Updated April 2nd, 2018
The Bank of America® Premium Rewards® credit card is a new offering that should be on the radar for anyone who values flexible points redemption and extra perks for frequent travelers. Racking up points is simple with one earnings rate for travel and dining spending, and another flat rate for all other purchases. Points are unlimited, do not expire, and can be redeemed for statement credits, gift cards, and more.
When combined with the bonus offered to loyal Bank of America customers via the Preferred Rewards program, cardholders have access to an even more lucrative rewards program that’s likely to make the Bank of America® Premium Rewards® credit card the first card they reach for in their wallet.
- Unlimited 2 points per $1 for travel and dining purchases
- 50,000 bonus points offer
- Up to 75% rewards bonus
- No foreign transaction fees
- $200 in travel credits
- Annual fee
|Bonus Offer||50,000 bonus points - a $500 value - after you make at least $3,000 in purchases in the first 90 days of account opening.|
Reg: 17.49% - 24.49%, variable
|Balance Transfer APR||
Reg: 17.49% - 24.49%, variable
- Receive 50,000 bonus points- a $500 value – after you make at least $3,000 in purchases in the first 90 days of account opening.
- Earn unlimited 2 points for every $1 spent on travel and dining purchases and unlimited 1.5 points per $1 spent on all other purchases
- If you’re a Bank of America Preferred Rewards client, you can get a 25%-75% rewards bonus on every purchase.
- No limit to the points you can earn and your points don’t expire
- Flexibility to redeem for a statement credit, deposit into eligible Bank of America® or Merrill Lynch® accounts like checking, savings, and 529, for gift cards or use at the Bank of America Travel Center.
- Get up to $200 in combined airline incidental and airport expedited screening statement credits + valuable travel insurance protections
- No Foreign Transaction Fees
- Low $95 annual fee
What we like about Bank of America® Premium Rewards®
- Up to 2 points per $1 – Travel and dining purchases earn 2 points per $1 of spending, and all other purchases earn a flat rate of 1.5 points per $1 – no bonus categories to remember.
- 50,000 points new cardholder bonus – Bank of America® Premium Rewards® offers 50,000 bonus points to new customers who spend at least $3,000 on purchases in the first 90 days. That’s equal to $500 in rewards!
- Flexible redemption – Speaking of rewards, flexibility is the name of the game for this credit card. While points are uncapped and don’t expire, cardholders can redeem them for statement credits, deposits into eligible Bank of America® or Merrill Lynch® accounts, gift cards, or for use at the Bank of America Travel Center.
- Up to 75% rewards bonus – Bank of America Preferred Rewards clients can receive bonuses that add 25% to 75% on top of every point. For the number crunchers out there, that works out to a fully-baked earnings rate equivalent to 2.5% to 3.5% for dining and travel, and 1.875% to 2.625% for all other purchases.
- No foreign transaction fee – Purchases abroad won't incur a fee for each transaction, as is common with other credit cards.
- Other travel perks – Travelers will also appreciate the travel insurance protection included with the card, plus $200 of combined statement credits for TSA Pre✓® or Global Entry, and incidental airline purchases such as seating upgrades, checked luggage fees, and in-flight entertainment.
What could be improved for Bank of America® Premium Rewards®
- Annual fee – Bank of America® Premium Rewards® carries a $95 annual fee. While the fee is modest compared with that of many premier credit cards, it’s a fee nonetheless.
- 0% intro APR – A 0% intro APR offer would amp up the value of this card, especially when including this perk for new purchases.
How to best use Bank of America® Premium Rewards®
- Cardholders will generally be better off paying balances by the due date each month to avoid interest charges. It’s a losing strategy to rack up debt for the sake of earning rewards at single-digit rates only to watch as they get eaten up by far higher double-digit interest charges.
- Spend more than $3,000 on purchases during the first three months to qualify for the new cardholder bonus of 50,000 points – a $500 value that you can redeem through the multiple options offered by Bank of America® Premium Rewards®.
- Take advantage of your banking status with Bank of America® to earn bonus rewards up to 75% with Preferred Rewards.
- Cardholders will need to spend $4,750 (95 ÷ 0.02) annually to break even on rewards after paying the $95 annual fee, and that’s assuming all spending is on travel and dining, which earns 2 points per $1. Run your personal budget numbers to uncover what makes financial sense for you, but do keep in mind that this breakeven calculation doesn't account for the sign-up bonus or bonuses for Preferred Rewards clients.
- Leverage access to your FICO® Score. Bank of America provides you with access to your FICO® Score for free, and this perk is a huge value! In fact, myFICO charges upwards of $350 per year to receive, track, and monitor your comprehensive credit history.
The Bank of America® Premium Rewards® credit card is a welcome addition to Bank of America’s line-up – a higher end offering that empowers cardholders with a straightforward system for earning points while giving them maximum flexibility when it comes to redeeming those rewards, too.
With no foreign transaction fees and a large bonus for new cardholders, this card has features that should appeal to both frequent travelers and everyday cardholders, all for a modest annual fee.