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Many fully secured credit cards, used by people to establish or re-build their credit, hit users with fees that leave little in their account for actual spending. Some cards tie up as much as 50% of your deposit.
The BankAmericard Visa Fully Secured card charges an annual fee of $39 but no other fees. (Of course, penalty fees apply for late payments, etc.)
Additionally, the BankAmericard Visa Fully Secured Card lets you deposit between $300 and $10,000 as a security deposit, giving it a higher credit limit than many secured cards. If you don’t pay your balance in full each month, the interest rate is 18.24% variable — lower than the default penalty rate on most cards today.
After a year the bank automatically reviews your account for an upgrade to an unsecured card.
Overall, if you have $300 to deposit in an account and $39 to cover the annual fee, this is a fantastic credit card for anyone looking to re-build their credit. For students looking to establish credit, I’d recommend a student card like the Discover Student Card.
The Band Americard Visa Fully Secured card is a secured credit card, which means you deposit money into an account and then borrow against that money. You can pay your balance in full each month and pay no interest or you can choose to make just the minimum payment (or any amount over the minimum) and pay interest, just like a regular credit card.
How this card works: Deposit between $300 and $10,000 in the secured account, which you can then borrow against. Each month, you’ll receive statements, just like a regular credit card. You have 25 days to pay your balance in full and pay no interest. Otherwise, if you make the minimum payment or more, you’ll be charged 18.24% on the outstanding balance. You can also use the card for cash advances, direct deposits and other transactions up to your credit limit, just like a regular unsecured card.
Bank of America reports payments to all three credit bureaus, permitting you to build a credit history. After 12 months, Bank of America automatically reviews your account. If you’ve been making all your payments on time and are approved, the bank refunds your deposit and converts the card into a traditional, unsecured Bank of America Visa card.
This card carries a $39 annual fee, in addition to your security deposit. The card has a 24.24% variable interest rate for direct deposits, cash advances and overdraft protection.
Late payment and penalty fees are as follows:
- Balance $100 or less : $15 fee
- Balance more than $100, up to $250 : $29 fee
- Balance more than $250 : $39
- Returned payment fee: $35
Additionally, there is a 4% or $10 (whichever is greater) fee for balance transfers, cash advances, direct deposits and cash advances of all kinds.
Foreign transactions carry an additional fee of 3%, which means this is not the best card to use for international travel.
This card, as a secured credit card, is slim in the benefits department. You do have the convenience of online banking and bill payment through the Bank of America website, including their 24//7 live chat support. I had a few questions while writing this review and the live chat support personnel, powered by LivePerson, answered my questions promptly and completely.
Additionally, you have the option to use your credit card for overdraft protection on your Bank of America checking account, and you’ll get Bank of America’s free Total Security Protection package to guard against theft and fraud on your account.
- 25-day grace period on new purchases
- No additional fees for using the card for regular purchases
- Secured credit limit from $300 to $10,000, making it one of the more flexible secured credit cards
- Bank of America reviews your account after one year, and may convert it to an unsecured account
- Reports to all three credit bureaus, helping you establish credit
- 24/7 online customer service
- 18.24 % interest rate if you carry a balance
- 24.24% APR on balance transfers and other transactions besides purchases
- $39 annual fee
- Very few added benefits
- No travel protection
- No warranty protection on purchases