If you’re searching for a secured card to help build your credit, the Bank of America® Unlimited Cash Rewards Secured credit card
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The information for the Bank of America® Unlimited Cash Rewards Secured credit card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
is worth a look. The card has no annual fee and provides a path to upgrade to an unsecured card. Plus, you can enjoy the simplicity of earning a flat 1.5% cash back on purchases.
Bank of America Unlimited Cash Rewards Secured card basics
- Annual fee: $0.
- Welcome bonus: None.
- Rewards: 1.5% cash back on purchases.
- Other perks and benefits: Cash rewards don’t expire; Path to upgrade to an unsecured card; Free access to your FICO Score when you opt in.
- Does it report to all three credit bureaus? Yes.
- Does the issuer offer a preapproval tool? No.
- Recommended credit score: New or rebuilding credit.
Bank of America Unlimited Cash Rewards Secured card review
The Bank of America Unlimited Cash Rewards Secured card is worth considering if you’re on a journey to build or rebuild your credit and are looking for a secured credit card that also offers rewards. With no annual fee, 1.5% cash back on purchases and a path to upgrade to an unsecured card — it’s a good option for those seeking a responsible way to improve their credit score. While it shines in simplicity and credit-building potential, there are some important considerations to take into account before applying.
The card doesn’t offer a welcome bonus, although that’s common when it comes to secured credit cards. And, like all secured credit cards, the Bank of America Unlimited Cash Rewards Secured card requires cardholders to establish a secure line of credit by putting down a deposit equal to their desired credit limit.
Bank of America’s minimum deposit amount is $200, with the option to deposit as much as $5,000 if you’d like a higher credit limit. This security deposit acts as collateral, providing a measure of financial assurance for both the cardholder and the bank. If your account stays in good standing — meaning you haven’t defaulted on any debts with the bank — Bank of America may eventually decide to refund your deposit, upgrading you to an unsecured card.
This card charges foreign transaction fees, so you wouldn’t want to use it if you’re planning to travel outside the U.S. And it’s also worth noting that other secured credit cards could fit your spending habits better, earning you higher rewards on certain purchases.
Lastly, be aware of the card’s high APR: 27.99% variable APR on purchases and balance transfers. A balance transfer fee of 3% of each transaction applies. You’ll want to do what you can to avoid carrying a balance and incurring interest charges. We always recommend paying off your balance in full every month and keeping your credit utilization as low as possible to improve your credit score.
Trying to overcome past credit missteps? Here’s how to fix and repair bad credit.
Pros
- Unlimited 1.5% cash back on purchases: The fact that you can earn any cash back at all with a secured card is positive, as many secured cards don’t offer rewards. Plus, the simplicity of earning cash back on all eligible purchases at a flat rate can’t be overlooked. Having to manage multiple bonus spending categories can be a hassle.
- Reports account activity to all three credit bureaus: Having a card that reports account and payment activity to all three credit bureaus is a key component to building or rebuilding your credit score.
- Path to upgrade to an unsecured card: If you work to improve your credit score by being responsible with your credit, paying on time every month and avoiding carrying a balance, Bank of America may offer you the opportunity to graduate to an unsecured card and get your deposit back.
Cons
- Security deposit required: The minimum security deposit to open this card is $200. And you’ll need an even bigger deposit if you want a higher credit limit. This could be a non-starter for some.
- High APR: Carrying a balance on this card could cost you. It’s ideal to pay your account off in full every month by the due date to avoid accruing interest. Doing so will also keep your credit utilization low, which can positively impact your credit score.
- Foreign transaction fees: You’ll pay 3% of the U.S. dollar amount of each transaction in foreign transaction fees with the Bank of America Unlimited Cash Rewards Secured card. So it isn’t a good fit for anyone who travels internationally.
Bank of America Unlimited Cash Rewards Secured credit card rewards
The Bank of America Unlimited Cash Rewards Secured card earns a flat 1.5% cash back on purchases.
Using government data and other publicly available information, we estimate that a household in the U.S. that would be in the market for this card has about $12,544 in expenses they are likely to be able to charge to a credit card. Note, putting this full spend on a secured card with a low credit limit could be difficult, requiring you to make multiple payments throughout the month.
A cardholder who spends $12,544 on the Bank of America Unlimited Cash Rewards Secured card would earn the following cash back in the course of a year:
Your cash back on this card can be redeemed for statement credits or for deposits to eligible Bank of America or Merrill accounts (including 529 accounts).
The Bank of America Unlimited Cash Rewards Secured card: Credit-building features
The Bank of America Unlimited Cash Rewards Secured card is made for those with little to no credit or those looking to rebuild their credit. Because of this, applicants must deposit a minimum of $200 up to a maximum of $5,000 with the bank to open an account. The amount of this deposit will determine your credit limit.
The idea is that you use your credit line responsibly to prove your creditworthiness. Your credit score will increase by keeping a low credit utilization and paying your bills in full every month. Eventually, with good payment behavior, Bank of America may convert your account to an unsecured one and return your deposit to you.
You can also opt in for free access to your FICO Score. Checking this monthly is a good way to make sure you’re moving in the right direction as you work to build a good credit score.
