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Bank of America Customized Cash Rewards Secured Card: Useful, If You Qualify
The Bottom Line
3.9
Cardholders get rich, customizable rewards not typically found with other secured credit cards. However, those with poor credit — generally the target audience for secured cards — may be out of luck.
Rates, fees and offers
Rates, fees and offers
Annual fee
$0
Rewards rate
1%-6%
Bonus offer
None
Intro APR
N/A
Ongoing APR
APR: 27.74% Variable APR
Cash Advance APR: See Terms
Penalty APR: 29.99%, Variable
Balance transfer fee
5% of the amount of each transaction
Foreign transaction fee
3%
More details from Bank of America
More details from Bank of America
- Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category.
- Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
- Help establish, strengthen or even rebuild your credit with a card that earns you cash back on purchases.
- Open your account with a security deposit ($200-$5,000). Upon credit approval your required deposit is used, in combination with your income and your ability to pay, to help establish your credit line.
- No annual fee and cash rewards don’t expire as long as your account remains open.
- Turn daily purchases into everyday wins. Simply use your Customized Cash Rewards credit card for the things you already buy – from gifts to groceries – BofA Rewards™ members earn more cash back.
- Purchase Rate Variable APR that's currently 27.74% will apply.
- For applicants who qualify, more favorable terms and pricing may be available through our unsecured products.
- Secured cards are not eligible for a new account bonus, like a cash rewards bonus offer, and introductory APRs are not available.
Pros and Cons
Pros
No annual fee
Reports to the three major credit bureaus
Earns rewards
Cons
Requires minimum deposit
High APR
Detailed Review
The Bank of America® Customized Cash Rewards secured credit card comes with useful features that can help your credit profile. Like the unsecured version of the card, it earns bonus cash back in spending categories of your choice, from a broad list of options. That’s particularly valuable considering many secured cards don't offer rewards at all.
However, the card has some major snags. Its bonus categories have a spending cap, which can be limiting for larger spenders. Additionally, and most notably, you need to have at least fair credit (generally, credit scores from the mid to high 500s) to qualify for the card. That makes it less accessible for those with poor or no credit, for whom a secured card would be most beneficial.
If you do have fair credit, the Bank of America® Customized Cash Rewards secured credit card can be an OK choice, especially because options for fair credit scores are historically slim. But if your credit is in the good-to-excellent range, you'll have even better options.
Bank of America® Customized Cash Rewards secured credit card: Basics
Card type: Secured.
Annual fee: $0.
Sign-up bonus: None.
Security deposit: A minimum refundable deposit of $200 is required. The card’s maximum deposit is $5,000, depending on approval. Your deposit will determine your credit limit.
Ongoing rewards:
In the first year: 6% back on a category of your choice (options listed below), 2% back at grocery stores and wholesale clubs, and 1% back on all other purchases.
After the first year: 3% back on a category of your choice (from the same options), 2% back at grocery stores and wholesale clubs, and 1% back on all other purchases.
You’ll earn 6%/3% and 2% cash back on the first $2,500 of combined spending on your bonus category, grocery store and wholesale club spending per quarter. After hitting that limit, you’ll earn 1% back on those purchases. The 6%/3% back bonus categories to choose from are:
Gas/EV charging.
Online shopping (including cable, streaming, internet and phone plans).
Dining.
Travel.
Drugstores.
Home improvement and furnishings.
You can change this category once each calendar month, and your selected category will remain the same unless you change it.
Cash back can be redeemed in any amount for statement credit; deposits into an eligible Bank of America® checking, savings account or Merrill account and to pay for purchases when you shop at Amazon.com or check out with PayPal. You can also redeem rewards as a contribution to a qualifying 529 account with Merrill or for a check, starting at $25.
APR: The ongoing APR is 27.74% Variable APR.
Compare to Other Cards
Benefits and Perks
Broad and flexible rewards
The card itself stands out for how customizable it is, allowing cardholders to select their top bonus categories every month. Few cards offer that level of rewards-earning personalization.
