The Bank of America Cash Rewards Card is a great alternative for those who love rewards and cash back. The reasons? Well, it does not charge an annual maintenance fee ($0) and allows the client to choose a specific bonus category. As for the return rate, it is calculated at 3% (the maximum rate), which is not the highest percentage in the market. However, the possibility to choose your own category could complement this small disadvantage.
A con that the card could have? There is a spending limit to earn bonuses at 3% and 2%. If you go over the established figure, you will not get refunds for your next purchases, rather, it will drop to 1%. Do you want to know more about this reimbursement card? Great! Next, you will find everything you need to know about her.
- 1 Bank of America Cash Rewards Card Features
- 2 Bank of America Cash Rewards Card Pros and Cons
- 3 Bank of America Cash Rewards Card Benefits
- 4 Drawbacks of the Bank of America Cash Rewards card
- 5 Should I apply for the Bank of America Cash Rewards credit card?
Bank of America Cash Rewards Card Features
The Bank of America Cash Rewards Card is a cash back card that offers cardholders juicy rewards:
- It has a maintenance fee of $0 per year.
- Offers a $200 cash bonus (Starting at $1,000 in expenses incurred during the first 90 days)
- It has ongoing rewards and returns which you can explore in the following table:
|Bank of America Cash Rewards Card Rewards|
|3% rebates||In the category you have selected|
|2% rebates||For purchases at grocery stores and wholesalers ($2,500 limit per quarter)|
|1% rebates||After you reach the $2,500 quarterly limit / On all other purchases you make|
The first level of returns – which is 3% – will be available for any of these categories. You can only choose one, although Bank of America will give you the opportunity to exchange it for another. (Maximum once a month)
- Online purchases
- Home improvement and/or furnishings
Tip: We recommend choosing the category in which you invest the most money month after month. Remember that you are capped at $2,500 quarterly and combined for rebates, so any industry you invest in more than this should not count.
Once you select your preferred category for the 3% cashback, it will stay the same, unless you change it.
One of the strong points
Among other features, the Bank of America Cash Rewards card also stands out for its introductory APR, which is 0%. This benefit will be available during the first 12 billing cycles and it will apply to both purchases and balance transfers you complete.
However, this fantastic offer comes with a small print: it will only be available for the trades you make within 60 days of receiving the card. After that, the standard APR will be charged, which is a variable rate from 13.99% to 23.99%.
|Bank of America Cash Rewards Card Overview|
|Annual maintenance fee||$0|
|credit card APR||Variable rate from 13.99% to 23.99%|
|Introductory APR||0% APR for the first year*|
|Recommended Credit Score||From 690 to 850 points|
*For purchases and balance transfers made within 60 days of credit card issuance.
Bank of America Cash Rewards Card Pros and Cons
within the advantages of having the Bank of America Cash Rewards card, we find the following:
- It will give you the opportunity to enjoy different levels of reimbursement.
- You will receive a cash bonus offer, and this is always appreciated.
- You will not have to spend money paying a fee or maintenance fee.
- It has a 0% introductory APR which, despite its limitations, is a good deal.
What are the disadvantages of this credit card? Well, the main one is that if your purchases and operations usually exceed the limit for 3% reimbursements -and you are willing to pay an annual maintenance fee- it may not be the best option, since, for this treatment, you could find cards with best rewards.
Bank of America Cash Rewards Card Benefits
Perhaps one of the biggest benefits of having a Bank of America Cash Rewards card in your pocket is that, as a cardholder, you’ll be eligible for the Preferred Rewards program. Thus, you could raise your rewards. Of course, this would not be the only advantage.
With this card, you will not be subject to a one-time or minimum redemption of cash rewards. You can request a refund to your Bank of America account or use the credit to pay the outstanding balance on your card. However, if you choose another payment method, you will need to redeem a minimum of $25. Other redemption options include: check, direct deposit to a valid 529 account, automatic redemption, or contributions to an eligible Merrill account.
Note: Before choosing to apply for your Bank of America Cash Rewards card, take into account the spending limits that you will have as a barrier to enjoy the different bonus levels. If you spend more than $2,500 per quarter in the 2-3% categories, you may want another alternative.
Among other benefits of the Bank of America Cash Rewards card, we find:
You will be able to choose your own category for 3% rewards
Not many cards give the cardholder the option to choose which categories will earn the highest level of rewards.. And yes, there may be some, but none of them will allow you to modify the selection once a month. This makes Cash Rewards an attractive card for those who want to put control in their hands.
