Are you looking to improve your credit score but not sure where to start? Building credit is a crucial step in securing your financial future, and Bank of America offers options for those with bad credit. Let’s explore how Bank of America’s credit cards can help you on your journey to better credit health!
The document you provided is a comparison of two different credit card informational resources: Forbes Advisor and Bank of America.
Overall, the document highlights that while Bank of America offers a secured credit card option for people with bad credit, it's important to compare it with other cards on the market to find the best fit.
Other Requirements for Bank of America Cards
You must be a U.S. resident to apply for a Bank of America credit card. You also need to be 18 years of age or 21 if you are a permanent resident of Puerto Rico. You can apply online or in person if you have a Social Security number but only in person if you have any other form of identification.
Unlike other companies, Bank of America doesn’t limit the amount of cards you can have, but it does limit the speed at which you can apply for them. The bank operates a two/three/four rule, which means that you can only be approved for two new cards in a two-month period, three cards in a 12-month period and four cards over two years.
Key Takeaways:
What Can I Do if My Application Is Denied?
If your application is denied, you won’t be left in the dark as to why you were turned down. Bank of America will explain why you weren’t accepted on this occasion and it will include the credit score used to make the decision and the contact details for the credit reporting agency. There are many reasons why a credit card might not have been approved by a bank: It could be that you have applied for too many cards recently, you have too much debt, you have missed payments or that your credit score is too low.
If you were planning to transfer your balance from one Bank of America card to another, this could be another reason why you were turned down, as it will only let you transfer balances from other credit card companies.
If you think there has been a mistake, you can request that the decision be reconsidered. You need to send a written request along with the application reference to Card Services Credit Operations Incoming, PO Box 650520, Dallas, TX 75265. You will receive a response in around 30 days, depending on postal delivery times. You can explain why there could be an issue with your report, such as if you’ve just changed addresses or if there were extenuating circ*mstances such as a medical emergency.
Before you write the letter, you should order a free copy of your credit report from Experian, Equifax and TransUnion from AnnualCreditReport.com to see if there are any mistakes that need to be fixed. If a detail is incorrect, you can request that the credit bureau send a notice for the correction to anyone who received a copy of your report over the past six months, and if it relates to a job, over the past two years.
How Can I Improve my Score To Get Approved?
Just because you were turned down doesn’t mean that you can’t reapply in six months. In fact, you can put this time to good use by improving your credit score. You can do this by showing that you are on top of your finances, for example, making monthly payments on time or reducing your debts. Another smart way to maintain a healthy credit score is to keep your credit utilization rate (CUR) low. The CUR is the amount of money used out of what credit is available to you. Using 30% or less of your credit limits can give you a good score, however, high utilization rates can hurt your score significantly.
Once you have built or repaired your credit, you can upgrade to an unsecured card and the bank will return your deposit. You can see what your FICO Score is through the company’s mobile banking app. However, there are two other points that you need to bear in mind—the Bank of America Customized Cash Rewards Secured Credit Card isn’t like a bank account, as you don’t earn interest on your security deposit; and if you want to transfer your balance from another card to the Bank of America Customized Cash Rewards Secured Credit Card there will be a fee of 3% of the amount of each transaction Your credit score will be increased in the eyes of the bank and while the banks don’t publish which credit bureaus they report to, it is widely reported that Bank of America shares information with three of the largest credit bureaus. This could help you establish a credit history that could be helpful in the future.
Bottom Line
While credit scores may be the starting point for most institutions, Bank of America shows that you don’t need to have perfect credit to have a credit card. It’s just about finding the right card that can work with you to achieve your needs.
FAQ's
When rebuilding credit, should I compare credit card options before applying?
Absolutely! Comparing credit cards offered by different issuers, like those reviewed on Forbes Advisor, allows you to find the card with the best rewards program, interest rates, and benefits to fit your specific needs and credit situation.
