Bank of America credit cards work well for some people and poorly for others — it depends on what you spend money on and what fees matter most to you
Bank of America offers several credit cards, each with different rewards, annual fees, and perks. The most common ones are the Bank of America Cash Rewards card (no annual fee), the Bank of America Premium Rewards card ($95 annual fee), and the Bank of America Travel Rewards card (no annual fee). Before you open one, you should know what you actually get back, what it costs, and whether the card matches the way you actually spend.
The real question is not whether Bank of America is "good" in general — it is whether this specific card solves a problem you have. A card that gives 3% cash back on groceries is worthless if you never buy groceries. A card with a $95 annual fee is a bad deal if you do not spend enough to earn back more than $95 in rewards. This guide walks you through how to think about that decision.
Key Takeaways
- Bank of America's no-annual-fee cards offer cash back or travel rewards, but the rewards rate is lower than some competitors offer for the same spending categories.
- The $95 annual fee card requires you to earn at least $95 more in rewards than you would with a no-fee card, which usually means spending $3,000 to $5,000 per year in bonus categories.
- Bank of America cards report to all three credit bureaus and have no foreign transaction fees on some versions, which matters if you travel or carry a balance.
- You need a Bank of America checking or savings account to get the highest rewards rates on most of their cards, which is a hidden requirement many people miss.
- Your credit score needs to be in the good to excellent range (usually 670 or higher) to be approved, and Bank of America is known for denying people with recent late payments or high debt.
What the different Bank of America cards actually pay you
Bank of America's Cash Rewards card gives you 1% cash back on all purchases, 2% at grocery stores and gas stations, and 3% at restaurants. There is no annual fee. That sounds good until you compare it to other cards: the Citi Double Cash card gives 2% on everything with no annual fee, and the Chase Freedom Flex gives 5% on rotating categories (up to $1,500 per quarter) plus 1% on everything else with no annual fee.
The Bank of America Premium Rewards card costs $95 per year and gives you 2% cash back on all purchases, 3% on travel, and 3% on dining. You also get a $100 statement credit toward travel purchases once per year if you spend at least $10,000 in a calendar year. The math: if you spend $5,000 per year, you earn $100 in rewards at 2%, minus the $95 fee, for a net of $5. A no-fee card earning 1% on everything would give you $50 — so you come out $45 ahead. But if you spend $2,000 per year, you earn $40 in rewards, minus the $95 fee, for a net loss of $55.
The Bank of America Travel Rewards card has no annual fee and gives 1.5% cash back on all purchases, with an extra 0.5% if you have a Bank of America checking account (bringing it to 2%). This is simpler than the Cash Rewards card but pays less in bonus categories. It is useful if you do not want to track which stores give which rates.
The hidden requirement: you need a Bank of America bank account
Bank of America advertises the rewards rates on their website, but the highest rates often require you to have a Bank of America checking or savings account. For example, the Travel Rewards card pays 1.5% without an account, but 2% with one. The Premium Rewards card pays different cash back rates depending on whether you are a "Preferred Rewards" member, which requires a Bank of America bank account with a certain balance.
If you do not have a Bank of America bank account and do not want one, the rewards you actually get will be lower than what the marketing materials show. This is not a scam — it is just how the program works — but it is straightforward to miss. Before you open the card, check whether you already bank with Bank of America or whether opening a checking account makes sense for you.
Annual fees and when they make sense
Bank of America's no-annual-fee cards (Cash Rewards and Travel Rewards) have no cost to carry, so the only question is whether the rewards rate is worth it compared to other free cards. The Premium Rewards card with the $95 annual fee requires more thought.
The $100 travel credit on the Premium Rewards card only appears if you spend at least $10,000 in a calendar year. That is a high bar. If you spend $5,000 per year, you do not get the credit, and you are paying $95 for a card that earns 2% cash back. A no-fee card earning 1% on everything would cost you nothing and earn you $50 — so the Premium card would cost you $95 plus the difference in rewards, which is a real loss.
