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Bank of America Customized Cash Rewards Secured review Build credit and earn cash back your way

Written by Author, Award-Winning Writer Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing Jan. 27, 2022 Edited by Itzel Garcia Ruiz Reviewed by Credit Cards Editor Nouri Zarrugh is a writer and editor for CreditCards.com and Bankrate, focusing on product news, guides and reviews. His areas of expertise include credit card strategy, rewards Jan. 27, 2022

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Snapshot

3.8 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. star icon star icon star icon star icon star icon star icon star icon star icon star icon star icon Bottom line Due to the rewards you can earn and the lack of an annual fee, the Bank of America Customized Cash Rewards Secured should be on your list if you need a credit card for . , meaning you have to put down cash in order to secure your line of credit. However, the security deposit requirement means almost anyone can get approved for this card, even individuals with bad credit who can't get approved for unsecured credit cards. Read on to learn about this card's rewards and perks, plus how it stacks up to a few comparable cards.

What are the pros and cons

Pros

Available for consumers with bad credit. You can build credit with on-time payments and responsible credit use. Earn a boosted cash back rate on bonus categories on eligible purchases.

Cons

Requires a security deposit to open an account. Bonus categories that earn 3 percent or 2 percent cash back are capped at $2,500 in spending per quarter. No welcome offer available for new customers.

A deeper look into the current card offer

Quick highlights

Rewards rate: Earn 3 percent cash back in a category of your choosing (among gas, online shopping, dining, travel, drug stores and home improvement/furnishings), 2 percent cash back at grocery stores and wholesale clubs and 1 percent back on other purchases (bonus rewards in 3 percent and 2 percent categories are limited to the first $2,500 in combined spending per quarter) Welcome offer: None Annual fee: $0 Purchase intro APR: N/A Balance transfer intro APR: N/A Regular APR: 23.99 percent variable APR

Current welcome offer

The Bank of America Customized Cash Rewards Secured does not offer a of any kind, but this is expected among credit cards for bad credit. Many secured credit cards don't offer rewards at all, and those that do rarely come with welcome offers.

Rewards rate

Cardholders who choose the Bank of America Customized Cash Rewards Secured can earn 3 percent cash back in a category of their choosing (among gas, online shopping, dining, travel, drug stores and home improvement/furnishings), 2 percent cash back at grocery stores and wholesale clubs and 1 percent back on other purchases. However, it's important to note that bonus rewards in 3 percent and 2 percent categories are limited to the first $2,500 in combined spending per quarter. One major benefit of the Bank of America Customized Cash Rewards Secured is the fact you earn rewards on your spending. The rewards rates are also relatively generous when you compare to other secured credit cards.

How you earn

The Bank of America Customized Cash Rewards Secured stands out due to the fact cardholders can earn rewards. Individuals who choose this card can even pick the category they earn the most rewards in among gas, online shopping, dining, travel, drug stores and home improvement/furnishings, which is great for . Plus, the standard 2 percent cash back rate at grocery stores and wholesale clubs can make this card a good choice for foodies or families with big food bills. This means the most you can earn in 3 percent and 2 percent categories works out to $75 in rewards per quarter, and that's if you spent a full $2,500 in one of the card's 3 percent back categories. All other purchases will earn 1 percent in cash back.

How to redeem

This secured card offers three main options when it comes to redeeming your rewards. You can: Redeem your cash back for statement credits in any amount, or for deposits into an eligible Bank of America or Merrill account Redeem rewards for contributions to a 529 college savings account with Merrill (starting at $25) Set up automatic redemptions (starting at $25) for transfers into eligible Bank of America or Merrill accounts While having more than one way to redeem rewards is definitely a good thing, options with this card are pretty limited since other rewards cards let you redeem for gift cards, merchandise, travel and more.

How much are the rewards worth

You don't really earn "points" with this card, but you earn rewards in the form of cash back instead. If you did earn points, however, each point you earned would be worth one cent each.

