Our Verdict
The Bank of America® Customized Cash Rewards Secured Credit Card* earns cash-back rewards, doesn’t charge an annual fee and reports to the three major credit bureaus, which automatically puts it ahead of many secured cards and earns it a spot on our best secured credit cards list. The card earns 3% cash back in a category of choice: gas and EV charging, online shopping, dining, travel, drug stores or home improvement/furnishings; 2% cash back at grocery stores and wholesale clubs; unlimited cash back on all other purchases. Earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%. If you don’t mind the work of tracking your spending to maximize the bonus opportunities, this card merits consideration.
Pros
- No annual fee
- Earns cash-back rewards on eligible purchases
- Potential for an upgrade to an unsecured card
Cons
- The rewards system can be complicated to track
- An opening deposit of $200 is required
- There’s a foreign transaction fee
Highlights
- Earn 3% cash back in the category of your choice: gas and EV charging, online shopping, dining, travel, drug stores, or home improvement & furnishings
- Earn 2% cash back at grocery stores and wholesale clubs
- Earn unlimited 1% cash back on all other purchases
- You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
- A minimum refundable security deposit of $200 (maximum of $5,000) is required to open this account
- Now, you can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
- No annual fee
Introduction
The Bank of America® Customized Cash Rewards Secured Credit Card* offers strong cash-back rewards in useful categories and doesn’t charge an annual fee. You’ll have to put down a minimum of a $200 deposit to open this account. The maximum deposit is $5,000.
Like many issuers, Bank of America reports to the three main credit bureaus and will automatically review secured accounts for upgrades to unsecured cards, so users may receive a deposit back after several months of responsible use. The card comes with a couple of helpful features, including the ability to opt-in to overdraft protection if you have an eligible Bank of America checking account and the ability to deposit your cash rewards directly into your eligible Bank of America or Merrill account starting at a $25 minimum or in any amount as a statement credit.
Featured Partner Offers
Quick Facts
- $0 annual fee
- This card does not offer a welcome bonus
- Earn 3% cash back in a category of choice: gas and EV charging, online shopping, dining, travel, drug stores or home improvement/furnishings; 2% cash back at grocery stores and wholesale clubs; unlimited cash back on all other purchases. Earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
- Minimum deposit is $200, maximum is $5,000
- Reports to all three main credit bureaus
Bank of America Customized Cash Rewards Secured Credit Card Rewards
Earning Rewards
The Bank of America® Customized Cash Rewards Secured Credit Card* earns 3% cash back in a category of choice: gas and EV charging, online shopping, dining, travel, drug stores or home improvement/furnishings; 2% cash back at grocery stores and wholesale clubs; unlimited cash back on all other purchases. Earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%.
Redeeming Rewards
Redeeming rewards with the Bank of America® Customized Cash Rewards Secured Credit Card* is straightforward and easy. You can select how you’d like to receive your rewards:
- As a statement credit of any amount
- As a direct deposit into an eligible Bank of America account
- As a credit to an eligible account with Merrill of any amount
- As a check, with minimum redemption of $25
- As a contribution to a 529 account with Merrill, with minimum redemption of $25
You may also set up automatic redemptions to either a Bank of America or Merrill account, as long as those redemptions are worth at least $25. No other redemption methods qualify for automation.
Rewards don’t expire as long as your account is open.
Rewards Potential
To determine the rewards potential of the Bank of America® Customized Cash Rewards Secured Credit Card* we consider what an average household might spend on a credit card each year. Forbes Advisor uses data from various government agencies to determine baseline income and spending averages across various categories. Our estimated wage-earning households bring in $91,162 annually and has $28,431 in expenses that can be reasonably charged to a credit card.
We estimate the average household’s largest 3% cash-back qualifying category is dining, where $3,030 is spent annually resulting in $90.90 cash back. We estimate that a household would spend $5,259 at grocery stores, and if spent evenly throughout the year, this spending would not push the cardholder over the $2,500 quarterly threshold for total bonused earnings. This would result in $105.18 cash back.
