Is Bank Of America Credit Card Worth It For Customized Cash Rewards? – To world

The Bank of America® Customized Cash Rewards credit card is a worthy addition to most wallets. Its reward structure is most attractive as part of a larger cashback strategy, and it gets even better when you have at least $ 20,000 in deposits or investments with the bank.

Cardholders who have credit from month to month can benefit from long 0 percent interest promotions on credit transfers and new purchases.

What are the main benefits and who is best for this card? Read on to find out.

Details der Bank of America Customized Cash Rewards-Kreditkarte

This card is best known for offering 3 percent cashback in a category of your choice from the following list: gasoline, online shopping, restaurants, travel, drug stores, and home improvement. You can change your selection every month if you want.

In addition, all cardholders in grocery stores and wholesale clubs receive 2 percent cashback. The 3 percent and 2 percent categories are capped at a combined total of $ 2,500 in quarterly expenses. All other purchases receive 1 percent cashback.

The Preferred Rewards program gives cardholders who have $ 20,000 or more in qualifying deposits or investments with Bank of America or its affiliate, Merrill Lynch, a 25 percent increase in rewards. This means that the cashback category goes from 3 percent to 3.75 percent; the 2 percent category rises to 2.5 percent; and the 1 percent category is 1.25 percent.

If you have at least $ 50,000 in qualifying deposits / investments, your rewards extend 50% further (so the categories pay 4.5%, 3% and 1.5% cashback, respectively).

And if you’ve got at least $ 100,000 on file, there’s a 75 percent bonus. That makes the 3 percent category a whopping 5.25 percent cashback; the 2 percent category becomes 3.5 percent; and the 1 percent category earns 1.75 percent. These are great returns, especially on a card that doesn’t charge an annual fee.

Is Bank of America Customized Cash Rewards Credit Card Worth It?

I would say yes, even if you don’t have 100 grand left in the house. However, I wouldn’t suggest making this card your primary card unless you can hit the upper threshold for preferred rewards.

It is best to focus on the highest income category

If you want to use one card for everything, you’re probably better off with a no annual fee card that gives unlimited 2 percent cashback on all purchases. (Examples are the Wells Fargo Active Cash℠ Card and the Citi® Double Cash Card, which technically gives 1 percent cashback when purchasing and another 1 percent when paying.) The more you spend on the Customized Cash Card, outside of the bonus categories, the less likely you are to beat an overall return of 2 percent.

I like how the Customized Cash allows users to change their 3 percent category every month and the list of possible options includes something for everyone. It is particularly advantageous if you have one of these flat 2 percent cards as a basis, as you can then concentrate the entire quarterly limit of USD 2,500 on the Customized Cash card on your 3 percent categories.

15 months no interest

The hunt for rewards only makes sense if you can pay your credit card bills in full and avoid interest, since the average APR on a credit card is more than 16 percent. The Customized Cash Card has a variable APR of 13.99 to 23.99 percent, but offers new cardholders 15 months of interest-free time for new purchases and credit transfers.

That’s six months shorter than the longest credit transfer offers on the market, but it’s still good. If you are planning on transferring a balance, be aware that there will be a transfer fee of 3 percent or $ 10, whichever is greater. Of course, try to pay the entire balance before any interest accrues. Also note that these transfers must be made within 60 days of opening the account in order to receive the introductory 0 percent rate.

Advantages and discounts for cardholders

New cardholders receive a $ 200 introductory bonus after spending $ 1,000 in the first 90 days.

The Customized Cash card also participates in the BankAmeriDeals program, where you receive additional cashback (often 5 to 15 percent) if you choose to participate in promotions and pay with your card.

And all Bank of America credit and debit card holders get free general admission too Hundreds of participating museums and other cultural institutions on the first full weekend of each month.

Should I get the Bank of America Customized Cash Rewards credit card?

If you’re into cash back cards, there’s a good chance the answer is yes – but think about the credit cards you already have. Will the 3 percent and 2 percent categories of the Customized Cash Card improve the rewards you’ve already earned, or do you have other options that match or exceed those returns?

Also consider the opportunity cost. There may be an even better option for you such as: For example, the Citi Custom Cash℠ Card, which gives you 5% cashback on your highest Eligible Spend Category each month (up to $ 500 per billing cycle, with 1% cashback on all other purchases). ). You do not have to select a category for this card either. It automatically assigns the increased price to the purchase category in which you spend the most.

How to Maximize Your Rewards With the Bank of America Customized Cash Rewards Credit Card

Getting 3 percent cashback on a popular category is cute, and this card makes it even sweeter as you can choose your own adventure. Some other rotating category card editors set the categories for you so they are not always that useful.

For example, if you have the Customized Cash card, you might choose travel as your 3 percent category for a month because you are planning a big trip. In the next month, you may be switching to home improvement and home improvement as you update your home. The following month, your best fit could be online shopping. It’s up to you.

If you hit the quarterly limit with 3 percent category spending to the full, you will earn $ 300 every year. This can increase significantly as you hit the various preferred reward levels.

The bottom line

Whether or not you sign up for the Bank of America Customized Cash Rewards credit card depends on how you spend your money and how many cards you want to juggle. It generally fits better as part of a broader multi-card strategy that relies on certain types of occasional expenses rather than serving as a daily driver. The higher you move up on your Favorite Rewards list, the more likely this card could serve as your daily workhorse.

Do you have a question about credit cards? Send me an email at [email protected] and I will be happy to help you.

Leave a Reply

Your email address will not be published. Required fields are marked *