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Bank of America is one of the most well-known financial institutions in the country, offering a wide range of credit card options. In this review, we’ll focus on two of their popular cards: the Bank of America® Travel Rewards credit card and the Bank of America® Customized Cash Rewards credit card.
Each card has its own unique benefits, along with some similarities. Read on to see which one might be the right fit for you.
General Comparison
Compare Rewards: Which Card Gives More?
It can be a useful exercise to work out what the breakdown of rewards will be when using different types of cards and covering varying expenses. Here is a look at what these two Bank of America cards have to offer in terms of rewards:
|
| |
|---|---|---|
Spend Per Category | Bank of America Customized Cash Rewards | Bank of America Travel Rewards |
$15,000 – U.S Supermarkets | $210 ** | 22,500 points |
$3,000 – Restaurants
| $30 | 4,500 points |
$1,500 – Airline | $15 | 2,250 points |
$1,500 – Hotels | $15 | 2,250 points |
$4,000 – Gas | $120 * | 6,000 points |
Estimated Redemption Value | 1 point ~ 0.6 – 1 cent | |
Estimated Annual Value | $490 | $225 – $375 |
* 3% On Gas ** 2% On Supermarkets up to $6,000
As you can see, if you are looking at cards purely for the cash that you can get from them, then the Bank of America Cash Rewards card is going to be a better all-around fit. However, you can get more bang for your buck out of the travel rewards points if you use them as statement credit for the likes of dining and travel-related purchases.
However, keep in mind to adjust the numbers to your regular spending categories, which may be different – so the exact calculation depends on your personal habits.
Welcome Bonus And Fees
With the Bank of America Travel Rewards card, you will get 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening – which can be redeemed for a $250 statement credit toward travel purchases. For the cash rewards card, you will get $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening.
Neither of these cards carries an annual fee or any foreign transaction charges. There is a balance transfer fee of 3% or $10 (the greater). Both of these cards also have 0% intro APR for 15 billing cycles on purchases and balance transfers. After this time period has elapsed, then you will be looking at variable APR rates of 18.24% – 28.24% Variable APR will apply..
Compare Perks
As well as the standard features that come with a lot of credit cards for good credit, there are also some types of features that stand out when you are dealing with certain issuers of these cards. Here are the similar perks between these two Bank of America credit cards, as well as any features that are unique to a given card.
Here are the additional benefits you'll get on both cards:
Overdraft Protection: You can get overdraft protection for both of these card types. You need to activate this option and need to link your Bank of America checking account.
Digital Wallet: You are able to link these cards to your mobile device and use the likes of Apple Pay and Google Play in-store.
FICO Score: You will be able to opt-in to get access to your FICO Score on a monthly basis.
Alerts on the Account: You can set up alerts that will inform you of upcoming due dates and your card balance.
Unique Perks
Bank of America Customized Cash Rewards
Extra Bonuses Available: If you have significant account balances in your Bank of America investment account or bank account, then you can get access to better cashback rates.
Bank of America Travel Rewards
Points-Based System: You will earn cashback points with this type of card as it is related to travel, as opposed to cash rewards.
Preferred Rewards Bonus: If you are a member of the Preferred Rewards program to Bank of America, you can get bonuses to your cashback of between 25% and 75%.
Cash back: The Bank of America Cash Rewards offers pure cash back and considered as one of the best cash back with no annual fee.
Compare The Drawbacks
Bank of America Customized Cash Rewards
- Caps on Rewards
There are caps in place on your earning of premium cashback rates.
- Excluded Supermarkets
The definitions of grocery stores is a bit up in the air, as the Bank of America Cash Rewards card will often not give you cashback when making purchases at certain multiple-category stores like Target and Walmart, as well as the likes of convenience stores.
Bank of America Travel Rewards
- Lack of Premium Travel Benefits
For a travel-related card, it was surprising to see that cardholders do not get access to the likes of complimentary lounges, free checked bags, and certain flight upgrades.
- Modest Rewards Rate
When compared to competing travel-related cards, the rewards with the Bank of America Travel Rewards are quite modest.
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Compare Redemption Options
With the Bank of America Travel Rewards card, you will be able to earn 1.5 points for every $1 you spend on all purchases everywhere, every time and no expiration on points. There is no limit on the number of miles that you can earn and there is also no expiry. You are able to redeem these points as statement credit to pay for the likes of travel and dining purchases.
If you use these points as statement credit for these types of purchases, it works out as each point being worth $0.012. You can redeem the points for cash rewards, which usually sees each point being worth $0.006 each. Finally, you can get gift cards in exchange for these points, with the redemption rate varying depending on the gift card.
You can also donate your credit card points to charity with Bank of America through their portal, where you can choose your preferred charity organization..
How to Maximize Cards Benefits?
If you want to make the best use of your Cash Rewards card, there are some tips to help you:
Hit the Quarterly Cap: To get the most out of the premium cashback reward rates, you shoul