Did you know that Bank of America is the second-largest bank in the United States with over $2.16 trillion in assets? While Bank of America offers popular products ranging from savings accounts to secured credit cards, sometimes you’re just ready to move on.
Do you have a Bank of America secured credit card that you're ready to close? Whether you're unsatisfied with the service or you've found a better option, following these simple steps will make the process quick and easy.
Keep in mind that you may need to talk to customer service to finalize the closure, so be sure to have your account details handy. Ready to get started? Let's go!
How Do Secured Credit Cards Help You Build Credit?
Secured credit cards can be a great way to build credit if your credit score is too low to access traditional, unsecured credit cards. They work by requiring a deposit, which is usually the same as your credit limit. This shows the credit card issuer that you're a low-risk borrower, and they'll report your activity to the credit bureaus.
As you use the secured card responsibly and make on-time payments, you'll start to build up your credit score. This can help you qualify for better terms on future loans, including auto loans and mortgages.
In addition, a good credit score can even help you get approved for apartments and jobs. So if you're looking to build credit, secured cards are worth considering. Just be sure to shop around and compare offers to find the best deal for you.
What to Know About the Bank of America Secured Credit Card
When it comes to secured credit cards from Bank of America, you’ve got two main options. You can choose from their regular secured credit card or you can opt for the Bank of America Cash Rewards Secured card. Because there’s not much difference in the qualifying factors between these two cards, we’re going to talk about the cash rewards card since it’s better for consumers.
- Annual Fee: $0
- Late Fee: Up to $40
- Foreign transaction fee: 3%
- APR: 26.99 variable. (Right in between other popular secured credit cards. For example, the Discover Secured card comes with a variable APR of 25.99% and the Capital One Platinum Secured credit card comes with a 28.49% variable APR.)
- Deposit: minimum $200 (maximum of $5,000)
- Rewards:
- 3% cash back in the category of your choosing: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings.
- 2% cash back at grocery stores or wholesale clubs
- 1% cash back on all other purchases.
How Much Deposit Do I Need for a Credit Limit?
The minimum required deposit to open a Bank of America Cash Rewards Secured credit card is $200 and the maximum is $5,000. However, Bank of America notes that your credit limit will not only be determined by the amount of your deposit. They’ll also look at factors such as your income and your ability to pay the credit line.
How to Increase Your Bank of America Credit Limit
Interested in a credit limit increase? To request a higher credit limit on your secured credit card from Bank of America, log into their mobile banking portal. Then, click on the card and head over to Information & Services. If you’re eligible for a credit limit increase then you will see that option listed there.
Likewise, you can always call the toll-free number on the back of your card to speak to someone about your credit limit increase. If you’re calling from within the US that number is 888-550-6433.
How to Close Your Bank of America Cash Rewards Secured Credit Card
If you have a Bank of America Secured credit card, then you may be wondering, “What happens if I close my card?” When you close a credit card account, there are a few things that happen to your credit score.
First, your credit utilization ratio goes down. This is because you have one less source of credit, so your overall debt-to-credit ratio improves. This can lead to a small increase in your credit score. However, closing a credit card also removes one of your lines of credit, which can hurt your score in the long run. Additionally, any positive payment history you had with that credit card is no longer factored into your score.
However, the impact of closing a credit card account is usually short-lived. As long as you keep up with other factors that affect your score you should be fine.
So, are you ready to close your Bank of America Cash Rewards Secured credit card? The quickest and easiest way to do this is by phone. Call 1-800-732-9194 and speak with someone. They should be able to help you close your account within minutes.
How to get your security deposit refunded
When you close your account, Bank of America will periodically review your account. Based on your overall credit history (including your account and overall relationship with us, and other credit cards and loans), you may qualify to have your security deposit returned. If you are qualified, Bank of America will get your deposit refunded.Typically, they’ll send the money to you in the form of a check or issue the refund directly to the bank account you used when signing up.
Better Ways to Build Credit
It’s important to keep in mind that applying for a secured credit card isn’t the only way you can build credit. Credit builder loans are designed to help people build their credit by borrowing a small amount of money and making timely repayments. When compared to a credit builder loan, a secured credit card has several disadvantages.
First, secured credit cards require a security deposit, which can be difficult to obtain if you have bad credit. Often, you don’t have $200 or more to put towards a security deposit. If that’s the case then a credit builder loan makes more sense.
Second, the credit limit on a secured credit card is often quite low, which can limit your ability to use the card for large purchases. Finally, many secured credit cards come with high fees and interest rates.
In contrast, credit builder loans have no upfront costs and typically come with lower interest rates (between 5% to 15% depending on where you live in the US). Making regular payments on a credit builder loan can help to improve your credit score over time, making it easier to qualify for other types of credit in the future.
Get a Credit Builder Loan From Cheese
A Cheese credit builder loan is a great way to boost your credit score and save money at the same time. Simply apply for a credit builder loan of as little as $500 and choose a term length of 12 or 24 months. Use our autosave feature to make on-time payments and build a great credit history little by little. We report your payments to all 3 creidt bureaus.
Sign up here to get started today!
