Credit Cards » Credit Card Reviews » Bank of America Cash Rewards Credit Card Review 2021
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Bank of America Cash Rewards Credit Card Review 2021

Bank of America Cash Rewards is a cashback rewards card that allows card holders to pick their own bonus category for the 3% cashback rewards, 2% back on groceries and 1% back on all other spending.

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In this Review..

If you are looking to have a bit more control over what categories in which you are going to be earning rewards, this card could be for you. You are able to choose the category in which you get spending rewards. The signup offer allows you to get $200 worth of cash rewards after you have spent $1,000 in the first 90 days after setting up your account.

You will be able to get 3% cash back for whatever category you have chosen from a pre-selected list. There will also be 2% cash back for groceries for spending of up to $2,500 in a quarter. All of your other purchases made using this card will get you 1% back. Another great advantage of this card is that you do not have to pay an annual fee.

This rewards card is a good option for people who want to be able to customize their credit earnings since you get to choose your own 3% cashback earning category. That means you can tailor your credit card to the kind of spending you’re most likely to need, maximizing your returns from that credit card.

Bank of America Cash Rewards

On BofA’s Secure Website

Rewards Plan

1-3% cash back

Sign up Bonus

$200

0% Intro

12 months

PROS

CONS

APR

13.99% - 23.99%

Annual Fee

$0

Balance Transfer Fee

3%

Credit Requirements

Good – Excellent Credit

Card & Issuer Reputation

  • 4/5  on WalletHub customer reviews (+1500 reviews): WalletHub customer reviews allow customers to post positive, negative or neutral reviews about marketplace experiences.
  • 3.6/5  on Credit Karma customer reviews (+1500 reviews): Credit Karma customer reviews allow customers to post positive, negative or neutral reviews about marketplace experiences.
  • 812/1000 on J.D Power: Bank of America ranks in 3rd place,  got 812 out of 1000 available points on J.D. Power credit card satisfaction survey. J.D Power offers the most comprehensive and independent study of customer satisfaction of card issuers . The study aims to help consumers and issuers to understand user opinions and ratings of the largest bands. It covers terms, benefits, services, communication, rewards and more.

J.D. Power U.S. Credit Card Satisfaction Study 2020

In order to avoid bias based on a small number of reviews, we present only ratings with at least 200 reviews.

Benefits

Let’s take a look at the benefits of the Bank of America Cash Rewards and see if it’s the right one for your wallet or not.

Bank of America Cash Rewards offers a $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening

Bank of America Cash Rewards has a 2% cashback reward on all grocery purchases and warehouse store purchase with a $2,500 limit per quarter with no limits.

Also, Bank of America Cash Rewards also has 1% cash back on all other purchases, with no limits.  

Bank of America Cash Rewards card allows cardholders to choose a purchase cargatory in which to earn 3% cash back. This too has a limit of $2,500 per quarter, combining the 2% cash back on grocery purchases.  

Bank of America Cash Rewards does not have an annual fee. You can start putting cash back in your pocket immediately.

If you are looking to save money on interest, the Bank of America Cash Rewards offers a 0% introductory rate for 12 months on balance transfers.

If you have a credit card that you are trying to pay down, you can transfer the account and pay no interest on the transfer for 12 months. This introductory rate also applies to purchases.  

If you also qualify for the Bank of America Preferred Rewards Program your rewards can go 25% to 75% further. To be a part of this program you need to have $20,000 to over $100,000 in a Bank of America account.

Bank of America Cash Reward has fraud protection, chip technology, and overdraft protection. 

Card holders can also shop securely online by creating temporary card numbers – this way your actual card number stays safe.

Drawbacks

Here are the most important cons you should consider before apply to the Bank of America Cash Rewards card:

The 2% and 3% category has a spending limit of $2,500 per quarter. If you are a big spender and that amount is not hard to hit, then your rewards are limited to 1% cash back on all purchases. 

The APR for the Bank of America Cash Reward is a 13.99% – 23.99% variable rate, which is high for a card that requires borrowers with excellent credit histories.

