The Bank of America Cash Rewards credit card may be a good choice for individuals that have certain conditions met with Bank of America and Merrill Lynch. In order to earn the maximum amount of cash back, cardholders need to have $20,000 in accounts with Bank of America and Merrill Lynch combined.
Benefits of the Bank of America Cash Rewards Credit Card
If you are not a Bank of America or Merrill Lynch customer, the Bank of America Cash Rewards credit card still does offer regular rewards. Cardholders will get 3% back on gas and 2% at grocery stores and wholesale clubs, as well as 1% cash back on other purchases. With a Bank of America bank account, you can get rewards up to 10%.
Qualifying for the Bank of America Preferred Rewards programs would mean even more rewards with the card. The qualification begins with a $20,000 combined balance in either account.
With more money in the accounts, cardholders will get even more rewards. There are three levels (Gold, Platinum, Platinum Honors) that will give benefits depending on the combined balance needed to qualify. With the Gold level, cardholders need to have a combined balance between $20,000-$49,999, and then they receive 3.75% on gas rewards, 2.5% at grocery stores/wholesale clubs and 1.25% on other purchases. The Platinum level requires a $50,000-$99,999 balance and cardholders receive 4.5% on gas purchases, 3% at grocery stores and 1.5% on other purchases. Those who are in the Platinum Honors level have a combined balance of $100,000 and above and receive 5.25% on gas purchases, 3.5% at grocery stores and 1.75% on other purchases.
There is time to pay down large purchases without interest with the introductory offer. The offer consists of 0% on purchases for 12 billing cycles. For balance transfers that are made in the first 60 days of the card, there is 0% for the first 12 billing cycles. Late payments may cut down on the introductory offer.
There is a modest sign up bonus but, when compared to other cards, it’s not much. Those who get a new Bank of America Cash Rewards credit card will receive $150 cash rewards online as long as they spend $500 within the first 90 days of the account.
Who Should Get this Card?
For those that regularly spend in the categories of gas stations or grocery stores and wholesale clubs, this card works for them. Those that have even more money in their account will reap better rewards. It’s a straightforward credit card for someone that doesn’t have to remember about opting into different categories and the categories don’t rotate, making it easier to remember what stores give the most benefit.
Is the Card Right for You?
If you are either a Bank of America or Merrill Lynch customer and regularly shop in the bonus categories of grocery stores or wholesale clubs and gas stations, then this credit card might make sense for you. If you can qualify for the preferred rewards, it’s a much better choice. There are spending caps on the rewards if you spend more than $2,500 in the categories each quarter, so if you are regularly spending you may want something different.