Bank of America Cash Rewards: Discover the Cards, Benefits, and How to Apply

The Bank of America Cash Rewards card is a popular option for those seeking simple and valuable rewards.

Now, what makes the Bank of America Cash Rewards different from other cards? Who is it for? What do you need to apply for the card?

In this article, we will help you understand all these points about the Bank of America Cash Rewards card. We will analyze its features, discuss its pros and cons, and help you determine if its model is flexible and rewarding.

Analysis of Bank of America cashback cards

1. Customized Cash Rewards (Bank of America Cash Rewards)

The Bank of America Customized Cash Rewards is the primary card in the program.

It is ideal for those looking to control spending and maximize returns where they need it most. Its mechanism is simple:

• Earn 3% cash back in a category you choose;
• 2% at grocery stores and wholesale clubs;
• 1% on all other purchases.

The 3% category is the highlight. Choose from six options:

1. Gas/electric vehicles;
2. Online shopping;
3. Dining;
4. Travel;
5. Drug stores/pharmacies;
6. Home improvement/furnishings.

By the way, you can change this category once a month through the app.

For example, if you’re traveling next month, switch to Travel to ensure the bonus.

For new customers, the bank offers a first-year bonus: the 3% rate in the chosen category becomes 6%.

2. Unlimited Cash Rewards

If you prefer simplicity, the Bank of America Unlimited Cash Rewards is ideal.

You don’t need to manage categories. With this card, you earn a flat rate of 1.5% on all purchases, with no earning limits.

For new customers, the rate goes up to 2% on all purchases in the first year.

The 1.5% return is superior to the 1% of the Customized Cash Rewards card for general spending, making it a great alternative if you don’t want to worry about caps or categories.

Other Bank of America cards for everyday use

The Cash Rewards program adapts to various phases of your financial life. Therefore, Bank of America offers versions for different audiences, each with its peculiarities:

1. For Students (Bank of America Cash Rewards)

The bank offers the Customized Cash Rewards for Students and the Unlimited Cash Rewards for Students.

They maintain the same reward structure as the consumer cards, but with more accessible eligibility requirements for university students.

2. Businesses

If you have a small business, the Business Advantage Customized Cash Rewards is an option.

Using it, you can choose a 3% category and it offers 2% on dining, with an annual spending cap of US$50,000 (much higher than the quarterly limit).

3. For Building Credit (Secured Cards)

For those looking to build or rebuild their financial history, the Secured versions are ideal.

The Bank of America Customized Cash Rewards Secured Credit Card and the Bank of America Unlimited Cash Rewards Secured Credit Card require a security deposit that defines the credit limit.

Take advantage of Preferred Rewards and earn more points

The Preferred Rewards program is a differentiator of Bank of America, rewarding the loyalty of customers with other financial assets at the institution.

To be eligible, you must have an active checking account and maintain a combined minimum balance of US$20,000 in deposit accounts (checking, savings, etc.) and/or Merrill investments.

The program has four tiers, each with a growing bonus on your card rewards:

• Gold: Balance of US$20,000 to US$49,999. 25% bonus.
• Platinum: Balance of US$50,000 to US$99,999. 50% bonus.
• Platinum Honors: Balance of US$100,000 to US$999,999. 75% bonus.
• Diamond Honors: Balance above US$1,000,000. 75% bonus.

The bonus is applied directly to your earnings.

For example, at the Platinum Honors level, the 1.5% rate of the Unlimited Cash Rewards becomes 2.62%. The 3% rate of the Customized Cash Rewards becomes 5.25%.

This is a great way to further maximize the card’s benefits.

Requirements and How to Apply for a Bank of America card

For most cards, such as Customized or Unlimited, Bank of America recommends an Excellent credit score (750 or higher) for approval.

The Secured versions are for those with a Poor score (starting from 300).

To apply, you will need to provide basic information such as full name, address, phone number, email, date of birth, employment status, annual income, and your housing payment amount.

It is mandatory to have a Social Security Number (SSN) or, in some cases, an Individual Taxpayer Identification Number (ITIN).

The application can be made in three ways:

• Online: This is the most common and fastest way. Simply access the bank’s credit card page and click “Apply Now”.
• By Phone: Existing customers can apply for a new card by phone.
• At a Branch: For those who prefer in-person service, the application can be made at a branch. This method is mandatory if you use an ITIN instead of an SSN.

Response time varies. Approval can be instant, take up to two business days, or, in rare cases, up to 30 days. Once approved, the physical card arrives in 7 to 10 business days.

Frequently Asked Questions (FAQs)

1. What are the redemption options and is there a minimum value? (Bank of America Cash Rewards)

You can redeem your earnings in four ways:

1. Statement credit;
2. Direct deposit;
3. Check by mail;
4. Automatic redemption.

Manual redemption can be done at any time, with no minimum value. For automatic redemption and check requests, a minimum balance of US$25 is required.

2. How do I change my 3% category? 

You can change your 3% spending category once a month.

The change is easily made through the Bank of America website or app.

If there is no change, the previous month’s category remains active.

3. Do rewards expire?  (Bank of America Cash Rewards)

No. Cash rewards do not expire, as long as your account is open and in good standing. It is important to use the card to gain more and more advantages when using the card.

Conclusion

Ultimately, the best choice among the Bank of America Cash Rewards depends on your profile and your goal.

If you are a strategic spender who loves to plan, the Customized Cash Rewards is your go-to. If you prefer simplicity, the Unlimited Cash Rewards is perfect.

But, honestly, the differentiator is not just in the cards themselves, but in how they integrate into the Bank of America ecosystem.

Remember to use the Preferred Rewards program. This way, the already interesting benefits become even more so.

Although these cards are good, it is always valid to compare them with others to make an assertive choice. Therefore, we recommend you check out the Discover it Cash Back Card.