Customized Cash Rewards Secured from Bank of America Review

Navigating the myriad of credit card options available in the market today can be overwhelming. The right credit card for you should align with your spending habits, financial goals, and credit profile. One card that has garnered attention for its unique features and benefits is the Customized Cash Rewards Secured Credit Card from Bank of America. This card is particularly appealing for individuals with no credit history to poor credit and offers a tailored rewards program that could potentially maximize your cashback earnings.

Customized Cash Rewards Secured Credit Card Review

The Customized Cash Rewards Secured Credit Card from Bank of America is designed for individuals who are either looking to build or rebuild their credit history. What makes this card stand out is its flexible cashback rewards structure, which allows cardholders to earn 3% cash back in a category of their choice—be it gas, online shopping, dining, travel, drug stores, or home improvement/furnishings. This flexibility can significantly boost your rewards based on your personal spending patterns.

Card Overview

– Issuer: Bank of America
– Card Type: Secured Credit Card
– Annual Fee: $0
– Purchase APR: 28.24% Variable
– Balance Transfer APR: 28.24% Variable
– APR for Cash Advances: 29.49% Variable
– Credit Needed: No Credit History to Poor (0-579)

Customized Cash Rewards Secured Credit Card Key Takeaways

Rewards Structure

– 3% Cash Back in one category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings. This applies to the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, after which you earn 1%.
– 2% Cash Back at grocery stores and wholesale clubs, again on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1%.
– 1% Cash Back on all other purchases.

Fees and APR

– Annual Fee: $0
– Purchase APR: 28.24% Variable
– Intro Balance Transfer APR: None
– Balance Transfer Fee: Either $10 or 3% of the amount of each transaction, whichever is greater
– Cash Advance Fee: Either $10 or 3% of the amount of each transaction, whichever is greater
– Penalty APR: Up to 29.99%
– Late Payment Fee: Up to $40

Credit-Building Potential

– Reports to Three Major Credit Bureaus: Helps build or rebuild your credit profile.
– Security Deposit: Required since it’s a secured card, typically ranging from $200 to $5,000, matching your credit limit.

Customized Cash Rewards Secured Credit Card Pros and Cons

Pros

1. 3% Cash Back in Your Preferred Category: This feature allows you to maximize rewards based on your spending habits.
2. No Minimum Credit Score: Ideal for individuals with no credit history or those looking to rebuild their credit.
3. No Annual Fee: Helps you save money as you work on improving your credit score.
4. Reports to Three Major Credit Bureaus: Facilitates credit building, which is crucial for future financial endeavors.

Cons

1. High APR: At 28.24% variable, the APR is quite high, making it essential to pay off balances in full each month.
2. Balance Transfer and Foreign Transaction Fees: These fees can add up, especially if you frequently transfer balances or travel internationally.
3. Relatively High Minimum Deposit: The security deposit requirement might be a barrier for some applicants.

Customized Cash Rewards Secured Credit Card Benefits

Cashback Rewards

One of the standout features of this card is the ability to earn 3% cash back in a category of your choice. This flexibility allows you to tailor your rewards to match your spending habits. For instance, if you frequently dine out, you can select dining as your preferred category to maximize your cashback earnings.

No Annual Fee

The absence of an annual fee makes this card a cost-effective option for building or rebuilding credit. You can focus on improving your credit score without the burden of an additional annual cost.

Credit-Building Potential

As a secured credit card, the Customized Cash Rewards Secured Credit Card requires a security deposit, which acts as your credit limit. This deposit minimizes the risk for the issuer while providing you the opportunity to demonstrate responsible credit use. The card reports to all three major credit bureaus (Experian, Equifax, and TransUnion), which is critical for establishing or repairing your credit history.

Payment Flexibility

The card offers a minimum payment option, giving you the flexibility to manage your finances according to your cash flow. However, it’s advisable to pay off the full balance each month to avoid high-interest charges.

Fraud Protection

Bank of America provides zero liability fraud protection, ensuring that you are not held responsible for unauthorized transactions. This feature offers peace of mind, especially if your card is lost or stolen.

Rewards Redemption

You can redeem your cash back as a statement credit, direct deposit into a Bank of America checking or savings account, or even for a contribution into a qualifying Merrill account. This versatility in redemption options adds another layer of convenience for cardholders.

Travel Benefits

While not as robust as some premium cards, the Customized Cash Rewards Secured Credit Card does offer some travel benefits, such as travel accident insurance and auto rental collision damage waiver. These perks can be valuable for occasional travelers.

Customer Service

Bank of America is known for its robust customer service. You can manage your account and pay your bill online or via the mobile app, and customer service representatives are available to assist you with any issues or questions.

Conclusion

The Customized Cash Rewards Secured Credit Card from Bank of America is a solid choice for individuals looking to build or rebuild their credit while earning rewards on their everyday spending. The flexibility of earning 3% cash back in a category of your choice, combined with no annual fee, makes this card particularly appealing.
However, it’s crucial to be mindful of the high APR and associated fees. Paying off your balance in full each month is essential to avoid interest charges. Additionally, the requirement for a security deposit might be a hurdle for some, but it’s a worthwhile investment for those committed to improving their credit score.
Overall, if you’re disciplined with your spending and payments, this card offers a valuable opportunity to earn rewards and build a positive credit history. The key is to use it responsibly and take full advantage of its benefits to maximize your financial well-being.