Bank of America Customized Cash Rewards Review 2024
The Bank of America Customized Cash Rewards credit card offers a unique feature that allows cardholders to select their own bonus category, making it a versatile option for various spending habits. With no annual fee and a range of rewards, this card has the potential to cater to many consumers. But how does it stack up overall? Let’s dive into the details.
Key Features of the Bank of America Customized Cash Rewards Credit Card
Overview
- Annual Fee: $0
- Rewards Rate: 1%-3%
- Intro Offer: $200 cash rewards bonus after spending $1,000 in the first 90 days
- Intro APR: 0% on purchases and balance transfers for 15 billing cycles
- Regular APR: 19.24%-29.24% Variable APR
- Recommended Credit Score: 690-850 (Good to Excellent)
Pros and Cons
Pros:
- No annual fee
- Customizable bonus categories
- Intro APR period
- Potential for higher rewards through Bank of America Preferred Rewards
Cons:
- Complicated rewards structure
- Spending caps on bonus rewards
- Best rewards limited to Bank of America customers
- Requires good/excellent credit
Detailed Review
The Bank of America Customized Cash Rewards credit card stands out due to its flexibility in choosing a 3% bonus category from a list of six options, which can be changed monthly. This feature is particularly beneficial for those who can optimize their spending within these categories. However, the rewards structure can be intricate and may not be ideal for big spenders due to the quarterly spending caps.
Reward Categories and Rates
Ongoing Rewards:
- 3% back on a category of your choice (options include gas/EV charging, online shopping, dining, travel, drugstores, and home improvement)
- 2% back at grocery stores and wholesale clubs
- 1% back on all other purchases
The combined spending cap for the 3% and 2% categories is $2,500 per quarter. Once this threshold is reached, the rewards rate drops to 1% for those categories.
Bonus Category Options
You can choose from the following six bonus categories:
- Gas/EV Charging
- Online Shopping
- Dining
- Travel
- Drugstores
- Home Improvement and Furnishings
Table: Effective Rewards Rates with Bank of America Preferred Rewards
| Tier | Combined Balance Required | Effective 3% Category Rate | Effective 2% Category Rate | Effective Other Purchases Rate |
|---|---|---|---|---|
| Gold (25% boost) | $20,000 to $49,999 | 3.75% | 2.5% | 1.25% |
| Platinum (50% boost) | $50,000 to $99,999 | 4.5% | 3% | 1.5% |
| Platinum Honors (75% boost) | $100,000+ | 5.25% | 3.5% | 1.75% |
Introductory APR and Fees
The card offers an introductory 0% APR for 15 billing cycles on both purchases and balance transfers made within the first 60 days. This can be an attractive feature for those planning significant purchases or consolidating debt. However, it’s crucial to note the ongoing APR, which ranges from 19.24% to 29.24%, based on your creditworthiness.
Comparison to Other Cards
Bank of America Customized Cash Rewards Credit Card
- Annual Fee: $0
- Intro APR: 0% for 15 billing cycles
- Regular APR: 19.24%-29.24% Variable APR
- Recommended Credit Score: 690-850
Citi Double Cash® Card
- Annual Fee: $0
- Intro APR: 0% on balance transfers for 18 months
- Regular APR: 19.24%-29.24% Variable APR
- Recommended Credit Score: 630-850
Discover it® Cash Back
- Annual Fee: $0
- Intro APR: 0% for 15 months on purchases and balance transfers
- Regular APR: 18.24%-28.24% Variable APR
- Recommended Credit Score: 690-850
FAQs
1. How do I choose or change my 3% category?
You can select or change your 3% category through Bank of America’s online banking or mobile app. You can make changes once per calendar month.
2. What happens if I exceed the quarterly spending cap?
Once you exceed the $2,500 quarterly limit for the 3% and 2% categories, additional purchases in these categories will earn only 1% cash back until the next quarter begins.
3. How can I qualify for the Bank of America Preferred Rewards program?
You need to have a combined balance of $20,000 or more in your Bank of America or Merrill accounts to qualify for the Preferred Rewards program, which offers enhanced rewards rates and other benefits.
4. What are the redemption options for cash rewards?
Cash rewards can be redeemed as a statement credit, direct deposit into a Bank of America checking or savings account, contribution to a Merrill account, or a 529 account. There’s no minimum redemption requirement for deposits into Bank of America accounts.
5. Are there any foreign transaction fees?
Yes, the card charges a 3% fee on transactions made in foreign currencies.
Tips
- Maximize Your Rewards: Choose your 3% category based on your highest spending areas and adjust it monthly if your spending habits change.
- Leverage Preferred Rewards: If you have significant balances with Bank of America or Merrill, ensure you qualify for the Preferred Rewards program to boost your rewards rates.
- Monitor Spending Caps: Keep track of your spending in the bonus categories to avoid dropping to the 1% rate prematurely.
Drawbacks and Considerations
While the Bank of America Customized Cash Rewards credit card offers appealing features, it’s essential to consider its limitations. The spending caps can significantly impact your ability to earn higher rewards if you’re a heavy spender. Additionally, without qualifying for the Preferred Rewards program, the rewards rates may seem modest compared to other no-annual-fee cards.
For those who don’t want to deal with spending caps and prefer a straightforward rewards structure, the Wells Fargo Active Cash® Card could be a better option. It offers 2% cash back on all purchases without any caps.
The Bottom Line
The Bank of America Customized Cash Rewards credit card is an excellent option for moderate spenders who value flexibility in their rewards. Its no-annual-fee structure and customizable bonus categories make it a versatile choice. However, those who spend heavily or prefer a more straightforward rewards system might find other cards more suitable. Before deciding, consider your spending habits and whether you can leverage the Preferred Rewards program to maximize your benefits.
