Tuesday, September 27, 2022

How Does Bank Of America Credit Card Work

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Bank Of America Customized Cash Rewards Secured Credit Card* Vs Petal 2 Cash Back No Fees Visa Credit Card

Bank of America Customized Cash Rewards credit card (FULL REVIEW)

Those new to credit but turned off by the idea of a secured card should consider the Petal® 2 Cash Back, No Fees Visa® Credit Card, issued by WebBank. Petal 2 cardholders earn 1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments. Plus, earn 2% – 10% cash back at select merchants. This rewards structure may not result in as many rewards earned per year, but it will depend on your spending habits. The Petal 2 card does not charge foreign transaction fees, so it may be a better option for those who expect to make purchases abroad.

Bank Of America Cash Rewards For Students

Good For: Students

Students can build credit and earn cash rewards with this card. It offers the same tiered cash back structure as the general Cash Rewards card with the ability to choose the top-earning category that best aligns with your spending habits.

Card
Bank of America Premium Rewards $95 50,000 online bonus points if you spend at least $3,000 in purchases within 90 days of opening your account 2x points on travel and dining purchases 1.5x points on all other purchases
Bank of America Cash Rewards for Students* $0 $200 online cash rewards when you spend $1,000 in purchases in the first 90 days of account opening 3% cash back in the category of your choice 2% cash back at grocery stores and wholesale clubs 1% cash back on all other purchases

How To Choose A Bank Of America Credit Card

The process of choosing a credit card is the same no matter the issuer. You should evaluate your own spending habits, check your credit score, consider the benefits that would actually help your lifestyle and use tools like our CardMatch feature to find cards in your selection pool based on your credit profile. Once you have a better idea of what youre looking for, you can see if any of Bank of Americas cards fit your needs.

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Why You Can Trust Bankrate

At Bankrate, we have a mission to demystify the credit cards industry regardless or where you are in your journey and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to:

  • Meet you wherever you are in your credit card journey to guide your information search and help you understand your options.
  • Consistently provide up-to-date, reliable market information so you\’re well-equipped to make confident decisions.
  • Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you.

At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next.

Understand Credit Card Basics

Bank of America Credit Cards  How to Apply

A credit card allows you to borrow money for purchases. The bank gives you a , which is the maximum amount the lender will allow you to spend on your card. If you pay your balance in full each month, theres often no cost to you for using the card. If you carry a balance from month to month, youll pay interest. The interest rate, expressed as , depends on your credit history and the type of card.

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The Best Bank Of America Credit Cards Of 2022

Articlesby Madison Blancaflor Articlesby Nick Ewen This page is a marketplace where our partners can highlight their current card offers. The reviews and insights represented are editorial, but the order in which cards appear on the page may be influenced by compensation we may receive from our partners.

Bank of America offers an impressive lineup of more than 20 credit cards that run the gamut from cash-back credit cards to airline credit cards. It can be helpful to analyze these cards individually and see where they might fit in your wallet instead of trying to build out a grand strategy such as the Chase or Amex Trifecta. See cards below from our partners.

at Bank of America’s secure site

What Is A Credit Card Cash Advance

A cash advance on your credit card may seem like a quick way to get money, but there are fees and risks to consider

Read, 3 minutes

A credit card cash advance is a withdrawal of cash from your credit card account. Essentially, youre borrowing against your credit card to put cash in your pocket. However, there are costs to taking a credit card cash advance and, in some cases, limits on the amount you can withdraw.

Here, Better Money Habits®asks Bank of Americas Jason Gaughan, SVP, Consumer Card Products, about the key considerations of a credit card cash advance.

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Bank Of America Premium Rewards Credit Card: Best Bank Of America Travel Card

  • What we love about this card: This card offers solid travel protections and earns a decent rewards rate on travel purchases.
  • Who is this card good for: Bank of America Customers who want to earn solid travel rewards for a low cost.
  • Alternatives: The Chase Sapphire Preferred® Card provides a reasonable alternative to the Bank of America Premium Rewards card. With the Sapphire Preferred youll get many of the same travel perks and protections for the same low annual fee.

Bank Of America Unlimited Cash Rewards Secured Credit Card

How to make a payment on your Bank of America credit card

Why We Like It: The Bank of America® Unlimited Cash Rewards Secured Credit Card is the best Bank of America credit card for bad credit because it has a $0 annual fee and reports to the major credit bureaus monthly. The Bank of America Unlimited Cash Secured Card also offers rewards of 1.5% cash back.

