To qualify for any loan and get better interest rates, the solid credit score is necessary. Among the other tools that help building credit, credit card is the most invaluable one. With credit management that’s responsible, borrower can establish payment history which is positive and will carry weight in calculations of credit score. Bofa secured credit card belongs to those who are starting building credit from scratch or those who have low score due to credit mistakes in past.
Just like getting the other secured credit card, applicant of Bofa secured credit card needs to put up cash deposit. Cash deposit will then serve as credit line and will be used as collateral. Most secured credit cards come with different ranges of limit between $200 and $500. Yet, other credit card issuers allow applicants to put up bigger deposit. At first maximum limit for credit is determined by security deposit amount provided by applicant.
Later on, applicant’s income, credit history, and the other factors may affect the maximum limit for his credit. Once the Bank of America secured credit card holder make purchases then paying them off every month, the activity will show up on his payment history.
Features Found In Secured Credit Card Issued by Bank of America
On market there are many secured credit cards that probably look similar. To open an account and get Bofa secured credit card applicant must prepare enough security deposit. This security deposit is refundable and the minimum amount is just $300 with the maximum limit is $4,900. Someone can open an account with maximum deposit if he has ability to repay credit line that’s established.
When someone is providing deposit and the bank believes that he is providing more than his ability to repay, bank is going to return the difference in a check form. Issuers of secured credit card like Bofa secured credit card must report to three credit bureaus which are TransUnion, Equifax, and Experian.
Card holder’s account is going to be reviewed by Bank of America periodically. Based on credit history that includes the other loans and credit cards, applicant may be allowed to have his security deposit back to him. By paying on time, keeping the balance low, also meeting all obligations, there is possibility that security deposit of Bofa secured credit card can be returned.
Bank of America’s Credit Card with Its Fees and Interests
Few factors like credit score of Bank of America credit card’s holder will affect interest rates on credit lines. Rate of interest for those who hold secured credit cards usually are higher. Secured credit card from Bank of America is now setting the APR variable at 21.74% specifically for purchases. However, the APR above is variable rate which means the interest rate offered by Bofa secured credit card can fluctuate depends on any changes, especially Prime Rate changes.
Holders of Bofa secured credit card who want to transfer their balance are required to pay $ 10 for each transfer or even 3% of transaction amount. This credit card will not offer miles, cash back, or points. Fortunately, this card offers protection for its holders when they’re shopping online.