Bank of America® Unlimited Cash Rewards Secured Credit Card Review: Earn Rewards While Building Credit
Looking to build credit and earn rewards at the same time? This Bank of America® Unlimited Cash Rewards Secured Credit Card review dives deep into how you can earn unlimited cash back while establishing your credit.
| Annual Fee | $0.00 |
| Sign-up Bonus | No signup bonus. |
| Rewards Rate | 1.5%-2% Cash Back |
| Intro APR | None |
| Regular APR | Standard APR 27.49% variable |
| Other Fees | Balance Transfer Fee 5% of each transaction |
Overview
The Bank of America® Unlimited Cash Rewards Secured Credit Card is a rare find in the world of credit-building cards. It stands out by offering a simple yet valuable rewards program: unlimited 1.5% cash back on all purchases, with no annual fee. While most secured cards focus solely on establishing a positive payment history, this card allows you to earn rewards while you do it. Like other secured cards, it requires a security deposit (starting at $200) that typically sets your credit limit, making it an accessible starting point for those with poor or limited credit.
While the rewards are a major perk, it’s important to remember this card’s primary purpose is to build credit. It comes with a high variable APR of 27.49%, so it's crucial to pay your balance in full each month to avoid interest charges that would quickly wipe out any cash back you've earned. Bank of America will periodically review your account for the possibility of returning your security deposit and upgrading you to an unsecured card, though this is not guaranteed.
Ultimately, this card is an excellent choice for individuals who are serious about building or rebuilding their credit but don't want to forgo earning rewards. If you can provide the security deposit and are committed to responsible use—meaning paying your bills on time and in full—this card offers a clear and rewarding path toward a better financial future.
Pros & Cons
What's great
- No annual fee
- Cashback on all purchases
- Low credit score requirement
- Potential for security deposit return
- Flexible reward redemption options
Things to consider
- No intro APR period
- High regular APR
- No sign-up bonus
- Requires security deposit
- High balance transfer fee
Benefits
Rewarding for a Secured Card
For a card designed to build credit, the Bank of America® Unlimited Cash Rewards Secured Credit Card offers an unusually strong rewards program. During your first year, you'll earn a special rate of 2% cash back on all purchases. After the first year, the card settles into a very respectable unlimited 1.5% cash back on everything you buy. This flat-rate structure is simple to track and valuable for everyday spending, a feature rarely seen on secured cards, which often come with no rewards at all. Plus, with a $0 annual fee, every dollar you earn in cash back is pure value.
Flexible and Simple Redemptions
Redeeming your rewards is just as straightforward as earning them. You can cash in your rewards at any time, for any amount, with no minimums required. Options are flexible and practical, including a statement credit to lower your balance, a direct deposit into a linked Bank of America® checking or savings account, or even using your rewards to pay for purchases at Amazon.com or through PayPal. This level of simplicity and flexibility makes it easy to access the value you earn. As you use the card responsibly, Bank of America will periodically review your account for the possibility of returning your security deposit and graduating you to an unsecured card.
Drawbacks
As a card designed for building credit, its most significant drawback is a very high 27.49% variable APR. Carrying a balance at this rate would be extremely costly and could quickly undermine your credit-building efforts, making it essential to pay your statement in full every month. Like all secured cards, it also requires a security deposit (minimum of $200) to open the account, which ties up your own funds. While Bank of America periodically reviews your account for a potential "graduation" to an unsecured card and a return of your deposit, this is not guaranteed.
The card also comes with no introductory offers. You won't find a traditional sign-up bonus for meeting a spending threshold, nor is there a 0% intro APR period for new purchases or balance transfers. With a 4% balance transfer fee, it's not a practical tool for consolidating existing debt. These missing features underscore that the card's value is in its long-term use for responsible spending, not for upfront perks.
Decision Guidance
If you are building or rebuilding your credit and want to earn simple rewards without an annual fee, this card is an excellent choice. Its unlimited 1.5% cash back is a rare and valuable feature for a secured card, allowing you to get something back for your responsible spending. However, due to its high interest rate, this card is only suitable for those who can commit to paying their balance in full each month to avoid interest charges that would quickly cancel out any rewards.
Summary
The Bank of America® Unlimited Cash Rewards Secured Credit Card is a top-tier choice for building credit, offering a simple yet valuable 1.5% cash back rate rarely found on secured cards. Its high APR makes carrying a balance a costly mistake that will quickly negate any rewards earned. For those who can commit to paying their bill in full each month, however, it's one of the most rewarding and straightforward paths to establishing a positive credit history.