Bank of America's Low-Cost Credit Card Options
Bank of America offers several credit cards without annual fees, and a few with modest annual fees that come with rewards that offset the cost. The Bank of America Cash Rewards card has no annual fee and returns 1% cash back on all purchases. The Bank of America Travel Rewards card also carries no annual fee and earns 1.5 points per dollar spent, redeemable for travel or cash. Both cards are designed for people who want basic rewards without paying to hold the card.
If you are willing to pay an annual fee, Bank of America's premium cards offer higher rewards rates and travel benefits. The Bank of America Premium Rewards card costs $95 per year but earns 2 points per dollar on travel and dining, and 1.5 points on everything else. The Bank of America Preferred Rewards card costs $95 annually and offers 3 points per dollar on travel, 2 points on dining and gas, and 1 point on other purchases. Whether a paid card makes sense depends on how much you spend in bonus categories each month.
Key Takeaways
- Bank of America's Cash Rewards and Travel Rewards cards have no annual fee and work well if you want basic rewards without paying to carry the card.
- Premium cards with annual fees ($95) offer higher rewards rates in specific categories like travel, dining, and gas, but only save you money if you spend enough in those categories each month.
- Bank of America's rewards rates are lower than some competitors, so compare the cash back or points you would earn against cards from other issuers before deciding.
- Your Bank of America checking account status can unlock higher rewards rates through the Preferred Rewards program, which stacks on top of card rewards.
No-Annual-Fee Cards From Bank of America
The Cash Rewards card returns 1% cash back on every purchase with no annual fee. Cash back deposits into your Bank of America account as a statement credit or can be transferred to a linked savings account. There is no minimum redemption amount, so you can cash out even small amounts. This card works best if you want a straightforward rewards structure without tracking bonus categories.
The Travel Rewards card earns 1.5 points per dollar on all purchases, also with no annual fee. Points can be redeemed for travel (flights, hotels, rental cars) at a fixed rate, or converted to cash at 1 cent per point. The card includes trip cancellation insurance and lost luggage reimbursement, which adds modest travel protection. This card suits people who take a few trips per year and want to earn rewards on everyday spending too.
Both no-fee cards have no foreign transaction fees, which means you can use them abroad without a percentage charge on each purchase. Neither card offers sign-up bonuses, so there is no incentive to open the account at a specific time.
Annual-Fee Cards With Higher Rewards Rates
The Premium Rewards card costs $95 per year and earns 2 points per dollar on travel and dining, 1.5 points per dollar on gas and transit, and 1 point on everything else. To break even on the annual fee, you would need to spend roughly $6,300 per year in bonus categories (travel and dining), assuming you redeem points at 1 cent each. If you spend less than that in those categories, the no-fee cards will save you money.
The Preferred Rewards card also costs $95 annually and offers 3 points per dollar on travel, 2 points on dining and gas, and 1 point on other purchases. This card has a higher earning rate in bonus categories, so it breaks even faster if you spend heavily on travel and dining. It also includes a $100 airline fee credit each year, which can offset part of the annual fee if you use it.
Both premium cards waive the annual fee for the first year, so you can test whether the rewards justify the cost before committing. After the first year, you pay the full fee unless you downgrade to a no-fee card.
How Bank of America Preferred Rewards Stacks With Card Rewards
If you have a Bank of America checking or savings account, you may be enrolled in Preferred Rewards, a program that boosts your card's rewards rate based on your account balance. The program has three tiers: Gold (requires $20,000 in combined balances), Platinum (requires $50,000), and Diamond (requires $100,000). Each tier adds a percentage bonus to your card's base rewards rate.
At the Gold level, you earn an extra 25% on all rewards. At Platinum, you earn an extra 50%. At Diamond, you earn an extra 75%. These bonuses stack on top of your card's rewards, so a 1% cash back card becomes 1.25% at Gold, 1.5% at Platinum, or 1.75% at Diamond. This can make Bank of America's lower base rewards rates more competitive if you maintain a high account balance.
Check your Bank of America online banking portal to see whether you are already enrolled and which tier you have reached. If you do not see Preferred Rewards listed, you can enroll through your account settings.
Comparing Bank of America Cards to Other Issuers
Bank of America's rewards rates are generally lower than cards from other major issuers. For example, many competitors offer 2% cash back on all purchases with no annual fee, while Bank of America's no-fee cards top out at 1.5% on travel rewards. If you do not have a high Bank of America account balance to unlock Preferred Rewards bonuses, you may earn more with a card from another issuer.
However, Bank of America cards may make sense if you already bank with the company and maintain a Preferred Rewards balance. The bonus stacking can close the gap with competitors, and having your rewards and checking account in one place simplifies tracking. Compare the total rewards you would earn over a year at your expected spending level before deciding.
Also consider the card's other features: travel insurance, purchase protection, extended warranty coverage, and customer service quality. Bank of America's customer service is available through branches, phone, and online chat, which some people prefer to phone-only support from online-only issuers.
How to Open a Bank of America Credit Card
You can open a Bank of America credit card online through their website, by phone at 1-800-435-7000, or in person at a Bank of America branch. Online applications usually take 5 to 10 minutes and provide a decision within seconds or a few minutes. You will need your Social Security number, date of birth, income, and employment status.
If you are approved, the card typically arrives within 7 to 10 business days. You can request expedited delivery in some cases, though this may incur a fee. Once the card arrives, set up it through the Bank of America app or website before using it.
If you are denied, Bank of America will mail you a notice explaining the reason. You can dispute inaccurate information on your credit report by contacting the credit bureau directly, then reapply after corrections are made.
Frequently Asked Questions
Does Bank of America offer a sign-up bonus on any of its credit cards?
Bank of America does not typically offer sign-up bonuses on its credit cards. Instead, the company focuses on ongoing rewards rates and cardholder benefits. If you are looking for a large sign-up bonus, cards from other issuers may be a better fit.
Can I switch from one Bank of America card to another without closing my account?
Yes. You can downgrade or upgrade your card by calling Bank of America at 1-800-435-7000 or through your online account. Downgrading to a no-fee card closes the paid card and opens a new account, which may affect your credit score slightly. Upgrading to a premium card keeps your account open and adds the annual fee to your next statement.
What happens to my rewards if I close my Bank of America credit card?
Your existing rewards do not expire when you close the card. You can redeem them before closing, or redeem them afterward through your Bank of America account. However, you will no longer earn new rewards once the card is closed.
Does the Bank of America Travel Rewards card work internationally?
Yes. The Travel Rewards card has no foreign transaction fees and earns 1.5 points per dollar on all purchases, including those made abroad. You can use it in any country that accepts Visa cards.
How do I know if a premium card's annual fee is worth it for my spending?
Calculate your expected annual rewards in bonus categories and compare that to the annual fee. For example, if the Premium Rewards card costs $95 and you spend $10,000 per year on travel and dining, you would earn 20,000 points (at 2 points per dollar), worth roughly $200 at 1 cent per point. Subtract the $95 fee and you net $105 in value. If you spend less in bonus categories, the no-fee cards will save you money.