The 6%/3% categories that cardholders can choose from are also noteworthy for how wide-ranging they are. Options include popular categories like dining and gas/EV, but also less-common ones like home improvement/furnishings and drugstores. And those categories themselves are inclusive. For example, the home improvement category includes everything from hardware stores, roof contractors and air conditioning repair services to antique shops and florists. The online shopping category includes online retail purchases from places like Nordstrom and Walmart, as well as internet and streaming services purchases.
If you're a credit newbie or looking to shore up your scores, rewards aren't necessarily a priority. But they're certainly nice to have, and the Bank of America® Customized Cash Rewards secured credit card offers rates comparable to cards meant for those with good or excellent credit.
Refundable security deposit
To begin using the Bank of America® Customized Cash Rewards secured credit card, you’ll need to put up a $200 security deposit, a fairly standard amount for traditional secured cards. According to Bank of America®’s website, the issuer will periodically review cardholders' accounts and credit histories to determine whether they're eligible to have that deposit returned. Responsible cardholding habits include things like making consistent on-time payments.
Holders of the Bank of America® Customized Cash Rewards secured credit card are eligible to join the BofA Rewards™ program, which offers a credit card rewards boost. You’ll earn a 10% rewards bonus just for being a member of the program, which requires having a personal checking account with the bank. Cardholders can get an even bigger bump in rewards, but you’ll need to keep large amounts of cash with Bank of America® or its Merrill-branded investment arms to be eligible. For example, to get a 50% rewards boost, you’ll need at least $100,000 saved with the bank. Learn more about the program here.
Drawbacks and Considerations
Credit score requirements
Secured credit cards are aimed at those with poor credit scores or no credit histories. And because they’re backed by an upfront security deposit, they're typically easier to get than traditional, unsecured cards. Oddly, though, the Bank of America® Customized Cash Rewards secured credit card recommends fair credit to qualify.
Issuers consider many factors when determining approval, so a fair credit requirement does not necessarily mean that those with scores below that threshold will automatically get rejected for the Bank of America® Customized Cash Rewards secured credit card Still, it's a potentially major obstacle for those who're hoping to use the card to help their credit.
For a secured card option without such requirements, consider the Capital One Quicksilver Secured Cash Rewards Credit Card. It, too, is a $0-annual-fee secured card (see rates and fees) that earns rewards. But unlike the Bank of America® Customized Cash Rewards secured credit card, the recommended credit score range extends to those with poor credit. The card earns an uncapped 1.5% cash back on purchases plus 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel. Terms apply. It also features the possibility of automatic credit line increases in as little as six months for those who qualify, as well as an opportunity to earn back your security deposit as statement credit with responsible card use. The card requires a minimum refundable deposit of $200.
Caps on bonus rewards
The Bank of America® Customized Cash Rewards secured credit card has a quarterly spending cap that applies to combined spending done in the category of your choice and grocery stores/wholesale clubs. Once you hit the $2,500 quarterly limit, you’ll earn a mere 1% cash back until the next quarter starts. This could be a drawback for heavy spenders.
How To Decide If It's Right For You
Thanks to its high rewards rates and customizable bonus categories, the Bank of America® Customized Cash Rewards secured credit card is a solid option — as long as you have the credit scores to qualify for it.
If you have bad or no credit, however, the card might be difficult to get — which sort of defeats the purpose of a secured credit card in the first place.
If you fall into that camp, consider other secured cards or cards for bad credit.
Accepts poor credit
This card has the same minimum security deposit requirement as the Bank of America® Customized Cash Rewards secured credit card — $200 — but offers more perks. First, Capital One lets you pay the deposit in $20 installments within 35 days of being approved. (Terms apply.) The card also earns an unlimited 1.5% cash back on purchases, as well as 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel. Plus, there are no caps on those rewards.
Looking For Something Else?
Methodology
NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.
About the author
Funto Omojola
Lead Writer & Content Strategist
