Rewards Credit Cards June 27, 2020 0

Bank of America Cash Rewards Card Review

Bank of America Cash Rewards

 

Hello Friends, I hope all is well with you! I am going to be reviewing the Bank of America Cash Rewards credit card. These opinions are my own, and I am in no way influenced by anyone.

Overall Verdict: The Bank of America Cash Rewards credit card gives you the opportunity to earn a good amount of cash back, especially if you are able to pair it with their preferred program. There are better cards in my opinion out there that I like simply because they have some of the extra benefits that this card doesn’t have, but this is still a decent rewards card don’t get me wrong.

Some things about this card that I do like:

  1. No annual fee
  2. Introductory cash rewards bonus offer
  3. High rewards amount on some categories
  4. Possibility of getting more rewards through the preferred rewards program

Now for some of the things that I don’t like:

  1. Not many extra benefits that other cards offer
  2. The reward amounts on certain categories are only up to a certain dollar amount
  3. Foreign transaction fee

What type of reward are you getting?

This Bank of America Cash Back rewards credit card offers you the opportunity to earn cash rewards for every dollar that is spent. After the close of every statement period, you earn the cash back, and the rewards are accumulated in your account until you decide when to redeem them. The most common way to redeem your cash back rewards is to apply it as a statement credit. You are able to deposit the cash rewards in your bank account, but you must have a bank account with Bank of America or have an eligible account with Bank of America.

Is there an annual fee?

This is a no annual fee rewards credit card.

What is the rewards amount?

There are 3 categories of rewards are: 3%, 2%, and 1%.

You earn 3% cash back in the category of your choice:

  1. Gas
  2. Online shopping
  3. Dining
  4. Travel
  5. Drug stores
  6. Home improvement/furnishings

The 2% cash back category includes:

  1. Grocery stores
  2. Wholesale clubs

The 1% category is all other purchases that are not in the other categories. There is a caveat to this though. You will only earn 3% and 2% on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%. Bank of America also does give you the opportunity to earn extra rewards through their preferred rewards program. The preferred rewards program is divided into three tiers: Gold, Platinum, and Platinum Honors. The way you get assigned to one of these tiers depends on how much money you have deposited with them. The required balance is based off of a three-month average.

Tier Required Balance Credit Card Rewards Bonus
Gold $20,000 to < $50,000 25% reward bonus
Platinum $50,000 to < $100,000 50% reward bonus
Platinum Honors $100,000 + 75% reward bonus

 

If you are a gold member, you get an extra 25% reward bonus, and that is added on to all the categories of rewards. You have a chance to earn 3.75% cash back on your 3% cash back category.

Is there a bonus offer?

The Bank of America Cash Rewards credit card offers a $200 online cash rewards bonus if you spend at least $1,000 in the first 90 days of your account opening. This would be a 20% return on the money you would have spent regardless.

Are there foreign transaction fees?

Unfortunately, there is a 3% foreign transaction fee on the amount of each purchase in U.S dollars. Although I am not the biggest fan of this fee, it shouldn’t be the deciding factor. You must look at the card holistically.

Are there any other benefits?

This rewards card does not offer as many benefits as some of its competitors; however, they do offer a couple of extra benefits that are nice to have.

They offer:

  1. FICO credit score for free (doesn’t affect your credit score)
  2. Zero fraud liability – You will not be responsible for unauthorized purchases
  3. Overdraft protection – Optional service to help prevent declined purchases, returned checks, or other overdrafts, but you must link your Bank of America checking account and transfer fees may apply

Again, there aren’t a lot of extra benefits to this card like some of their competitors.

What is the interest rate and are there any other fees?

Bank of America offers new cardholders an introductory APR of 0% for 12 billing cycles. After the introductory offer ends, the APR would be between 14.99% and 22.99%; it just depends on your credit score.

They also have other fees such as:

  1. Cash advance fee – $10 or 3% of the amount of each cash advance, whichever is greater
  2. Late payment fee –up to $40
  3. Balance transfer fee – $10 or 3% of the amount of each balance transfer, whichever is greater
  4. Returned payment fee – up to $29

For more information on their fees, check out their fee schedule.

How is the customer service like?

There are a few ways to contact Bank of America for questions or problems. The first way would be to call the number on the back of your card. The second way would be to mail in your question, comment, or concern to one of their PO box’s. The third option would be to find a location and schedule an appoint to meet with a representative. There will be times where you might have to wait a little longer than usual or maybe you get a bad agent here and there, but this tends to happen at all companies from time to time.

Should you get Bank of America Cash Rewards Card?

This card is a decent no annual fee credit card.

Who it’s perfect for:

  1. People who want a no annual fee card
  2. People who are not big spenders
  3. People who are able to reach the sign-up bonus amount
  4. People who don’t travel abroad

Who it isn’t perfect for:

  1. Big spenders
  2. People who want the extra benefits
  3. People who won’t be able to reach the minimum spending amount for the sign-up bonus

If you are still unsure if a rewards credit card makes sense, check out my post on Why You Should Use Rewards Credit Cards.

Additionally, if this card isn’t right for you, I invite you to check out my credit cards page for more information on other cards.

About the author

Mr. NahasFinance:

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