmericard® Secured card?

With the Bank of America secured credit card, you’ll have a grace period of 25 days. A credit card grace period gives you time to pay off your credit card balance before interest begins accruing.

To avoid paying interest on your BankAmericard® Secured card, make sure to pay your credit card balance in full by the payment due date each month and don’t allow a balance to roll over from one month to the next.