3 Reasons I Recommend This Bank of America Card to Credit Card Newbies
KEY POINTS
- The Bank of America® Travel Rewards credit card has a $0 annual fee and no foreign transaction fees.
- Bank of America credit cards often come with solid welcome bonuses -- this one is no exception.
- Earning a flat rate of 1.5 points per $1 spent on all purchases makes using this card super easy.
At this point, I've been working as a personal finance writer and editor for long enough that a lot of people I know ask me for advice about different aspects of money management. Most recently, someone in my life asked about travel rewards credit cards. She's actually never had a credit card before, and since so many of the best travel credit cards come with a steep learning curve, I wanted to recommend a card that is refreshingly simple to use.
So here's why I talked up the Bank of America® Travel Rewards credit card. Could it be a good fit for you, too?
On Bank of America's Secure Website.
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Good/Excellent (670-850)
Intro APR 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.24% - 28.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers. Balance transfers may not be used to pay any account provided by Bank of America.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Regular APR
18.24% - 28.24% (Variable)
Rewards Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees, and your points don't expire as long as your account remains open. Earn 3 points per $1 spent on travel purchases booked through the Bank of America Travel Center.
1.5-3 points per dollar
Annual Fee
$0
Welcome Offer 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases
25,000 points
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This is a good starter travel card thanks to its simplicity and no annual fee. It offers a strong welcome bonus worth $250, unlimited 1.5X points on all purchases, 3X points on travel booked through Bank of America, and no foreign transaction fee. Simply redeem points as a statement credit for travel or dining purchases. The generous Intro APR on purchases for 15 billing cycles might come in handy if you want to pay off an expensive trip over time without interest. It’s a particularly good fit for Bank of America Preferred Rewards members, who can earn 25%-75% more points on every purchase (depending on your tier).
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- Big sign-up bonus
- No annual fee
- Competitive rewards rate on purchases
- Great intro APR offer on purchases and balance transfers
- Limited ways to use points
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- 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases.
- Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don't expire as long as your account remains open.
- Earn 3 points per $1 spent on travel purchases booked through the Bank of America Travel Center.
- Use your card to book your trip how and where you want - you're not limited to specific websites with blackout dates or restrictions.
- Redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants including takeout.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% - 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%. Balance transfers may not be used to pay any account provided by Bank of America.
- If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more points on every purchase. That means instead of earning an unlimited 1.5 points for every $1, you could earn 1.87-2.62 points for every $1 you spend on purchases. You could earn 3.75-5.25 points for every $1 you spend on travel purchases made through the Bank of America Travel Center.
- Contactless Cards - The security of a chip card, with the convenience of a tap.
- This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
1. It's very easy to use
According to credit card research from The Motley Fool Motley Fool Money, a higher percentage of ordinary (read: not rich) Americans have cash back credit cards vs. travel credit cards (72% vs. 23%). This makes sense -- if your net worth is under $1 million, you're probably not jet-setting as often as you're trying to squeeze extra savings from your everyday purchases.
That said, those of us without big bank account balances still deserve to save money on travel. And unlike a lot of travel cards that earn points or miles (that you either redeem through a travel portal or transfer to an airline or hotel), the Bank of America® Travel Rewards credit card is rather straightforward.
You'll earn 1.5 points per $1 spent on all purchases -- no matter what you buy, and no matter how much you spend, since these earnings are unlimited. You'll have a few options to use those points: You get the best value for them as a statement credit to cover travel and dining purchases (2,500 points = $25), but you can also use them to book travel with Bank of America or redeem them as gift cards or cash directly. What could be easier?
2. It has a worthwhile welcome bonus
A nice welcome bonus can make getting a new credit card even sweeter. And one feature of Bank of America credit cards that I really appreciate is the fact that they come with great welcome bonuses that don't require a big spend. The Bank of America® Travel Rewards credit card is no exception -- if you spend $1,000 in the first 90 days with the card, 25,000 points can be yours. Redeem them as a statement credit for travel and dining purchases, and they're worth $250.
That required spend is pretty achievable when you break it down by month. Stretching your spending to meet a welcome bonus requirement can be a short trip to credit card debt, so it's nice that this card's requirement is so reasonable.
3. It lacks two major fees
A lot of the best travel rewards cards have annual fees -- this isn't inherently a bad thing, as paying an annual fee for a card can mean getting access to better perks (like airport lounge access) and perhaps a higher rate of earning on purchases. But if you're new to credit cards, it's best to start slowly and try out a card with no annual fee first. The Bank of America® Travel Rewards credit card fits the bill.
It also comes without foreign transaction fees, which makes it the perfect companion for international travel. Foreign transaction fees often amount to about 3% of purchases made in currencies other than USD, and while that doesn't sound like much, it can add up. Travel is expensive enough, so it's worth choosing a card carefully to ensure you're not paying extra on your overseas vacation.
If you're a credit card pro and can handle wading through bonus categories, complicated points transfers, and paying an annual fee for extra perks, another travel card might be a better fit for you. But if you're a credit card newbie who enjoys travel, I highly recommend taking a closer look at the Bank of America® Travel Rewards credit card.
Our Research Expert
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