topic Re: BOFA Secured Card - Why Apply? in Credit Cards

BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 09:26:21 GMT

I think the real question is, why apply for such a bad secured card?

$39 annual fee -- the highest of secured cards at any major financial instituion including credit unions. Many credit union secured cards don't have an annual fee. Even banks like Citi and Wells Fargo offer secured cards with an annual fee around $25.

$37 late payment fee. Many credit unions charge $25 max. I'm not even sure how Bank of America gets away with that, as the CARD act specfically says "$25 late fee maximum for the first late payment over a six month period." Bank of America's Secured Credit Card T&C's say $37 for any missed or late payment.

Standard APR 20.49%* variable. That APR is pretty high, but not the highest of secured cards I've ever seen. Still, you could've done much better. My secured card through my credit union with a rewards program and no annual fee was 12.75% and my score was 620. The max APR you can get at my credit union is 17.99% and that's if your score is in the low 500's. Which brings me to my final point...

No rewards program. There are secured cards out there from credit unions with a rewards program, and also Sun Trust and Discover have a secured card with rewards program.

Not to sound too harsh or anything... But bad, bad pick on a secured credit card.

(Mod Edit - We have started a new thread for this topic, as the response did not directly relate to the question posted in the original thread. We have updated the thread topic and made minor grammatical changes to make this a standalone topic; this may be edited by OP, if desired --SE),

BOFA Secured Card - Why Apply?

UncleB — Wed, 20 Jul 2016 10:12:23 GMT

@Anonymous wrote:
I think the real question is, why did you apply for such a bad secured card?

$39 annual fee -- the highest of secured cards at any major financial instituion including credit unions. Many credit union secured cards don't have an annual fee. Even banks like Citi and Wells Fargo offer secured cards with an annual fee around $25.

$37 late payment fee. Many credit unions charge $25 max. I'm not even sure how Bank of America gets away with that, as the CARD act specfically says "$25 late fee maximum for the first late payment over a six month period." Bank of America's Secured Credit Card T&C's say $37 for any missed or late payment.

Standard APR 20.49%* variable. That APR is pretty high, but not the highest of secured cards I've ever seen. Still, you could've done much better. My secured card through my credit union with a rewards program and no annual fee was 12.75% and my score was 620. The max APR you can get at my credit union is 17.99% and that's if your score is in the low 500's. Which brings me to my final point...

No rewards program. There are secured cards out there from credit unions with a rewards program, and also Sun Trust and Discover have a secured card with rewards program.

Not to sound too harsh or anything... But bad, bad pick on a secured credit card. You should've asked for opinions here first.

The BoA secured card is actually a good choice for many people, specifically people who are wanting to get their foot in the door with BoA since the card is well-known for unsecuring down the road.

Edited to add: Baller4life has mentioned how she started off with a BoA secured card and within two years it's become a $20k unsecured card: http://ficoforums.myfico.com/t5/Credit-Card-Applications/BOA-Declined/m-p/4685598#M131339

I'll also mention that the card can unsecure very quickly for some people, sometimes in only five or six months.

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 14:38:42 GMT

I was also under the impression that it had a rewards program attached even though it is not disclosed on the website.

Re: BOFA Secured Card - Why Apply?

Friarchuck — Wed, 20 Jul 2016 15:11:50 GMT

There are also some ways to obtain a BofA secured card other than cold-applying. I've had my personal checking and savings with them for some years now, and when I first went to get a secured card (in person at a branch), they offered me one with the security of having a few grand in my savings account. They didn't put a hold on any of the funds or anything like I've heard some other banks do. Within six months they had upped it to $2000, and a couple months later I had a Cash Rewards Visa that had the same open date as the secured card which remains my oldest open account, and on which I have earned several hundred dollars in rewards. All in all, I am very happy with my experience with my BofA secured card and I would definitely recommend the path that I took to others that have accounts with them.

You are also speaking from a place of knowledge of many credit card products and differences between lenders and which options are available. Secured cards are for people either starting out on their credit or for those who are rebuilding. In the first scenario, assuming they have similar knowledge to yours is ridiculous, and most newbies are just happy to have their first card. In the second scenario, some of the options you listed may be unavailable for any number of reasons. In any case, the point of a secured card is to report positive payment history to the credit bureaus for the purposes of strengthening your credit profile and score, which the BofA secured card does admirably. While I don't think BofA needs defense from a lowly customer like me, I think posts designed exclusively to bash one product or the other are a waste of time and ultimately don't serve any important purpose when the product in question fulfills its primary purpose.

