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

Yes, Bank of America has a secured credit card designed for people building or rebuilding credit. The card is called the BankAmericard Secured Credit Card, and it works by requiring you to put down a cash deposit that becomes your credit limit. You use the card like a regular credit card, and your payment history gets reported to the three major credit bureaus—Equifax, Experian, and TransUnion.

The deposit amount ranges from $500 to $24,500, and that amount becomes your available credit. You're not spending the deposit itself; you're using the card to make purchases and then paying the bill each month. After you demonstrate responsible use over time—typically 12 to 18 months of on-time payments—Bank of America may convert your account to an unsecured card and return your deposit.

This card is useful if you have no credit history, a low credit score, or a history of missed payments. It gives you a way to show lenders you can handle credit responsibly, which can help you may have access to for better rates on future credit products like loans or unsecured credit cards.

Key Takeaways

  • The BankAmericard Secured Credit Card requires a cash deposit between $500 and $24,500 that serves as your credit limit, not money you spend.
  • Your monthly payments and account activity are reported to all three credit bureaus, so responsible use builds your credit history.
  • Bank of America may convert your account to an unsecured card and return your deposit after 12 to 18 months of on-time payments, though timing varies by account.
  • The card charges an annual fee (the amount varies and should be confirmed with Bank of America before opening), so factor that into your decision.
  • You can increase your credit limit by adding more to your deposit, which gives you more available credit without a new application.

How the deposit and credit limit work

When you open the BankAmericard Secured Credit Card, you choose how much to deposit. That deposit sits in a savings account held by Bank of America and becomes your credit limit. If you deposit $1,000, your credit limit is $1,000. You cannot spend the deposit itself—it stays locked in the bank's account as collateral.

You use the card to make purchases just like any other credit card. At the end of each billing cycle, you receive a statement showing what you owe. You then pay that bill from your regular checking or savings account, separate from your deposit. The deposit only moves if you close the account or if Bank of America needs to cover unpaid balances (which is rare if you're making payments).

If you want more credit available, you can add money to your deposit. Bank of America will increase your credit limit to match the new deposit amount. This is useful if your spending needs grow or if you want to show more available credit to improve your credit utilization ratio—the percentage of your credit limit you're actually using.

What happens to your deposit when you convert to an unsecured card

Bank of America does not set a fixed timeline for converting your account, but the bank typically reviews accounts after 12 to 18 months of on-time payments. "On-time" means paying at least the minimum due by the due date every single month. Late payments, even by a few days, can delay or prevent conversion.

When Bank of America decides to convert your account, they notify you and return your deposit to the account you designated when you opened the card. The card itself becomes unsecured, meaning there is no longer a deposit requirement. Your credit limit may stay the same, increase, or decrease depending on your credit score and payment history at the time of conversion.

Conversion is not may provide. If your credit score remains very low or if you miss payments during the secured period, Bank of America may not convert your account. In that case, your deposit stays in place and the card remains secured. You can close the account at any time and retrieve your deposit, though closing the account will stop the credit-building benefit.

Annual fees and other costs

The BankAmericard Secured Credit Card charges an annual fee. The exact amount changes and should be confirmed directly with Bank of America before you open the account. This fee is charged once per year, usually on your account anniversary, and is separate from any interest charges.

If you carry a balance on the card—meaning you don't pay off the full statement balance each month—you'll also pay interest. The interest rate (called the APR, or annual percentage rate) varies based on your creditworthiness and current market rates. Bank of America will disclose the APR before you open the account.

There are no fees for adding money to your deposit to increase your credit limit, and there are no fees for making purchases or paying your bill on time. Late payments may trigger a late fee, which Bank of America will disclose in your account terms.

How the card reports to credit bureaus

Every month, Bank of America reports your account activity to Equifax, Experian, and TransUnion. This report includes your payment history, your credit limit, and how much of your limit you're using. This information is used to calculate your credit score.

Making on-time payments every month is the most important factor in building credit. Your payment history makes up about 35% of your credit score calculation. Using only a small portion of your credit limit—ideally less than 30%—also helps. If your limit is $1,000 and you charge $200 per month and pay it off, you're using 20% of your limit, which is good for your score.

Missed or late payments also get reported and will damage your credit score. A single late payment can lower your score by 50 to 100 points or more, depending on how late it is and your overall credit history. This is why the secured card is most useful if you can commit to paying on time every month.

Comparing the BankAmericard Secured Card to other secured cards

Bank of America is not the only bank offering secured credit cards. Other major banks like Capital One, Discover, and Citi also offer secured cards. The key differences usually come down to the deposit range, annual fee, APR, and how quickly the bank converts to an unsecured card.

Some secured cards have no annual fee, while others charge $25 to $99 per year. Some allow deposits as low as $200, while others require $500 or more. Some banks convert accounts faster than others, and some offer rewards (like cash back) even on secured cards, though this is less common.

Before opening the BankAmericard Secured Card, it's worth checking what other banks are offering. The best choice depends on your deposit amount, how much you want to pay in annual fees, and whether you want rewards. All secured cards report to the credit bureaus, so the credit-building benefit is similar across banks.

How to use the card to build credit effectively

To get the most benefit from the BankAmericard Secured Card, make small purchases and pay them off in full each month. For example, charge $50 to $100 in regular expenses—groceries, gas, a subscription—and pay the full balance when the bill arrives. This shows lenders you can borrow money and repay it reliably.

Avoid carrying a balance to save on interest charges. If you charge $500 and only pay $100, you owe interest on the remaining $400. That interest is wasted money that doesn't help your credit score any more than paying in full would. The credit bureaus care about whether you pay on time, not whether you pay interest.

Set up automatic payments if possible. Many people miss due dates by accident. If you set up autopay to pay at least the minimum due on the due date, you remove the risk of a late payment. Some people set autopay to pay the full balance automatically, which ensures they never carry a balance.

Keep the account open even after conversion. Closing the account removes it from your credit history, which can lower your score. The longer you keep accounts open with good payment history, the better your credit score becomes.

Frequently Asked Questions

Can I use my deposit as a down payment on something else?

No. Your deposit is held in a Bank of America savings account and is not accessible for other uses while the card is open. The deposit only returns to you when you close the account or when Bank of America converts it to an unsecured card. If you need the money for something else, you would have to close the card and lose the credit-building benefit.

What if I miss a payment on the secured card?

A missed payment gets reported to the credit bureaus and damages your credit score. Bank of America may also charge a late fee. If you miss a payment by 30 days or more, the bank may use your deposit to cover the unpaid balance. This defeats the purpose of building credit, so it's important to pay on time every month.

Can I get a higher credit limit without adding more deposit?

Not with a secured card. Your credit limit is tied to your deposit amount. If you want a higher limit, you must add more money to your deposit. Once Bank of America converts your account to an unsecured card, they may increase your limit based on your credit score and payment history without requiring additional deposit.

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

Approval typically takes a few business days. Bank of America will review your application and may ask for additional information. Once approved, you'll need to fund your deposit, which can usually be done online or at a Bank of America branch. The card itself usually arrives within 7 to 10 business days.

Will the secured card help me get approved for other credit products?

Yes, but it depends on how long you've had the card and your payment history. After 6 to 12 months of on-time payments, your credit score should improve enough to may have access to for other credit products like unsecured credit cards, personal loans, or auto loans. The longer your positive payment history, the better your chances of approval and the better rates you'll receive.