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The Bank of America® Customized Cash Rewards Secured Credit Card is a solid cash back credit card to use if you are recovering from bad credit or trying to build credit for the first time. It has a $0 annual fee and cash back rewards on all purchases, but with a twist. You’ll earn 3% cash back in the category of your choice, earn 2% cash back at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, then earn unlimited 1% thereafter.
Not all secured credit cards offer rewards at such a generous rate, which makes it stand out as one of the top cards for building credit. Since the card requires a security deposit, you will need to submit at least $200 to secure your line of credit. But if you haven’t been able to get approved for unsecured credit cards, a secure credit card is one of the best alternatives that gets you on a path to building credit.
Want to use a credit card to help build your credit? Check out the best credit cards for building credit
| Credit Cards | Our Ratings | Annual Fee | Rewards Rate | Regular APR | |
|---|---|---|---|---|---|
|
Bank of America® Customized Cash Rewards Secured Credit Card*
|
$0 | 1% - 3% cash back
| 28.24% variable | ||
Bank of America® Unlimited Cash Rewards Secured Credit Card*
|
$0 | N/A | 28.24% Variable | ||
Discover it® Secured Credit Card
 Apply Now
on Discover's secure site Rates & Fees |
$0 | 1% - 2% cash back
| 27.24% Variable APR |
Apply Now
on Discover's secure site Rates & Fees |
|
Chase Freedom Rise® Credit Card*
|
$0 | 1.5% cash back
| 25.99% Variable |
Good cash back rewards rate
The Bank of America® Customized Cash Rewards Secured Credit Card has a strong rewards rate considering it’s a secured credit card. You can earn 3% cash back in the category of your choice, earn 2% cash back at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases, then earn unlimited 1% thereafter. This is unique because many credit cards don’t earn rewards at wholesale clubs like Costco and Sam’s Club.
Note that you are limited to the first $2,500 in combined purchases each quarter for the higher-earning categories. If you spend $1,000 on 3% category purchases and $1,500 on 2% category purchases, you’ll earn $60 in cash back per quarter. That comes to $240 per year, which is nothing to sneeze at. And even after meeting the cap, you’ll still earn 1% back on other purchases.
Currently, the category options for earning 3% include:
You can change your choice category for future purchases once each month. However, if you don’t change it, it stays the same.
Multiple redemption options
Cardholders have multiple ways to redeem cash back, including:
For most options, you can redeem cash back in any amount. However, you will need a minimum of $25 if you choose to set up automatic contributions to your eligible Bank of America or Merrill account or if you choose to receive a check.
$0 annual fee
The Bank of America® Customized Cash Rewards Secured Credit Card has a $0 annual fee. This is pretty common for a beginner credit card, especially a secured credit card.
By contrast, unsecured cards designed for those with bad credit often charge set-up fees and maintenance fees, which can add up quickly. But when trying to build credit, it’s important to avoid credit cards that charge excessive fees.
→ Learn about 9 common credit card fees and how you can avoid them
Potential for a high credit limit
Because the Bank of America® Customized Cash Rewards Secured Credit Card is a secured credit card, it requires a minimum security deposit of $200, which will act as your line of credit. You can boost your credit limit by increasing the amount of your security deposit — up to $5,000 (as long as you meet Bank of America’s requirements for income and your ability to pay).
Compared to several other secured cards, this is a high possible line of credit. For example, the Discover it® Secured Credit Card offers a credit limit ranging from $200 to $2,500
Automatic reviews to possibly have your deposit refunded
Bank of America will periodically review your account to see if you’re eligible to have your security deposit refunded. They’ll look at your overall credit history, which includes your banking relationship with Bank of America, as well as other financial institutions you use for loans or credit cards.
This is an important feature since it allows you to get your deposit back and essentially becomes an unsecured credit card. The Discover it® Secured Credit Card also gives you a pathway to graduate to an unsecured card. Starting at seven months of card ownership, Discover does monthly reviews to see if you’re eligible for the switch.
What are Reddit users saying about this card?
