Introduction to the Bank of America® Customized Cash Rewards Secured Credit Card
The Bank of America® Customized Cash Rewards Secured Credit Card is unusual because it's one of the few secured credit cards that allow you to earn cash back — and even choose your 3% cash-back category. And with responsible use over time, the card can help you improve your credit score.
$0
N/A
28.24% Variable
N/A
New/Rebuilding
Pros
Cons
The Bank of America® Customized Cash Rewards Secured Credit Card is unusual because it's one of the few secured credit cards that allow you to earn cash back — and even choose your 3% cash-back category. And with responsible use over time, the card can help you improve your credit score.
Bank of America Customized Cash Rewards Secured CardBank of America Customized Cash Rewards Secured Card Review
If you're just getting started with credit or have a bad credit score you're working on rebuilding, qualifying for the best credit cards is almost impossible. Luckily, secured credit cards offer a workaround – it's possible to get approved with poor credit or none at all, because they require a deposit to secure your credit line.
Secured credit cards require you to put down a security deposit as collateral against your credit line. That way, if you default on payments, the bank can use your deposit to pay off your account. The amount of your deposit acts as your credit limit.
The Bank of America® Customized Cash Rewards Secured Credit Card is one of the best credit cards for bad credit because it's one of the rare secured cards that earn strong cash-back rewards for spending. Cardholders earn 3% cash back in one category of their choice (from a list of six), 2% back at grocery stores and wholesale clubs, and 1% back on all other purchases (the 3% and 2% reward rates apply up to the first $2,500 in combined purchases per quarter, then 1% cash back).
Is It Right For You?
While the card is otherwise light on benefits, cardholders can demonstrate good financial habits with responsible use — that is, consistently paying on time. This can improve your credit score and help you qualify for other forms of credit in the future, including more lucrative rewards credit cards.
There's no annual fee for the Bank of America® Customized Cash Rewards Secured Credit Card. But be careful if you decide to carry a balance from month to month. This card charges a 28.24% Variable APR, which is much higher than the average credit card interest rate.
Bank of America Customized Cash Rewards Secured Card Rewards
Earning Rewards
The Bank of America® Customized Cash Rewards Secured Credit Card's standout feature is the ability to choose your 3% cash back category from a list:
- Gas (default)
- Online shopping
- Dining
- Travel
- Drug stores
- Home improvement/furnishings
You can change your category once per calendar month through Bank of America online banking or its mobile app, which is handy if your expenses change from month to month.
Cardholders also earn 2% cash back at grocery stores and wholesale clubs, and 1% back on all other purchases. Keep in mind the 3% and 2% cash-back categories are capped at a maximum of $2,500 total spending per quarter; after that, you'll earn 1% back.
If you're a Bank of America Preferred Rewards member, you can earn up to 75% more cash back on purchases, depending on how much you have on deposit with Bank of America and Merrill (Bank of America's wealth management division).
Redeeming Rewards
Bank of America allows you to redeem your cash back from the Bank of America® Customized Cash Rewards Secured Credit Card in several ways:
- You can redeem any amount, at any time, for a statement credit, a deposit made directly into a Bank of America checking or savings account, or for credit to an eligible Merrill account
- There's a minimum redemption of $25 if you want your cash back as a check, or for a deposit to a qualifying 529 account with Merrill
- You can also set up automatic redemptions (minimum $25) into an eligible Bank of America or Merrill account (deposits to 529 accounts, statement credits, and checks aren't eligible for automatic redemptions)
Bank of America Customized Cash Rewards Secured Card Benefits and Features
As with many no-annual-fee credit cards, the Bank of America® Customized Cash Rewards Secured Credit Card is pretty light on benefits. However, it does have a few features that can help you manage your money and keep tabs on your credit score.
