Bank of America® Cash Rewards Credit Card for Students Review

Bank of America® Cash Rewards Credit Card for Students Review

This in-depth review of the Bank of America® Cash Rewards Credit Card for Students will help you determine if this card might work well for you.

The Cash Rewards Credit Card for Students from Bank of America allows you to earn up to 3% cash back on category-based spending. Cardholders can get an online $200 cash rewards bonus if they meet a simple spending requirement (after making at least $1,000 in purchases in the first 90 days of your account opening). The card has no annual fee.

This card designed for students gives you easy means to build your credit, provided you stick to responsible spending habits. The 0% intro APR offer on purchases and balance transfers for the first 15 billing cycles (19.24% - 29.24% after that) may lead to savings if you pay off your outstanding balances before the end of the promo period.

Bank of America® Cash Rewards Card for Students: pros and cons

Rewards system in a nutshell

You can select the 3% cash back category from the following list: online shopping, gas, dining, travel, drug stores, and home improvement/furnishings. You may change the 3% category for future purchases via online banking or Bank of America’s mobile banking app no more than once every calendar month. The default 3% cash back category your card comes with is gas.

You get 2% cash back for purchases at grocery stores and wholesale clubs. All other purchases come with 1% cash back.

The card offers 3% and 2% cash back on combined spending of up to $2,500 in the respective categories each quarter, after which it switches to 1%. Your rewards do not expire for the life of the account.

Bank of America also offers increased cash back rates for the members of the Preferred Rewards program. To become a member of the program, you need to have a Bank of America checking or Merrill investment account with a combined average daily balance of at least $20,000 which is probably unusual for a typical student.

New cardholders can earn an online $200 cash rewards sign-up bonus if they spend at least $1,000 on purchases in the first 90 days.

How to redeem your cash rewards?

Unlike several cards that require you to redeem a minimum amount of cash rewards, the Bank of America® Cash Rewards Credit Card for Students has no such limitation. You may redeem your rewards at any time as

• a statement credit
• a deposit made into your Bank of America savings or checking account
• a credit to a qualifying Cash Management Account® or 529 account with Merril
• checks

Reward credits to a qualifying 529 account with Merrill or in the form of checks come with a minimum $25 requirement. Setting up automatic redemption of your rewards to a Bank of America Merrill account is possible, starting at a minimum of $25. There are some limitations on automatic redemption - as you can’t set it up for statement credits, checks, and contributions to a qualifying 529 account.

Who can benefit from getting the Bank of America® Cash Rewards for Students Credit Card?

If you're a student who will be responsible with credit, getting the Bank of America® Cash Rewards for Students Credit Card might work well for you. As long as you keep making your payments on time, you may look forward to building your credit.

The possibility of earning rewards while building your credit without paying any annual fee makes this card a worthwhile alternative for most students. Besides, not many cards for students come with 3% cash back, which is among the best in this category.

If you have an existing outstanding balance on a credit card that charges high interest, you can make use of the card's 0% APR offer that stays in effect for the first 15 billing cycles (19.24% - 29.24% after that). You need to set up the balance transfer within 60 days of account opening and also to pay a balance transfer fee of $10 or 3% of the amount of each transfer, whichever is greater. 0% APR also applies on purchases for the first 15 billing cycles (19.24% - 29.24% after that), leading to additional savings. After the promo period ends, regular variable APR applies.

Students who are new to the world of credit can use Bank of America’s Better Money Habits platform to learn how they may improve their credit score and get a variety of credit-related information. Students who plan to travel outside the country might benefit by looking at other alternatives because this card comes with foreign transaction fees.

Are there any other benefits?

The Bank of America® Cash Rewards Credit Card for Students does not provide complimentary insurance or travel benefits. However, that’s a common complaint with most no annual fee cards. Its other benefits include:

• $0 liability guarantee. This safeguards you against suspected fraudulent activity and fraudulent transactions.
• Digital wallet. You may link your card with Apple Pay, Google Pay, or Samsung Pay and use these apps to make online and in-store payments.
• Overdraft protection. This fee-based optional service lets you link your eligible Bank of America checking account with your credit card. It safeguards your checking account against instances of returned checks, declined payments, or any other overdraft.
• Contactless chip technology. Use the tap to pay feature to make quick and easy payments anywhere you see the Contactless symbol.
• Access to FICO® Score for Free. An opt-in feature lets you access your updated FICO Score every month for free.

Conclusion

We feel the Bank of America® Cash Rewards Credit Card for Students is a sound card for students looking to build their credit without paying an annual fee. Introductory offers in the form of a bonus cash reward and 0% APR on purchases and balance transfers give this card an edge over other similar alternatives for students.

The card’s cash back system is worth your attention, given that there aren’t many cards for students that offer up to 3% cash back. While the Discover it Student Cash Back Card offers 5% cash back across revolving categories, you need to register for the rotating-category rate each quarter. In addition, its intro APR offer applies only on purchases and for six months only.

If you’re looking for a card you may use internationally, consider checking what the no-annual-fee Bank of America® Travel Rewards Credit Card for Students has to offer. It comes with no foreign transaction fees and lets you use your reward points to pay for travel. However, it offers just 1.5 points for every dollar you spend on purchases across all categories.

The bottom line is that if you are financially responsible, the Bank of America® Cash Rewards Credit Card for Students can help build your credit and reward you for spending at the same time.