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The Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only has a flat 1.5% cash back earning rate. That's decent for a secured credit card. However, it's got virtually no other benefits.

For most who are looking for a new credit card, a product with no benefits should be a non-starter. However, the best secured credit cards are less about benefits and more about building credit. If you're opening a secured credit card, you've either got a limited, nonexistent, or spotty credit history. Once your credit score is in a better place, you can focus on pursuing the best credit cards that earn valuable travel rewards and cash back.

Bank of America Unlimited Cash Rewards Secured Review: Is It the Best Credit Card for You?

If you're searching for a product that can help you begin your journey into the world of credit (or regain your footing), the Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only should be one of a handful of choices you examine.

Secured credit cards are excellent credit-building tools for a couple of reasons.

First, secured credit cards almost always incur no annual fee — so there's no real financial risk to opening them. Also, many folks with little or no credit can qualify for them, as they are designed to minimize the risk a bank takes by extending credit to those with minimal credit history.

Here's why: When you apply for the Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only, you must make a cash deposit to Bank of America of between $200 and $5,000. The amount of money you deposit will determine how large your credit line is. If you deposit $1,000, you'll receive a $1,000 credit line. The bank will keep this money in case you default on your payments. Then they'll use your money to pay your debts.

This deposit is refundable if you decide to move away from the Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only.

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Bank of America Unlimited Cash Rewards Secured Rewards

Bank of America Unlimited Cash Rewards Secured welcome bonus

The Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only does not come with any sort of welcome bonus offer, which is typical of secured credit cards.

How to earn rewards from the Bank of America Unlimited Cash Rewards

The Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only earns a flat 1.5% cash back on all purchases. This may not sound like an earth-shattering return rate, but it's above average among secured credit cards. Many offer no rewards at all.

That said, it's not an industry leader, either. For example, the U.S. Bank Cash+® Visa® Secured Card - Product Name Only earns 5% cash back on the first $2,000 in combined eligible purchases each quarter in two qualifying categories:

  • Fast food
  • Home utilities
  • TV/internet/streaming
  • Department stores
  • Cell phone providers
  • Electronic stores
  • Sporting goods stores
  • Gyms/fitness centers
  • Ground transportation
  • Movie theaters
  • Furniture stores
  • Select clothing stores.

 You can choose new categories each quarter. You'll also get 2% cash back for spending in one eligible category:

  • Grocery stores/delivery
  • Restaurants
  • Gas/EV charging stations

Again, you can choose your bonus category each quarter. You'll get 1% back on everything else.

How to redeem rewards from the Bank of America Unlimited Cash Rewards Secured

This card offers a few different redemption options for your rewards, including: 

  • A statement credit to your credit card
  • A deposit made directly into your Bank of America checking or savings account
  • A credit to your qualifying Merrill Cash Management Account, including 529 accounts

For one-time redemptions for statement credits, deposits to Bank of America checking/savings accounts, or to qualifying Merrill Cash Management Accounts, there's no minimum redemption amount. A minimum $25 deposit applies to 529 accounts, as well as to automatic redemptions (available for checking/savings deposits or Cash Management Account deposits only).

Your rewards will never expire as long as your account is open and in good standing.

Bank of America Unlimited Cash Rewards Secured Benefits and Features

Refundable security deposit

You must deposit at least $200 as collateral to Bank of America upon opening this card. Once you're able to upgrade your card to a non-

Free FICO score

This card gives you the ability to view your FICO score each month for free after you opt-in. Monitoring your credit score regularly is key to healthy credit — and it's one way you can quickly discern whether you've been a victim of fraud.

Account alerts

The Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only will keep you abreast concerning your due dates, credit balances, posted payments, etc. You can choose to receive this information via texts and/or emails.