What We Dont Like: Your spending limit equals the amount of your security deposit, which has to be at least $200. Plus, carrying a balance from month to month would get expensive fast, thanks to the cards high APR.

Who Should Get It: Consider applying for this Bank of America credit card if you want to repair damaged credit.

Alternatives to Consider: The Capital One Quicksilver Secured Cash Rewards Credit Card and the Discover it® Secured Credit Card also have great rewards for people with bad credit.

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Best For Balance Transfers: Bankamericard Credit Card

  • Best features: Its lengthy balance transfer offer makes it an excellent card for paying down card debt.
  • Biggest drawbacks: The intro APR is attractive, but the balance transfer fee isnt as low as other cards in this category. Another potential deal breaker for some: this card has no rewards program.
  • Alternatives: The Citi Simplicity® Card offers one of the longest introductory APR periods on both balance transfers available. Like with the BankAmericard, you wont be charged a penalty APR with the Citi Simplicity, but Citis competing card goes the extra mile by never charging a late payment fee.
  • Bottom line: Anyone considering a balance transfer will appreciate BankAmericards lengthy 0% intro APR lasting 21 billing cycles , valid for balance transfers initiated within the first 60 days of account opening. These terms also apply to the purchase APR.

Read our BankAmericard® credit card review or jump back to this cards offer details.

Best For Business Travel: Bank Of America Business Advantage Travel Rewards World Mastercard Credit Card

  • Best features: For a no annual fee card, the yearly rewards value is tough to beat. Theres no rush to redeem, as points dont expire and theres no limit on how much you can earn. Plus, cardholders wont be victim to blackout dates when booking travel, so business trips can fit your calendars demands. This card also comes with a nine billing cycle 0% intro APR on purchases , allowing some leeway on any early-on business expenses.
  • Biggest drawbacks: Points earned cant be transferred to other loyalty programs and any travel you want to book must be through Bank of America.
  • Alternatives: If you want to earn rewards to use on travel with a flat-rate card for everyday business spending, you should also consider the Capital One Spark Miles for Business, which earns a flat 2X across all purchases and youll redeem miles for a travel credit or by transferring miles to partners.
  • Bottom line: For a solid travel business card, look no further. As a sign-up bonus, you can earn 30,000 bonus points after a $3,000 spend in net purchases within your first 90 days of card membership, which can be used as a $300 statement credit on travel or towards dining purchases. The card also features 3X points when spending on travel through the Bank of America® Travel Center and 1.5X points on all other purchases.

Read our Bank of America Business Advantage Travel Rewards Mastercard review or jump back to this cards offer details.

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Best For Alaska Airlines Perks

A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

This co-branded Bank of America credit card has a lot to offer frequent Alaska Airlines flyers, including a generous sign-up bonus, good base rewards and an annual Famous Companion Fare from $121 , which can save you hundreds of dollars on a flight each anniversary year.

  • There is a $75 annual fee for the card.
  • Alaska Airlines routes are largely located within the western U.S.
additional features

Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.

  • 3%3% cash back in the category of your choice .
  • 2%2% cash back on dining purchases .
  • 1%1% unlimited cash back on all other purchases.

A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Read our full Bank of America Business Advantage Customized Cash Rewards Mastercard credit card review.

Pros

Cons

additional features

Best Card For Small Businesses

BankAmericard Travel Rewards® Credit Card: Redemption Tips for 2.625% ...
  • Travel insurance benefits
  • Cash flow management tools
  • Rewards in 3% back and 2% back categories are capped at $50,000 in combined spending each calendar year
  • Charges foreign transaction fees

Verdict

If you’re a small business owner, the Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card is your best bet, because it lets you earn cash back in categories that you can customize to match your common purchases. You can Earn 3% cash back in the category of your choice , 2% cash back on dining purchases and 1% cash back on all other purchases.

The categories you can choose to earn 3% back in are popular with businesses: gas stations, office supply stores, travel, TV/telecom & wireless, computer services or business consulting services. If, however, you don’t choose one of these options, the default option is earning 3% back on gas purchases. Rewards can be redeemed for a transfer to a Bank of America checking or savings account, a statement credit or a check in the mail.

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Bank Of America Unlimited Cash Rewards Credit Card Vs Chase Freedom Unlimited

Another option worth a look if you are wanting a no-annual-fee credit card earning generous cash back is the Chase Freedom Unlimited. The Freedom Unlimited matches the Bank of America Unlimited Cash Rewards cards 1.5% cash back earnings, but then goes further with additional earnings in bonus categories.

