What the Bank of Omaha Credit Card Offers
Bank of Omaha issues several credit cards, each with different rewards structures and annual fees. The most common is their cash back card, which returns a percentage of purchases in cash rather than points you have to redeem. There is no annual fee on their standard cash back card, and the cash back rate varies by category — typically higher on groceries, gas, and dining, lower on everything else.
The card comes with a variable interest rate, meaning the rate you pay on a balance changes when the Federal Reserve adjusts its benchmark rate. You will see the actual rate you may have access to for only after Bank of Omaha reviews your credit report and income. The introductory period (if one exists) and any balance transfer terms are specific to the offer you see, so check the current terms before you explore.
Key Takeaways
- Bank of Omaha's cash back card has no annual fee and returns a percentage of spending in cash, with higher rates in categories like groceries and gas.
- Your actual interest rate depends on your credit score and income, and the rate you see in marketing materials is not may provide to be the rate you receive.
- The card uses a variable rate, so your interest charges will rise if the Federal Reserve raises rates, even if you do nothing wrong.
- Cash back is usually deposited to your Bank of Omaha account monthly, so you need a checking or savings account with them to use the card effectively.
How the Cash Back Works in Practice
When you use the card to buy groceries, gas, or dining, you earn a higher percentage back — often 2% to 3% depending on the specific offer. Other purchases earn a lower rate, usually 1%. The cash back is not automatic; it posts to your account each month after your statement closes, and you can use it to pay your bill or leave it in your account.
The catch is that cash back only applies to purchases you make with the card. If you use a debit card or pay in cash, you earn nothing. You also earn nothing on balance transfers or cash advances, and those transactions often carry a separate fee. Many people find the cash back modest enough that it does not offset an annual fee, which is why Bank of Omaha's no-fee option appeals to them.
Interest Rates and What Happens If You Carry a Balance
The interest rate Bank of Omaha quotes in advertising is a range — for example, 18.99% to 27.99% — because the actual rate depends on your credit score, income, and how long you have been a customer. If your credit score is lower or your income is modest, you will likely land at the higher end of that range. The rate is variable, which means it can increase if the Federal Reserve raises its benchmark rate.
If you carry a balance from month to month, you pay interest on that balance every day until you pay it off. The interest compounds, meaning you pay interest on the interest. For example, a $2,000 balance at 24% annual interest costs roughly $40 per month in interest alone. If you only make minimum payments, most of your payment goes to interest, not the balance itself. The fastest way to avoid this trap is to pay the full statement balance each month.
Who This Card Makes Sense For
The Bank of Omaha card works best for people who already bank with Bank of Omaha and pay off their balance every month. If you spend heavily on groceries, gas, or dining, the higher cash back rates in those categories add up over time. Someone who spends $500 per month on groceries at 3% cash back earns $180 per year with no annual fee.
The card is less useful if you carry a balance regularly, because the interest you pay will quickly exceed any cash back you earn. It is also less useful if you do not bank with Bank of Omaha, because you will have to transfer the cash back to another account or leave it sitting in a Bank of Omaha account you do not use. If you are looking for a card with a long introductory 0% interest period or travel rewards, other issuers may fit better.
How to Understand the Terms Before You Commit
Before you submit any information to Bank of Omaha, read the Schumer Box — the table of terms that appears on the offer page or in the disclosure document. It lists the APR range, any introductory rate and how long it lasts, the annual fee, the balance transfer fee, the cash advance fee, and the late payment fee. These numbers tell you the real cost of using the card, not the marketing headline.
The APR range is not a promise; it is the range Bank of Omaha may offer based on your creditworthiness. You will not know your actual rate until after you submit your process and they pull your credit report. If the rate they offer is higher than you expected, you can decline before you set up the card. Check whether there is a grace period — the number of days you have to pay your balance before interest starts. Most cards offer 21 to 25 days; if the Schumer Box does not mention one, ask Bank of Omaha directly.
Comparing Bank of Omaha to Other No-Fee Cash Back Cards
Several other issuers offer no-annual-fee cash back cards with similar or better rewards. The Citi Double Cash card returns 2% on all purchases with no category limits and no annual fee. The Capital One SavorOne card returns 3% on dining and entertainment, 2% on groceries and gas, and 1% on everything else, also with no annual fee. The Discover it card returns 5% in rotating categories (up to a cap) and 1% on everything else, with no annual fee.
The main reason to choose Bank of Omaha over these is if you already have a checking or savings account there and want to keep everything in one place. If you do not bank with them, the cash back transfer friction may not be worth it. Compare the cash back rates in the categories where you spend the most, then pick the card that returns the highest percentage in those categories. A difference of 1% on $500 per month of spending is $60 per year — real money worth a few minutes of comparison.
What Happens After You Open the Account
Once Bank of Omaha approves you, they will mail the physical card to the address on file, usually within 7 to 10 business days. You can often set up it online or by phone before the card arrives. Your credit limit will be set based on your credit score and income; you can request an increase after you have used the card responsibly for several months.
Each month, Bank of Omaha sends you a statement showing your purchases, the interest you owe (if you carried a balance), and the cash back you earned. You can pay online, by phone, or by mail. If you miss a payment, Bank of Omaha will charge a late fee and report the miss to the credit bureaus, which will lower your credit score. Set up automatic payments for at least the minimum to avoid this, or better yet, pay the full balance automatically each month.
Frequently Asked Questions
Do I have to be a Bank of Omaha customer to get this card?
No, but you will need a Bank of Omaha checking or savings account to receive the cash back deposits. If you do not have one, you can open an account at the same time you explore for the card, or you can transfer the cash back to an account at another bank each month.
What is the difference between a variable rate and a fixed rate?
A variable rate changes when the Federal Reserve adjusts its benchmark rate; a fixed rate stays the same for the life of the card. Bank of Omaha's card uses a variable rate, so your interest charges could increase even if you never miss a payment. Most credit cards use variable rates.
Can I use this card to build credit if my score is low?
Yes, but only if you pay on time every month. Bank of Omaha reports your payment history to the three credit bureaus, so on-time payments will gradually raise your score. Missed payments or high balances will lower it. Start with a small purchase and pay it off in full to show you can manage the card responsibly.
What happens if I do not use the card for a long time?
Bank of Omaha may close the account if it sits inactive for several months, though policies vary. Even if they do not close it, an inactive account does not help your credit score. If you open the card, use it occasionally and pay it off to keep the account active.
Is the cash back taxable income?
No. The IRS treats credit card cash back as a discount on your purchase, not as income. You do not report it on your tax return.