BankAmericard Secured Visa Review

bofa_secured_credit_cardThe BankAmericard Secured Visa is a credit card designed for people who have little or no credit or flat-out bad credit. It looks and works like any other credit card except that your credit limit is determined by your income, your ability to pay, and the amount of security deposit you provide. This is not a rewards card and there are no signup bonuses or introductory annual percentage rate offers available to new cardholders. This card is part of the Visa network and is issued by Bank of America.

The BankAmericard Secured Visa offers members the opportunity to establish credit and/or rebuild credit. Details are as follows:

  • Credit limits range from $300 to $4,900 depending on your income level at the time you apply, your ability to pay (taking into account any other debts which you owe), and the amount of security deposit you can provide. Note: A minimum security deposit of $300 is required to open this account.
  • Your payment history and other important account information is routinely shared with the three major credit card bureaus- TransUnion, Experian, and Equifax. Responsible use and consistent on-time payments help build (or repair) your credit history.
  • At the end of one year, your account may be reviewed and you could possibly qualify to have your security deposit returned while still being able to use the card. However, it is important to note that there is no guarantee that this review will occur or that your deposit will be returned after 12 months.

The annual percentage rate on purchases is 20.24% variable and based on the Prime Rate. This same rate also applies to balance transfers. Card members are charged a balance transfer fee of 3% of the total amount of each transfer or $10 (whichever is greater). The 3% rate is fairly standard but the $10 fee is about double what most credit cards charge. All cardholders are given the same APR (regardless of varying financial circumstances).

Card members have access to Bank of America technology and services including:

  • Account Alerts – Allows you to keep track of balances and payment due dates. Choose from email or text alerts.
  • Mobile Banking – Allows you to pay your credit card bill online, check available credit, and complete other financial transactions quickly and securely from almost anywhere.
  • Text Banking – Allows you to get account information you need by simply sending a text. Reply comes in just seconds.

Account holders are charged a 3% foreign transaction fee on every purchase made on the card while traveling outside of the U.S.

The BankAmericard Secured Visa comes with smart chip technology for added security and protection when making purchases at chip-enabled terminals.

The annual fee for this card is $39. It is not waived for the initial year of membership.

The Facts

Below we have broken down the specific details of the BankAmericard Secured Visa to help you determine if it’s the right choice for you.

The Good:

No application fee:

Many secured credit cards charge you for simply applying for their card (with no guarantee of approval). The BankAmericard Secured Visa does not.

Bad credit is ok:

This card is specifically aimed at people who either have no established credit or have a bad credit history. Nearly everyone can qualify for this card. However your credit limit is determined by your specific income, ability to pay, and the amount of security deposit you are able to provide.

Reasonable lines of credit:

The minimum security deposit required to open this account is $300 which translates into a $300 credit limit. The maximum limit is $4,900.

Payment information is reported to credit bureaus:

The BankAmericard Secured Visa is an actual credit card – not a debit or prepaid card. This is a real benefit when you are trying to build your credit or repair a shaky credit history. Your payment information is regularly reported to the three main credit bureaus. Consistent, on-time payments are a critical part of the credit rebuilding process and carry significant weight when formulating your credit score.

Bank of America benefits:

  • Account Alerts – Allows you to keep track of balances and payment due dates. Choose from email or text alerts.
  • Mobile Banking – Allows you to pay your credit card bill online, check available credit, and complete other financial transactions quickly and securely from almost anywhere.
  • Text Banking – Allows you to get account information you need by simply sending a text. Reply comes in just seconds.

The Bad:

No rewards:

The BankAmericard Secured Visa offers no rewards or bonuses to cardholders. This card is squarely aimed at people with no credit or bad credit who want to improve their finances and credit going forward.

Annual fee:

There is an annual membership fee of $39 which is not waived. This is a relatively low fee compared to many secured cards but it’s still a cost you have to bear.

High APR:

The annual percentage rate is 20.24% (variable) which is applied to both purchases and balance transfers. Again, this is a high APR overall but not necessarily for a secured card. Common sense would say this is not a card which should be used for balance transfers.

The Ugly:

Security deposit does not earn interest:

No matter what amount you provide as a security deposit, it will not earn interest. Your account may be reviewed after 12 months and you may qualify to have your security deposit returned to you- but there is absolutely no guarantee that this will happen.

The BankAmericard Secured Visa is a no-frills, no rewards, no bonuses credit card which is designed for people with little or no credit and even those with bad credit. The credit limit is determined by several factors- income, ability to pay, and the amount of security deposit. It is fairly straightforward and its fees, while higher than most credit cards, are actually relatively low for a secured card.