Refundable Security Deposit
Bank of America will periodically review your account, and — depending on your credit history (including your account and overall relationship with Bank of America), other credit cards, and loans — you may qualify to have your security deposit returned in the future. Using your card responsibly and paying it on time every month will go a long way toward showing the bank you're a trustworthy borrower.
Free FICO Score
Cardholders can access their FICO score at no cost through Bank of America online banking or its mobile app. This is a perk that comes standard on just about every credit card, but it's extra useful on secured cards like this one. Staying on top of your credit score (and, hopefully watching it progress upward) is important when you're building credit and is a great motivator, too.
Other Benefits
As with other Bank of America credit cards, you'll get a handful of standard features with the Bank of America® Customized Cash Rewards Secured Credit Card, including:
- Contactless chip technology
- Balance Connect for overdraft protection
- $0 liability on fraudulent transactions
- Paperless statements
- Digital wallet technology
- Account alerts
$0
N/A
28.24% Variable
N/A
New/Rebuilding
Pros
Cons
The Bank of America® Customized Cash Rewards Secured Credit Card is unusual because it's one of the few secured credit cards that allow you to earn cash back — and even choose your 3% cash-back category. And with responsible use over time, the card can help you improve your credit score.
Bank of America Customized Cash Rewards Secured CardBank of America Customized Cash Rewards Secured Card Annual Fee and APR
The Bank of America® Customized Cash Rewards Secured Credit Card doesn't charge an annual fee, but there are other costs to consider.
Security Deposit
As with most secured credit card, the Bank of America® Customized Cash Rewards Secured Credit Card requires a security deposit. The minimum amount is $200, which becomes your credit limit on this card. But you can certainly put down more money for your security deposit, depending on your income and ability to pay (up to a maximum of $5,000).
Once you've funded your deposit, you can start using your card.
APR Rates and Other Associated Fees
If you use the card for international purchases, you'll be charged a 3% foreign transaction fee. There are also fees for balance transfers, cash advances, and late payments.
Again, this card has a very high 28.24% Variable APR, so you'll want to avoid carrying a balance by paying your card in full each month. Otherwise, you'll be on the hook for high interest charges.
Bank of America Customized Cash Secured Card Comparison
If you're considering the Bank of America® Customized Cash Rewards Secured Credit Card, compare it to other secured credit cards such as the Capital One Quicksilver Secured Cash Rewards Credit Card and Discover it® Secured Credit Card. These cards also earn cash back on purchases (with different categories), and come with slightly more benefits, including no foreign transaction fees.
Bank of America® Customized Cash Rewards Secured Credit Card vs. Bank of America® Unlimited Cash Rewards Secured Credit Card
Both the Bank of America® Customized Cash Rewards Secured Credit Card and the Bank of America® Unlimited Cash Rewards Secured Credit Card have a $200 minimum security deposit, and both cards earn rewards. But instead of earning different rates of cash back on different purchase categories, the Bank of America® Unlimited Cash Rewards Secured Credit Card simply earns 1.5% cash back on all purchases.
Read our Bank of America Unlimited Cash Rewards Secured Card review.
Bank of America® Customized Cash Rewards Secured Credit Card vs. Capital One Quicksilver Secured Cash Rewards Credit Card
The Capital One Quicksilver Secured Cash Rewards Credit Card could be a good alternative to the Bank of America® Customized Cash Rewards Secured Credit Card if you prefer its rewards structure. You'll earn 5% cash back on hotels and car rentals booked through Capital One Travel, and 1.5% cash back on all other purchases. One advantage of the Capital One Quicksilver Secured Cash Rewards Credit Card is that you'll be automatically considered for credit line increases, based on your payment history. Both cards have a minimum security deposit of $200.
Read our Capital One Quicksilver Secured Card review.
Bank of America® Customized Cash Rewards Secured Credit Card vs. Discover it® Secured Credit Card
The Discover it® Secured Credit Card credit card is our top pick for a secured credit card with a good welcome offer and generous cash-back rewards — rare features among cards designed for poor or no credit.
