Bank of America® Customized Cash Rewards Secured review: Earn cash back while building credit

Like any other card, the Bank of America Customized Cash Rewards Secured can help you improve your credit if you use it responsibly. 

• Always pay on time: The first habit you want to adopt is to always pay your credit card bill on time. Payment history is the most influential credit score factor, responsible for 35 percent of your FICO score.

• Don't max out your credit limit: The second most important credit factor is the credit utilization ratio, or how much of your credit limit you're using, expressed in a percentage. To avoid hurting your scores, it's best to use under 30 percent of your credit limit. Generally, people with the highest credit scores have a single-digit utilization ratio.

• Put down more than the minimum security deposit: Note that if you only put down $200, it might be challenging to maintain a healthy credit utilization ratio. It can be helpful to pay off the balance weekly to prevent it from accruing.

• Keep track of your credit progress: With this card, you can also track your progress by checking your FICO score every month. Since this is the most widely used score by lenders, it can give you a good idea of how your credit is faring.

This card can be an excellent choice for a credit builder who doesn't want to miss out on rewards while improving their credit score. 

Rewards: Generous rate on a variety of categories

One major benefit of the Bank of America Customized Cash Rewards Secured is that you earn rewards. The boosted rates are also relatively generous when you compare them to other secured credit cards.

For instance, the Discover it® Secured Credit Card only offers 2 percent cash back on gas station and restaurant purchases compared to the 3 percent you can earn on either category with this card. You're also limited to $1,000 in combined purchases each quarter — compared to the $2,500 spending cap on combined 3 percent and 2 percent categories with the Bank of America Customized Cash Rewards Secured.

With strategic use, you can have significant rewards earnings with the Bank of America Customized Cash Rewards Secured. This is especially true since it includes everyday spending categories like dining, online shopping, and grocery stores. 

Credit-building: Free access to FICO credit score

This card gives you free monthly access to your FICO credit score through the mobile banking app or Bank of America online banking, which is the type of credit scoring service used by 90 percent of top lenders. By regularly checking your FICO score for free, you can easily monitor potential issues and track the progress of your credit score.

This isn't a rare feature for a secured credit card, but it's certainly essential for credit builders. Plus, not all issuers offer access to FICO. For instance, Capital One only provides access to VantageScore, which is a less commonly used credit scoring service by lenders.

Rates and fees: Low minimum security deposit

You have to put down a $200 minimum security deposit to secure your line of credit on the Bank of America Ⓡ Customized Cash Rewards Secured. Also, note that your security deposit is fully refundable if you end up upgrading your secured card or close your account in good standing.

The deposit amount is on the lower side compared to some other cards. For instance, the U.S. Bank Secured Visa® Card, which doesn't offer rewards, requires a security deposit of at least $300.

The Bank of America Customized Cash Rewards Secured can be an excellent choice for a secured credit card. However, certain factors might prompt you to consider picking a different card.

Credit-building: No automatic credit limit increase or upgrade to an unsecured card

Bank of America will periodically review your account to see if you qualify to have your security deposit returned, but there are no automatic credit limit increases, as your credit line depends solely on your security deposit. If you want a credit limit higher than $200, you'll have to put down more money. 

To compare, the Capital One Platinum Secured Credit Card holders get automatic reviews for a credit line increase after six months of on-time payments. And that doesn't require you to add more to your security deposit.

You also don't get automatically considered for an unsecured card upgrade after demonstrating responsible credit card use. You can find a secured credit card that has such an upgrade as a built-in feature. This way, you have an incentive to maintain good credit habits. For example, with the Discover it® Secured Credit Card, the issuer will automatically review your account and may upgrade you to an unsecured card after seven months of responsible card use.

Rewards: Earnings have a few limitations 

The Bank of America Customized Cash Rewards Secured Card has a $2,500 spending cap on its 3 percent and 2 percent cash back categories combined, which can be seen as a significant downside for cardholders aiming to maximize their rewards. Each quarter, you are limited to only one category for the higher cash back rate, meaning that once the spending threshold is reached, any further purchases in that category earn only 1 percent cash back. This limitation diminishes the overall rewards earning potential, especially for those who frequently spend in multiple categories.

Cardholder perks: No standout benefits

The Bank of America Customized Cash Rewards Secured Card is a strong option for those looking to build or rebuild their credit. However, a notable downside is its lack of cardholder perks. While it offers standard features like $0 fraud liability and certain protections, it doesn't provide additional benefits. Although it is common for secured cards to have limited perks, this does not help the card stand out among its competitors.

This card's reward structure is its most attractive feature, but Bankrate credit cards editor Re'Dreyona Walker expresses that even though this card may be worth considering if you want to earn rewards while building your score, there are better cards out there when it comes to credit-building benefits.

Although this card offers decent reward rates on everyday spending categories, keeping up with choosing a category each quarter can be daunting if you're trying to focus on building credit, and there are no standout credit-building perks despite the fact that it's a secured card. An alternative option, such as a flat-rate rewards secured card or a card with a stronger focus on credit building, could suit you better.

Capital One Quicksilver Secured Cash Rewards Credit Card

Best for flat-rate cash back

Chime Credit Builder Secured Visa® Credit Card

Best for flexible deposit

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.

Our proprietary card rating system takes into account a mix of factors when scoring credit cards for students and people building credit, including each card’s cost, APR, credit-building tools and more.

We analyzed over 50 of the most popular cards designed for students and people with no credit history, bad credit or a fair credit score and scored each based on where its key features stood in relation to others in its category. 

Here are some of the key factors that gave this card its score: 

Our proprietary card rating system takes into account a mix of factors when scoring credit cards for students and people building credit, including each card’s cost, APR, credit-building tools and more.

We analyzed over 50 of the most popular cards designed for students and people with no credit history, bad credit or a fair credit score and scored each based on where its key features stood in relation to others in its category. 

Here are some of the key factors that gave this card its score: