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Bank of America Cash Rewards Secured VISA: opinions pls

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brother7
Established Contributor

Bank of America Cash Rewards Secured VISA: opinions pls

Bank of America Cash Rewards Secured Credit Card

My relative is searching for a secured credit card and found this one. She did more research but could not find many reviews or mentions of this card. She found this surprising. At first glance, this card is appealing compared to other secured options, especially the cash back feature.

 

What is she missing? Is this a good secured credit card? Are there any better secured options out there?

 

TIA.

 



04/01/2020 - EX 849 (Credit Scorecard EX FICO® Score 8, range 300-850)
02/20/2020 - TU 850 (Discover TU FICO® Score 8, range 300-850)
03/24/2020 - EQ 884 (Citi EQ FICO® Bankcard Score 8, range 250-900)
GOAL - 800! - App free since 11/22/2017
Message 1 of 15
14 REPLIES 14
blindambition
Senior Contributor

Re: Bank of America Cash Rewards Secured VISA: opinions pls

That is one of the best secured cards available. Along with Disco, US Bank, Citi. As well as Navy Fed, if there's an eligibility path.

Message 2 of 15
Horseshoez
Senior Contributor

Re: Bank of America Cash Rewards Secured VISA: opinions pls


@brother7 wrote:

Bank of America Cash Rewards Secured Credit Card

My relative is searching for a secured credit card and found this one. She did more research but could not find many reviews or mentions of this card. She found this surprising. At first glance, this card is appealing compared to other secured options, especially the cash back feature.

 

What is she missing? Is this a good secured credit card? Are there any better secured options out there?

 

TIA.

 


The BofA card is one of the better secured cards out there, and also one of the most difficult to get.  Last year I was denied for one even though I'd been banking through BofA for over a decade; TDBank on the otherhand welcomed me with open arms with basically the exact same deal as what BofA offers (i.e. securing the card in a locked interest bearing savings account and 1% cash back on all purchases).  In the end I opted to move not just my credit card over to TD, I moved all of my other banking over there as well, and I couldn't be happier.

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 3 of 15
brother7
Established Contributor

Re: Bank of America Cash Rewards Secured VISA: opinions pls


@Horseshoez wrote:


The BofA card is one of the better secured cards out there, and also one of the most difficult to get.


  1. Why would BofA (or any bank) make it difficult to get a secured credit card?
  2. What makes the BofA Cash Rewards Secured card difficult to get (versus other secured cards)?

I looked up the TD Cash Secured Credit Card and noticed there's a $29 annual fee. Are you sure it's worth it?



04/01/2020 - EX 849 (Credit Scorecard EX FICO® Score 8, range 300-850)
02/20/2020 - TU 850 (Discover TU FICO® Score 8, range 300-850)
03/24/2020 - EQ 884 (Citi EQ FICO® Bankcard Score 8, range 250-900)
GOAL - 800! - App free since 11/22/2017
Message 4 of 15
Horseshoez
Senior Contributor

Re: Bank of America Cash Rewards Secured VISA: opinions pls


@brother7 wrote:

@Horseshoez wrote:


The BofA card is one of the better secured cards out there, and also one of the most difficult to get.


  1. Why would BofA (or any bank) make it difficult to get a secured credit card?
  2. What makes the BofA Cash Rewards Secured card difficult to get (versus other secured cards)?

Lots of banks do, fact of life.  As for why, well, in my case I was in "recovery" mode following my Chapter 13 discharge 2-months prior; BofA sent me a rejection notice which gave two reasons, 1) being in an active bankruptcy, and 2) applying for one of their high-end cards; both of which were false.  I appealed, proving my discharge was by then 3-months old and using my audit trail, showing I definitely applied for their Secured card.  I was denied a second time for the same set of reasons.

 

After the second denial I sent a letter to the BofA CEO expressing my concern as an existing customer and questioning BofA's underwriting rules.  By the time they contacted me via a phone call I'd already moved all of my banking over to TD; that's when they offered me a card if I'd bring my banking back.  "Sorry," I responded, "too late."

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 5 of 15
Horseshoez
Senior Contributor

Re: Bank of America Cash Rewards Secured VISA: opinions pls


@brother7 wrote:

@Horseshoez wrote:


The BofA card is one of the better secured cards out there, and also one of the most difficult to get.


