Are you in the market for a new cash rewards credit card?
Rewards credit cards give users a chance to earn cash back on select purchases. They reward all active card users simply for swiping at their favorite shops and locations.
If chosen wisely, your cash back credit card can help you build credit and reward you at the same time. There are scores of cash reward credit cards available to consumers, including the Bank of America Cash Rewards Card.
You may very well be considering requesting Bank of America’s reward card. If so, check out this review before you do!
Bank of America Cash Rewards Card: The Basics
Bank of America has been around since 1904. In fact, over 23 million U.S. households claim Bank of America as their primary bank.
BOA offers a variety of credit building opportunities to consumers. In fact, it currently has 21 different credit cards available for users.
One of its most popular credit cards is the Bank of America Cash Rewards Card. Let’s get into the basics of what this card can offer to users.
The Bank of America Rewards card gives users an automatic 1% back on all purchases, regardless of where those purchases are made. Users also enjoy 2% back at all qualifying grocery and wholesale stores and 3% back on gas purchases.
It’s important to note that users are only entitled to the following two reward percentages for up to $2500 in purchases a year. If you spend beyond this amount, you will receive the usual 1% on your grocery and gas purchases.
However, customers also receive a 10% bonus whenever they redeem their cash back into a Bank of America savings or checking account. This can be quite hefty, depending on the amount of the cash back.
What’s more, Bank of America Preferred Rewards clients can earn 25 – 75% bonuses for reward redemption.
You don’t have to redeem your cash back into a BOA account, however. You can simply redeem it as a statement credit, cash, or gift cards.
The BOA Cash Rewards Card also comes with some introductory perks. First-time users who spend at least $500 using their new card in the first three months receive $150 in statement credit.
First-time card users can also enjoy a low introductory APR of 0% for the first twelve billing cycles of use. After that, the APR is variable, beginning at 14.74%.
There is no annual fee for using the Bank of America Rewards card. If you make any balance transfers, a 3% fee applies.
There are a few benefits to using the BOA Cash Rewards card. Read on for insight.
1. Excellent Cash Back Opportunities
The Bank of America Cash Rewards card is one of the more competitive rewards cards on the market. It can be a financially sound addition to any user’s lineup of credit cards.
It can be particularly valuable to users who spend a lot of money annually on groceries or gas. In this sense, the BOA Cash Rewards card is ideal for families and students, who tend to prioritize purchases in these categories.
Bank of America also enables potential users to calculate how much cash back they can earn based on spending habits. Visit their website for more information.
Individuals who already have a Bank of America savings or checking account will appreciate the bonuses they receive for reward redemption into these accounts. Clients can truly maximize their reward potential by becoming Preferred Clients.
If strategically used, the Bank of America Cash Rewards card can be lucrative for the right individuals.
2. High Customer Reviews
The BOA Cash Rewards card is highly reviewed by most users, averaging 4.5 out of 5 stars on the bank’s website. The positive reviews overwhelmingly emphasize the card’s cash back opportunities.
Bank of America also offers fairly stellar customer service, enabling card users to access their accounts online at all times and resolve issues quickly.
3. Great Introductory Offers
Users of the BOA Cash Rewards card only have to spend $500 in the first 90 months of opening their account to earn a $150 statement credit. This is a decent welcome offer for users.
Credit card users who don’t want to think about interest will also enjoy this card’s 0% APR for the first year. This can be valuable for users who need to carry a balance for initial months without encountering a penalty.
There are a few downsides to using the Bank of America Cash Rewards card. Keep these in mind as you decide whether or not to request this card.
1. Cash Back is Limited
Users of this BOA card will enjoy great cash back–but for a time. If you anticipate spending more than $2,500 a year on groceries and gas, this card may not be for you.
Bank of America’s cap on category spending may mean that you are better served seeking rewards through a different card.
What’s more, this card only provides cash back for certain categories of spending: gas and groceries. Other cards offer high cash back for purchases made in other categories throughout the year, such as restaurants, movies, and online retailers.
If the bulk of your purchases fall outside of gas and groceries, look elsewhere.
Lastly, individuals who don’t have a Bank of America savings or checking account automatically miss out on the bonus offer.
2. The Introductory Offers Aren’t Stellar
Other cards may offer higher introductory offers than those available to Bank of America Cash Rewards card users.
Other banks, for example, may give first-time card users 0% APR for the first 15 or 18 months of use, rather than 12. These banks may also apply the same APR to balance transfers.
A year may not be enough for users who need to carry a balance or consolidate debt. In this sense, it may be wise to consider another credit card.
3. This Card Requires Good Credit
Most users who successfully request a BOA Cash Rewards card have moderate to excellent credit. Users who have bad or poor credit history may not be approved.
If you have limited or damaged credit history, it may be wise to apply for a card that does not require a credit check.
The Bank of America Cash Rewards Card Review
The Bank of America Cash Rewards card is a popular choice for consumers seeking financial rewards for their regular spending.
Its cash back and introductory incentives can be optimal for users who frequent gas stations and grocery stores. This card also enjoys high reviews compared to the bank’s other available cards.
However, this rewards card is limited in the type and amount of rewards it offers. This may be a drawback for users truly seeking to leverage their reward potential.
At Bonsai Finance, we can help you identify the rewards card that is best for your needs. Reach out today to learn more!