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 16:12:58 GMT

Late fee shouldn't matter for obvious reasons. The other things aren't a big deal as it's designed for people to get their feet off the ground and not meant to be a long term card.

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 18:06:53 GMT

@Friarchuck wrote:
There are also some ways to obtain a BofA secured card other than cold-applying. I've had my personal checking and savings with them for some years now, and when I first went to get a secured card (in person at a branch), they offered me one with the security of having a few grand in my savings account. They didn't put a hold on any of the funds or anything like I've heard some other banks do. Within six months they had upped it to $2000, and a couple months later I had a Cash Rewards Visa that had the same open date as the secured card which remains my oldest open account, and on which I have earned several hundred dollars in rewards. All in all, I am very happy with my experience with my BofA secured card and I would definitely recommend the path that I took to others that have accounts with them.

You are also speaking from a place of knowledge of many credit card products and differences between lenders and which options are available. Secured cards are for people either starting out on their credit or for those who are rebuilding. In the first scenario, assuming they have similar knowledge to yours is ridiculous, and most newbies are just happy to have their first card. In the second scenario, some of the options you listed may be unavailable for any number of reasons. In any case, the point of a secured card is to report positive payment history to the credit bureaus for the purposes of strengthening your credit profile and score, which the BofA secured card does admirably. While I don't think BofA needs defense from a lowly customer like me, I think posts designed exclusively to bash one product or the other are a waste of time and ultimately don't serve any important purpose when the product in question fulfills its primary purpose.

The post was edited and took my original point away.

If you could get a no annual fee secured card with a lower APR, and that included a rewards program, no balance transfer fee, and no foreign transaction fee, wouldn't you choose it over what Bank of America offers? Besides, it's BoA... Known for mediocre customer service.Also explained how the OP should've asked us first before applying, but course that was deleted too.

Re: BOFA Secured Card - Why Apply?

baller4life — Wed, 20 Jul 2016 18:08:55 GMT

Well my BOA had af removed, 3-2-1 cash rewards program added and unsecured in 6 months. So for me it wasn't a "bad bad choice". It was my second 5 figure credit card limit and started out a $300 secured 6 months prior. But, yes there are lower apr options such a State Department Federal CU. However, I don't believe it unsecures.

Re: BOFA Secured Card - Why Apply?

Friarchuck — Wed, 20 Jul 2016 18:10:25 GMT

@Anonymous wrote:
@Friarchuck wrote:
There are also some ways to obtain a BofA secured card other than cold-applying. I've had my personal checking and savings with them for some years now, and when I first went to get a secured card (in person at a branch), they offered me one with the security of having a few grand in my savings account. They didn't put a hold on any of the funds or anything like I've heard some other banks do. Within six months they had upped it to $2000, and a couple months later I had a Cash Rewards Visa that had the same open date as the secured card which remains my oldest open account, and on which I have earned several hundred dollars in rewards. All in all, I am very happy with my experience with my BofA secured card and I would definitely recommend the path that I took to others that have accounts with them.

You are also speaking from a place of knowledge of many credit card products and differences between lenders and which options are available. Secured cards are for people either starting out on their credit or for those who are rebuilding. In the first scenario, assuming they have similar knowledge to yours is ridiculous, and most newbies are just happy to have their first card. In the second scenario, some of the options you listed may be unavailable for any number of reasons. In any case, the point of a secured card is to report positive payment history to the credit bureaus for the purposes of strengthening your credit profile and score, which the BofA secured card does admirably. While I don't think BofA needs defense from a lowly customer like me, I think posts designed exclusively to bash one product or the other are a waste of time and ultimately don't serve any important purpose when the product in question fulfills its primary purpose.
The post was edited and took my original point away.

If you could get a no annual fee secured card with a lower APR, and that included a rewards program, no balance transfer fee, and no foreign transaction fee, wouldn't you choose it over what Bank of America offers? Besides, it's BoA... Known for mediocre customer service.

All other things being equal, sure. As people who are educated not only on the proper ways to handle credit card accounts, but also on the variety of different secured products out there, people like you and I and others on this forum would surely take the time to compare and contrast the options available to us. My post was meant to illustrate the vast proportion of the credit using general public that are not like the people that read and contribute to these forums, and thus have no need or desire to weigh each category of benefits against each other when their only goal is to have a card with good payment history in order to move up in the "credit world". All the things you mentioned are surely great benefits to have in a secured card, but when the path of least resistance is to go with a bank you use, trust, or for whatever reason were recommended by an acquaintance, it makes sense to go with the BofA card. If the card only reported to one of the bureaus but not others, then sure it would be a lousy product and not adequate for the purpose many people want it for, but it is a perfectly reasonable card for a beginner.