The card makes sense if you spend at least $7,000 to $8,000 per year and most of that is in travel or dining (where you get 3% back). At that level, the rewards start to outpace the annual fee. If you also hit the $10,000 threshold and get the $100 travel credit, the fee becomes even more worth it. But if you spend less than $5,000 per year, or most of your spending is in categories that only earn 1% or 2%, the fee is not worth paying.
How Bank of America compares to other card issuers
Bank of America is a large, stable bank, and their cards report to all three credit bureaus (Equifax, Experian, and TransUnion), which helps your credit score if you pay on time. They also have no foreign transaction fees on most of their cards, which matters if you travel internationally.
On rewards, Bank of America is middle-of-the-road. The Chase Freedom Flex and Citi Double Cash both pay more cash back in common categories. American Express cards often have higher rewards rates but charge annual fees and are not accepted everywhere. Capital One cards are easier to get approved for if your credit score is lower, but they pay less in rewards. The "best" card depends on where you spend the most money and what your credit score is.
Bank of America is also known for being strict about approvals. If you have a recent late payment (within the last year), a high debt-to-income ratio, or too many recent credit inquiries, Bank of America will likely deny you. If you have good credit and a clean payment history, you have a better chance.
What happens to your credit score when you open a Bank of America card
Opening any credit card causes a hard inquiry on your credit report, which lowers your score by a few points for a few months. Bank of America will also report the new account to the credit bureaus, which lowers your average age of accounts. Over time, if you pay on time, the account helps your score by showing you can manage credit responsibly and by lowering your overall credit utilization (the percentage of your total credit limit you are using).
If you already have several credit cards or recent inquiries, opening another Bank of America card will hurt your score more than if you have few cards and a clean history. If you are planning to explore for a mortgage or car loan in the next few months, opening a new card right now is usually not worth it.
Interest rates and what to do if you carry a balance
Bank of America credit cards have variable interest rates, which means the rate changes based on the prime rate set by the Federal Reserve. The current rate varies by card and by your creditworthiness, but typically ranges from 18% to 28% for most cardholders. Some cards offer an introductory 0% APR period for the first 6 to 12 months if you transfer a balance from another card, but this is not may provide and depends on your credit score.
If you are thinking about opening a Bank of America card because you need to carry a balance, stop and reconsider. Credit cards are expensive ways to borrow money. If you have high-interest debt, paying it down with money from a lower-interest source (a personal loan, a line of credit, or a balance transfer to a 0% APR card) is almost always cheaper. A credit card is a tool for spending money you already have and earning rewards, not for borrowing.
Frequently Asked Questions
Do I need good credit to get a Bank of America credit card?
Bank of America typically approves people with a credit score of 670 or higher, though the exact requirement varies by card. If your score is below 670, you are unlikely to be approved. If you have been denied, you can reapply after 6 months if your score has improved or if you have added a Bank of America bank account.
Can I use Bank of America rewards on anything, or only travel?
Bank of America rewards are cash back, which means you can use them on anything. You can take the cash as a statement credit, transfer it to a Bank of America bank account, or redeem it for travel purchases at a higher value (usually 1.25 cents per point instead of 1 cent). The travel redemption is optional, not required.
What if I miss a payment on a Bank of America credit card?
A missed payment will be reported to the credit bureaus after 30 days and will lower your credit score significantly. Bank of America will also charge you a late fee (usually $25 to $35 for the first late payment, up to $39 for subsequent ones) and may increase your interest rate. If you miss a payment, contact Bank of America when ready to make a payment and ask about hardship options.
Can I get a higher credit limit after I open a Bank of America card?
Yes. Bank of America usually allows you to request a credit limit increase after 6 months of on-time payments. You can request an increase online or by calling customer service. A higher limit lowers your credit utilization ratio, which helps your credit score, but only if you do not increase your spending.
Is the Bank of America card worth it if I already have another rewards card?
Only if the Bank of America card pays more in the categories where you spend the most. If you already have a card that gives 2% cash back on everything, a Bank of America card that gives 1% on most purchases and 2% or 3% in specific categories is not worth carrying two cards. If you spend heavily on groceries or restaurants and your current card does not reward those categories, it might be worth adding a Bank of America card for that specific purpose.