After my credit score had not improved in months, I started to realize that the only secured card on my report was not going to be enough and that I needed a second credit card with a higher limit to boost my score. Since I am in the process of rebuilding credit, the chances of getting an unsecured credit card like this were almost zero (specially since I had some past delinquencies on my report), so after considering other options, I decided to go with Bank of America’s Secured Card. I already have a checking account with them so I figured it would be easier to get approved. I also applied for this card in person. I’ve heard that not everybody gets approved, so I guess these two things worked well for me.
If you are interested in checking the progress I’ve had with my first secured card please read: “Capital One Secured Credit Card Review – Credit Diary Part II“. The following timeline will give you an idea of the progress I’ve had with the Bankamericard Fully Secured Visa. It will be updated often so make sure to check back regularly. If you are using or have used this card in the past, feel free to post your feedback. If you are considering applying, don’t hesitate to post your questions.
You can read more about this card and other related topics in our forum, which can be accessed here: newdirt.org/forums. I am not a credit expert, this is my personal experience dealing with Bank of America and using their secured credit card to try to rebuild my credit.
Credit Score:
- Starting Credit Score: 636 (Experian)
- New Credit Score: 665 (Experian)
Strategy:
- Keep credit card balance below 30% and pay in full each month
- Take care of negative items on credit report
- Take advantage of the cash rewards this card offers
Timeline:
- November 2, 2011: Credit score went from 579 to 636 after paying off two collection accounts on my report (a 57 point jump!). I had been stuck on the same score for months.
- November 3, 2011: Applied for card in person at Bank of America. Was denied for an unsecured card but approved for a Cash Rewards Fully Secured Credit Card with a credit line option of $300 up to 10,000 depending on my deposit. After 12 months the account will be reviewed and If everything goes as planned, it will be unsecured and I will get my deposit back. Made a $4k deposit. I didn’t even know that a cash rewards secured card existed. I’m hoping that the larger limit will help my score
- November 4, 2011: Not even 24 hours after opening this secured card, it’s already showing on my report as “Current”. My score improved 29 points just for opening this new account. My new Experian score is 665! I couldn’t be happier (86 points in two days)
- November 10, 2011: Received my card in the mail.
- November 12, 2011: Made an extra 1k deposit over the phone which was applied to my account on the same day. I had to give all my information again to do this, but noticed they didn’t do a hard pull as I had read on other forums (probably because they still had my application and report on their system).
- January 7, 2012: I have paid first two statements in full and on time. I’m trying to take advantage of the cash rewards so I pay everything I would pay cash with this card and then pay the balance.
- November 11, 2012: My card graduated after using it and paying it on time for one year. I called the bank at the one year mark and my card was unsecured, my security deposit refunded.
- Current Status: My credit score improved 29 points right after opening this account. At exactly the one year mark my card was unsecured and my security deposit refunded.
Review:
- Current Rating: This is an excellent secured card and I would recommend it to anyone looking to rebuild or establish credit. It’s the only rewards secured card I know of and eligible to unsecure after only 10-12 months.
Useful Links:
Did they really refund the 300 that you deposited? And how much was your annual fee? We’re there any hidden charges?
The annual fee is $39. My deposit was refunded in full a couple of days after the card unsecured. No hidden charges, in fact, this is a cash rewards secured card even though it is not advertised as such. I was never late so I wouldn’t know about late charges, but this is a secured card, you should never pay late if you want your card to graduate…
Overall it was a great experience and I can say for sure that the BOA secured card is a much better card than the Capital One secured card (which I also have), thought from what I’ve heard, it seems the CapOne card is much easier to get.
I believe Bank of america can be a little vindictive. I filed for chapter 7 2 years ago and they wont even approve a secured credit card. Where’s the risk?
You are right Patrick, BOA is known to be picky, even with their secured card. There are other secured cards, like the one Capital One offers for instance, that are much easier to get. You might have to wait a little longer to apply for a card with BOA, though you should check their small print on their secured card application, I remember reading something about this there. Applying in person might give you a different result as well. Good luck.
I applied for this boa credit card 2 days ago and haven’t,heard anything regarding approval. My question is how long before I know I’m approved?
When I applied it gave me a message saying that they needed more time to make a decision. Will I get an email when the decision is made?
Hello Amber,
When applying online, if you are not approved instantly, I think you should expect to wait between 2-3 weeks. I applied at the bank and was given an instant decision there, so I can’t confirm. It might be less but I doubt it. You can always call the applications status number to see if you can get an update over the phone.
Good luck and let us know how it went.