Bank of America offers a wide range of credit cards, each tailored to different financial needs and spending habits. Whether you’re looking for cashback on everyday purchases, rewards for travel, or a way to build credit, Bank of America has credit cards that fit the bill. Here’s a comparison of some of their most popular credit cards and how they stack up for everyday spending.
1. Bank of America® Customized Cash Rewards Credit Card
The Bank of America® Customized Cash Rewards Credit Card is designed for consumers who want flexibility in earning rewards across multiple spending categories. This card offers some of the best cashback opportunities for everyday purchases and allows you to choose your preferred rewards category.
Key Features:
- 3% cashback in a category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings).
- 2% cashback at grocery stores and wholesale clubs.
- 1% cashback on all other purchases.
- Bonus rewards: $200 online cash rewards bonus after spending $1,000 in the first 90 days.
Best for Everyday Spending:
- Grocery stores and gas stations: If a large portion of your budget goes toward groceries or gas, this card will maximize your cashback on these necessities.
- Online shopping or dining: You can switch your 3% cashback category once per month, making it versatile for different types of spending.
Pros:
- Ability to choose your 3% cashback category based on your current spending habits.
- Extra rewards at grocery stores and wholesale clubs, which are common everyday spending categories.
- No annual fee.
Cons:
- The 3% and 2% cashback categories are capped at $2,500 in combined spending per quarter. After reaching the cap, you only earn 1% cashback.
2. Bank of America® Unlimited Cash Rewards Credit Card
If you prefer a simple and flat cashback structure with no need to track categories, the Bank of America® Unlimited Cash Rewards Credit Card could be an ideal choice.
Key Features:
- 1.5% cashback on all purchases, with no categories to manage.
- No limit on how much cashback you can earn.
- $200 online cash rewards bonus after spending $1,000 in the first 90 days.
Best for Everyday Spending:
- Ideal for those who want consistent cashback without worrying about category restrictions or quarterly caps. This card is especially suitable for people whose spending doesn’t concentrate in any particular area, like groceries or travel.
Pros:
- Simple, flat-rate cashback for all purchases.
- No need to track or change categories.
- No annual fee.
Cons:
- The 1.5% rate may not be as rewarding for those who spend heavily in specific categories like gas or groceries, where other cards might offer higher rewards.
3. Bank of America® Travel Rewards Credit Card
For those who prefer earning rewards they can redeem for travel, the Bank of America® Travel Rewards Credit Card is an excellent option for everyday spending.
Key Features:
- Earn 1.5 points per dollar spent on all purchases, with no category restrictions.
- Points can be redeemed for travel-related purchases, including flights, hotels, vacation packages, and car rentals.
- 25,000 online bonus points (equivalent to $250 in travel) after making $1,000 in purchases within the first 90 days.
- No foreign transaction fees, making it great for international use.
Best for Everyday Spending:
- The 1.5 points per dollar rewards system makes it ideal for everyday spending when you want to save for future travel. It’s also a good fit if you frequently travel internationally due to the absence of foreign transaction fees.
Pros:
- Flat-rate points on all purchases with no categories to track.
- Points can be used to offset travel expenses like flights and hotels.
- No annual fee or foreign transaction fees.
Cons:
- While you can redeem points for travel, they offer less flexibility for cash-back rewards compared to other cards.
4. Bank of America® Premium Rewards® Credit Card
The Bank of America® Premium Rewards® Credit Card is designed for frequent travelers who want to maximize rewards not only on travel expenses but also on everyday spending.
Key Features:
- Earn 2x points per dollar on travel and dining purchases.
- Earn 1.5x points per dollar on all other purchases.
- 50,000 bonus points (worth $500) after spending $3,000 in the first 90 days.
- Travel perks include a $100 airline incidental credit and up to $100 TSA PreCheck/Global Entry credit.
Best for Everyday Spending:
- While best suited for travel and dining, the 1.5x points on all other purchases makes it competitive for daily spending if you prefer to earn travel points.
Pros:
- Strong rewards on travel and dining, ideal for those who travel often.
- Competitive 1.5x points on non-travel purchases.
- Includes travel perks like airline credits and TSA PreCheck/Global Entry reimbursement.
Cons:
- The $95 annual fee might not be worthwhile for those who don’t travel often or who prefer cashback instead of travel rewards.
5. Bank of America® Secured Credit Card
For individuals looking to build or rebuild their credit, the Bank of America® Secured Credit Card offers a way to earn rewards while establishing a solid credit history.
Key Features:
- Requires a security deposit (minimum $300) to open, which sets your credit limit.
- No rewards program, but you can upgrade to an unsecured card after demonstrating responsible use.
- Reports to all three major credit bureaus, helping you build your credit.
Best for Everyday Spending:
- Best for those who are focused on credit-building rather than rewards. By using this card for everyday purchases and paying it off in full each month, you can steadily improve your credit score.
Pros:
- Great tool for building or rebuilding credit.
- Potential to upgrade to an unsecured card over time.
Cons:
- No rewards program.
- Requires an initial security deposit.
6. Preferred Rewards Program
One of the biggest advantages of having a Bank of America credit card is the Preferred Rewards program, which offers bonus rewards for members with qualifying Bank of America banking accounts and balances.
How It Works:
- If you have a qualifying Bank of America checking account and maintain a minimum balance of at least $20,000 across your Bank of America and Merrill accounts, you can earn bonus rewards on your credit card spending.
- Depending on your account balance, you can get a 25% to 75% bonus on your rewards.
For example:
- If you are a Gold tier member (with $20,000 to $49,999 in balances), you’ll earn an extra 25% bonus on your cashback or points.
- If you are a Platinum Honors member (with $100,000 or more in balances), you’ll receive an additional 75% bonus on your rewards.
Impact on Everyday Spending:
- If you’re eligible for the Preferred Rewards program, you can significantly increase the rewards you earn on everyday purchases. For instance, a 1.5% cashback card would become a 2.62% cashback card at the Platinum Honors level.
Conclusion: Which Bank of America Card is Best for Everyday Spending?
The best Bank of America card for everyday spending depends on your specific spending habits and financial goals:
- The Bank of America® Customized Cash Rewards Credit Card is perfect for those who spend heavily in specific categories like groceries, gas, or dining, and want the flexibility to change categories.
- The Bank of America® Unlimited Cash Rewards Credit Card is ideal if you prefer a simple, no-hassle cashback structure with a flat rate.
- For travelers, the Bank of America® Travel Rewards Credit Card and Bank of America® Premium Rewards® Credit Card offer excellent options for earning points on everyday purchases that can be redeemed for travel.
- The Bank of America® Secured Credit Card is best suited for those focused on building or improving their credit score.
Additionally, if you qualify for the Preferred Rewards program, any of these cards can provide significantly enhanced rewards, making Bank of America an attractive option for everyday spending across various categories.