Bank of America® Unlimited Cash Rewards Secured Credit Card Review: Build Credit With 1.5% Cash Back
Our Bank of America® Unlimited Cash Rewards Secured Credit Card review reveals how this card uniquely combines credit building with a fantastic 1.5% unlimited cash back rate. See if this no-annual-fee option can kickstart your financial future.
| Annual Fee | $0.00 |
| Sign-up Bonus | Not eligible for signup bonus. |
| Rewards Rate | Unlimited 1.5% Cash Back. |
| Intro APR | Introductory APR None |
| Regular APR | Standard APR 27.74% variable |
| Other Fees | Balance Transfer Fee 5% of each transaction |
Overview
The Bank of America® Unlimited Cash Rewards Secured Credit Card stands out in the credit-building space by offering a feature rarely seen on secured cards: an excellent rewards rate. Cardholders earn an unlimited 1.5% cash back on all purchases with no annual fee, making it one of the most rewarding options available for those with poor or limited credit history. The cash back is straightforward to earn and can be redeemed flexibly for statement credits or deposits into an eligible Bank of America account. This combination of no annual fee and a strong, flat rewards rate provides a clear path for building credit without sacrificing the ability to earn valuable rewards on everyday spending.
As a secured card, this product requires a refundable security deposit (starting at $200) which will typically determine your credit limit. Its primary purpose is to help you establish or rebuild a positive payment history. Bank of America will periodically review your account, offering the potential to have your security deposit returned and graduate to an unsecured card over time. However, it's crucial to note the card's very high APR and lack of an introductory interest rate offer. Carrying a balance from month to month will be expensive, so it's essential to pay your bill in full to avoid interest charges that could undermine your credit-building efforts.
Ultimately, this card is an excellent choice for individuals who are new to credit or need to repair their score but don't want to miss out on earning rewards. If you can pay your balance in full each month and want a simple, effective tool for building credit with a major bank, the Bank of America® Unlimited Cash Rewards Secured Credit Card is a top-tier option that rewards you for your responsible habits.
Pros & Cons
What's great
- No annual fee
- Cashback on all purchases
- Flexible rewards redemption
- Potential to graduate to an unsecured card
- Fraud protection
Things to consider
- No intro APR period
- High regular APR
- No sign-up bonus
- Requires a security deposit
- High balance transfer fee
Benefits
Excellent Flat-Rate Rewards on a Secured Card
The standout feature of the Bank of America® Unlimited Cash Rewards Secured Credit Card is its simple yet powerful rewards structure. Cardholders earn an unlimited 1.5% cash back on every purchase, with no categories to track or spending caps to worry about. This rate is highly competitive even among unsecured cards and is a rare, valuable perk in the secured card market, where rewards are often minimal or nonexistent. Paired with a $0 annual fee, this card allows you to build your credit history while earning tangible cash back on your everyday spending, a combination that provides exceptional value.
Flexible Redemptions and a Path to an Unsecured Card
Your cash back is easy to use and never expires as long as your account remains open. You can redeem your rewards in any amount for a statement credit, a direct deposit into an eligible Bank of America® account, or even to pay for purchases at Amazon.com or with PayPal. Beyond rewards, the card's primary benefit is its potential as a credit-building tool. Bank of America will periodically review your account and overall credit history, offering a path to graduate to an unsecured card and have your security deposit returned. This provides a clear stepping stone toward a stronger financial future without having to apply for a new card.
Drawbacks
The card’s most significant weakness is its very high 27.74% variable APR. Since there is no introductory APR period for purchases or balance transfers, any balance carried from month to month will immediately begin to accrue costly interest. This high rate makes it imperative for cardholders to pay their statement in full every cycle, as interest charges can quickly outweigh the value of the 1.5% cash back rewards.
As a secured card, this product requires an upfront, refundable security deposit of at least $200, which will also act as your credit limit. While this is standard for secured cards, it does mean tying up your own money to access credit. The card also lacks a sign-up bonus, a common perk on many rewards cards. Finally, while Bank of America offers the possibility of graduating to an unsecured card and having your deposit returned, this is based on periodic reviews and is not guaranteed for every cardholder.
Decision Guidance
This card is an excellent choice for individuals building credit who are confident they can pay their balance in full each month. The opportunity to earn unlimited 1.5% cash back with no annual fee is a rare and valuable feature in the secured card market. However, if you anticipate carrying a balance, the very high interest rate will quickly outweigh any rewards earned, making other credit-building options a better fit.
Summary
The Bank of America® Unlimited Cash Rewards Secured Credit Card is a top choice for building credit, offering an excellent 1.5% flat cash back rate that's virtually unheard of in the secured card market. While its high APR makes carrying a balance a costly mistake, it provides a clear and rewarding path for those who can pay their bill in full each month to establish a positive credit history without an annual fee.