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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 bad credit.
Rewards rate
Annual fee
Intro offer
Regular APR
Recommended Credit Score
The Bank of America® Customized Cash Rewards Secured Credit Card* is a secured credit card, 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.
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.
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.
The Bank of America Customized Cash Rewards Secured does not offer a sign-up bonus 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.
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.
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 maximizing cash back. 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.
This secured card offers three main options when it comes to redeeming your rewards. You can:
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.
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.
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:
This card gives you a free FICO credit score, which is the type of credit score used by 90 percent of top lenders. 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.
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.
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.
The Bank of America Ⓡ Customized Cash Rewards Secured comes with no annual fee, 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 foreign transaction fee when you use it for purchases abroad. Other fees to watch out for include a 3 percent balance transfer fee (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.
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.
Annual fee
Intro offer
Rewards rate
Recommended Credit Score
Annual fee
Intro offer
Rewards rate
Recommended Credit Score
Annual fee
Intro offer
Rewards rate
Recommended Credit Score
For the most part, these two Bank of America credit cards 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.
Compare these two card’s rewards rates and how they might work for your spending before you sign up.
You can also consider the Discover it® Secured Credit Card, 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.
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 responsible credit use under your belt, you’ll be able to graduate to a better credit card later on.
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.
The information about the Bank of America® Customized Cash Rewards Secured Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.