Why should you consider a Bank of America secured credit
card? When it comes to secured credit cards, the fairness
and value offered really does run the gambit. There are the
outright atrocious cards that charge ridiculous fees and
offer little value and then there are the great cards that
give you everything you deserve. If you've been considering
a Bank of America secured card, here are some pros and cons
to consider.
Pro: An Opportunity to Build or Restore Your Credit
The Bank of America secured credit card offers you a chance
to rebuild your credit. Unlike prepaid credit cards and
some of the other secured cards on the market, Bank of
America will report your credit card activity to the three
credit bureaus. This means your good account standing will
have a positive impact on your credit report, which will
raise your credit score over time.
Pro: A Reasonable Annual Fee
Bank of America offers very reasonable annual fees with
their secured card. While some companies try and charge
$50, $60 or even more for their cards, Bank of America's
annual fee is just $29. That's a great value when compared
to the other secured credit cards on the market.
Pro: Small Deposit Requirements
Many secured cards will require a deposit of $500 or more
to open a secured credit account. Bank of America's minimum
deposit is just $300. If you don't have a lot of cash to
spare, this can make all the difference in the world.
Con: A High Interest Rate
When you go to the Bank of America website to check out
their secured card, it might look like a reasonable
interest rate at first glance. However, it's not the 10.99%
variable APR that many some consumers think. If you look
closely at the site, it's a prime PLUS 10.99% variable APR.
That means if prime is 7%, your APR is 17.99%, not 10.99%.
Con: High Balance Transfer Fees
If you want to do a balance transfer or take out a cash
advance, the fees might be a problem. Not only will you be
charged regular interest, you'll also be charged a 4%
transfer/cash advance fee.
When applying for a secured card it's important that you
make sure the card you choose is the best card for your
needs. If you'll be paying your bill in full each month and
don't have any balance transfer or cash advance needs, the
Bank of America secured credit card may very well be the
best card for you.
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For more tips on secured credit cards, saving money and
avoiding getting taken, check out CreditCardTipsEtc.com, a
website that specializes in providing credit card tips,
advice and resources.
http://www.creditcardtipsetc.com/secured_credit_cards/
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