Bank of America has been offering secured credit cards for bad credit borrowers who are seeking to rebuild a bad credit score. Many individuals have seen their credit score drop over the past months for a variety of reasons ranging from poor financial habits to unemployment. However, when someone is in a situation where they can begin to repair their credit, they often find that access to credit may be difficult to obtain.
In cases such as this, a secured credit card can be a way to get a line of credit with which one can begin the process of rebuilding a bad credit score. Bank of America, along with many other lenders in our nation, offer these types of cards for those who realize they have made mistakes on their credit or simply have come into a bad situation which has caused their credit score to plummet.
High interest rates on unsecured cards or, again, the inability to access credit usually slows the process of rebuilding one’s credit score, but secured credit cards, when used properly, can help make this process a little easier. A secured credit card works similarly to any other credit card, but there is the requirement that the cardholder deposit some money into a bank account which will secure the lender and set the credit limit.
Practicing wise financial habits and living within one’s means is something that will be necessary before a secured credit card will be beneficial. Anyone with a bad credit score who still owes a large amount of debt will most likely not benefit from a secured credit card seeing as how continually making charges on this card will only get one deeper in debt and make getting out of debt and repairing a credit score harder.
While Bank of America is one of the financial institutions that have been offering these secured credit cards, they are by no means the only secured credit card source for bad credit borrowers. Many financial advisers often tell individuals who are in the market for a secured credit card to look at various reputable lenders and see which will offer the best rate on a secured credit card and charge minimal fees so that the cardholder can begin to get their credit score back on track faster.