Bank of America Cash Rewards Credit Card Benefits and Drawbacks
People with excellent credit will love the Bank of America Cash Rewards credit card. This attractive credit card is perfect for everyday spending. You can purchase the things you normally would and get rewarded for doing so. However, as with any credit card, the Bank of America Cash Rewards card has its benefits and drawbacks.
Is this a good choice for you? Our comprehensive review will fill you in on the benefits and the drawbacks of owning and using this card. By the end, you’ll know if you could benefit from using the Bank of America Rewards or not.
Bank of America Cash Rewards Credit Card Benefits
1. Rewards Rate
One of the most attractive features of the Bank of America Cash Rewards credit card is the rewards rate. You earn rewards for practically anything you purchase throughout the day. For starters, the Bank of America Cash Rewards card gives you 3% cash back on gas. You also get 2% cash back on groceries, and 1% cash back on all other purchases. Even using this card sparingly will allow you to rack up cash back rewards quickly.
2. Sign-Up Bonus
The Bank of America Cash Rewards credit card also comes with an easily reachable credit card sign-up bonus. You’ll get a $150 statement credit if you spend just $500 in the first three months of owning the card. So this works out to $167 per month and roughly $5.57 per day. That’s around the price of your average coffee purchase.
3. Introductory APR
When you first open your Bank of America Rewards, you’ll get an introductory APR offer. For the first 12 months, you’ll pay a 0% APR. This means that every purchase you make you won’t pay extra in the form of interest. You do want to make sure that you pay off your balance before this introductory offer ends. If you don’t, you could have your debt get out of control quickly with the card’s variable APR.
4. No Annual Fee
Another great feature with the Bank of America Cash Rewards credit card is no annual fee. This is rare on a rewards card, but this card manages to have it. This allows you to use your card as little or as much as you want without feeling guilty. Any rewards you make will be purely beneficial. You won’t have to try and make the rewards you earn outweigh the annual fee’s cost.
5. Unlimited Rewards
Once you earn your rewards, they’re yours to keep. As long as you don’t close your account, your rewards won’t expire. You can stack them for as long as you want and cash them out for larger purchases. It is a good idea to keep your account in good standing and periodically cash them out. The last thing you want to do is close the account and forget about the rewards you’ve saved up.
6. Rewards Rate Refreshes Each Quarter
Your 3% and 2% rewards rate do have a maximum cap of $2,500. Once you hit this cap, they drop down to a 1% rewards rate. However, this resets every three months. If you do cash it out early, you’ll get your 3% and 2% rewards rate back in the new quarter. This is unique for rewards cards as they usually only allow you to reach your cap once per year.
7. Multiple Ways to Redeem
When you do want to cash in your rewards, the Bank of America Rewards card gives you options. So you can redeem your rewards in the form of a statement credit, a deposit, and more. If you choose to redeem it as a deposit into your Bank of America account, you’ll get a 10% bonus. This 10% bonus is for each time you redeem your rewards, and it can add up quickly.
8. Museums on US Program
Cardholders will enjoy the complimentary Museums on US program. This program entitles cardholders to complimentary access to over 150 zoos, museums, and science centers. Also, if you have a larger family or live in an area with several choices, this could be huge. All you have to do is present your card when you go to get the complimentary access.
Bank of America Cash Rewards Credit Card Drawbacks
1. Credit Rating
To qualify for Bank of America Cash Rewards card, you need very good to excellent credit. The lender will base this off of your credit score when you apply for the card. Ideally, you want credit in the low 700s and up to qualify. This cuts out a lot of people, but it’s standard for a rewards card.
2. Higher APR
As this is a rewards card, it’ll have a higher APR. However, if you have lower credit, you’ll pay for it. This card’s APR is variable, and it goes from 14.24% up to 24.24%. If you carry a balance from month to month, this can be a problem. It would be very easy for your debt to get out of control with the added APR and your balance.
3. Foreign Transaction Fee
So for anyone who plans to travel, you may want to leave this card at home. It comes with a 3% foreign transaction fee each time you use it outside of the United States. This can add up quickly, especially if you’re prone to forgoing cash in favor of plastic while you travel. This foreign transaction fee includes ATMs and vendor purchases as well.
4. Balance Transfer Fee
This card comes with a balance transfer fee as well. There is no introductory offer for it. You’ll pay a 3% balance transaction fee with a minimum of $10. This fee is for each balance transfer you transfer to this card. Anyone who plans on having multiple balance transfers would be better off with a different balance transfer card.
Bank of America® Cash Rewards credit card Bottom Line
The Bank of America Cash Rewards credit card is a solid rewards card for everyday spenders. So as long as you can qualify, you will get several benefits and perks for using the card. With responsible use, this card could earn you a decent amount of rewards with few pitfalls.