The household would have $20,142 in additional expenses that can reasonably be charged to a credit card. At 1%, this would result in earning $201.42 in annual cash back. Our sample household’s total cash-back earnings would be $397.50.
Other Bank of America Customized Cash Rewards Secured Credit Card Benefits
- $0 fraud liability: No cardholder responsibility for unauthorized transactions.
- Digital wallet: Cardholders can add the card to mobile wallets for contactless pay.
- FICO Score access: No-extra-charge access to credit scores through Bank of America’s online or mobile apps.
- Mobile and online banking: Convenience of the click with alerts and account monitoring via phone or computer.
- Overdraft protection: Use the card to implement overdraft protection to your checking accounts.
- Tap to pay: Cardholders can use chip-enabled cards to avoid inserting or swiping at the register.
Fine Print
Interest Rates
- Regular APR: 28.24% variable
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
Fees
- Annual fee: $0
- Balance transfer fee: 4% of the amount of each transaction
- Foreign purchase transaction fee: 3% of the U.S. dollar amount of each transaction
How the Bank of America Customized Cash Rewards Secured Credit Card Stacks Up
Bank of America® Customized Cash Rewards Secured Credit Card* vs. Discover it® Secured Credit Card
One primary difference between the no-annual-fee Discover it® Secured Credit Card and the Bank of America Customized Cash Rewards Secured card is the Discover it® Secured Credit Card’s welcome bonus, which is Unlimited Cashback Match™ - Discover will automatically match all the cash back earned at the end of the first year.
The Discover it® Secured Credit Card’s cash-back earning categories may not, however, be as beneficial for as many cardholders: Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases. It lacks a 3% cash-back category and limits the 2% cash-back category to lower quarterly spending.
Bank of America® Customized Cash Rewards Secured Credit Card* vs. Bank of America® Customized Cash Rewards credit card for Students
Students in search of a first credit card may be better off considering the Bank of America® Customized Cash Rewards credit card for Students. The card is unsecured, so it does not require a security deposit and still offers rewards of 3% cash back in the category of choice and an automatic 2% at grocery stores and wholesale clubs. Bonus earning is limited to the first $2,500 in the 3% and 2% categories combined each quarter. Earn an unlimited 1% on all other purchases. The Bank of America® Customized Cash Rewards credit card for Students also offers a welcome bonus of $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of account opening.
Just be aware that students who are under 21 must apply with a co-signer and prove they have enough income to cover payment obligations.
Bank of America® Customized Cash Rewards Secured Credit Card* vs. Petal® 2 “Cash Back, No Fees” Visa® Credit Card*
Those new to credit but turned off by the idea of a secured card should consider the Petal® 2 “Cash Back, No Fees” Visa® Credit Card*, issued by WebBank. Petal 2 cardholders earn 1% cash back on eligible purchases right away, 1.25% cash back on eligible purchases after making 6 on-time monthly payments, and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, earn 2% - 10% cash back at select merchants. This rewards structure may not result in as many rewards earned per year, but Petal will consider your entire financial picture, not just your credit score, when determining your eligibility. The Petal 2 card also doesn’t charge foreign transaction fees, so it may be a better option for those who expect to make purchases abroad.
Read more: Best Cash-Back Credit Cards
Is the Bank of America Customized Cash Rewards Secured Credit Card for You?
The Bank of America® Customized Cash Rewards Secured Credit Card* offers high cash-back rates in useful categories and allows the cardholder to graduate to an unsecured card after review by Bank of America. For those with the tolerance to track their spending on the card and select the most profitable bonus categories, this card is a lucrative option among secured cards. But for those who want a simpler card to help rebuild their credit, look elsewhere.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors, including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: Bank of America® Customized Cash Rewards Secured Credit Card, Petal® 2 “Cash Back, No Fees” Visa® Credit Card. The card details on this page have not been reviewed or provided by the card issuer.