  1. Why would BofA (or any bank) make it difficult to get a secured credit card?
  2. What makes the BofA Cash Rewards Secured card difficult to get (versus other secured cards)?

I looked up the TD Cash Secured Credit Card and noticed there's a $29 annual fee. Are you sure it's worth it?


Yes, there is an annual fee, prorated as a refund when the card is unsecured.  In my case, my card was unsecured after exactly 6-months meaning $14.50 was refunded when the card was graduated.  The flip side is I earned something like $1.14 in interest and $125 in cash back rewards.  Yeah, I think it was worth it, and then some as I now have an unsecured TDCash card with a $5,000 limit.

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 6 of 15
USMC_Winger
Frequent Contributor

Re: Bank of America Cash Rewards Secured VISA: opinions pls


@brother7 wrote:


  1. Why would BofA (or any bank) make it difficult to get a secured credit card?
  2. What makes the BofA Cash Rewards Secured card difficult to get (versus other secured cards)?

1.  BofA doesn't want to deal with high risk customers.  Those seeking secured credit cards are high risk customers.

 

2.  I found it impossible to get a BofA secured credit card, and I think I'm an excellent prospective credit card customer.  Monthly direct deposits of one to four paychecks every month, pay my bills on time and in full, and zero debt (until I took out a credit builder loan last week, which will report to the CBs around Apr. 1st).  I'd had BofA checking and savings accounts for nearly two decades, and I had one of my Roth IRAs at Merrill Lynch (acquired by BofA in 2009) for more than a decade, too, but I didn't have a credit history.  No FICO score.  (In case you're thinking I may have been a problem customer, I had my paychecks direct deposited every month, and I never bounced a check or overdrew my accounts.  Never had any problems whatsoever.)  I applied for BofA's secured card several times over the years, as well as other banks' and credit unions' secured cards, one hard inquiry every 6 months or so, as is recommended.  All the denials gave the reason that I had a "thin file," i.e. no credit history.  No other reason, until my most recent application with BofA.  That application for the BofA secured card last October was denied with both the "too thin file" excuse and "no customer relationship."  By that time, I'd moved my main banking to Navy Fed.  So they basically told me I'm never, ever getting their secured card.

 

People recommend building a relationship with a bank or credit union before applying for their credit cards, especially secured credit cards.  I did that for decades and came up empty-handed until Navy Fed approved my application last year.  Every application to BofA was a huge waste of my time (6 months of waiting until I could apply to another bank or credit union) and another wasted hard inquiry.

 

If your relative does decide to apply, make sure she has a checking or savings account at BofA or an investment account at Merrill first.  If she has to open a new account to do so, open the account at least a week or so before applying for the BofA secured credit card, so she's recognized as a customer in all their computer systems when she applies.  When she applies, they'll check her TU CR.  It's better if she doesn't have any recent inquiries on that CR.

 

There's no set time frame for BofA's secured credit card graduation, but it's generally 12 months.  If approved, she can deposit $300 to $4,900 for her secured credit card.  Then, after 12 months, tell her to call card services at 800-732- 9194 to see if her account qualifies for a deposit refund.

 

I wish her luck!

FICOs:





Message 7 of 15
Anonymous
Not applicable

Re: Bank of America Cash Rewards Secured VISA: opinions pls

I have a BofA secured cash rewards card. But I was offered the $99/$500 after getting denied for the unsecure cash rewards card. I mainly use it for gas and my monthly subscriptions. 

Message 8 of 15
FinStar
Moderator Emeritus

Re: Bank of America Cash Rewards Secured VISA: opinions pls


@Anonymous wrote:

I have a BofA secured cash rewards card. But I was offered the $99/$500 after getting denied for the unsecure cash rewards card. I mainly use it for gas and my monthly subscriptions. 


This is also definitely a good option when the 99/500 is offered.  Plenty of individuals have reported successful graduations and growing their BoA cards this way -- profile dependent of course.

Message 9 of 15
drboxing
Established Contributor

Re: Bank of America Cash Rewards Secured VISA: opinions pls

Agree TD bank secured is the way to go




Message 10 of 15
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