Bank of America Customized Cash Rewards Secured Credit Card Review: Excellent Option for Building Credit?

If you’re looking for a secured credit card that can help you build your credit, the Bank of America Customized Cash Rewards Secured Credit Card may be a good option to consider. The card offers the appealing option to choose your 3%-back category, and if you qualify for the Preferred Rewards program, the card can be even more valuable.

However, its spending caps mean it’s not a strong choice for big spenders. In this Review, we’ll take a closer look at the Bank of America Customized Cash Rewards Secured Credit Card to help you decide if it’s the right card for you.

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Card Basics

The Bank of America Customized Cash Rewards Secured Credit Card is a great way to earn cash back on your purchases.

You can earn 3% cash back in the category of your choice every quarter, and you’ll automatically earn 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter.

For all other purchases, you’ll earn unlimited 1% cash back. Your rewards don’t expire and are automatic.

The only downside to this card is that it does require a security deposit, but if you’re looking for a good way to earn cash back on your purchases, this card is definitely worth considering.

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Quick facts

Here are a few quick facts about the Bank of America Customized Cash Rewards Secured Credit Card:

•The Bank of America Preferred Rewards program is a great way to earn cash back on your everyday purchases.

• As a member, you’ll earn 3% cash back in the category of your choice, an automatic 2% at grocery stores and wholesale clubs, and an unlimited 1% on all other purchases.

• Plus, if you’re a Preferred Rewards member, you can earn 25% – 75% more cash back on every purchase, which means you could earn up to 5.25% cash back in your chosen category.

• There’s no annual fee or expiration on rewards, and you’ll even enjoy a 0% Introductory APR for 15 billing cycles for purchases and balance transfers.

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Pros and Cons

Pros

• Bank of America Preferred Rewards clients earn 25% to 75% more cash back on eligible purchases

• Good rewards earning potential, with options to change your 3% bonus category monthly

• Easily earned bonus offer for new cardholders – just make $1,000 in purchases in the first 90 days

• No annual fee

• Generous introductory 0% APR offer for 12 billing cycles on qualifying balances transferred within 60 days of account opening (3% balance transfer fee)

• Substantial bank or investment-account balances can result in extra cash back bonuses

Cons

• Limited redemption options
• High balance transfer fee
• Foreign transaction fee
• There is no welcome offer available to first-time customers.
• Requires a security deposit to open an account.

Now that we’ve taken a look at the basics of the Bank of America Customized Cash Rewards Secured Credit Card, let’s dive into the details to see if it’s the right card for you.

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“Should I Get A Bank of America Customized Cash Rewards Secured Credit Card?”

If you’re looking for a secured credit card that can help you build your credit, the Bank of America Customized Cash Rewards Secured Credit Card may be a good option to consider. Below, are the benefits that make this card worth considering:

#1. No annual fee

One of the biggest selling points of the Bank of America Customized Cash Rewards Secured Credit Card is that it has no annual fee.

This is a great benefit, as many secured credit cards come with an annual fee that can range from $29 to $99. With the Bank of America Customized Cash Rewards Secured Credit Card, you can avoid this fee and use your savings to pay down your balance or toward other expenses.

#2. Bonus offer for new cardholders

Another great benefit of the Bank of America Customized Cash Rewards Secured Credit Card is that it comes with a bonus offer for new cardholders. To earn the bonus, you must make at least $1,000 in purchases within the first 90 days of account opening.

Once you meet this spending requirement, you will earn a $200 cash rewards bonus.

This is a great way to earn some extra cash that you can use to pay down your balance or toward other expenses.

#3. Freedom to pick your own 3% category

The Bank of America® Customized Cash Rewards credit card is one of the few rewards credit cards that allow you to choose your own bonus categories. This can be valuable for cardholders who want more control over their rewards, as you can change your selection up to once a month.

The card also defines its rewards categories quite generously, so you’ll likely be able to find at least one that aligns with your spending habits.

Below are the categories you can choose from:

• Gas
• Online shopping,
• Dining
• Travel
• Drug stores
• Or home improvement/furnishings.

You can see that there is a wide range of categories to choose from, which makes it easy to find one that best suits your needs.