Bank of America Unlimited Cash Rewards Secured Annual Fee and Other Costs

The Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only comes with a Bank of America® Unlimited Cash Rewards Secured Credit Card - Annual Fee annual fee. You should try to pay your card in full every month, because if you carry a balance, you'll be charged a Bank of America® Unlimited Cash Rewards Secured Credit Card - Regular APR APR. That's significantly higher than the average credit card interest rate.

In addition, you'll be charged fees in certain situations, including:

  • Foreign transaction fee: 3% of the US dollar amount of each transaction made in a foreign currency (this fee will be in addition to any other applicable fee, so use one of the best credit cards with no foreign transaction fees instead if you're overseas)
  • Balance transfer fee: 3% of the amount of each transaction
  • Cash advance fee: Direct deposit and check cash advances: 3% of the amount of each transaction; ATM, over-the-counter, same-day online, and cash equivalent cash advances: 5% of the amount of each transaction
  • Late payment fee: Up to $40

How the Bank of America Unlimited Cash Rewards Secured Compares

Bank of America Unlimited Cash Rewards Secured vs other Bank of America secured credit cards

 

Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only

Bank of America® Customized Cash Rewards Secured Credit Card - Product Name Only

BankAmericard® Secured Credit Card - Product Name Only

Annual fee

Bank of America® Unlimited Cash Rewards Secured Credit Card - Annual FeeBank of America® Customized Cash Rewards Secured Credit Card - Annual FeeBankAmericard® Secured Credit Card - Annual Fee

Rewards rate

Bank of America® Unlimited Cash Rewards Secured Credit Card - Ongoing Bonus

Bank of America® Customized Cash Rewards Secured Credit Card - Ongoing Bonus

N/A

Minimum security deposit

$200$200$200

Review

 Bank of America Customized Cash Rewards Secured credit card review 

Bank of America Unlimited Cash Rewards Secured vs other secured credit cards

 

Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only

U.S. Bank Cash+® Visa® Secured Card - Product Name Only

U.S. Bank Altitude® Go Visa® Secured Card - Product Name Only

Annual fee

Bank of America® Unlimited Cash Rewards Secured Credit Card - Annual FeeU.S. Bank Cash+® Visa® Secured Card - Annual FeeU.S. Bank Altitude® Go Visa® Secured Card - Annual Fee

Rewards rate

Bank of America® Unlimited Cash Rewards Secured Credit Card - Ongoing Bonus

U.S. Bank Cash+® Visa® Secured Card - Ongoing Bonus

U.S. Bank Altitude® Go Visa® Secured Card - Ongoing Bonus

Minimum security deposit

$200$300$300

Review

 U.S. Bank Cash Plus Secured credit card reviewU.S. Bank Altitude Go Secured credit card review

Bank of America Unlimited Cash Rewards Secured Frequently Asked Questions

Is the Bank of America Unlimited Cash Rewards Secured card worth it?

The Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only is worthwhile for those being held back by a low (or nonexistent) credit score. This card's 1.5% return rate on all purchases is a great daily driver while you foster a strong credit score. Once your score exceeds 700, you can look for more rewarding and benefits-rich cards. 

How hard is it to get the Bank of America Unlimited Cash Rewards Secured card?

It is not difficult to open the Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only. Because it's a secured credit card, it is targeted at those with low credit scores.

What is the Bank of America Unlimited Cash Rewards Secured credit limit?

The highest credit limit you can have with this card is $5,000.

What are the disadvantages to the Bank of America Unlimited Cash Rewards Secured?

This card lacks any notable benefits. However, most secured credit cards are devoid of valuable benefits, as their main purpose is to help you build healthy credit.

Methodology: How we reviewed the Bank of America Unlimited Cash Rewards Secured Credit Card

We compared the ongoing benefits, earning rate, and minimum security deposit stipulations of the Bank of America® Unlimited Cash Rewards Secured Credit Card - Product Name Only against other competing secured credit cards and landed on a rating of 3.88 stars out of 5 stars.

Here's a full breakdown of how we rate credit cards at Insider.

Read the original article on Business Insider