2021 Bank of America Cash Rewards Credit Card Review

John S Kiernan, Managing EditorMay 24, 2021

This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. Bank of America is a WalletHub partner.

EDITOR’S RATING

4.0 / 5

Bank of America® Customized Cash Rewards credit card image

PROS

$200 initial bonus (online exclusive)
Up to 3% cash back
No annual fee

CONS

Potential for a very high regular APR
3% foreign-transaction fee

Bank of America Cash Rewards Credit Card Review Summary

The Bank of America® Customized Cash Rewards credit card is a good everyday rewards card for people with excellent credit scores. For starters, the Bank of America Cash Rewards credit card has a $0 annual fee and offers a $200 initial bonus to new cardholders who spend just $1,000 within 90 days of opening an account.

The Bank of America® Customized Cash Rewards credit card also supplements its base 1% cash-back earning rate with 2% back on groceries and wholesale clubs, and 3% back on a category of your choosing. But there’s a catch. Those bonus earning rates only apply to the first $2,500 in combined bonus-category purchases each quarter. If you wind up hitting the limit, you will earn just 1% back — slightly less than the market average — on all purchases for the rest of the quarter.

Below, you can find more information that will help you decide whether or not to apply for the Bank of America® Customized Cash Rewards credit card.

Bank of America Cash Rewards Credit Card Highlights

$200 Initial Bonus For Online Applicants

The average consumer has more than $333 in credit-card eligible expenses each month. That means most qualified applicants will easily be able to meet the $1,000 threshold within the first 90 days of account opening and thereby claim their $200 prize. That’s effectively a discount of up to 20%, provided in the form of a statement credit.

Up To 3% Cash Back

You will earn 3% cash back in a category of your choosing: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings, and 2% at grocery stores and wholesale clubs - for the first $2,500 spent in those categories, collectively, every three months. That means this flashy feature is worth a maximum of $300 per year.

Beyond that, you will earn slightly less than the rewards-card market average of 1.08% cash back, driving the average person’s first-year rewards earnings to $477, according to our calculations. The best part: your rewards will never expire, unless your account is closed, in which case any unused portion will be forfeited by Bank of America.

No Annual Fee

Many rewards cards charge annual fees to offset the cost of providing users with cash back, points and miles. Such cards can still pay off for high-volume, high-value spenders, but some people would rather avoid the pressure of having to make their card worthwhile. No-annual-fee rewards cards such as Bank of America Cash Rewards help you avoid playing from behind, so to speak, while giving you the option of not using your card if you so choose.

Above-average 0% intro rates

This Bank of America cash card also has financing appeal, thanks to its 0% intro rates on new purchases and balance transfers for the first 15 billing cycles your account is open. You shouldn’t get too excited, though, as you need to transfer your balance within the first 60 days. Furthermore, there is a 3% (min $10) balance-transfer fee that spoils the transfer part of the deal.

Bank of America Cash Rewards Credit Card Lowlights

Potential For A Very High Regular APR

You need excellent credit to get this card, but you may come to find that your interest rate is unbefitting of the term “excellent.” For a point of reference, the average credit card for people with excellent credit has a 13.09%, while the average “fair credit” credit card charges 23.25%, according to WalletHub’s latest Credit Card Landscape Report. That means you’re guaranteed to get an above-average rate for your credit rating, and it could even be higher than what a financially unproven applicant could expect to pay on the open market.

3% Foreign-Transaction Fee

The Bank of America Cash Rewards card is not a good travel companion for the simple reason that it will overcharge you on every purchase that you make, to the tune of 3%. That’s $150 on a $5,000 family vacation to Europe, for example. It also cuts your savings on currency conversion from 7.14% (relative to the average bank) to 4.14%. The same phenomenon also affects purchases made through internationally based merchants when you are physically in the U.S. So if you’re either a world traveler or a world consumer, you should probably find another card for related purchases.

Bank of America Cash Rewards Credit Card vs. The Competition

Rewards are perhaps the most popular aspect of credit-card use for consumers and, in turn, for issuers. Myriad attractive offers are available, with the value attainable from them near historic highs. There’s a lot of money riding on your decision, in other words.

So in the interest of helping you make an informed selection, we compared Bank of America® Customized Cash Rewards credit card to some of the other most popular cash-back offers on the market across five key categories. You can find the results below.

	Sponsored	Sponsored	Sponsored	Sponsored
Annual Fee	$0	$0	$0 intro 1st yr, $95 after	$0
Rewards Bonus	$200	N/A	Up to $350	$200
Rewards Rate	1 - 3% Cash Back	2% Cash Back	1 - 6% Cash Back	1.5% Cash Back
Purchase Intro APR	0% for 15 billing cycles	N/A	0% for 12 months	0% for 15 months
Transfer Intro APR	0% for 15 billing cycles for any balance transfers made in the first 60 days Transfer Fee: 3% (min $10)	0% for 18 months Transfer Fee: 3% (min $5)	N/A	N/A
Regular APR	13.99% - 23.99% Variable	13.99% - 23.99% (V)	13.99% - 23.99% (V)	15.49% - 25.49% (V)
Editors' Rating	4.0 / 5	5.0 / 5	4.7 / 5	4.4 / 5
Details, Rates & Fees	Learn More	Learn More	Learn More Rates & Fees Terms Apply	Learn More

Questions & Answers (8 questions)

What is the Bank of America Cash Rewards online shopping benefit?