Cash advance is a 16.99%-26.99% variable rate.  

There is a balance transfer fee required if you want to take advantage of the introductory 0% APR rate. The fee is incurred when you transfer debts from one or more credit cards to your Bank of America Cash Reward.

This fee is 3% of the transfer, whichever is bigger. This fee is upfront and will be added to your debt load when transferred.  

Bank of America Cash Reward has a 3% fee for each transaction in another country. If you are traveling outside of the US, you may want to leave this card at home.

Application Process

Visit the Bank of America Cash Rewards Card homepage and click “Apply Now.”

Bank of America Cash Reward_Apply now

This takes you to the next page, where you can fill in your “Personal Information” such as your Names, date of birth, etc. 

Bank of America Cash Reward_Apply nowBank of America Cash Reward_Apply now

The next step is your financial details – you’ll need to share some details about your income and more relevant info such as employment status and annual income.

Bank of America Cash Reward_Apply nowBank of America Cash Reward_Apply now

Then click on “Continue” to complete the process.

Alternatives

There are other credit cards that do offer comparable cash back rewards – we’ve summarized the most popular cards which can use as an alternative to the Bank Of America Cash Reward card:

Bank of America Travel Rewards Credit Card is a straightforward rewards card that doesn’t shift spending categories for higher bonuses, offers flexibility with its travel rewards and simplicity for those who don’t want to jump through hoops in order to earn or spend their rewards.

Earn unlimited 1.5 points for every $1 you spend on all purchases everywhere, every time and no expiration on points.. The card has no annual fee. Then 14.99% – 22.99% Standard Variable Purchase APR and 3% balance transfer fee.

In addition, you get 25,000 bonus points after spending $1,000 in the first 3 months of opening the card.  

American Express Blue Cash Preferred is a cashback card that offers rewards on similar purchase categories. The Blue Cash Preferred Card has a $300 back in the form of a statement credit after you spend $1,000 in purchases on your new Card in your first 3 months of Card Membership. .

Earn 6% cash back at U.S. supermarkets and selected U.S. streaming subscriptions, 3% cash back on transit and gas stations, 1% cash back on other purchases . The 6% cash back at grocery stores does have a $6,000 annual spending limit.

This card has an annual fee of $95 and comes with an  0% intro APR on purchases and balance transfers for 12 months , then a variable APR, 13.99% – 23.99% This card is different in that it is cash back and not points that are earned on spending.   

The alternative Capital One credit card is the Savor card, which offers an Unlimited 4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases.

In addition, there is a significant sign up bonus of one-time $300 cash bonus once you spend $3,000 on purchases within 3 months from account opening.

However, the card comes at a cost of $95 per year for the annual fee. The ongoing APR is 15.99% – 24.99% and 3%  balance transfer fee.   

Is the Bank of America Cash Rewards Card Right for You?

Bank of America Cash Rewards is great for card holders that like to control what spending category they want to get the most cash back from. 

If you are on the road frequently, maybe choosing gas as your spending category will get you the most cash back on this card. 

Current Bank of America customers will find the most rewards with this card if they qualify for Bank of America Preferred Rewards Program.

The Bank of America Cash Rewards card does have spending limits and those customers in the Preferred Rewards Program will hit the limit much more quickly.

 If a potential customer is looking for more cash back rewards and does not mind an annual fee, there are better cards on the market. 

Credit Card Reviews Methodology

In order to determine the best possible credit cards, we look at things like fees, interest rates and rewards. We do this with companies that are associated with us as partners as well as other offerings. From there, we make a decision about what the best card is related to different categories and needs. We focus on interest rate cost & fees, especially the cost of carrying a balance, rewards – cards accumulate rewards in different currencies—points, miles, cash back—and their values vary widely usability – cards that accept a wide range of credit profiles and offer simple solutions for things like checking your credit score or contacting. We also consider customer reviews.

We look at cards related to good or excellent credit ratings that will then provide a range of different benefits and improvements for someone who has these scores. We also look at low fees when it comes to those who have lower credit scores.