Bank of America Cash Rewards Credit Card Review 2020

Rating:
4.4/5
4.4 stars out of 5

The Smart Investor has collected card information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.

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. 

Bank of America Cash Rewards card also offer 2% back on groceries and 1% back on all other spending. 

This card has a few more loopholes than other cards, but offers good potential cashback rewards without an annual fee. This card is a Mastercard and is widely accepted.

Bank of America Cash Rewards Card

On BofA’s Secure Website

Our Bottom Line

Credit Rating Requirements

PROS

CONS

Highlights

Here’s a summary of the main pros & cons (click to see explanation or scroll down):

Pros

Cons

Bank of America Cash Rewards Card – 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 cashback bonus after you spend $1,000 on your new card within the first 90 days on eligible purchases.

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 15 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 15 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.

Bank of America Cash Rewards Card – 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% to 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 $5 or 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.

Alternatives to Bank of America Cash Rewards Credit Card

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.

It offers unlimited 1.5 points for every $1 spent on all purchases and 0% intro APR on purchases for 12 months. The card has no annual fee. Then 14.99% to 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 cashback bonus after spending $1,000 in the first three months. 

This card offers 6% cash back at grocery stores & streaming subscriptions, 3% cash back at gas stations & transit , and 1% cash back on all 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, 12.99% to 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 increased 4% cash back rate 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.

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.