Bank of America Customized Cash Rewards Card for Students Review: A Standout in Its Class

The Bank of America® Customized Cash Rewards credit card for Students is packed with attractive features we don't often see in student credit cards. It has a nice sign-up bonus and allows you to choose your own bonus spending category from broad options like travel, dining, or online shopping. That means there's good earning potential here for the right cardholder. You'll even get a 0% intro APR offer on purchases and balance transfers.

The question is: Is this another case of a credit card that tries to offer it all but ultimately falls short? That depends on how you use it. Read our Bank of America® Customized Cash Rewards credit card for Students review to decide whether this card is right for you.

This credit card is a good fit for: Students who want to build credit while earning competitive cash back rates.

Top perks

3% cash back in selected category of choice

Earning 3% cash back on a bonus spending category is about as good as a student credit card gets, and Bank of America sweetens the pot here by letting you choose the bonus category based on your own spending habits. You can choose from gas and EV charging stations, online shopping, dining, travel, drug stores, and home improvement/furniture. What's more, you can change your chosen category once per month through your banking app or online account. Online shopping is a pretty broad category and could be lucrative for many students, making it an attractive inclusion.

2% cash back on groceries and wholesale clubs

You'll also get 2% cash back at grocery stores and wholesale clubs. It's worth noting that you'll only earn the 3% and 2% bonus rates on the first $2,500 you spend in your choice category and groceries combined each quarter. After that, you'll earn 1% back.

READ MORE: Best Grocery Credit Cards

$200 cash rewards bonus

If you spend $1,000 in the first 90 days, you'll earn an online $200 cash rewards bonus. This is about as good as it gets for a student credit card when it comes to the best sign-up bonuses -- most don't offer a sign-up bonus at all.

0% intro APR on purchases and balance transfers

This card comes with a 0% intro APR offer on both purchases and balance transfers for the first 15 billing cycles. While it's not the longest introductory period, it's certainly up there, especially for cards that don't require you to have a lengthy credit history. Consider that only balance transfers made in the first 60 days receive the intro APR offer.

No minimum redemption requirement

You can process a one-time redemption of your cash back rewards at any time, for any amount. Lots of cards only let you redeem your cash back rewards once you hit a minimum threshold, so this is an attractive feature -- particularly for folks who don't spend a lot.

FICO® Score for free

If you're a student with a limited credit history, checking your credit score regularly as you build credit is a must. This card lets you access your FICO® Score for free, updated monthly, and checking it won't hurt your credit.

No annual fee

Students tend to be on a tight budget, so credit cards with no annual fees are ideal. This card doesn't charge an annual membership fee.

SEE MORE OPTIONS: Best Rewards Credit Cards

What could be improved

Earning cap on bonus spending categories

You'll earn the bonus cash back rates each quarter on the first $2,500 in combined spending from your choice category and grocery stores. If you hit that threshold, your earn rate goes down to 1% until the next quarter. If you tend to spend more than $2,500 on the bonus categories per quarter, it's worth looking for a cash back card that doesn't have an earnings cap.

Balance transfer fee

While the intro offers are generous, this card charges a balance transfer fee of 3% for 60 days from account opening, then 4%. In other words, you'll end up paying a $30-$40 fee for every $1,000 transferred, depending on when that transfer takes place. If paying off debt is your M.O., you might want to look for a balance transfer card that doesn't charge a fee.

Foreign transaction fees

This card charges a foreign transaction fee of 3%. If you plan to use this credit card while traveling abroad, these fees can quickly add up. For example, if you spend the equivalent of $800 on foreign transactions, you'll be charged an additional $24 when using this card. If you're an international traveler, you may want to consider applying for no foreign transaction fee credit cards to save money.

Aim for a FICO® Score in the mid-to-high 600s -- ideally, at least 670. Since this is a student credit card, consumers with a limited credit history or "thin file" shouldn't be discouraged from applying.

The Bank of America® Customized Cash Rewards credit card for Students is an excellent student credit card, but it's not the best option for everyone. Consider applying for this card if:

• You spend a good amount on gas, online shopping, dining, travel, drug stores, or home improvement/furniture and groceries, but not more than $2,500 per quarter.
• You spend enough on credit to qualify for the bonus.
• You have good credit but a limited credit history.
• You're looking to finance a purchase you can pay off within 15 billing cycles.

Bear in mind that you won't benefit from this card if you don't maximize your cash back rewards by spending close to $2,500 per quarter in the bonus categories. If you're likely to spend a lot less, or consistently spend a lot more, look for a cash back credit card with a rewards structure that matches your spending. That being said, this is still one of the most generous student credit cards on the market and a great choice for folks with a slim credit file.

KEEP READING: Best Bank of America Credit Cards

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.