Bank of America® Customized Cash Rewards Credit Card Review

Bank of America® Customized Cash Rewards Credit Card Review

Bank of America® Cash Rewards Credit Card gives 3% cashback on the category of your choice, 2% cashback on groceries, and 1% on all the remaining purchases. Overall, it’s a great card with a balanced rewards system.

To have high approval odds for this card, you need to have an excellent credit history.

Bank of America® Customized Cash Rewards: pros and cons

Rewards system in a nutshell

The Bank of America® Cash Rewards Credit Card offers 3% cashback in one of 6 categories, with the option of changing the category once every month. 2% cashback applies to grocery stores and wholesale clubs purchases. And lastly, 1% cashback is offered for every other kind of purchase made. The 3% and 2% cashback are applicable only for the first $2,500 combined spending per quarter. Once the limit is reached, cardholders get only 1% cashback on all spending.

Considering you can earn 3% cashback for things including online shopping, gas, dining, traveling, drug stores, and home improvement makes this credit card a worthy financial instrument. In addition, there is no hassle in changing your categories. Simply use the Bank’s mobile app and change the category whenever you would like. Don’t forget it can be done only once per month.

If you feel somehow confused with the rewards system, you can calculate your rewards using the online calculator available.

There is no limit or restrictions on the cashback rewards you can earn and redeem. They never expire as long as your account continues to be active.

The Bank of America® Preferred Rewards Program is designed for individuals with an eligible Bank of America® personal checking account, qualifying Bank of America® deposit account, or/and a Merrill Investment account. This program has 3 tiers:

• Gold: 25% greater rewards; for individuals with a three-month total average daily balances of a minimum of $20,000
• Platinum: 50% greater rewards; for individuals with a three-month total average daily balances of a minimum of $50,000
• Platinum Honors: 75% greater rewards; for individuals with a three-month total average daily balances of a minimum of $100,000

There are three simple ways to redeem your rewards:

1. Cash Rewards can be redeemed anytime for any amount in the form of deposits or statement credits into a Bank of America® savings or checking account or for credit to a qualifying Cash Management Account® with Merrill.
2. Redemptions for a contribution to a qualifying 529 account with Merrill or for a check start at $25.
3. Setting up automation redemptions into qualifying Bank of America® and Merrill accounts is easy. Automatic redemptions begin at $25. Checks, statement credits, and contributions to 529 accounts don’t qualify for automatic redemption enrollment.

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

The Bank of America® Cash Rewards credit card is an asset for people having significant deposits in their Merrill and Bank of America® accounts.

2% cashback on groceries and wholesale clubs purchases plus 3% on select categories makes this card ideal for families.

Homeowners will love the range of choices available to them with the Bank of America® Cash Rewards Credit Card.

Any account holder spending around $2,500 in their preferred category, grocery stores, and wholesale clubs each quarter will benefit from the credit card most of all.

In addition, new cardholders have a high incentive to use the credit card by getting a $200 cash rewards bonus for purchases of $1,000 or more during the initial 90 days of opening their account.

Are there any other benefits?

Besides already mentioned benefits of the card, The Bank of America® Cash Rewards Credit Card also provides:

1. 24/7 Customer Service: Cardholders can get in touch with the Credit Card’s customer representatives to clarify their concerns any time of the day, all around the week.
2. Strong Card Security: Bank of America® offers automatic and effective fraud surveillance to prevent liabilities from fraudulent transactions.
3. Digital Wallet Technology: The credit card can be added to digital wallets, helping you use it across the world even if you don’t physically have it at that moment. This way, you can pay through Google Pay, Apple Pay, and Samsung Pay.
4. Free FICO® Score updates: You can access your FICO® with your Mobile Banking app or in Online Banking for free.
5. Overdraft Protection: You can link your deposit account to your credit card for Overdraft Protection. In case of any overdraft or returned check, credit card funds will be used to cover it. Transactions will be treated as a Bank Cash Advance.

Conclusion

The credit card is a vital alternative for various users due to its $0 annual fee and competitive APR, and flexibility in redeeming rewards.

A 3% cashback rate is highly desirable; even a 2% rate for grocery and warehouse club purchases makes the credit card a beneficial deal.

The rewards don’t expire, allowing cardholders to redeem and use their cashback rewards whenever they would like to. Lastly, the credit card comes with multiple redemption alternatives, of which you can choose the one you are most comfortable with, be it checks directly emailed to you or cash deposited in your Merrill account.

Apart from users having quarterly expenses of nearly $2,500, the card may not be a practical choice for others. For instance, people spending more than $2500 will benefit more from credit cards that might be paying lower rates but on all spending categories.

It’s important to keep in mind that even though the initial APR on purchases and balance transfers is 0%, the credit card does charge a $10 or 3% fee (whichever is greater) on balance transfers.

To conclude, the Bank of America Cash Rewards Credit Card is a good choice for people with quarterly spendings in their preferred categories, grocery stores, and wholesale clubs of around $2,500. The flexibility of changing the 3% category helps cardholders to maximize rewards depending on current needs. However, for people with more requirements than these caps, the Bank of America® Cash Rewards credit card is not ideal.