BankAmericard® vs. Bank of America® Cash Rewards

July 5, 2016, Written By Jason Steele
BankAmericard® vs. Bank of America® Cash Rewards

Bank of America is one of the largest retail banks in the United States and a major issuer of credit cards. Like other card issuers, it offers a wide range of products including those that feature cash rewards, travel rewards, and others with competitive interest rates.

Two of its most popular cards are the BankAmericard® Credit Card with its promotional balance transfer offer, and the Bank of America® Cash Rewards Credit Card which features cash back on all purchases. Let’s take a look at these two cards and see which one is right for you.

BankAmericard® Credit Card

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The BankAmericard® Credit Card is one of the better low interest credit cards on the market today. Consumers can get an interest rate ranging from 15.24% - 25.24% Variable APR on purchases, depending on your credit worthiness. The card offers new cardholders 18 billing cycles of 0% APR promotional financing on purchases as well as balance transfers that are completed within 60 days of opening your account. But there will be a 3% balance transfer fee. When the promotional rate expires, the remaining unpaid balance will be subject to the standard APR of 15.24% - 25.24% Variable APR on purchases. The card has no annual fee. The card does not have a rewards program, and there is a 3% foreign transaction fee on all charges processed outside of the United States. The card does not have a penalty APR, so paying late won’t automatically raise your interest rate. Cardholders can access their FICO® Score for free within Online Banking or Mobile Banking app.

Cardholder benefits include online banking, account alerts, and optional overdraft protection that helps prevent declined purchases, returned checks or other overdrafts when you link an eligible Bank of America checking account to your credit card, although transfer fees may apply.

Bank of America® Cash Rewards Credit Card

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The Bank of America® Cash Rewards Credit Card is an outstanding cash back card. It offers 1% cash back on all purchases, but 2% on transactions made at grocery stores and at wholesale clubs, and 3% on a category of your choice: gas, online shopping, dining, travel, home improvement/furnishings or drug stores. These increased payouts are applicable on up to $2,500 in combined choice category/grocery store/wholesale club purchases each quarter. Cardholders can update their choice category for future purchases once each calendar month using the Mobile banking app or Online banking, or do nothing and the category stays the same. If you’re a Bank of America Preferred Rewards client, you can receive a 25% – 75% rewards bonus on every purchase. New customers can earn a $200 online cash rewards bonus after spending $1,000 in the first 90 days of opening an account. In addition, new applicants will get 12 billing cycles of 0% APR on both new purchases and balance transfers. The balance transfers must be completed within 60 days of account opening, and a 3% balance transfer fee applies. The card has an APR ranging from 16.24% - 26.24% Variable APR on purchases, depending on your credit worthiness. The card has no annual fee but there is a 3% foreign transaction fee on transactions made outside of the United States.

Which card is right for you?

Approximately half of all American credit card users will regularly carry a balance throughout the year on at least one of their cards. These cardholders should be focused on minimizing their interest costs by finding a card with the lowest possible interest rate, and possibly a promotional financing offer. The BankAmericard® Credit Card is an ideal card for these users as it features a strong 18 billing cycles of promotional financing on balance transfers, and a low standard interest rate.

On the other hand, those who are always able to avoid interest charges by paying each month’s statement balance in full and on-time could earn generous cash rewards from using the Bank of America® Cash Rewards Credit Card , while still receiving 12 billing cycles of interest-free financing on both new purchases and balance transfers. In addition, the sign-up bonus of $200 is also a strong incentive to consider this card. And Bank of America® Cash Rewards 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.

Ultimately, your choice comes down to how you will be using the card. If you use your credit card as a method of financing purchases, you will likely want the BankAmericard® credit card. But if your credit card is simply a method of payment, you should be earning rewards with a card like the Bank of America® Cash Rewards Credit Card.



The information contained within this article was accurate as of July 5, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Jason Steele

jasonsteele
Jason Steele is a freelance journalist and an expert on the credit card industry. He contributes to several of the top personal finance sites, and his work is syndicated to mainstream outlets such as MSN Money, Yahoo! Finance, and Business Insider.
View all posts by Jason Steele