Most cardholders who have reported their experience have positive things to say about the card. However, one person noted that they weren’t told about graduating to an unsecured credit card and their deposit hadn’t been refunded.
It’s good practice to review your monthly bank and credit card statements to ensure they’re correct. When you do this regularly, you may notice differences, like your card name changing.
If you notice any issues or have questions, you can contact the customer service number on the back of your card. Just be sure to document all calls so that you’ll have a record of what you were told each time you call.
No sign-up bonus
There is no sign-up bonus with the Bank of America® Customized Cash Rewards Secured Credit Card. This is not a dealbreaker because when you’re starting to build credit, you want to focus on good credit habits. A sign-up bonus may tempt you to overspend in order to meet the earning requirements.
If you’re interested in earning a welcome offer from a secured card, you may want to consider the Discover it® Secured Credit Card, because Discover will match all the cash back you’ve earned at the end of your first year. The Chase Freedom Rise® Credit Card has a small, but easy-to-earn, sign-up bonus as well.
No intro APRs
The Bank of America® Customized Cash Rewards Secured Credit Card does not offer an introductory APR on new purchases or balance transfers. If you’re new to credit, this probably isn’t an important feature, but if you’re recovering from bad credit, a balance transfer credit card with a 0% APR can be a low-cost way to help pay off debt.
Requires a security deposit
One of the biggest drawbacks of secured credit cards is that you have to submit a security deposit. Security deposit amounts vary, but $200 is a common starting amount, which then allows you a $200 line of credit. The bank uses your deposit to secure your line of credit, so if you want a $1,000 line of credit, you’d need to submit $1,000.
Your deposit can be refunded if you pay off your balance and close your credit card account, or if you qualify to have your security deposit returned after demonstrating responsible credit management across all of your credit cards and loans and with Bank of America in general.
Foreign transaction fee
There is a foreign translation fee of 3% of the U.S. dollar amount of each transaction made in a foreign currency made outside the U.S. Because of this fee, this card isn’t one you want to use when traveling abroad.
Where this card stands out is that it lets you earn unlimited 1.5% cash back on all purchases. This is ideal if you prefer to earn a flat rate of rewards on all purchases, without thinking about bonus categories and spending caps.
Like the Bank of America® Customized Cash Rewards Secured Credit Card, the Bank of America® Unlimited Cash Rewards Secured Credit Card requires a security deposit ranging from $200 to $5,000. Additionally, Bank of America will periodically review your account to see if you can qualify to have your deposit refunded.
The card lets you earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically. Plus, Discover will match all the cash back you’ve earned at the end of your first year. Although there’s a cap on how much you can earn in elevated rewards, the welcome offer means your first-year rewards potential is high.
Starting at seven months, your account will be reviewed monthly to see if you qualify to have your deposit refunded and be upgraded to an unsecured Discover credit card.
Similar to the cards above, it has a $0 annual fee and lets you earn cash back rewards on every purchase. But you don’t have to submit a security deposit for the Chase Freedom Rise® Credit Card. You can also increase your approval chances by having at least $250 in a Chase bank account before you apply.
Like many Chase credit cards, the Chase Freedom Rise® Credit Card offers a variety of protections and insurance coverages, including purchase protection, extended warranty protection and trip cancellation/interruption insurance.
Plus, Chase will review your account in as little as six months to see if you qualify for a credit line increase. Your account will also be automatically evaluated each year to see if you can upgrade to the Chase Freedom Unlimited® (see rates & fees).
The Bank of America® Customized Cash Rewards Secured Credit Card is a good card if you’re looking for a beginner credit card or trying to rebuild your credit. But if you want a credit-building card that offers simpler rewards, the Bank of America® Unlimited Cash Rewards Secured Credit Card may be a better fit, since it offers a flat cash back rate on every purchase.
Alternatively, if you’d prefer an unsecured credit card to help build your credit, the Chase Freedom Rise® Credit Card may be your best option.
The information related to the Bank of America® Customized Cash Rewards Secured Credit Card, Bank of America® Unlimited Cash Rewards Secured Credit Card and Chase Freedom Rise® Credit Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