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 18:11:16 GMT

@baller4life wrote:
Well my BOA had af removed, 3-2-1 cash rewards program added and unsecured in 6 months. So for me it wasn't a "bad bad choice". It was my second 5 figure credit card limit and started out a $300 secured 6 months prior. But, yes there are lower apr options such a State Department Federal CU. However, I don't believe it unsecures.

I used to have a SDFCU secured card. No annual fee, 7.24% APR, one point per dollar spent. I don't remember if it unsecures though.

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 18:14:17 GMT

@Friarchuck wrote:
@Anonymous wrote:
@Friarchuck wrote:
There are also some ways to obtain a BofA secured card other than cold-applying. I've had my personal checking and savings with them for some years now, and when I first went to get a secured card (in person at a branch), they offered me one with the security of having a few grand in my savings account. They didn't put a hold on any of the funds or anything like I've heard some other banks do. Within six months they had upped it to $2000, and a couple months later I had a Cash Rewards Visa that had the same open date as the secured card which remains my oldest open account, and on which I have earned several hundred dollars in rewards. All in all, I am very happy with my experience with my BofA secured card and I would definitely recommend the path that I took to others that have accounts with them.

You are also speaking from a place of knowledge of many credit card products and differences between lenders and which options are available. Secured cards are for people either starting out on their credit or for those who are rebuilding. In the first scenario, assuming they have similar knowledge to yours is ridiculous, and most newbies are just happy to have their first card. In the second scenario, some of the options you listed may be unavailable for any number of reasons. In any case, the point of a secured card is to report positive payment history to the credit bureaus for the purposes of strengthening your credit profile and score, which the BofA secured card does admirably. While I don't think BofA needs defense from a lowly customer like me, I think posts designed exclusively to bash one product or the other are a waste of time and ultimately don't serve any important purpose when the product in question fulfills its primary purpose.
The post was edited and took my original point away.

If you could get a no annual fee secured card with a lower APR, and that included a rewards program, no balance transfer fee, and no foreign transaction fee, wouldn't you choose it over what Bank of America offers? Besides, it's BoA... Known for mediocre customer service.
All other things being equal, sure. As people who are educated not only on the proper ways to handle credit card accounts, but also on the variety of different secured products out there, people like you and I and others on this forum would surely take the time to compare and contrast the options available to us. My post was meant to illustrate the vast proportion of the credit using general public that are not like the people that read and contribute to these forums, and thus have no need or desire to weigh each category of benefits against each other when their only goal is to have a card with good payment history in order to move up in the "credit world". All the things you mentioned are surely great benefits to have in a secured card, but when the path of least resistance is to go with a bank you use, trust, or for whatever reason were recommended by an acquaintance, it makes sense to go with the BofA card. If the card only reported to one of the bureaus but not others, then sure it would be a lousy product and not adequate for the purpose many people want it for, but it is a perfectly reasonable card for a beginner.

I was orginally speaking to a forum poster here, but the two comments on the top were moved by the mods into this new thread.

Re: BOFA Secured Card - Why Apply?

UncleB — Wed, 20 Jul 2016 18:23:24 GMT

@baller4life wrote:
Well my BOA had af removed, 3-2-1 cash rewards program added and unsecured in 6 months. So for me it wasn't a "bad bad choice". It was my second 5 figure credit card limit and started out a $300 secured 6 months prior. But, yes there are lower apr options such a State Department Federal CU. However, I don't believe it unsecures.

I can say that the level of customer service I've received from BoA has actually been top-notch, so while some people might feel they are less-than-stellar that's only a single opinion.

For the right person who simply wants to start a relationship with BoA I see nothing wrong at all with their secured product; I only wish I had known about it a few years ago when I was first rebuilding.

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 18:32:48 GMT

Sure if you want to start a relationship with a bank that tries to steal money from their customers left and right, offers nothing better than a 0.15% CD savings rate, even if you're locked in for 10 years, offers medicore credit card rewards, and answers to Wall Street stockholders, then more power to you if you think that's an accomplishment.

Not sure why you'd want a relationship with a bank that puts its own interest before yours, when you can save more, earn more, and get more free stuff from other financial institutions.

