Bank of America® Customized Cash Rewards Secured Credit Card
- Best for: Rebuilding credit while spending steadily in one category, such as gas, dining, or phone and streaming bills
- What Sets It Apart: A 3% category you choose and can change once a calendar month, on a secured card; 6% in that category the first year
- Cost: $0 annual fee; $200 to $5,000 refundable deposit; 27.74% variable APR; 3% foreign transaction fee
- Features: 2% at grocery stores and wholesale clubs; $2,500 combined quarterly cap on the 3% and 2% rates; 10% to 75% BofA Rewards bonus
- Pros: Beats a flat 1.5% card once one category takes more than a quarter of spending; periodic reviews can return the deposit
- Cons: Deposit earns no interest; no stated review schedule; superstores don’t earn the 2% grocery rate
Open the Bank of America® Customized Cash Rewards Secured Credit Card if you’re rebuilding credit and one category, like gas or dining, takes more than a quarter of your spending. It pays 3% there and 2% at grocery stores, on up to $2,500 of combined purchases a quarter. Otherwise, take Bank of America’s simpler flat 1.5% secured card.
This card pays the same cash back rates as Bank of America’s unsecured Customized Cash Rewards card, the one to aim for once your credit qualifies, but a refundable deposit backs your credit line. Bank of America reports the account to the credit bureaus, so on-time payments help you rebuild credit with a secured card.
Key Features
- $0 annual fee, a 27.74% variable interest rate (APR), and a 3% fee on purchases in a foreign currency
- Refundable deposit of $200 to $5,000 that earns no interest and helps set your credit limit, along with your income and ability to pay
- 3% in one category you can change once a calendar month: gas and electric vehicle charging (the default), online shopping, dining, travel, drug stores, or home improvement and furnishings
- 2% at grocery stores and wholesale clubs, with the 3% and 2% rates on up to $2,500 of combined purchases a quarter, then 1%
- 6% in your category on purchases that post in your first year, within the same cap
Pros
- Out-earns a card paying a flat 1.5% once your 3% category takes more than a quarter of your spending, within the cap
- A 10% bonus for Bank of America checking customers who join BofA Rewards, lifting 3% to 3.3%, and up to 75% with $1 million in combined bank and Merrill investment balances
- Periodic reviews can return your deposit while you keep the card
- Online shopping covers cable, internet, phone, and streaming bills
Cons
- No stated schedule for deposit reviews, and not every customer qualifies
- Grocery and wholesale club purchases share the $2,500 quarterly cap with your 3% category
- Superstores that sell groceries don’t earn the 2% rate
A cardholder whose $300 monthly bill includes $150 of gas earns $6 a month here after the first year, against $4.50 on the flat 1.5% Unlimited Cash Rewards Secured. People whose spending is spread across many categories earn as much or more on that flat rate, with no category to switch or cap to track.
Learn more about the Bank of America® Customized Cash Rewards Secured Credit Card or see how it compares to the best secured credit cards.
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