In addition to earning 1.5% back on general purchases, the Freedom Unlimited awards 3% on purchases at drugstores and restaurants. Those card members booking travel through Chase Ultimate Rewards will be further rewarded with a generous 5% cash back on travel booked through Chase.

Finally the card includes several consumer protection benefits, including extended warranty protection, auto rental collision damage waiver and trip cancellation/interruption insurance.

If you spend heavily at restaurants, order takeout frequently, find 3% cash back at drugstores appealing or are intrigued by the addition of the consumer protection benefits, take a look at the Chase Freedom Unlimited card.

Prequalify On The Bank Of America Website

The easiest way to search for prequalified Bank of America card offers directly on the issuers website.

For current Bank of America customers, getting personalized card offers is as easy as signing into your account. If you dont have an account with Bank of America, youll need to enter the same information required by CardMatch name, address and last four digits of your SSN.

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Best Business: Business Advantage Travel Rewards

30,000 bonus points when you spend $3,000 in the first 90 days.

$0
Rewards Earning Rate Earn unlimited 1.5 points for every $1 you spend on all purchases. Earn 3 points per $1 spent when you book your travel through the Bank of America® Travel Center.
INTRO PURCHASE APR 0% for 9 Billing Cycles
Balance Transfer Fee Either $10 or 4% of the amount of each transaction, whichever is greater.
Cash Advance APR
Either $10 or 4% of the amount of each transaction, whichever is greater
  • Why We Chose This Card:

We chose the Business Advantage Travel Rewards as our top pick for Bank of America business cards because of its competitive earnings on all spending and the ability to earn 3 points per every dollar spent when you book your travel through the Bank of America Travel Center. Earn unlimited 1.5 points for every $1 you spend on all purchases. Regular redemption is as simple as requesting points be applied to travel and dining purchases. The one-time bonus is valued at $300, which is excellent for a no annual fee business card.

  • Earn unlimited points with no spending caps

  • Easily earned, if modest, bonus

  • Rewards boost with a high-balance bank or investment account

  • Limited options for getting the best return on rewards

  • No premium travel benefits

Read the full Business Advantage Travel Rewards credit card review

Best Student: Bank Of America Customized Cash Rewards For Students

EASY How to Setup Automatic Credit Card Payments for Bank of America

$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

$0
Rewards Earning Rate Earn 3% cash back in the eligible category of your choice, 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases. Youll earn 3% and 2% cash back on the first $2,500 in combined categories each quarter, then 1%.
INTRO PURCHASE APR 0% for 15 Statement Closing Dates
INTRO BALANCE TRANSFER APR 0% for 15 Statement Closing Dates
Balance Transfer Fee Either $10 or 3% of the amount of each transaction, whichever is greater.
Foreign transaction fee
  • Why We Chose This Card:

Our winner for the best Bank of America student credit card is the Bank of America Customized Cash Rewards for Students because of its flexible cash back rewards program. This is a good card for students who want to build their credit while earning cash back on everyday items like gas, online shopping, and groceries. With no annual fee and a 15-month offer of 0% APR on purchases and balance transfers, its worth checking out.

  • 3% cash back on the category of your choice and 2% on groceries up to a quarterly combined spending cap

  • 15-month 0% APR offer on purchases and balance transfers from the time of account opening

  • Overdraft protection and rewards bonuses for banking customers

Read the full Bank of America® Cash Rewards for Students credit card review

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How To Get The Most Value From The Bank Of America Travel Rewards Credit Card

While the Bank of America Travel Rewards credit card offers good overall value, particularly if youre already a Bank of America customer, the card can work against you if youre not careful. When redeeming rewards, its best to steer clear of non-travel options, as youll get less value if you redeem for cash or even some gift cards. Additionally, the Bank of America Travel Rewards credit card has a regular APR of 16.24% – 26.24% Variable, so avoid carrying a balance from month to month and be sure to pay off any interest-free purchases before the intro rate expires.

Maximizing Bank Of America Preferred Rewards

Its no secret that Bank of America favors cardholders with whom it has banking relationships. This is less than ideal for anyone who keeps their money with other banks, but you can take advantage of a number of perks and benefits if you are a Bank of America customer who qualifies for the Preferred Rewards program. You can read all about the program here, but to qualify youll need:

  • An eligible Bank of America personal checking account.
  • A three-month average combined balance of $20,000 or more in a Bank of America account and/or Merrill investment accounts.

If you meet these requirements, your earning rates become significantly higher.

Tier 1 Gold

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