Yes, Bank of America offers a secured credit card called the BankAmericard Secured Credit Card

Bank of America's secured credit card is designed for people building or rebuilding credit. You put down a cash deposit, and that deposit becomes your credit limit. You use the card like a regular credit card—make purchases, pay a monthly bill—and Bank of America reports your payment history to the three major credit bureaus. After you've shown consistent on-time payments over time, the bank may convert your account to an unsecured card and return your deposit.

The card itself works the same way as any other credit card in your wallet. You swipe it, you get a bill, you pay it. The difference is that your own money is sitting in a savings account at Bank of America as collateral. This protects the bank if you don't pay, which is why they're willing to issue a card to someone with no credit history or a damaged one.

Key Takeaways

  • Bank of America's secured card requires a cash deposit between $500 and $24,500, which becomes your credit limit.
  • You pay an annual fee of $29, and the card charges interest on balances you don't pay off each month, just like a regular credit card.
  • Your payment history is reported to all three credit bureaus, so on-time payments build your credit score over time.
  • After demonstrating responsible use, you may be converted to an unsecured card and your deposit returned, though timing varies by account.

How the deposit and credit limit work

When you open the BankAmericard Secured Credit Card, you choose how much to deposit. Bank of America requires a minimum deposit of $500 and allows up to $24,500. Whatever you deposit becomes your credit limit. If you deposit $1,000, your credit limit is $1,000. If you deposit $5,000, your credit limit is $5,000.

Your deposit sits in a linked savings account that earns interest. You cannot touch this money while the account is open—it's held as collateral. The interest rate on the savings account varies and is separate from the credit card's interest rate. Bank of America will tell you the current rate when you apply.

You can request a credit limit increase after you've had the card for a certain period and made on-time payments. When you do, Bank of America may ask you to add more to your deposit. For example, if you want to raise your limit from $1,000 to $2,000, you might need to deposit an additional $1,000.

Fees and interest charges

The BankAmericard Secured Credit Card charges an annual fee of $29. This fee is charged once per year and appears on your statement. Unlike some secured cards from other banks, there is no application fee or processing fee to open the account.

If you pay your full balance by the due date each month, you pay no interest. If you carry a balance into the next month, you pay interest on that balance. The interest rate (called the Annual Percentage Rate or APR) varies based on your creditworthiness and current market conditions. Bank of America will disclose the exact APR before you complete your application.

Late payments trigger late fees. If your payment arrives after the due date, you'll be charged a late fee. Paying late also damages your credit score and may cause your APR to increase. Missing payments entirely can result in your account being closed and your deposit being applied to the debt.

How this card reports to credit bureaus

Bank of America reports your account activity to Equifax, Experian, and TransUnion—the three major credit bureaus. This means every on-time payment you make helps build your credit history. Every late payment or missed payment also gets reported and hurts your score.

The card reports your credit limit (the amount of your deposit), your current balance, and your payment history. Credit scoring models look at whether you pay on time, how much of your available credit you're using, and how long you've had the account. Using a small portion of your limit and paying on time each month will improve your score faster than maxing out the card or paying late.

Your credit score typically doesn't improve overnight. Most people see meaningful improvement after six to twelve months of on-time payments. The longer you keep the account open and pay responsibly, the more your score will improve.

When your card might convert to unsecured status

Bank of America does not may provide that your secured card will convert to an unsecured card. However, if you make on-time payments for a certain period—typically around eight months, though this varies—and your credit score improves, the bank may offer to convert your account. When this happens, your deposit is returned to you, and you keep the card with a new credit limit that Bank of America sets.

Conversion is not automatic. The bank reviews your account periodically and decides whether to offer it. You cannot force the conversion by requesting it, though you can contact Bank of America to ask about your account's status. Some customers are converted within a year; others take longer. It depends on your individual credit history and payment record.

If your account is converted, you'll receive your deposit back by check or direct deposit to your Bank of America account. The annual fee continues to apply to the new unsecured card unless Bank of America waives it as part of the conversion offer.

Who this card makes sense for

The BankAmericard Secured Credit Card works well for people with no credit history—such as recent immigrants or young adults opening their first account—because it doesn't require an existing credit score to open. It also works for people rebuilding credit after a bankruptcy, foreclosure, or period of missed payments.

The card is less useful if you already have good credit and can may have access to for an unsecured card with no deposit. It's also not the right choice if you cannot afford to lock up $500 or more in a deposit, since that money is not available for other uses while the account is open.

The $29 annual fee is higher than some competitors offer. If you're comparing secured cards from multiple banks, factor in the fee along with the interest rate, deposit requirements, and likelihood of conversion. Some other banks charge lower annual fees or offer higher interest rates on the deposit account.

What happens if you miss a payment

If you miss a payment on the BankAmericard Secured Credit Card, Bank of America will charge you a late fee and report the missed payment to the credit bureaus. A single late payment can lower your credit score by 100 points or more, depending on your current score and credit history.

If you miss a payment by more than 30 days, the late payment appears on your credit report and stays there for seven years. If you miss payments repeatedly or fall significantly behind, Bank of America may close your account and apply your deposit toward the debt you owe. You would then lose the card and the benefit of the account being reported to the credit bureaus.

If you're struggling to make a payment, contact Bank of America before the due date. The bank cannot erase a late fee or missed payment, but speaking with them early gives you the best chance of working out a solution before serious damage occurs.

Frequently Asked Questions

Can I use my deposit as collateral for a loan instead of a credit card?

No. When you open a secured credit card account with Bank of America, the deposit is held specifically as collateral for the credit card. You cannot use it as collateral for a personal loan or other product. If you need a loan, you would need to open a separate loan account.

What's the difference between Bank of America's secured card and their regular credit cards?

The main difference is the deposit requirement. A regular Bank of America credit card does not require a deposit—your credit limit is based on your credit score and income. A secured card requires a deposit that matches your credit limit. Both report to credit bureaus and charge annual fees and interest the same way.

Can I increase my credit limit without adding more money to my deposit?

Bank of America typically requires you to increase your deposit if you want to increase your credit limit. For example, to raise your limit from $1,000 to $2,000, you would usually need to deposit an additional $1,000. Ask Bank of America about their specific policy when you're ready to request an increase.

How long does it take to get approved for the BankAmericard Secured Credit Card?

Bank of America typically makes a decision on your application within a few minutes to a few hours if you apply online. If you apply in person at a branch, you may receive a decision the same day. Once approved, your card is mailed to you and typically arrives within five to seven business days.

What if I close the account—do I get my deposit back?

Yes. If you close the account, Bank of America returns your deposit. However, closing the account also closes your credit history with that card, which can lower your credit score slightly. It's usually better to keep the account open and active, even after conversion to an unsecured card, to maintain a longer credit history.