Fix Your Credit with a Bank of America Secured Credit Card

What is secured credit?

If you're having credit trouble, you may not be able to get a regular credit card. It's one of those Catch 22 situations: you need good credit to get a credit card, and you need a credit card to build good credit. On the surface, it seems like an impossible situation.

However, the Bank of America secured credit card provides an excellent way for people with poor (or nonexistent) credit histories to work on building a positive score. You deposit money into an account (anywhere from $300 to $10,000). That amount becomes your credit limit.

Your minimum payments are then due the same way credit card payments normally occur. If you don't make that payment, the amount comes out of your so-called security deposit. However, this also counts as a late pay on your credit history -- probably not what you're looking for.

What does it cost?

The Bank of America secured credit card has an annual fee of $29. You also need a minimum of $300 to open your security account. Other than that, there are no fees -- assuming you use the card responsibly.

A secured credit card provides an inexpensive and easy way to rebuild a poor or nonexistent credit rating -- but only by using it responsibly. Make a purchase on your card and then conscientiously repay the minimum payment (not the whole balance) each month. This series of regular payments registers on your credit report and slowly builds your rating.

And again, the nice thing about a Bank of America secured credit card is that the institution is more than willing to extend you real credit in the future!