For example, Online shopping is a popular category, as it includes items such as clothing, cosmetics, and electronic purchases. If you spend a lot in this category, you could potentially earn a lot of rewards.

On the other hand, if you don’t spend much online, you may want to choose a different category that better aligns with your spending habits.

either way, the freedom to choose your own category is a valuable perk that can help you earn more rewards.

However, it’s important to note that you can only change your category selection once per month, so you’ll need to plan ahead if there’s a particular category you want to earn rewards in.

Additionally, The bonus rewards on this card are limited to the first combined $2,500 in purchases made in 3% and 2%-categories each quarter. After that point, you’ll only earn 1%. So, if you want to maximize your rewards, you’ll need to be mindful of this limit.

#4. Introductory period with 0% APR

The Bank of America Customized Cash Rewards Secured Credit Card has many benefits that make it a great choice for individuals looking to build or rebuild your credit.

One of the most appealing features of this card is the introductory 0% APR offer on both purchases and balance transfers. This offer lasts for 15 billing cycles, giving cardholders ample time to pay down their balances without accruing interest.

#5. The credit limit that is adaptable

One of the great things about the Bank of America Customized Cash Rewards Secured credit card is that it offers a flexible credit limit.

The credit limit for this card is between $300 and $4,900, and it is based in large part on the security deposit. If you want a higher credit limit, you can simply deposit more money upfront.

Additionally, Bank of America will calculate a maximum credit limit based on your financial information. This means that you can’t get a higher credit limit than this amount, even by depositing more money.

As a result, this card offers a great deal of flexibility when it comes to your credit limit.

#6. FICO® Score is available for free

FICO® Scores are used by lenders to help them make credit decisions. The higher your score, the better your chances of getting approved for a loan or credit card. And the better your interest rates will be.

So it’s definitely in your best interest to keep an eye on your score. With the Bank of America Customized Cash Rewards Secured Credit Card, you can do just that. As a cardholder, you have free access to your FICO® Score.

This is a valuable tool when you’re working on your credit. You can monitor your progress and find out the exact steps needed to increase your credit score.

#7. Make the transition to an unsecured card if you haven’t already.

One of the main benefits is that cardholders may be eligible to graduate with an unsecured credit card after demonstrating responsible credit behaviour.

To be considered for graduation, cardholders must make timely payments and keep their balances low. If eligible, cardholders will receive a refund of their security deposit.

This benefit can save cardholders money in the long run and help them build their credit history. responsible credit behaviour.

#8. Zero fraud liability

This card also comes with zero fraud liability. This means that you’re not responsible for any unauthorized charges made to your account.

If you suspect that your card has been lost or stolen, you should contact Bank of America immediately. They will cancel your card and issue a new one. You can also add an extra layer of protection.

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Why you should not get the Bank of America Customized Cash Rewards Secured Credit Card

There are a few reasons why this card might not be the right fit for you. Let’s take a look at some of the cons:

#1. Requires a security deposit

The biggest downside to this card is that it requires a security deposit. The amount of the deposit will determine your credit limit. For example, if you deposited $500, your credit limit would be $500. So, if you’re looking for a way to build credit without having to put down a deposit, this card is not for you.

#2. High APR

Another downside to this card is the high APR. The APR for this card ranges from 15.49% – 25.49%, which is on the higher end of the spectrum.

This means that if you carry a balance on your card, you’ll accrue interest at a high rate. So, it’s important to pay off your balance in full each month to avoid paying interest.

#3. Spending limits can restrict your earning potential.

If you’re a big spender, you may want to steer clear of credit cards with spending limits. The Bank of America® Customized Cash Rewards credit card, for example, imposes quarterly spending caps, which can limit your ability to earn cash back.

A flat-rate rewards card that doesn’t impose such restrictions could be a smarter choice.

The $0-annual-fee Citi® Double Cash Card – 18-month BT offer, for example, offers 2% cash back on all purchases: You’ll get 1% back when you make purchases, and another 1% back when you pay them off.

So if you’re a high roller, make sure your credit card doesn’t limit your earning potential.

#3. There are limited redemption options available.

While the ability to redeem rewards for a statement credit is certainly useful, the limited redemption options are a bit disappointing. It would be nice to have more flexibility in how rewards can be used, such as the ability to redeem for travel expenses or gift cards.