How the Bank of America Unlimited Cash Rewards Secured card compares to other secured credit cards
Bank of America Unlimited Cash Rewards Secured card vs. Discover it® Secured Credit Card
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The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
The no-annual-fee Discover it® Secured Credit Card
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The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
is a great option for anyone looking to establish credit while earning cash back on eligible purchases. Plus, Discover offers a preapproval tool to help gauge how likely you are to qualify.
What makes the Discover it® Secured Credit Card
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The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
a better choice than the Bank of America Unlimited Cash Rewards Secured card for some consumers is the ability to earn a higher cash-back rate on certain purchases. With the Discover it® Secured Credit Card
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The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
, you earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.
Another highlight is that: Discover will automatically match all the cash back earned at the end of the first cardmember year.
Finally, after seven months, Discover will start reviewing your account monthly. The issuer may upgrade you to an unsecured card if you’ve demonstrated responsible behavior across all your credit accounts, providing more flexibility as you continue to build credit.
Bank of America Unlimited Cash Rewards Secured card vs. Capital One Platinum Secured Credit Card
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The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Like the Bank of America Unlimited Cash Rewards Secured card, the Capital One Platinum Secured Credit Card
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The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
has no annual fee. Both cards also report account activity to all three credit bureaus, which is vital for building or rebuilding your credit. But the Capital One Platinum Secured Credit Card
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The information for the Capital One Platinum Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
offers features that likely make it a better choice for some consumers than the Bank of America Unlimited Cash Rewards Secured card.
First, the Capital One Platinum Secured Credit Card offers a preapproval tool. With this, you can avoid an unnecessary hard credit pull, which can negatively impact your credit score in the short term. And Capital One provides automatic credit line reviews within as little as six months of opening the card to see if you qualify for a higher credit line.
Even more importantly, eligible Capital One Platinum Secured Credit Card applicants can get a $200 credit line with a $49, $99 or $200 minimum deposit. The possibility of getting a higher credit limit than your minimum deposit is unique within the secured cards space. And, Capital One offers the ability to fund your security deposit over a 35-day time frame.
Lastly, the Capital One Platinum Secured Credit Card has no foreign transaction fees, making it better than the Bank of America Unlimited Cash Rewards Secured card when it comes to international travel.
One area where the Bank of America Unlimited Cash Secured does have the edge over the Capital One Platinum Secured is that the latter card does not earn rewards. While rewards shouldn’t be your main focus with a card for building credit, the ability to earn cash back on purchases you’d already make is a nice feature.
Bank of America Unlimited Cash Rewards Secured card vs. Petal® 2 “Cash Back, No Fees” Visa® Credit Card
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The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
While the Bank of America Unlimited Cash Rewards Secured card made it on our list of the best secured credit cards, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card
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The information for the Petal® 2 “Cash Back, No Fees” Visa® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
(issued by WebBank) stands out as the top choice for those with bad credit. Neither card charges an annual fee, and both earn rewards. But the Petal 2 Visa Credit Card offers a handful of features that make it our pick for the best credit card for bad credit.
The Petal 2 Visa Credit Card doesn’t have a security deposit requirement, and it offers the possibility of a credit line increase after just six months of on-time payments. Plus, you can see if you’re preapproved without impacting your credit. These are three valuable features that the Bank of America Unlimited Cash Rewards Secured card doesn’t offer.
The only minor downside compared to the Bank of America Unlimited Cash Rewards Secured card is that the rewards structure isn’t as straightforward. With the Petal 2 Visa Credit Card, you can earn 1% cash back right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, earn 2% to 10% cash back at select merchants. Despite this, the card offers a better opportunity to earn more cash back overall.
Should you get the Bank of America Unlimited Cash Rewards Secured card?
If you’re looking for a secured card that earns cash back without the hassle of managing various bonus spending categories, the Bank of America Unlimited Cash Rewards Secured card is a solid option.
But, if you tend to spend primarily on things like gas and groceries (which many people do), then you’re likely better off with a secured card that offers rewards better aligned with your spending habits.
Be sure to check out our list of the best secured credit cards to help you choose a card that’s right for you.
Bank of America Unlimited Cash Rewards Secured card summary
Frequently asked questions (FAQs)
The maximum credit limit for the Bank of America Unlimited Cash Rewards Secured card is $5,000.
There’s no minimum credit score requirement for the Bank of America Unlimited Cash Rewards Secured card. It’s made for those looking to establish or rebuild their credit.
Not sure where your credit stands? Here’s how to check your credit score, as well as information on how low a credit score can go.
Yes, the purpose of having a secured credit card is to establish and build or rebuild your credit. Once you’ve done so by showing a history of good payment behavior, Bank of America may potentially allow you to graduate, or convert your account, to an unsecured card.
No, not necessarily. There isn’t any difference between secured and unsecured credit cards regarding the speed with which you can build or rebuild your credit.
The key difference is that someone with little to no credit history or a poor credit score may struggle to be approved for an unsecured credit card. In that case, they’ll likely have to utilize a secured credit card to establish credit history or improve their score.
Generally, a poor credit score is considered a FICO Score between 300 and 579, while a score of 580 to 669. Good credit on the FICO scale starts at 670.
Whether using a secured or unsecured card, the crucial thing to make sure you’re building credit is that the issuer reports your activity to the three major consumer credit bureaus — Equifax, Experian and TransUnion.
