BankAmericard Cash Rewards™ vs. Capital One® Quicksilver®
When looking for a cash rewards credit card, it can be quite a challenge to find the right balance between earning a high rate of return on most purchases, and a larger bonus for certain purchases. A card that offers higher rates of return for certain types of purchases will typically have a lower rate of cash back for all others, compared to card that has no bonus categories.
To choose the best card for their individual needs, applicants must try to estimate how much they will spend on the featured bonus categories, and calculate whether these rewards will outweigh a slightly lower rate of return for other purchases. The BankAmericard Cash Rewards™ card and the Capital One Quicksilver card are great examples of these two competing methods of earning cash back.
Let’s take a look at how these cards work, and then see which one is right for you:
The BankAmericard Cash Rewards™ Credit Card offers 2% cash back from purchases at grocery stores and wholesale clubs, and 3% cash back on gas, on up to the first $2,500 spent in combined grocery/wholesale club/gas purchases each quarter. 1% cash back is offered for all other purchases. In addition, Bank of America customers receive a 10% relationship bonus on cash back earned if they redeem the cash back rewards into a Bank of America checking or savings account.
New cardholders also receive a $100 sign-up bonus after making at least $500 in purchases within the first 90 days of account opening. In addition, new applicants receive 12 billing cycles of 0% APR promotional financing on both new purchases and balance transfers. Qualifying balance transfers must be completed within 60 days of account opening, with a 3% balance transfer fee applies. Once the promotional interest rate expires, the standard rate of 13.24% to 23.24%, based on your creditworthiness at the time of your application. The rate you receive will be a variable rate, and can change based on the movement of the Prime Rate.
This card also includes numerous benefits such as online banking, account alerts, and Digital Wallet technology that allows you to use your mobile device, and then shop in-store or in-app using Apple Pay™, Android Pay® or Samsung® Pay. Cardholders can also enable optional overdraft protection to help prevent declined purchases, returned checks or other overdrafts, by linking your eligible Bank of America checking account to your credit card, although transfer fees may apply. Bank of America offers cardholders their monthly FICO credit score when they enroll in online banking. This card has no annual fee, but there is a 3% foreign transaction fee imposed on all charges processed outside of the United States.
The Capital One Quicksilver card offers customers the same rewards on all purchases with no limits, 1.5% cash back. Rewards never expire, and you can redeem your rewards in any amount and at any time. New applicants also receive a $100 cash bonus when they use their card to spend $500 on new purchases within the first three months of account opening.
This card also offers new applicants nine months of 0% APR promotional financing on both new purchases and balance transfers, with a 3% balance transfer fee. After the promotional financing period expires, the standard interest rate of 13.24%-23.24% for purchases will apply, and the rate you receive will be based on your creditworthiness when you applied.
This card also offers several valuable benefits including a complimentary concierge service that is available by phone 24 hours a day, and includes special access and preferred seating at popular sporting events, premier golf outings, and concerts. Cardholders also enjoy extended warranty coverage that adds a year to the manufacturer’s warranty of eligible items. As a Visa Signature card, it also offers shopping discounts, travel savings and access to special events.
Finally, Capital One just announced that it is partnering with Uber to launch its new loyalty program. Quicksilver cardholders will automatically receive their 10th Uber ride free (up to $15) when they pay with the card, through March of 2017. There is no annual fee for this card, and no foreign transaction fees.
Which card is right for you?
Depending on your purchase patterns, the BankAmericard Cash Rewards™ card may be a stronger offer, especially considering the recent addition of wholesale clubs to the 2% cash back category as well as the recent acceptance of Visa cards at Costco stores. For many Americans the combined categories of grocery stores wholesale clubs, and gas purchases will make up a large portion of their monthly budget. Unfortunately, the bonus cash back for this card is limited to the first $2,500 spent each quarter.
But with the Capital One Quicksilver, most cardholders are likely to do just as well earning 1.5% cash back on all purchases with no limits. Other advantages of the Capital One Quicksilver card include having no foreign transaction fees and the ability to earn free rides though Uber’s new loyalty program.
Having an account with Bank of America can tip the scales in favor of their cash rewards card, as they will earn a 10% relationship bonus if they redeem the cash back rewards into a Bank of America checking or savings account, while fans of Capital One’s “No Hassle” philosophy might prefer the Quicksilver card. Either way, both of these cards represent different paths to the same goal, earning as much cash back as possible from your purchases.