BankAmericard Cash Rewards Credit Card
BankAmericard Cash Rewards Credit Card
What we like:
No annual fee and a solid rewards program
|Sign-Up Offer||$200 cash rewards bonus if you spend at least $1,000 on your card within 90 days of account opening|
|Rewards Rate||3% cash back in the category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings)|
2% cash back at grocery stores and wholesale clubs
1% cash back on all other purchases
|Regular APR||Introductory 0% APR for 12 billing cycles for purchases and balance transfers made within 60 days of opening your account|
After that, variable APR of 16.24% to 26.24% depending on creditworthiness
- Flexible rewards (earn 3x cash back in the category of your choice)
- Low spending requirement for the signup bonus
- Promotional 0% APR lets you pay off existing high-interest credit card debt without incurring additional interest charges
- Cash back rewards don’t expire
- Travel and purchase benefits
- $0 liability
- Bonus cash back capped at $2,500 in combined quarterly purchases
- 3% balance transfer fee (minimum $10)
- 3% foreign transaction fee
Recommended Credit Score
- Excellent credit
What You Need to Know About the Bank of America Cash Rewards Card
If you aren’t a huge spender and want flexibility in how you earn bonus cash back, the Bank of America Cash Rewards credit card could be an ideal choice for you. A low spending requirement makes it easy for new cardholders to earn the $200 signup bonus, and the 0% intro APR for 12 months make large purchases more affordable.
In addition, Bank of America or Merrill Lynch customers who qualify for the Preferred Rewards program can get a boost to their rewards and other benefits if they have at least $20,000 invested across their BoA and Merrill Lynch accounts. Learn more about the Bank of America Cash Rewards credit card in our full-length review.
In this review:
- BoA Cash Rewards Benefits
- Downsides of the Bank of America Cash Rewards Card
- How It Compares to Similar Cards
BoA Cash Rewards Benefits
There are many advantages to the BoA Cash Rewards card, including generous rewards and an easy-to-earn signup bonus.
New BoA cardholders get a $200 online cash rewards bonus after spending $1,000 on their card in the first 90 days. This is a pretty low spending requirement, although the bonus itself isn’t as high compared to some of the best credit card signup bonus offers.
The Bank of America Cash Rewards card lets you maximize rewards by choosing your own cash back spending category. Your options include gas purchases, dining, online shopping, drug stores, home improvement/furnishings, or travel, and you can change the choice category for future purchases once each calendar month via online banking or the mobile banking app. You might switch your bonus category temporarily if you anticipate spending a lot in one category compared to the others.
Preferred Rewards clients with at least $20,000 across BoA and Merrill Lynch also get between a 25% and 75% bonus on the rewards they earn with each purchase. If you qualify for Platinum Honors by having at least $100,000 invested, the 3% category could get boosted to as much as 5.25% cash back.
Redeeming points with the BoA card is easy. You can opt for a statement credit or have points deposited in a Bank of America or Merrill Lynch account.
Travel/Balance Transfer/Other Perks
The Bank of America Cash Rewards card offers certain other benefits to cardholders, including:
- ShopSafe: This generates a temporary credit card number you can use while you shop online to help keep your account more secure.
- Overdraft protection: Link eligible BoA checking accounts to your credit card to avoid overdraft fees.
- Extended warranty: Double the length of the manufacturer’s warranty up to one additional year.
- Auto rental benefits: Auto rental collision damage waiver insurance provides reimbursement for damage due to collision or theft.
Downsides of the Bank of America Cash Rewards Card
There are also some downsides of the BoA Cash Rewards card you need to consider, including:
- The $2,500 cap on bonus cash back is very low, which means you may end up earning just 1% back on most of the spending you do, depending on how early in the quarter you hit the $2,500 threshold.
- Balance transfer fees make this card less-than-optimal for paying off existing high-interest credit card debt.
- If you travel abroad or routinely make purchases charged in a foreign currency, the 3% foreign transaction fee will make every purchase more expensive.
How It Compares to Similar Cards
The Bank of America Cash Rewards Card is unique in that it gives you a choice of bonus cash back category; however, many other cash back cards don’t impose such low spending limits on bonus rewards.
Bank of America Cash Rewards Card vs. Chase Freedom Unlimited
Like the Bank of America Cash Rewards card, the Chase Freedom Unlimited card has no annual fee and offers a 0% introductory APR — however, the Freedom Unlimited’s intro APR offer ends after 15 billing cycles, giving you more time to pay off a large purchase.
The Chase Freedom Unlimited also offers 3% cash back on all purchases up to $20,000 (and 1.5% cash back after that). Although the cash back rate after the first year (or after you reach $20,000 in spending) is just 1.5% with no additional bonus categories.
Bank of America Cash Rewards Card vs. Discover it Cash Back
The Discover it Cash Back works differently than BoA when it comes to earning bonus cash back. Instead of choosing your own category, Discover gives cardholders 5% cash back in a bonus category of its own choosing — but you have to activate this bonus. Depending on the quarter, you could get 5% back at gas stations, Amazon.com, grocery stores, or restaurants. Unfortunately, Discover also limits bonus rewards to the first $1,500 in quarterly spending.
Although the Discover it card doesn’t have a signup bonus like the BoA Cash Rewards card, it does provide a cash back match at the end of your first year.
The Bank of America Cash Rewards card is a great option if you aren’t a huge spender but want flexibility when it comes to earning bonus cash back.
However, those who travel abroad or tend to use their credit cards often should consider other cash back credit cards that don’t charge foreign transaction fees or cap bonus rewards.
If the Bank of America Cash Rewards Credit Card doesn’t meet your needs, you may want to check out the Best Bank of America Credit Cards.4.19 BankAmericard Cash Rewards Credit Card
Author: Christy Rakoczy
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