BankAmericard Secured Credit Card
Are you trying to establish, build, or rebuild your credit? If so, the BankAmericard secured credit card can help. It has several highlights and benefits for cardholders that takes the sting out of it being a secured card. These points also make it a solid choice for anyone who is trying to decide between one card and the other.
BankAmericard Secured Credit Card Pros
1. Better Approval Odds
The Bank of America secured credit card comes designed for people with bad credit. You make a deposit before you get the card. Whatever this amount, it ends up being your line of credit. If you make a $500 deposit, you’ll have $500 to spend. Depending on your credit, you may get your deposit back. This increases your approval odds, even if you have bad credit.
2. Monthly FICO Score Access
You can’t fix your FICO score if you can’t monitor it. One of the first things you should do is take a look. Dispute any errors you see. If you have accounts in collections, try to pay them off. Check your score every month once you get this card. It’s free to cardholders. Eventually, your payments will help raise your score. However, you don’t want to be late with them because this can hurt you.
3. Flexible Credit Limit
Your maximum credit limit depends on your income, ability to pay, and the security deposit. It ranges from $300 up to $4,900. You decide how much you can reasonably afford. You can always ask for a credit increase later after you establish your ability to pay. This flexibility allows people of all economic situations to take advantage of this card.
4. Bank of America Mobile Online Banking App
The BankAmericard secured credit card comes with a mobile banking app. You can opt in to get monthly updates on the factors that impact your credit score. For example, they’ll send you information and tips to keep your score healthy. For people who have no idea what goes into maintaining your credit, this is very helpful.
5. Free Credit Education
Building your credit is so much more than just making your payments on time every month. Instead, there’s a host of things you have to do. Do you know how to use your credit card responsibly? How about how interest works? Can you create and stick to a budget? All of these small things really add up. Using the free credit education this card offers can make you more financially responsible.
6. No Annual Fee
The BankAmericard secured credit card comes with a $0 annual fee attached. This is excellent news for people who don’t plan to use their card a lot. You don’t have to try and justify paying an annual fee if you use the card sporadically. Additionally, many people who need secured cards don’t have the extra money laying around to pay an annual fee. Not having one if the first place removes the stress.
7. Return the Deposit at Any Time
Traditionally, you’d have to close out your account in good standing to get your deposit back. However, the BankAmericard secured credit card differs here. Bank of America will periodically review your account. They can choose to return your deposit at any time, usually after the year mark. This is why it’s important to use the card responsibly and make on-time payments.
8. $0 Fraud Liability
There are security features with this card. For example, it comes with a $0 fraud liability. If someone uses your card without your permission and you report it, you won’t pay the balance. Bank of America will give you a new card with a clean slate. There are email and text alerts you can enable as well.
BankAmericard Secured Credit Card Cons
1. High APR
Since the Bank of America secured credit card targets people who have bad credit, you’ll pay a higher APR. What’s worse, you’ll pay this fee each month you carry a balance. The APR for this card is 24.99% each month. If you carry a balance for several months, this can really add up. You can avoid the APR by paying your balance in full each billing cycle.
2. Foreign Transaction Fee
You shouldn’t use this card through a non-US bank. There is a foreign transaction fee attached of 3%. Bank of America will apply this 3% fee each time you make a transaction through one of these banks. You’ll see your total at the end of the billing period. So if you’re not careful, you can end up with hundreds of extra dollars to pay. Also, if you don’t pay it off right away, you’ll pay the APR too. The Capital One Secured Card charges no foreign transaction fee.
3. No Bonus or Rewards
The BankAmericard secured credit card is very basic. It works well to build or reestablish your credit. However, this is no bonus for signing up. There is also no reward program like you can get with other types of cards. There are even secured cards with bonus programs available. You can upgrade to more robust cards once you build your credit a bit.
4. Not Guaranteed a Deposit Back
Most secured cards will give you your deposit back if you close the account out in good standing after at least a year. However, this one is different. Bank of America reviews every applicant to see if they’re worthy of getting their deposit back. It’s not a guarantee. So, you could be out hundreds of dollars when you close the account. The Discover it Secured Card offers cash back.
5. High Late Payment Fee
Missing a payment can do more than hurt your credit score. If you miss a payment with the Bank of America secured credit card, you’ll pay a high late payment fee. This fee is $40 each time you miss one. They’ll add it on top of your current balance. If you habitually miss payments, you could end up spending hundreds.
Bottom Line
Who could benefit from having the BankAmericard secured credit card? Anyone that needs to rebuild their credit or learn how to use a card responsibly can benefit. It’s a good beginner card with solid benefits and not a lot of drawbacks. So if you need to rebuild, build, or reestablish your credit, we recommend you take a look.
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