As it stands, the best way to make use of rewards is to either deposit them into a Bank of America account or use them to invest in a 529 educational plan.

Although not as exciting as some other redemption options, these are still valuable ways to use rewards. Ultimately, it would be helpful if there were more redemption options available, but the existing options are still useful.

#4. Grocery rewards do not apply to purchases made at multiple-category stores.

While the Bank of America Customized Cash Rewards Secured Credit Card offers 2% cash back on groceries, this only applies to purchases made at traditional grocery stores.

Unfortunately, superstores such as Walmart and Target, as well as convenience stores, do not qualify for this higher rate. This means that you’ll earn only the regular 1% cash back on groceries bought at those stores.

However, you can earn the 2% rate on purchases from wholesale clubs – a retail type that many cards exempt from premium rewards.

Therefore, if you regularly shop at supermarkets or other multiple-category stores, you may be better off with another cash back card.

#5. There is no welcome offer for new customers.

Although the Bank of America Customized Cash Rewards Secured Credit Card doesn’t currently offer a welcome bonus, this isn’t necessarily a bad thing.

The reason is that secured cards are designed for people with bad or limited credit history. And since issuers are already taking on more risk by approving these applicants, they’re not as generous with rewards.

So, while it would be nice to see a welcome bonus, it’s not surprising that this card doesn’t offer one.

#6. Foreign transaction fees apply.

If you’re planning on using your Bank of America Customized Cash Rewards Secured Credit Card abroad, be aware that foreign transaction fees will apply.

These fees are typically around 3% of the purchase price, so they can add up if you’re not careful. To avoid paying these fees, it’s best to use a card that doesn’t charge them.

#7. Balance transfer fees apply.

If you’re planning on transferring a balance to your Bank of America Customized Cash Rewards Secured Credit Card, be aware that a balance transfer fee will apply.

This fee is typically around 3% or a minimum of $10 of the transfer amount, whichever is greater. So, if you’re planning on transferring a balance, it’s important to factor in this fee.

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Alternative of Bank of America Customized Cash Rewards Secured Credit Card

The Bank of America® Customized Cash Rewards Secured a credit card is a good option for people who are looking to build their credit. However, if you’re looking for an alternative, then below are a few options to consider.

• Capital One Platinum Secured Credit Card
• Discover it® Secured Credit Card
• Wells Fargo Active Cash® Card
• Chase Freedom Flex℠
• Citi Custom Cash℠ Card

Let’s talk about these cards in more detail.

#1. Capital One Platinum Secured Credit Card

Capital One Platinum Secured Credit Card is a great alternative to the Bank of America Customized Cash Rewards Secured Credit Card. With a minimum deposit of $49, $99, or $200, this card is more attractive to customers who may not have the same credit or income.

In addition, there is no annual fee for this card, making it more affordable for those on a tight budget. The Capital One Platinum Secured Credit Card also offers a lower interest rate than the Bank of America Customized Cash Rewards Secured Credit Card, making it a better choice for those who carry a balance on their credit card.

Overall, the Capital One Platinum Secured Credit Card is a great alternative to the Bank of America Customized Cash Rewards Secured Credit Card.

#2. Discover it® Secured Credit Card

The Discover it® Secured Credit Card offers big cash back bonus: 2% back on up to $1,000 in restaurant and gas station spending per quarter, plus 1% back on other purchases.

At the end of your first year, Discover will automatically match all the cash back you’ve earned. With this card, you can also enjoy free Social Security number alerts, account activity alerts, and no annual fee. Plus, there’s no foreign transaction fee.

So if you’re looking for an alternative to the Bank of America Customized Cash Rewards Secured Credit Card, the Discover it® Secured Credit Card is a great option.

#3. Wells Fargo Active Cash® Card

If you’re looking for a great rewards credit card, the Wells Fargo Active Cash card is a great option. You’ll earn a flat rate of 2% cash back on all your purchases, making it easy to earn rewards.

The Bank of America Cash Rewards card offers a higher rewards rate in some circumstances, but it is capped. For most spenders, the Active Cash card will offer more overall rewards than the Bank of America Cash Rewards Card.

