The three cash rewards credit cards from Bank of America are the BofA Cash Rewards Card, the Business Advantage Cash Rewards Mastercard and the Cash Rewards Credit Card for Students. All BofA cash rewards cards offer an initial bonus for spending a certain amount of money in the first 90 days. The regular BofA Cash Rewards card gives $200 for spending $1,000. The student card also gives $200 for spending $1,000. And the business card offers $300 for spending $3,000. All three cards have $0 annual fees and 3% foreign transaction fees.
The personal Cash Rewards card and Cash Rewards for Students card both give 3% back in a category of your choice and 2% cash back at grocery stores and wholesale clubs (up to $2,500 spent combined per quarter). The business card offers 3% cash back in a category of your choice and 2% on dining (up to $50,000 spent combined per year). All three cards provide 1% cash back on all purchases outside of the bonus categories.
All BofA cash rewards cards have introductory 0% APRs, too. You will need excellent credit to have decent approval odds for the BofA Cash Rewards card or the Business Advantage card. The Cash Rewards Card for Students requires only limited credit. But you’ll have to be enrolled in school to get it.
The Bank of America Cash Rewards foreign transaction fee is 3%. That means BofA Cash Rewards cardholders pay an extra 3 cents per $1 on purchases from merchants based in foreign countries. The BofA Cash Rewards foreign transaction fee can apply whether you travel to another country or you go shopping internationally through your computer.… read full answer
Not every Bank of America credit card charges a foreign transaction fee. The Bank of America Travel Rewards card has no foreign fee, for example, as does the BofA Premium Rewards card. So they are better options to use for foreign purchases than Bank of America Cash Rewards.
Bank of America Cash Rewards foreign transaction fee info:
Bank of America Cash Rewards foreign transaction fee: 3% of any purchase from a foreign-based merchant.
When you owe the foreign transaction fee: In-person and online purchases processed internationally.
Bank of America Cash Rewards vs. other BofA cards: Nearly 10 Bank of America credit cards have a 3% foreign transaction fee. All other BofA credit cards, including the Travel Rewards and Premium Rewards cards, have no foreign transaction fees.
The Bank of America Cash Rewards foreign transaction fee isn’t the only fee you have to worry about with this card. If you take out a cash advance, you will owe $10 or 5% of the transaction amount, whichever is greater. Late payments will cost you up to $38 extra. And if you transfer a balance to the card, you’ll pay a fee equal to 3% of the amount. Fortunately, BofA Cash Rewards has no annual fee.
One of the best cash back credit cards with no foreign transaction fee is the Capital One Quicksilver card, which gives a $150 bonus when you spend $500 in the first 3 months, plus 1.5% cash back on all purchases. Discover it Cash Back is another good choice, offering up to 5% cash back and matching all the rewards you earn the first year. Discover and Capital One don’t have foreign transaction fees on any of their cards.
Cash back credit cards work by returning a percentage of every purchase made. Some cash back credit cards reward cardholders with the same percentage back on every type of purchase. Others give bonus cash back in designated spending categories. Most cash back credit cards give cardholders the choice of redeeming cash back rewards earnings for a statement credit to pay part of the account balance, a paper check, gift cards and more. In some cases, you can also redeem a credit card’s cash back rewards for a bank account deposit.… read full answer
The best cash back credit cards require good or excellent credit for approval, though there are options for people of all credit levels. Similarly, some cards charge annual fees in return for higher earning rates, but many cash rewards cards have no annual fee.
More generally, cash back is one of the three big types of credit card rewards. The others are points and miles, which you’ll see more often with travel cards. On that note, a credit card doesn’t have to be a “cash back credit card” to give cash back. Plenty of rewards credit cards, including some that offer miles and points, have cash back as a redemption option. Redeeming travel rewards for cash back often results in a lower redemption rate, however. True cash back rewards earned with a cash back credit card, on the other hand, are very versatile and don’t fluctuate in value. You can learn more below.
Here’s how cash back credit cards work:
Cash back with every purchase: The average cash rewards card offers about 1% back on all purchases. Some cards offer more cash back in certain spending categories.
Chances for extra cash back: Many cash back credit cards offer initial rewards bonuses for spending a certain amount within the first few months your account is open. Some cards also have bonuses for referring a friend or meeting an annual spending threshold.
Redeeming your cash: Cash rewards can usually be redeemed for a statement credit, check or direct deposit. You may also be able to redeem for a bank account deposit and set up automatic redemption.
Restrictions: Some credit card companies make you earn a minimum amount of cash back before you can redeem.
Cash back expiration: Sometimes, credit card cash back will expire a certain number of months after you earn it or after your card has been inactive for a certain period of time. Usually, it won’t expire as long as your card stays open.
Rewards devaluation: Unlike points and miles, whose value is set by the card issuer, cash back can’t be devalued.
Fees. Most cash back credit cards have no annual fee. Many have no foreign transaction fee. Some charge both types of fees, however.
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