For more than 20 years, I have carried the Bank of America® Customized Cash Rewards credit card in my wallet. It remains my go-to credit card because of the flexibility of the cash rewards associated with it.
Here is what I love about the Bank of America® Customized Cash Rewards credit card as well as some minor drawbacks to consider before you apply.
[Read: Best Credit Cards]
Why I Love My Customized Cash Rewards Card
I’ve always been a careful spender and have never carried a balance on my credit cards. Instead, I use them strictly for the convenience and security they offer and to collect rewards.
I also prefer cash back rewards because they give me the flexibility to use the cash to find other deals.
The Bank of America® Customized Cash Rewards credit card allows me to get 3% back on most online purchases that I make. Through that spending category, I also get 3% back on cable, streaming, internet and phone plan purchases. In addition, I earn 2% cash back on grocery and warehouse purchases, and 1% cash back on everything else. (Take note that the bonus rewards categories drop to 1% back after you hit the $2,500 quarterly maximum.)
[Read: Cash Back Credit Cards]
More Reasons to Love the Customized Cash Rewards Card
The Customized Cash Rewards card offers flexibility in how you earn rewards. I have set up my card so my 3% cash rewards are tied to online purchases, but BofA allows you to choose from these other categories for your 3% reward:
— Gas and EV charging stations
— Dining
— Travel
— Drugstores/pharmacies
— Home improvement/furnishings
You have the option of changing your category each month. So, you can plan big purchases in a way that allows you to swap categories right before you shop, then change your category back the following month.
Those who sign up for the Customized Cash Rewards card can enjoy an additional 3% cash back in their favorite category for the first year they own the card. That brings their cash back rewards up to 6% in their favorite category for 12 months.
You can earn even higher cash back rewards if you qualify for BofA’s recently revamped Preferred Rewards program. To be eligible for the biggest bonus, you must have high combined balances at Bank of America or Merrill.
[Read: Rewards Credit Cards]
Here are the balances you need to earn bigger rewards:
— Member: Combined balance of less than $30,000 gets you a 10% rewards bonus.
— Preferred Plus: Combined balance of $30,000 to $99,999 gets you a 25% rewards bonus.
— Preferred Honors: Combined balance of $100,000 to $999,999 gets you a 50% rewards bonus.
— Premier: Combined balance of $1 million and above gets you a 75% rewards bonus.
The Bank of America® Customized Cash Rewards credit card has no annual fee.
Why You Might Want to Pass
The Customized Cash Rewards card has a few minor drawbacks. For starters, rewards are limited in the top two tiers — 3% and 2% cash back — to $2,500 in combined purchases for each quarter. After that, all purchases earn 1% cash back. If you spend more than that in the bonus categories, you might want to pair this card with a high flat-rate cash back card.
In addition, the card has a 17.49% to 27.49% variable APR on purchases. That means those who carry a balance on the card from month to month could quickly see interest costs wipe out the benefit of any cash back they earn.
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I Write About Credit Cards Every Day. Why I Love My Bank of America® Customized Cash Rewards Credit Card originally appeared on usnews.com
