Bank of America Cash Rewards Credit Card Review

Approximate annual rewards value: $296
Sign-up bonus value: $200
First-year rewards value: $496

The Bank of America Customized Cash Rewards credit card offers 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.

Cardholders choose from these categories to earn 3% cash back:

All nonbonus spending earns just 1% cash back. However, you can earn between 25% and 75% more cash back if you’re a Preferred Rewards client. To qualify for the 25% bonus, you’ll need to have an eligible Bank of America personal checking account and a three-month average combined balance of at least $20,000 between qualifying Bank of America banking accounts and eligible Merrill accounts. The 75% bonus requires combined balances of at least $100,000.

Based on average spending data from the U.S. Bureau of Labor Statistics, Bank of America Customized Cash Rewards credit card holders can earn an estimated $296 each year, assuming they choose dining as their 3% category.

Values for each spending category are based on average data from the 2017 U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey. Each category is rounded to the nearest $100.

As a new cardholder, you will earn a $200 cash bonus after you spend online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening, allowing you to accelerate your earning in the first few months. To take advantage of the incentive, plan your spending accordingly.

You can redeem your Bank of America Customized Cash Rewards credit card rewards for any amount as a statement credit, a deposit made directly to a Bank of America checking or savings account, or a credit to an eligible account with Merrill.

You can also opt for a contribution to a qualifying 529 account with Merrill, or a paper check for a minimum of $25.

If you don’t want to deal with redeeming cash back, you can set up automatic deposits of at least $25 to an eligible Bank of America or Merrill account. One-time redemptions have no minimum transfer amounts when depositing into your Bank of America account.

This rewards program awards customers who maintain a three-month combined average daily balance of $20,000 or more spread between their Bank of America checking or Merrill investment accounts with savings on bank fees in addition to rewards boosters for qualifying credit cards. Customers with an average balance of $20,000, $50,000 or $100,000 receive credit card rewards bonuses of 25%, 50% or 75%, respectively. The Bank of America Customized Cash Rewards credit card is eligible for this program.

The Bank of America Customized Cash Rewards credit card offers an introductory 0% APR for 15 billing cycles on purchases and any balance transfers made in the first 60 days. After the promotional period, the card has a 13.99% – 23.99% Variable APR on purchases and balance transfers, which is more than average, according to U.S. News research.

The Bank of America Customized Cash Rewards credit card doesn’t charge an annual fee, so you can easily maximize the value you get from the card’s rewards program – as long as you don’t carry a balance subject to interest. Depending on your spending habits, however, you may be able to get a bigger sign-up bonus and more rewards and perks with a card that has an annual fee.

Other costs to consider include a balance transfer fee of 3% of the transfer amount or $10, whichever is greater, and a 3% foreign transaction fee.

Q: How does the Bank of America Customized Cash Rewards credit card work?
A: The Bank of America Customized Cash Rewards credit card earns 3% in a cash back category of your choice, 2% cash back at grocery stores and wholesale clubs on up to $2,500 in combined purchases each quarter, and 1% cash back on all other purchases. You’ll earn a $200 cash bonus if you spend $1,000 within the first 90 days of opening an account. The card charges no annual fee.

Q: What is the Bank of America Customized Cash Rewards credit card credit score qualification?
A: The Bank of America Customized Cash Rewards credit card requires good or excellent credit, so you’ll need at least a 670 FICO credit score to be approved.

Q: How does a cash rewards credit card work?
A: The Bank of America Customized Cash Rewards credit card allows you to redeem your rewards as a statement credit or a deposit made to a qualifying account.