Other cardholder perks

The Bank of America Customized Cash Rewards Secured is very light on perks, but this is common with secured credit cards. Main cardholder benefits you should know about include the following:

Free credit score

This card gives you a free , which is the type of credit score used by . With a free look at your FICO score from time to time, you can keep an eye out for problems and track your credit score for progress.

Low minimum security deposit

You have to put down cash to secure your line of credit on the Bank of America Ⓡ Customized Cash Rewards Secured, yet this card's minimum requirement starts at $300. Also note that your security deposit is fully refundable if you upgrade your secured card or close your account in good standing.

Contactless payment options

Cardholders can enjoy contactless payment options, including contactless chip technology. The Bank of America Unlimited Cash Rewards Secured is also compatible with Apple Pay, Google Pay and Samsung Pay.

Rates and fees

The Bank of America Ⓡ Customized Cash Rewards Secured comes with , which makes it more affordable than many other credit cards for bad credit. With that being said, the high variable APR of 23.99 percent can make carrying a balance costly. Also note that this card charges a 3 percent when you use it for purchases abroad. Other fees to watch out for include a 3 percent (minimum $10), a 3 percent cash advance fee (minimum $10) and a late fee of $40 if you pay your bill after its due date.

How the Bank of America Customized Cash Rewards Secured compares to other secured credit cards

If you have a low credit score and can only get approved for a secured credit card, you should compare all the best options before you choose one. The chart below shows how the Bank of America Customized Cash Rewards Secured stacks up to two other secured credit cards.

Bank of America® Customized Cash Rewards Secured Credit Card

star icon star icon star icon star icon star icon star icon star icon star icon star icon star icon Bankrate Score Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. Annual fee Intro offer Intro offer is not available to this Bank of America credit card Rewards rate 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings 2% cash back at grocery stores and wholesale clubs Unlimited 1% cash back on all other purchases Recommended credit A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Discover it® Secured Credit Card

on Discover's secure site Annual fee Intro offer Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match. Rewards rate Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Earn unlimited 1% cash back on all other purchases – automatically. Recommended credit A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Bank of America® Unlimited Cash Rewards Secured credit card

Annual fee Intro offer Intro offer is not available to this Bank of America credit card Rewards rate Recommended credit A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Bank of America Customized Cash Rewards Secured vs Bank of America Unlimited Cash Rewards Secured

For the most part, these two are very similar. However, the Bank of America Unlimited Cash Rewards Secured does not have any bonus rewards categories, and instead you earn a flat 1.5 percent cash back for each dollar you spend. and how they might work for your spending before you sign up.

Bank of AmericaCustomized Cash Rewards Secured vs Discover it® Secured Credit Card

You can also consider the , which lets you earn cash back with a minimum security deposit of $200 and no annual fee. This secured card lets you earn 2 percent back on up to $1,000 in spending on gas stations and restaurants each quarter (then 1 percent back), plus 1 percent back on regular purchases. Discover will also double all your rewards after the first year is up.

Best cards to pair with the Bank of America Customized Cash Rewards Secured

Since the Bank of America Customized Cash Rewards Secured is a secured credit card, and since any other cards you can likely qualify for will fall in the same category, you shouldn't pair this card with any others. After all, getting another secured credit card would require you to put down another security deposit. Instead, use this card to rack up rewards and build your credit score. With enough on-time payments and under your belt, you'll be able to later on.

Bankrate s Take Is the Bank of America Customized Cash Rewards Secured worth it

If your goal is building credit and earning some rewards along the way, the Bank of AmericaⓇ Customized Cash Rewards Secured should be at the top of your list. There's no annual fee, you can earn up to 3 percent back on select purchases and you can get started with a minimum security deposit of $300. Bank of America® Customized Cash Rewards Secured Credit Card

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Written by Holly D. Johnson Author, Award-Winning Writer Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Edited by Itzel Garcia Ruiz Reviewed by Credit Cards Editor

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