Re: BOFA Secured Card - Why Apply?

baller4life — Wed, 20 Jul 2016 18:48:09 GMT

@Anonymous wrote:
Sure if you want to start a relationship with a bank that tries to steal money from their customers left and right, offers nothing better than a 0.15% CD savings rate, even if you're locked in for 10 years, offers medicore credit card rewards, and answers to Wall Street stockholders, then more power to you if you think that's an accomplishment.

Not sure why you'd want a relationship with a bank that puts its own interest before yours, when you can save more, earn more, and get more free stuff from other financial institutions.

Bitter much? LOL. I take it you had a bad experience with BOA?

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 18:53:39 GMT

I actually had a bad experience with BoA too a long time ago, back when they were pulling that "switching things around delayed posting in the checking account scam" to get people to overdraw. They screwed me pretty good and wouldn't budge on the fees. Granted if I was doing things probably I wouldn't have been screwed in the first place.

I swore off them since. But it is refreshing to see credible people vouching for them.

Re: BOFA Secured Card - Why Apply?

creditguy — Wed, 20 Jul 2016 19:06:13 GMT

There may be better options for secured cards on the surface, but you can't ignore the fact that a BofA secured card has a lot more potential to grow to bigger and better things than most other cards. Never heard of Cap One secured cards growing to $20k, Cap One can be generous but not usually when it comes to secured products.

Then you have other banks that don't graduate or are very slow to graduate. BofA on the other hand has graduated earlier than expected for some folks, never really hear of that with other cards. As far as rewards go, it's not entirely true that BofA has no rewards. Many people have had luck converting their standard secured card to a 3-2-1 rewards card, which is awesome considering there's not much out there in rewards for secured cards. I have noticed though that the secured card is now a MasterCard and the 3-2-1 is still a Visa so I don't know if you can PC to a different network card.

Finally, yes BofA has a crappy reputation with some people and so Does Citi, Chase, Cap One, Amex, Discover, NFCU, PenFed, etc, you name a bank, CU or CC and you'll find someone who claims they suck or ripped them off or whatever. Can't please everyone and everyone has their own experiences and opinions and at the end of the day it means nothing, If someone wants to go with a certain lender, let them and let them form their own opinion. Do your research and go for what you want.

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 19:08:53 GMT

@baller4life wrote:
@Anonymous wrote:
Sure if you want to start a relationship with a bank that tries to steal money from their customers left and right, offers nothing better than a 0.15% CD savings rate, even if you're locked in for 10 years, offers medicore credit card rewards, and answers to Wall Street stockholders, then more power to you if you think that's an accomplishment.

Not sure why you'd want a relationship with a bank that puts its own interest before yours, when you can save more, earn more, and get more free stuff from other financial institutions.
Bitter much? LOL. I take it you had a bad experience with BOA?

Not really, it's just common sense. If you can't see that, there's no helping you.

If you'd rather not do business with an institution that provides free checking, free checks, friendlier customer service (because you are the owner), higher savings rates, and who isn't constantly in the news for either breaking the law and not reaching their profit bottom line for the quarter, then I would respect what you have to say much more than I do right now.

If you'd rather call me bitter for using the common sense approach, I'd rather you just ignore me, thank you.

Re: BOFA Secured Card - Why Apply?

Anonymous — Wed, 20 Jul 2016 19:11:41 GMT

@Anonymous wrote:
I actually had a bad experience with BoA too a long time ago, back when they were pulling that "switching things around delayed posting in the checking account scam" to get people to overdraw. They screwed me pretty good and wouldn't budge on the fees. Granted if I was doing things probably I wouldn't have been screwed in the first place.

I swore off them since. But it is refreshing to see credible people vouching for them.

All of their credibility went out the window when they called someone else 'bitter' for bashing a bank known for nothing but negative publicity from their customers. Now he's just known as someone who defends the big banks who do nothing for our society.

Re: BOFA Secured Card - Why Apply?

baller4life — Wed, 20 Jul 2016 19:17:58 GMT

@Anonymous wrote:
@baller4life wrote:
@Anonymous wrote:
Sure if you want to start a relationship with a bank that tries to steal money from their customers left and right, offers nothing better than a 0.15% CD savings rate, even if you're locked in for 10 years, offers medicore credit card rewards, and answers to Wall Street stockholders, then more power to you if you think that's an accomplishment.

Not sure why you'd want a relationship with a bank that puts its own interest before yours, when you can save more, earn more, and get more free stuff from other financial institutions.
Bitter much? LOL. I take it you had a bad experience with BOA?
Not really, it's just common sense. If you can't see that, there's no helping you.

