Why should you consider a Bank of America secured credit card? When it comes to secured credit cards, the fairness and value offered really does run the gambit. There are the outright atrocious cards that charge ridiculous fees and offer little value and then there are the great cards that give you everything you deserve. If you've been considering a Bank of America secured card, here are some pros and cons to consider.
Pro: An Opportunity to Build or Restore Your Credit
The Bank of America secured credit card offers you a chance to rebuild your credit. Unlike prepaid credit cards and some of the other secured cards on the market, Bank of America will report your credit card activity to the three credit bureaus. This means your good account standing will have a positive impact on your credit report, which will raise your credit score over time.
Pro: A Reasonable Annual Fee
Bank of America offers very reasonable annual fees with their secured card. While some companies try and charge $50, $60 or even more for their cards, Bank of America's annual fee is just $29. That's a great value when compared to the other secured credit cards on the market.
Pro: Small Deposit Requirements
Many secured cards will require a deposit of $500 or more to open a secured credit account. Bank of America's minimum deposit is just $300. If you don't have a lot of cash to spare, this can make all the difference in the world.
Con: A High Interest Rate
When you go to the Bank of America website to check out their secured card, it might look like a reasonable interest rate at first glance. However, it's not the 10.99% variable APR that many some consumers think. If you look closely at the site, it's a prime PLUS 10.99% variable APR. That means if prime is 7%, your APR is 17.99%, not 10.99%.
Con: High Balance Transfer Fees
If you want to do a balance transfer or take out a cash advance, the fees might be a problem. Not only will you be charged regular interest, you'll also be charged a 4% transfer/cash advance fee.
When applying for a secured card it's important that you make sure the card you choose is the best card for your needs. If you'll be paying your bill in full each month and don't have any balance transfer or cash advance needs, the Bank of America secured credit card may very well be the best card for you.