Another option is to pair the Customized Cash Rewards credit card with a high flat-rate card like the Active Cash to get the most value out of your spending.

#4. Chase Freedom Flex℠

The Bank of America Customized Cash Rewards Secured Credit Card and the Chase Freedom Flex are both excellent choices for cash back rewards credit cards. Both cards offer a wide range of benefits, including 5% cash back on rotating categories, 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining and drugstores, and 1% cash back on all other purchases.

The main difference between the two cards is the welcome bonus. The Customized Cash Rewards card offers a $200 statement credit after you spend $500 in the first 90 days, while the Chase Freedom Flex offers a $200 Welcome Bonus after you spend $500 in the first 3 months from account opening.

Overall, the Chase Freedom Flex is a more flexible and generally more appealing option than the Customized Cash Rewards card.

However, If you’re a Preferred Rewards member who qualifies for the higher earnings rate, however, you’ll do considerably better with the Customized Cash Rewards card.

#5. Citi Custom Cash℠ Card

The Citi Custom Cash℠ Card is a great alternative to the Bank of America Customized Cash Rewards Secured Credit Card. With 5% cash back on purchases in a top eligible spend category each billing cycle, up to the first $500 in spending each month and 1% cash back on all other purchases, this card is sure to help you earn rewards quickly.

Additionally, there is no annual fee for this card, making it a great option for those who are looking to avoid paying an annual fee.

Other benefits of this card include a 0% introductory APR on eligible balance transfers and purchases for 15 months, as well as a welcome bonus of $200 in cash back after spending $750 on purchases in the first 3 months of account opening.

The points earned from this card can also be pooled with other ThankYou point-earning cards for greater value.

Whether you are looking for a card with great rewards or one that has no annual fee, the Citi Custom Cash℠ Card is sure to be a great option for you.

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What is the maximum credit limit on Bank of America cash rewards?

The maximum credit limit on the Bank of America Cash Rewards credit card is determined by a variety of factors, including your credit score, income, and debts.

The credit limit for this card is usually at least $1,000, but some cardholders report limits of over $50,000.

If you have excellent credit and a high income, you may be able to qualify for the highest credit limit possible.

However, even if you don’t have perfect credit or a high income, you may still be able to get a credit limit that meets your needs.

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What’s the minimum credit score required for a Bank of America secured card?

When it comes to securing a credit card, many people think that they need to have a high credit score. However, this is not always the case.

The Bank of America Customized Cash Rewards Secured credit card does not have a minimum credit score requirement, which means that even if you have no credit history or a low credit score, you could still be approved for the card.

Of course, approval is not guaranteed, but it is worth considering if you are looking for a secured credit card. With this card, you can enjoy all the benefits of a cash rewards card without having to worry about a minimum credit score.

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Is it true that Bank of America does a hard pull for secured credit cards?

Yes, it is true that Bank of America may do a hard pull on your credit report when you apply for a secured credit card. A hard pull is when a lender checks your credit report in order to make a decision about your loan or credit card application. Hard pulls can have a negative impact on your credit score, but they are not

Does Bank of America secured credit card graduates?

Yes, Bank of America’s secured credit card does graduate. Once the cardholder has established, strengthened or rebuilt their credit, and Bank of America feels the cardholder qualifies, they will automatically be upgraded to an unsecured card.

The maximum credit limit is always determined by the security deposit, income and ability to pay the credit line established. Therefore, the process of graduating with an unsecured card is based on responsible financial behaviour.

So not only does this credit card help those in need of reestablishing credit, but it also encourages wise money management habits. What more could you ask for?

Is the Bank of America Unlimited Cash Rewards Secured Card reported to the credit bureaus?

The Bank of America Unlimited Cash Rewards Secured Card is reported to the credit bureaus. This is good news for those who are looking to improve their credit score, as timely payments and responsible use of credit can help to improve your credit score over time.

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Bottom line: Is the Bank of America Customized Cash Rewards Secured credit card worth it?

If you are looking for a credit card with great rewards and no annual fee, the Citi Custom Cash℠ Card is a great option for you.

Do you have any experience with the Bank of America Customized Cash Rewards Secured credit card? If so, please share your thoughts in the comments below.

Thanks for reading!