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Bank Of America Secured Credit Card Can Help Rebuild Credit Ratings

Credit cards can help consumers spread out the cost of every day items such as clothing, furniture, and other household needs. They are a convenient way to make purchases and spread out the payments. 

Consumers must be actively aware of their credit and manage it appropriately in order to protect their credit scores.  For those who have been through difficult times, a Bank of America Secured credit card can provide an opportunity to rebuild their credit scores.

Qualifying for a card is straightforward. Approval is dependent on the consumer’s income and security deposit.  Someone with a full time job and a deposit of $300 or more can normally qualify. The initial credit line on a Bank of America Secured credit card can be as much as $4900.

Initially the consumer can only charge to the amount that they deposit in their account.  For example, if they deposited $300 their credit limit on the card is $300.  After one year, the account is reviewed.  If the consumer has paid his or her bill on time and has not gone over their limit, the bank will consider raising their credit limit over the secured amount.

It is essential that a consumer understand all the terms of the card.  Late payments, returned check charges, transaction fees and other items can significantly affect the price of a purchase.  It is the consumer’s responsibility to understand the terms of use.  If there are questions prior to making a purchase the consumer needs to call and clarify.

There is an annual fee of $39 due at the end of one year.  The interest rate is 20.24% and varies depending on the transaction.  The annual percentage rate is calculated on the Prime Rate. Those consumers with unusually low credit scores may have to pay up to 29.99%.

The Bank of America Secured credit card looks and functions just like a regular credit card.  Vendors will have no idea the card it is a secured card.  Card holders can use the card anywhere that Visa is accepted.  Finally, they can rent a car, secure a reservation, and other activities that require a credit card instead of a debit card.

Card holders are entitled to a variety of services offered by Bank of America.  Account alerts help consumer pay their bill on time, notify the cardholder of any purchases, and other account information.  This helps the cardholder stay on track and build a positive credit history.

Mobile banking is also available.  The card can be used to pay bills, buy things online, transfer funds, and other account functions.  Text banking is even available with the card.  It is easy to see why this card is popular among those tying to rebuild their credit.  It has almost every function that an unsecured card has.

Consumers can significantly increase their credit scores by responsibly utilizing a secured card.  Since the card is secured, the consumer can avoid falling further in debt.  The deposit will cover the cost of any charges should the consumer be unable to pay.  However, failure to pay will further damage the consumer’s credit.



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