Credit cards are becoming more varied every day as issuers try to attract more consumers. With fierce competition taking place behind the scenes, we all have benefited greatly. However, choosing the right card is becoming a more difficult chore as a result.
It is easy to get lost when trying to navigate the offering of credit cards. APR, fees, cash back or miles, Visa or American Express, secured or unsecured… There are so many terms and aspects to consider that it is impossible not to struggle.
Well, by reading this review, you are already on the right track. After all, doing research is essential to make the right decision! That being said, if you are struggling to understand some of the concepts we mentioned earlier… You might want to check our Credit Card 101 guide to get up to date.
If you already know what credit cards are and how they work, you are good to go. Today we will be doing a Bank of America cash rewards credit card review. We will be taking a look at what this card has to offer. Hopefully, you will be able to decide if it is the right fit for you once we are done. Let’s get started!
What Is the Bank of America Cash Rewards Credit Card?
As you probably guessed from the name, the Bank of America Cash Rewards Credit Card is a credit card issued by Bank of America. This card can be quite interesting for people who want to receive a good percentage of returns in cash. This is because the card specializes in returning cash on every purchase.
This approach follows the ideals of the card: being as straightforward and accessible as possible. Instead of cumbersome points or miles, you get cash. You can think of it as a discount!
If you only want to receive an extra amount of money at the end of the month, this card might be for you. Let’s be honest, who doesn’t like to earn cash without doing extra work for it?
As you will see in this Bank of America cash rewards credit card review, that Bank of America has outdone itself. It is not surprising that this credit card is one of the most popular financial products in the United States. Sure, popular doesn’t always mean good… As such, let’s take a look at the rewards offered by this card so you can make your mind about it.
What Rewards Does the Bank Of America Cash Rewards Credit Card Offer?
Let’s start simple. The Bank of America cash rewards credit card offers up to 3% in cashback when used in purchases. This means you will be saving money when using the card to pay for goods and services.
While this benefit is offered by many cards, the 3% offered by the Bank of America is pretty competitive. It is higher than most cashback rates offered by its competitors. Most credit card companies will provide you with around 2% cashback with a lot of limitations.
Well, this card will give you a 3% return on cash for purchases from a category of your choice. That’s right! You decide the category to which this percentage applies, allowing you to maximize your return.
Bank of America offers a significant variety of categories to choose from. Among the available options, we can find dining, travel, drug stores, gas, home improvements, and furnishing. It’s up to you to choose which one you want.
In addition to this, you will also receive 2% in supermarkets and wholesale clubs and a 1% cash return on purchases of any kind. When it comes to the 2% rate, there is a limit of 2,500 in quarterly purchases.
As if this was not enough, this credit card also offers a welcome bonus. You will receive $200 as long as you spend $1000 during the first 3 months after opening your account. This basically amounts to a 20% cashback, which is just crazy. If you think about it, it is free money!
There are other cards that require you to spend a little less money to receive a welcome bonus. However, the bonus itself also tends to be lower. The truth is that spending $1,000 in 3 months is quite easy for the average person. This makes obtaining the welcome bonus extremely easy.
There are different methods to redeem your cash rewards and Bank Of America is quite flexible about it. You can redeem them manually, with no minimum redemption, or you can request to receive them in your checking/savings account. If you would like to use the cashback as a sort of discount… you can have it applied to your credit card balance!
As you can see, the rewards offered by the Bank of America Cash Rewards credit card are pretty sweet. If you would like to apply for this card, the process can be started via the card’s official website.
What Are The Financial Considerations Of The Bank Of America Cash Rewards Credit Card?
Now that we have talked about the rewards offered by this credit card, it’s time to talk about the financial aspects you should consider. After all, this couldn’t be a real Bank Of America Cash Rewards credit card review without talking about them
Let’s start by talking about the card’s Annual Percentage Rate (APR). The Bank of America Cash Rewards credit card offers a 0% introductory annual percentage rate. This rate will apply during the first 12 months after acquiring the card.
We like that it applies both for new purchases and for balance transfers done during the first 60 days. This makes it extremely easy for you to transition from another card to this one.
If you do a balance transfer after these 60 days, you must pay 3% of each transaction. If the fee is less than $10, it will be automatically rounded to $10. This fee is pretty much what we have come to expect from credit card companies.
Once this introductory APR ends, the card’s APR will change to a standard 13.99% – 23.99% on purchases and balance transfers. This rate will depend on your credit score but even in the worst case, it will be pretty competitive. As such, we don’t have any complaints about it.
Now, foreign transactions will incur 3% fees. While not that high when compared to other cards, this is a bit disappointing. This is because a lot of cards offer no fees to users who use their cards abroad. That being said, the fee is still low and will not apply if you limit the use of the card to the US.
On the other hand, this fee on foreign transactions is compensated for in a great way. With the Bank Of America Cash Rewards credit card, you don’t have to worry about an annual fee. That’s right; you will not have to pay outrageous fees for getting this card!
What Other Benefits Does The Bank Of America Cash Rewards Credit Card Offer?
If you haven’t had enough reasons to love this card, we can help with that. There are more benefits you can expect from using this card. Let’s take a look at them.
First, this card is one of the easiest credit cards to get as no credit history is required. As long as you have a Bank Of America checking account and sufficient income, you will be able to get it.
The card also comes with great security features, as Bank of America takes that matter very seriously. The bank’s security team is constantly monitoring for any type of fraudulent activity.
If they detect any suspicious activity, the card will be promptly blocked. The speed at which the team acts is truly impressive.
The card also comes with all the benefits you can expect from a Visa credit card. These include:
- Contactless chip technology
- Overdraft protection
- Paperless statements
- Digital wallet support
- Online & mobile banking
- Account alerts
- Free monthly FICO score
Receiving all of these benefits and rewards with no annual fees and a welcome bonus is pretty attractive. This is why many people choose to apply for the card to try it, decide to keep it as part of their financial toolbox.
Is The Bank Of America Cash Rewards Credit Card A Good Option For You?
Now that you have reached the end of this Bank Of America Cash Rewards credit card review, you might have formed an informed opinion about it. However, let us share ours with you.
There are two types of people this credit card is especially beneficial for. Firstly, we have those who are starting their financial journey. Secondly, we have those who want to make the best out of a specific purchase category.
The rewards, absence of an annual fee, and ease of access make this one of the best credit cards out there. Unfortunately, as we said earlier in this review, we are not fans of the foreign transactions fee. The fact that the cash back is limited to the first $2,500 of combined net purchases made each calendar quarter is also an issue.
That being said, the Bank of America Cash Rewards credit card is still an excellent option. If you would like to apply to it and try it yourself, you can do so here. The process is extremely easy and takes less than 30 seconds!
That being said, if you remain unconvinced, you can learn about other alternatives in our credit section. We are constantly reviewing new cards to ensure you have the latest information!
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