Bank of America Secured Credit Cards

Pros and Cons

Terms and conditions

Secured cards from Bank of America require you to sign a cardholder agreement and grant the Bank a security interest in the Deposit Account. The Bank will own this Deposit Account and can sweep funds.

Annual percentage rate for purchases and balance transfers 25.74%-27.74%, for cash advances 28.74%-30.74% based on the Prime Rate. Variable and may change as market changes.

Cards can help you build credit and establish credit history. All cards have overdraft protection and digital wallet technology. You can use Samsung pay or Apple pay through your mobile device.

The bank will report payments to the major credit bureaus so you can use the cards to build or improve your FICO score and overall credit history.

Eligibility requirements

To apply you will need to deposit a minimum of $200 as a security deposit. Maximum is $5,000. This amount will be your credit limit.

Other requirements are:

• US citizen

• Have a steady income

• 18 years old or older

• Have a Bank of America account.

The cards are designed so if you have bad credit you can apply for the secured card and improve your score. Bank of America will report your payments to the credit bureaus.

How to apply for a credit card

To apply for the Bank of America secured credit card online you need to go to the credit card menu on the website.

Once you choose a secured card:

1. Click Apply Now;

2. Enter your personal information, name, address, phone and email. Skip this step if you are already signed in.

3. Enter your SSN and proof of income;

4. Wait for the bank to contact you;

5. If approved sign the Cardholder Agreement;

6. Deposit the collateral.

The card will be mailed to you within 7 to 10 days after you sign the agreement.

How to get your security deposit back

Cardholder agreement is that you can get the deposit back.

1. You pay the balance in full and close your credit card account. This may take up to 2 billing cycles plus 10 days.

2. You qualify to get your security deposit back. Bank of America will review your credit history periodically and may return the deposit if you manage your credit cards and loans well.

Bank will return the collateral amount to you by depositing funds into your bank account or by some other method as decided by the Bank.

How to pay credit card debt

Your secured credit card payments will be applied to posted balances. If you have multiple APRs on your balances, Bank of America will apply your total minimum payment first to the lowest APR balances. Any payment above your Total Minimum Payment Due will be applied to balances with higher APRs before balances with lower APRs.

If the amount you request is more than your Total Credit Line, Bank of America may send full or partial payment to your creditors in the order you list them. You need to allow 2 weeks from account opening for processing. Continue to pay each of your creditors until the transfer shows up as a credit. Balance Transfers have interest charges from the transaction date. If you revolve your balance to keep a promotional or introductory offer all transactions and balances will be charged interest.

Balance Transfer Fee is 3% of the transaction amount and $10 minimum. Balance Transfers cannot be used to pay for any account issued by Bank of America or its affiliates.

There is a penalty fee for not making your minimum monthly payments on time. Late payment fee is $29, $40 for subsequent late payments within 6 billing cycles. If your balance is $100 or less on the payment date Bank of America will not charge the late payment fee. Penalty APR will not exceed 29.99% on new transactions.

Bank of America can declare you in default of the debt if:

• You cannot fulfill any obligation or make a payment

• You withdraw or transfer from the deposit account any funds pledged under the agreement

• You provide Bank with false information or misrepresentations

• A cardholder dies

• A government authority takes action that affects your financial condition or ability to pay the debt

• Any guaranty or other agreement required in connection with the debt is breached or is ineffective

• You file a bankruptcy, a bankruptcy is filed against you or you make a general assignment for the benefit of creditors.

If you default the bank can declare the entire debt due and payable. After payments are made on the Secured Card Account the bank can hold back credit equal to the amount of the payment for a period to ensure there are sufficient funds.

Editorial opinion

Additional Resources

• Bank of America Review
• Bank of America Account Review
• How to PayOff Bank of America
• Bank of America Mobile App

Sources

• Bank of America Website