Upvotes

Chip Lupo

The Bank of America Cash Rewards online shopping benefit is an offer for 3% cash back on select online and mobile app purchases. Online transactions with a merchant category code for bookstores, discount stores, electronics and sporting goods, among others, qualify for bonus cash back in the online shopping category.

Online shopping is one of the Bank of America Cash Rewards credit card's six 3% cash back categories, along with gas, dining, travel, drug stores, and home improvement / furnishings. You can choose one category from this group and earn bonus cash back on the first $2,500 spent each quarter. The quarterly limit covers combined purchases in your chosen category and at grocery stores and wholesale clubs, which offer 2% cash back.

Before you can earn bonus cash back on online shopping, you will need to change your chosen 3% cash back category to online shopping, either through your online account or on the Bank of America mobile app. Gas is the Bank of America Cash Rewards credit card's default bonus category, and it will remain there until you change it. You may keep online shopping as your chosen category, or you can select one of the other 3% cash back categories once every calendar month. You're limited to one 3% cash back category at a time.

Purchases in any of the bonus categories that exceed the $2,500 quarterly limit, along with non-qualifying purchases, will earn the card's base rate of 1% cash back. Online purchases related to doctors and hospitals, schools, insurance, utilities, government services, taxes, and other non-retail services are among the non-qualifying transactions.

Does the Bank of America Cash Rewards card cover rental car insurance?

Upvotes

Chip Lupo

The Bank of America Cash Rewards credit card no longer offers rental car insurance. Bank of America discontinued the card's complimentary rental car Collision Damage Waiver benefit for all new claims starting February 1, 2021. Bank of America credit cards that still offer rental car insurance include the Bank of America Travel Rewards credit card and the Bank of America Premium Rewards credit card.

When it was available, the Bank of America Cash Rewards credit card rental car insurance covered cardholders against damage to a rented vehicle resulting from either a collision or theft. In order to be covered, a cardholder had to charge the entire cost of the rental to a Bank of America Cash Rewards credit card and decline the rental agency's insurance plan.

Is it good for building your credit? I primarily want to use it as my gas card.

Upvotes

WalletHub

As long as you use them responsibly all credit cards help you build your credit in the same way so you should apply for the card that best meets your needs in terms of rewards and interest rates.

How much are the Bank of America Cash Rewards points worth?

Upvotes

ROBERT SAMBRICK

The Bank of America Cash Rewards card actually offers cash back, which means no conversions are necessary.

You earn 3% cash back in the category of your choice, 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.

It is also important to note that you'll get a 10% bonus if you redeem your earnings for a deposit into a Bank of America checking or savings account. With that being said, 2,500 points from one of Bank of America's travel rewards cards would be redeemable for a $25.00 statement credit or $15.00 cash back, just to name a couple of options.

You can learn more about how much Bank of America rewards are worth based on different redemption methods here.

Do I have to pay my Bank of America Cash Rewards bill every month?

Upvotes

WalletHub

You do not have to pay your Bank of America Cash Rewards bill every month, but paying off your card monthly means you'll completely avoid the interest charges.

If you can't pay off your card monthly, you should make at least the minimum payment in order to avoid being classified as late.

Which grocery stores and gas stations are eligible for Bank of America Cash Rewards cash back?

Upvotes

Benny Joseph

To identify the grocery stores and gast stations that enable you to earn cash back on these transactions with your Bank of America Cash Rewards card, simply go to this page and look for the MCC codes 5411 for grocery stores and 5541 or 5542 for gas stations.

I have a rebate card and was trying to find out the balance on it.

Upvotes

WalletHub

You can see your current balance using online banking. You can enroll into online banking here.

What are the best Bank of America Cash Rewards credit card benefits?

Upvotes

Chip Lupo

The best Bank of America® Customized Cash Rewards credit card benefits are purchase security, extended warranty protection, and lost luggage reimbursement. Purchase security covers eligible items against theft or damage, while the extended warranty benefit adds up to 1 year to a purchased item's existing manufacturer's warranty. In addition, lost luggage reimbursement provides up to $3,000 per trip for baggage that's lost by a travel provider or stolen.

Bank of America Cash Rewards credit card Benefits

Purchase Security
Extended Warranty Protection
Contactless Chip Technology
Overdraft Protection
Travel and Emergency Assistance Services
Lost Luggage Reimbursement
Roadside Dispatch
Zero Liability Fraud Protection
Account Activity Alerts
Mobile Banking
Paperless Statement Option
Digital Wallet Technology

Along with these benefits, the Bank of America Cash Rewards credit card has a $0 annual fee and gives rewards on all purchases. As long as you have excellent credit, the Bank of America Cash Rewards credit card is certainly a card to consider adding to your wallet.

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