If you'd rather not do business with an institution that provides free checking, free checks, friendlier customer service (because you are the owner), higher savings rates, and who isn't constantly in the news for either breaking the law and not reaching their profit bottom line for the quarter, then I would respect what you have to say much more than I do right now.

If you'd rather call me bitter for using the common sense approach, I'd rather you just ignore me, thank you.

I just asked a question. If you were bitter. I didn't call you such. And believe me, you are preaching to the choir. I LOVE CUs!! I am a member of several and do ALL of my banking at CUs. So I get it. I just happen to have a diversified portfolio that does include cards from a few banks for various purposes.

You are most certainly entitled to your opinion regarding BOA. I was just sharing my personal experience with their secured product. And it was extremely positive. I can't vouch for their banking side shenanigans. All I know is they have been VERY generous to the members here regarding their credit cards. All you have to do is check the Approvals section and see for yourself.

Re: BOFA Secured Card - Why Apply?

SunriseEarth — Wed, 20 Jul 2016 19:18:26 GMT

@Anonymous wrote:
@Friarchuck wrote:
There are also some ways to obtain a BofA secured card other than cold-applying. I've had my personal checking and savings with them for some years now, and when I first went to get a secured card (in person at a branch), they offered me one with the security of having a few grand in my savings account. They didn't put a hold on any of the funds or anything like I've heard some other banks do. Within six months they had upped it to $2000, and a couple months later I had a Cash Rewards Visa that had the same open date as the secured card which remains my oldest open account, and on which I have earned several hundred dollars in rewards. All in all, I am very happy with my experience with my BofA secured card and I would definitely recommend the path that I took to others that have accounts with them.

You are also speaking from a place of knowledge of many credit card products and differences between lenders and which options are available. Secured cards are for people either starting out on their credit or for those who are rebuilding. In the first scenario, assuming they have similar knowledge to yours is ridiculous, and most newbies are just happy to have their first card. In the second scenario, some of the options you listed may be unavailable for any number of reasons. In any case, the point of a secured card is to report positive payment history to the credit bureaus for the purposes of strengthening your credit profile and score, which the BofA secured card does admirably. While I don't think BofA needs defense from a lowly customer like me, I think posts designed exclusively to bash one product or the other are a waste of time and ultimately don't serve any important purpose when the product in question fulfills its primary purpose.
The post was edited and took my original point away.

If you could get a no annual fee secured card with a lower APR, and that included a rewards program, no balance transfer fee, and no foreign transaction fee, wouldn't you choose it over what Bank of America offers? Besides, it's BoA... Known for mediocre customer service.Also explained how the OP should've asked us first before applying, but course that was deleted too.

Your original point still stands, in that you present the case that there are better products to apply for than BoA's secured card.

At risk of running a bit off-topic, I'm no fan of BoA for their products like checking and savings. When I had them, they would purposefully post transactions to ensure they collected as many NSFs as possible. I was very hesitant to look into their credit products for this reason.

However, my own experience with BBR has been better. I did have some technical issues with setting up my CC login (it was still tied to a very old BoA login that used my full SSN!), and it required far too much CSR intervention for my liking. However, the BBR product itself has been great. I had a very good BT offer (18 months at 0%, with 3% BT fee), which I gladly took.

When it boils down to it, each of us has our unique experience with lenders that will color our perspective. Some people love Citi and some hate them. Same with Cap One, AMEX, Commenity, and every other lender out there. That's part of why this Forum exists, to help share our perspectives and experiences. If someone has good or bad experiences with BoA, it's good to let each other know.

Re: BOFA Secured Card - Why Apply?

SunriseEarth — Wed, 20 Jul 2016 19:20:41 GMT

@Anonymous wrote:
@Anonymous wrote:
I actually had a bad experience with BoA too a long time ago, back when they were pulling that "switching things around delayed posting in the checking account scam" to get people to overdraw. They screwed me pretty good and wouldn't budge on the fees. Granted if I was doing things probably I wouldn't have been screwed in the first place.

I swore off them since. But it is refreshing to see credible people vouching for them.
All of their credibility went out the window when they called someone else 'bitter' for bashing a bank known for nothing but negative publicity from their customers. Now he's just known as someone who defends the big banks who do nothing for our society.

Let's bear in mind that we don't have benefit of tone of voice in a Forum like this. I believe this remark was intended to be light-hearted and acknowledging your bad experience. Trust me, I know what it's like to have a bad BoA experience!