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- Bank of America Cash Rewards Review
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The Bank of America® Cash Rewards credit card is no slacker in credit card bonuses, featuring high cash back rates in several spending categories and a great sign-up bonus. Cardholders coveting gas rewards may be best suited for this card. Further, if you have any banking or investment accounts with Bank of America, you can raise those cash back rates even higher. But is this card the right one for you? Find out in our Bank of America® Cash Rewards credit card review.
Apply Now
On Bank of America's Secure Website.
Bank of America® Cash Rewards credit card
Apply Now
On Bank of America's Secure Website.
Great for: Bonus and cash-back flexibility
Rating image, 4.5 out of 5 stars.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Bottom Line
Includes a market-leading bonus in the no-annual fee category and a flexible cash rewards program that enables you to earn premium cash back in a category of your choice. Plus, the long intro APR offer makes this card a standout among its peers.
Rewards
3% cash back in your choice category, 2% at grocery stores & wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% on all other purchases.
Annual Fee
$0
Intro APR
Purchases: 0%, 12 billing cycles
Balance Transfers: 0% Intro APR for 12 billing cycles for any balance transfers made in the first 60 days
Ongoing APR
13.99% - 23.99% Variable
Welcome Bonus
$200 after making at least $1,000 in purchases within 90 days of account opening
Highlights
- No annual fee
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
- Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases
- 0% Introductory APR for 12 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 13.99% - 23.99% Variable APR will apply. A 3% fee (min $10) applies to all balance transfers
- No expiration on rewards
- If you're a Preferred Rewards member, you can earn 25% - 75% more cash back on every purchase
- Contactless Cards - The security of a chip card, with the convenience of a tap
Full Bank of America Cash Rewards review
This credit card is a good fit for: Cardholders who want control over where they earn bonus cash back. Bank of America banking and investment clients can unlock higher cash back rates through its Preferred Rewards program.
Pros
- Competitive sign-up bonus
- Bonus cash back in a category of your choice
- No annual fee
- Zero-interest offer
Cons
- Foreign transaction fee
- Limit on bonus cash back
Top perks
Up to 3% cash back: You’ll earn the following cash back rates with the card:
- 3% in your choice of one of six popular spending categories (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings)
- 2% at grocery stores and wholesale clubs
- 1% on all other spending
The 2% and 3% cash back rates are for your first $2,500 in spending combined at grocery stores, wholesale clubs, and in your choice category each quarter.
$200 intro bonus: To get this bonus, you must spend $1,000 within the first 90 days. Considering how much you’ll make for a very small minimum spending requirement, this card has one of the best sign-up bonuses among cash back cards.
No annual fee: Like quite a few of the best cash back cards, this card doesn’t charge an annual fee.
0% intro APR: The 0% intro APR lasts for 12 billing cycles and applies to purchases and balance transfers, although balance transfers must be made within 60 days of your account opening to qualify. That’s not a big deal, because if you’re planning to transfer credit card debt, you’d want to do that as soon as possible, anyway
Bonus cash back for Bank of America customers: What makes Bank of America different from other card issuers is the special bonuses it offers for clients who also have banking or investment accounts.
Here’s how it works: If you meet combined balance minimums in any bank accounts with Bank of America and investment accounts with Merrill, you’ll qualify for even larger bonuses through the Preferred Rewards program. The tiers to that program are:
- Gold -- $20,000 combined balance minimum, 25% bonus
- Platinum -- $50,000 combined balance minimum, 50% bonus
- Platinum honors -- $100,000 combined balance minimum, 75% bonus
You can see how each bonus would affect your cash-back rates in the table below.
| Spending | Standard Cash back Rate | Preferred Rewards Gold | Preferred Rewards Platinum | Preferred Rewards Platinum honors |
|---|---|---|---|---|
| Your choice | 3% | 3.75% | 4.5% | 5.25% |
| Grocery stores and wholesale clubs | 2% | 2.5% | 3% | 3.5% |
| All other purchases | 1% | 1.25% | 1.5% | 1.75% |
What could be improved
Caps on bonus categories: If you spend a lot in your chosen bonus category, grocery stores, and wholesale clubs, you could hit the $2,500 quarterly spending cap. At that point, you’ll only earn an unspectacular 1% back.
3% foreign transaction fee: While foreign transaction fees are commonplace among cash back cards, that doesn’t mean we have to like them.
Suggested credit score
Good to excellent credit (generally a 670-plus FICO® Score) is suggested for the Bank of America® Cash Rewards credit card. Note, people with higher scores can be declined and people with lower scores may be approved. Credit scores are just one factor used to make a credit decision.
Case in point, Bank of America credit cards are unique in that on some denied applications, it has given “lack of deposits or investments” as a denial reason, and applicants have reported being offered the opportunity to get a credit card if they open a certificate of deposit with the bank first. Based on that evidence, it appears having a banking or investment account with Bank of America could help you get a card with them.
Alternatives to consider
- If you want rotating bonus categories: The Discover it® Cash Back offers new bonus categories that you activate every quarter where you'll earn 5% back, up to a $1,500 quarterly spending maximum. Discover doesn't stop the bonus cash back there, either, as it also matches all the cash back that you earn in your first year using this card.
- If you want a high cash back rate on all your spending: You won't find a better option than the Citi® Double Cash Card – 18 month BT offer, which earns 2% back on every purchase. That's paid out in a unique fashion, 1% back when you make a purchase and the other 1% when you pay the bill on time.
As of Jan. 05, 2021
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| Discover it® Cash Back | Citi® Double Cash Card – 18 month BT offer |
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Rating image, 5.0 out of 5 stars.
5.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
Rating image, 5.0 out of 5 stars.
5.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
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Apply Now
On Discover's Secure Website. |
Apply Now
On Citi's Secure Website. |
| Read Full Review | Read Full Review |
| Rates & Fees | |
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Credit Rating Requirement: |
Credit Rating Requirement: |
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Welcome Bonus: Dollar-for-dollar match of all cash back earned the first year |
Welcome Bonus: N/A |
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Rewards Program: Cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Unlimited cash back on all other purchases - automatically |
Rewards Program: 2% cash back: 1% when you buy plus 1% as you pay |
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Intro APR: Purchases: 0%, 14 months Balance Transfers: 0%, 14 months |
Intro APR: Purchases: N/A Balance Transfers: 0%, 18 months |
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Regular APR: 11.99% - 22.99% Variable APR |
Regular APR: 13.99% – 23.99%, variable |
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Annual Fee: $0 |
Annual Fee: $0 |
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Highlights:
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Highlights:
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Apply Now
On Discover's Secure Website. |
Apply Now
On Citi's Secure Website. |
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This card is right for you if:
If any of the following are true, then applying for the Bank of America® Cash Rewards credit card is a no-brainer:
- You have banking or investment accounts with Bank of America or Merrill.
- You spend a lot of money in one of the bonus category options.
- You’re looking for a lucrative sign-up bonus without having to spend that much to get it.
- You want a 0% intro APR offer.
The sign-up bonus is both easy to qualify for and best-in-class, 3% back on a category of your choice is an excellent rate, and Bank of America’s customer bonuses can boost your cash back quite a bit.
Since the Bank of America® Cash Rewards credit card credit card has no annual fee, it may be worth getting regardless as a card you use for purchases that fit its bonus categories. But if you’re not a Bank of America customer (or aren’t planning to become one), don’t spend heavily in any of those bonus categories, or are looking for more than just a sign-up bonus, we’d advise looking at the other top cash back cards.
About the Author
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
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