Bank of America Unlimited Cash Secured vs. Bank of America Customized Cash Secured
Key takeaways
- Bank of America offers secured versions of many of its popular rewards credit cards
- If you prefer rotating categories, the Bank of America® Customized Cash Rewards Secured Credit Card offers cash back in a number of choice bonus categories (terms apply)
- If you prefer simplicity, the Bank of America® Unlimited Cash Rewards Secured credit card offers flat cash back on every purchase
Bank of America has many top personal credit cards. However, you may not know that many of its popular rewards cards come in secured versions. Both the Bank of America® Customized Cash Rewards Secured Credit Card* and the Bank of America® Unlimited Cash Rewards Secured credit card* offer cardholders the opportunity to build or improve credit while earning rewards.
If you are considering a secured credit card, these cards should be on your list. Here’s how they compare to one another.
Main details
| Cards | Bank of America Customized Cash Rewards Secured Credit Card | Bank of America Unlimited Cash Rewards Secured credit card |
|---|---|---|
| Welcome bonus | N/A | N/A |
| Rewards rate |
|
|
| Intro APR | N/A | N/A |
| Annual fee | $0 | $0 |
Bank of America Customized Cash Secured vs. Bank of America Unlimited Cash Secured highlights
Although both of these secured cards come from Bank of America, there are some similarities and differences you should be aware of.
For instance, cardholders must put down a security deposit for a secured credit card, which will typically serve as the credit line amount. With either card, you’ll have to provide Bank of America with a (refundable) security deposit between $200 and $5,000. Once approved for either secured card, your deposit is used — in combination with your income and your ability to pay — to determine your credit limit.
Welcome bonus winner: Tie
Unfortunately, neither of these cards offers a welcome bonus, but card issuers typically don’t offer welcome bonuses for secured cards.
Rewards rate winner: Customized Cash Secured
The Customized Cash Secured offers 3 percent cash back on an eligible category of your choosing, 2 percent cash back at grocery stores and wholesale clubs and 1 percent cash back on all other purchases. Note that 2 percent and 3 percent categories are limited to a combined spending cap of $2,500. After you reach that limit, you’ll get 1 percent back.
The eligible 3 percent choice categories include:
- Gas and EV charging stations
- Online shopping (including cable, internet, phone plans and streaming)
- Dining
- Travel
- Drugstores and pharmacies
- Home improvement and furnishings
When you open your account, you can change your default category if you want to get 3 percent cash back in another category.
The Unlimited Cash Secured offers an unlimited 1.5 percent cash back on all of your spending. With this flat cash back card, you won’t have to worry about choosing a category or keeping track of your spending at different retailers to earn bonus cash back. You’ll simply swipe your card and earn 1.5 percent cash back every time.
In this regard, the rewards winner for you will depend on your spending habits. For example, if you get the Customized Cash Secured and you don’t use it in any of its elevated rewards categories, you’ll earn 1 percent back on most of your purchases. This means you’d earn less with that card than with the Unlimited Cash Secured’s 1.5 percent cash back.
Annual fee winner: Tie
Typically, secured cards come with various fees — the annual fee being one of the most common charges. Neither of these cards has an annual fee.
Foreign transaction fee winner: Tie
Both cards charge a 3 percent foreign transaction fee. Even if you don’t travel much, be aware that, when you purchase items from merchants that are not based in the U.S., you could still pay a foreign transaction fee.
Which card earns the most?
If you spend a lot in the Customized Cash Secured’s bonus categories, you’ll earn more cash back. If not, you might be better off with a flat-rate cash back card like the Unlimited Cash Secured. Plus, the latter doesn’t have caps on cash back like the Customized Cash Secured.
Spending example
The following spending example and related cash back amounts might seem small. After all, both cards are secured cards with potentially low credit limits. In any case, this example will demonstrate how your spending patterns will dictate the amount of cash back you’ll earn with either card.
For the Customized Cash Rewards, say you choose online shopping as your 3 percent category. Here’s what you can expect to earn on various types of monthly spending with these two cards:
| Category | Monthly spend | Bank of America Customized Cash Rewards Secured Credit Card | Bank of America Unlimited Cash Rewards Secured credit card |
|---|---|---|---|
| Dining | $50 | $0.50 | $0.75 |
| Groceries (or wholesale clubs) | $100 | $2.00 | $1.50 |
| Gas (or EV charging) | $100 | $1.00 | $1.50 |
| Online shopping (including cable, internet, phone plans and streaming) | $150 | $4.50 | $2.25 |
| Home improvement and furnishings | $50 | $0.50 | $0.75 |
| Drugstores and pharmacies | $35 | $0.35 | $0.53 |
| Other miscellaneous spending | $150 | $1.50 | $2.25 |
| Total | $635 | $10.35 | $9.53 |
Why should you get the Bank of America Customized Cash Secured?
If you want to build or improve your credit score while earning bonus cash back rewards, go for the Customized Cash Secured. Just make sure you’re comfortable updating your bonus category as frequently as you need to with this card or you won’t earn the boosted rewards rate.
Additional benefits
As a secured card, you won’t get many benefits. The fact that you can earn rewards at all makes this card an outlier in the secured credit card space. However, there are a few benefits you should know about:
- $0 fraud liability
- Free access to your FICO credit score
- aOverdraft protection when you link an eligible Bank of America checking account to your credit card
Redemption options
You can redeem cash rewards for statement credits, deposits to an eligible Bank of America account or credit to an eligible Merrill account. As long as your account remains open and in good standing, cash rewards will not expire.
Recommended credit score
No credit history is needed to qualify for the Customized Cash Secured.
Why should you get the Bank of America Unlimited Cash Secured?
Like the Customized Cash Secured, the Unlimited Cash Secured offers the opportunity to build or improve your credit score. The Unlimited Cash Secured also shares similar features and benefits. The main difference with this card is that you’ll earn a flat 1.5 percent cash back on all of your purchases.
Additional benefits
The Unlimited Cash Secured also offers free access to your FICO credit score, $0 fraud liability and overdraft protection, among other basic card benefits.
Redemption options
Cash back can be redeemed for statement credits, deposits to an eligible Bank of America account or credit to an eligible Merrill account.
Recommended credit score
No credit history is needed to qualify for the Unlimited Cash Secured.
The bottom line
Because both the Bank of America Customized Cash Rewards Secured and the Bank of America Unlimited Cash Rewards Secured are from the same issuer, their features and benefits are almost identical. The main difference between these two cards is their respective rewards rates.
If you think you’ll eventually upgrade to either card’s unsecured counterpart — the Bank of America® Customized Cash Rewards credit card or the Bank of America® Unlimited Cash Rewards credit card — take a closer look at the rewards rates (which are the same as the secured cards). If your goal is to eventually get an unsecured card, start with the secured version that matches your spending habits the best.
*All information about the Bank of America® Customized Cash Rewards Secured Credit Card and Bank of America® Unlimited Cash Rewards Secured credit card has been collected independently by Bankrate and has not been reviewed or approved by the issuer.