For example, in the online shopping category, you’ll earn 3% rewards when you shop at Amazon, Target, Walmart, Macy’s, Bestbuy, or Groupon. Of course, choice goes beyond online shopping. The offer in the purchase of food is also quite wide and includes:
- Coffee shops
- cocktail lounges
- A la carte restaurants
- Fast-food restaurants
Remember: You can also give your home or office a draft with the Bank of America Cash Rewards card. How? Buying furniture at Ace Hardware or paying the plumber’s bill.
Warning: The $2,500 limit for rewards is not per level of rebates. In fact, it combines the 2% and 3% categories. After going over this limit, you will only earn 1% regardless of the nature of the spend.
You will have access to loyalty bonuses
The Bank of America Cash Rewards card offers and rewards rates may not be the best in the banking industry, but being able to participate in the Bank of America Preferred Rewards program changes everything.
With the Preferred Rewards program you can earn between 25% and 75% more than with the Cash Rewards card and that is a lot to say. Mind you: qualifying for this program is not that easy. You’ll be able to access it if your Bank of America and Merrill accounts combine to exceed a specified dollar limit.
To give you an idea, if you want to enjoy that 75% profit, you will need a combined balance of $100,000. How would this change the reward levels? Let’s see it! Instead of getting 3% back on the category you’ve selected, you’ll earn 5.25%. This fee is much higher than what you would earn with any other rewards card.
|Cash Rewards Card Rewards with the Preferred Rewards Program|
|Combined balance required||Gold (25% increase)||Platinum (50% increase)||Platinum Honors (75% increase)|
|Reward in the category of your choice||3.75%||4.50%||5.25%|
|Reward on food purchases||2.50%||3%||3.50%|
|reward in everything else||1.25%||1.5%||1.75%|
0% APR (introductory offer)
The Bank of America Cash Rewards Card has a 0% introductory APR that will apply to purchases and balance transfers you make within the first 60 days of receiving the card. This APR will be maintained for the first 12 billing cycles. After that, you will have to pay the variable rate that goes from 13.99% to 23.99%.
It has no annual fee
With the Cash Rewards credit card, you’ll earn regardless of your purchase or payment volume because not subject to any annual maintenance fee. Therefore, having it in your hands will not cost you anything.
Drawbacks of the Bank of America Cash Rewards card
One of the main drawbacks of this card is that it does not have loyalty bonuses. If you don’t qualify for the Preferred Rewards program, the cash back rates may become less attractive than a modest figure. To this should be added the combined spending limit for the 3% and 2% categories.
This brings us to the second drawback on the list: that $2,500 a quarter barrier. If you tend to spend thousands of dollars a month, perhaps there is another card that allows you to save -or earn- more for your money
But what options do you have at hand that are better than this? Let’s see some examples:
- To remove the spending limit, we recommend the Citi Double Cash card which has a 0% annual maintenance fee and increases the introductory APR offer up to 18 months. This card offers 2% cash back on all purchases. Of course: you will get 1% at the time of completing the transaction and the other 1% when you finish paying the invoice.
- To increase reward rate, we recommend the Cash Visa Signature card from US Bank. It also has no annual maintenance fee, but -unlike our protagonist- it offers 5% cash back on the first $2,000 you spend. To this should be added the 2% returns in the category of your choice: fuel, providers of telephone plans and TV services, fast food, Internet, streaming, etc. Although it is true that you will not be able to change your preferred categories as often, it compensates this disadvantage with a good percentage.
Should I apply for the Bank of America Cash Rewards credit card?
Depends on your needs and volume of spending. The $2,500 combined limits are definitely a drawback to the card, especially to those who spend thousands of dollars a month on their credit card. But nevertheless, if you shop occasionally and tend to keep your purchases below average, it might not be a bad idea.
All things considered, and as long as it’s for the right person, the Bank of America Cash Rewards card could be great. It has no annual maintenance fee and allows you to choose your reward category And not only that: it also gives you the opportunity to change it every month.
Another positive factor is that there will be no limit on the money you can earn with this card. Yes, the returns are limited, but even after reaching the $2,500 limit, you will still earn 1% of rebates and there is no maximum amount as a limit to continue accumulating dollars in your favor.
Regarding the application, the credit card is only available for consumers with good credit. If your score is below 690 points, your Bank of America Cash Rewards Card application may not be approved.