Cardholders earn 2% back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1% back). You'll earn 1% cash back on everything else. This reward rate is generous for a secured credit card, but people who don't drive or dine out will find significantly more value from the Bank of America® Customized Cash Rewards Secured Credit Card.
As with several other Discover products, Discover matches all the cash back earned during your first 12 months after opening the Discover it® Secured Credit Card. That means you will get 4% cash back at gas stations and restaurants, and 2% cash back on all other purchases in your first year.
Read our Discover it Secured credit card review to learn more.
Bank of America® Customized Cash Rewards Secured Credit Card vs. BankAmericard® Secured Credit Card
There's one more Bank of America secured credit card for comparison, but this one earns a thumbs-down from our experts.
The BankAmericard® Secured Credit Card also doesn't charge an annual fee, but the similarities end there. This card doesn't earn rewards and doesn't have a welcome bonus. It also charges a 3% foreign transaction fee, so you shouldn't bring it abroad with you.
Worst of all, cardholders aren't guaranteed an upgrade to an unsecured credit card even though Bank of America has plenty of options to offer.
We're including this card comparison as a cautionary tale: If you're evaluating a Bank of America secured credit card, go with either the Bank of America® Customized Cash Rewards Secured Credit Card or the Bank of America® Unlimited Cash Rewards Secured Credit Card. In most cases, the BankAmericard® Secured Credit Card won't be worth your while.
Unsecured Credit Card Alternatives
You might already have a credit score that's closer to average. If that's the case, you may be able to get approved for an unsecured credit card one of the best Bank of America credit cards or the Capital One QuicksilverOne Cash Rewards Credit Card, which earns 1.5% cash back.
College students with little or no credit history can also consider one of the best student credit cards, like the Bank of America® Customized Cash Rewards Credit Card for Students , Capital One Quicksilver Student Cash Rewards Credit Card, or Capital One Savor Student Cash Rewards Credit Card. These offer welcome bonuses in addition to earning rewards for spending.
Bank of America Customized Cash Rewards Secured Card Frequently Asked Questions
What credit score do I need to be approved for the Bank of America Customized Cash Rewards Secured card?
Whether you're new to credit or rebuilding it, you don't need a good credit score to qualify for the Bank of America® Customized Cash Rewards Secured Credit Card. Bank of America evaluates factors beyond your credit score, including income and credit history.
What's the credit limit on the Bank of America Customized Cash Rewards Secured Card?
Your credit limit is determined by the security deposit you put down. The minimum deposit is $200, which gets you a $200 credit line. Depending on your income and ability to pay, you could be approved for a maximum of $5,000, requiring a $5,000 security deposit.
How does the Bank of America Customized Cash Rewards Secured Card help improve my credit score?
Opening and using the Bank of America® Customized Cash Rewards Secured Credit Card responsibly can help boost your credit score in a couple of ways. Bank of America will report your account activity to the three major credit bureaus, which improves your credit score over time with responsible use. Opening a new credit card also increases the total amount of credit available to you and can improve your credit utilization ratio, which also impacts your credit score.
Does the Bank of America Customized Cash Rewards Secured card do a hard pull on my credit?
Yes, when you apply for the Bank of America® Customized Cash Rewards Secured Credit Card, the bank will perform a hard inquiry (sometimes called a "hard pull") on your credit. This can cause your credit score to dip slightly in the short term, but it usually bounces back, as long as you use your card responsibly.
Why You Should Trust Us: How We Reviewed the Bank of America Customized Cash Secured Card
As with all our credit card reviews, our review of the Bank of America® Customized Cash Rewards Secured Credit Card follows Business Insider's methodology on how we rate credit cards.
We evaluated the card across several categories, including rewards, annual fee, and ease of use. We gave the card a score from 1-5 in each category, then averaged the scores to come up with an overall rating. We compared this card to other secured credit cards, since this type of card is more focused on building credit than fancy perks.
