Bank of America Cash Rewards Secured Credit Card

The Bank of America Cash Rewards Secured Credit Card is a secured credit card option, ideal for those looking to start building or improving their credit while enjoying the benefits of a rewards card.

With the security of a deposit, this card allows you to earn cashback on everyday purchases such as gas, groceries, and even online shopping.

In this post, we will detail the key aspects of the Bank of America Cash Rewards Secured Credit Card to help you decide if it’s the right choice for you.

Is This Card the Best Option for You?

The Bank of America Cash Rewards Secured Credit Card might be the best option for you if:

• You are starting to build or improve your credit: If your credit is limited or if you’re in the process of rebuilding it, this card can be a great option. It is secured with a deposit but still offers benefits like cashback and reports to the major credit bureaus.
• You want cashback rewards: This card offers a cashback program, making it an appealing choice if you want to earn money back on your daily purchases. You can choose the category where you’d like to earn more cashback, such as groceries, gas, or online shopping.
• You have good saving ability and can make the security deposit: Although it’s a secured card, you’ll need to make an initial deposit to get credit. If you’re willing to make this investment, the card offers an excellent opportunity to improve your credit.
• You are already a Bank of America customer: If you already have a checking or savings account with Bank of America, you can enjoy additional benefits with the Cash Rewards Secured Credit Card, such as earning welcome bonuses and taking advantage of the bank’s account management tools.

Negative Aspects to Consider

While the Bank of America Cash Rewards Secured Credit Card is a great choice for many, there are a few negative aspects to consider before making your decision:

• Security deposit required: Since it is a secured card, you’ll need to make a security deposit that will be used as collateral for your credit. While this deposit is refundable, it is an amount you need to be willing to invest initially.
• Relatively high interest rate: The Bank of America Cash Rewards Secured Credit Card has a relatively high interest rate (APR), especially if you don’t pay the full balance each month. Therefore, it is essential to pay your bill on time to avoid accumulating interest on your balance.
• Initial credit limit: The initial credit limit will be determined by the amount of your security deposit, which means your purchasing power will be limited until you make another deposit or the bank offers a credit limit increase based on your payment behavior.

Requirements to Apply for Your Credit Card

To apply for the Bank of America Cash Rewards Secured Credit Card, you must meet some basic requirements:

1. Minimum age: You must be at least 18 years old to apply for the card.
2. Residency: The card is available only to U.S. residents.
3. Social Security Number (SSN): You will need to provide a valid Social Security Number (SSN) during the application process.
4. Security deposit: You must provide a security deposit ranging from $200 to $5,000. The amount of your security deposit will determine your credit limit.
5. Proof of income: Bank of America may ask you to provide income information during the application, although the bank is flexible regarding the minimum required amount.

Once you meet the requirements, you can apply online through the Bank of America website. The process is simple and can be completed in just a few minutes.

Track Your Application

After applying, you can check the status of your application directly on the Bank of America website or through your online account.

If your application is approved, the Bank of America Cash Rewards Secured Credit Card will be sent to your address.

If not, you will receive a notification explaining the reason for the rejection.

Remember, if your credit is insufficient, your application may be denied, but the security deposit will still be refunded.

Associated Costs with the Credit Card

Although the Bank of America Cash Rewards Secured Credit Card offers benefits like cashback and no annual fee, it also comes with some costs that you should keep in mind:

• Interest Rate (APR): The Bank of America Cash Rewards Secured Credit Card has a variable interest rate, which can be quite high. This means that if you don’t pay the full balance of your bill, you could end up paying much more due to interest.
• Late Payment Fees: If you fail to pay your bill by the due date, a late fee will be charged, which can increase the overall cost of your credit.
• Cash Advance Fees: If you use your card to make ATM withdrawals, a cash advance fee will be charged, along with higher interest on the amount withdrawn.
• Check Payment Fees: If you pay your bill with a check, Bank of America may charge an additional fee.

Frequently Asked Questions about the Credit Card

1. What rewards are offered by the Bank of America Cash Rewards Secured Credit Card?

The Bank of America Cash Rewards Secured Credit Card offers cashback in the following categories:

• 2% cashback at supermarkets (up to $2,500 in purchases per quarter).
• 3% cashback on gas.
• 1% cashback on all other purchases.

Additionally, customers can earn extra cashback by being a Bank of America customer, using their bank account or investment account at the bank.

2. How can I increase my credit limit?

Your initial credit limit is based on the amount of your security deposit.

Bank of America may increase your limit as you build your credit, but the limit increase depends on your card usage and payment behavior.

Additionally, you can add more money to your security deposit to increase your credit limit.

3. Does the card offer fraud protection?

Yes, the Bank of America Cash Rewards Secured Credit Card offers fraud protection with Zero Liability.

This means you will not be held responsible for unauthorized transactions as long as you notify the bank immediately.

Contact Information for the Issuing Bank

If you have any questions or need support, you can contact Bank of America through the following channels:

• Phone: You can call Bank of America’s customer support number available on the official website.
• Email: Bank of America also provides support via email through its customer service platform.
• Mobile App: You can manage your card and contact support directly through the Bank of America mobile app.
• Website: Visit Bank of America’s official website for detailed information on the card, balance, payments, and customer support.

Conclusion

The Bank of America Cash Rewards Secured Credit Card is an excellent choice for those starting or rebuilding their credit, offering the added advantage of cashback on your daily purchases.

While the security deposit and high-interest rate may be disadvantages for some, the benefits, such as rewards and the opportunity to improve your credit, make it an attractive option.

Now that you know the key details about the Bank of America Cash Rewards Secured Credit Card, you can evaluate whether it meets your financial needs.