Credit Card News
Bank of America Introducing Limited-Time Enhanced Rewards
Two Bank of America credit cards will soon offer limited-time increased rewards to new cardholders.
About the Cashback Boosts on BofA Cards:
Starting June 1st, Bank of America will bring increased cashback rewards to new cardholders during their first year. This offer will impact two cards: the Customized Cash Rewards credit card and the Unlimited Cash Rewards credit card.
Starting with the Customized Cash Rewards card, customers will be able to earn 6% cashback in the category of their choice during their first cardholder year. This is up from the typical 3%, which they’ll earn after this promotional period. In addition to that, the card earns 2% back at grocery stores, 2% back at wholesale clubs, and 1% back on all other purchases.
Note that this 6% offer is limited to select spending categories. However, customers have the option to switch their selection up to once per month. The 6% and 2% earnings are also capped at a total of $2,500 in combined category spending per quarter.
Eligible categories include:
- Gas & EV charging stations
- Online shopping (including cable, internet, phone plans and streaming)
- Dining
- Travel
- Drug stores
- Home improvement and furnishings
As for the Unlimited Cash Rewards Card, for the first year, new customers will earn 2% cashback on all purchases. After that, they’ll earn the regular 1.5% cashback rate. Unlike with the Customized Cash Rewards card (and true to its name), the 2% and 1.5% cashback rates with this card are unlimited.
These boosted rewards come in addition to a more traditional welcome bonus for each card. New Customized Cash Rewards card or Unlimited Cash Rewards card customers can earn $200 in bonus cash back after spending at least $1,000 in purchases on their card within their first 90 days of account opening.
My Thoughts:
This is a pretty intriguing offer from Bank of America, but it does have some drawbacks. In particular, since the Customized Cash Rewards card combines the 6% and 2% categories in its rewards cap, those who are looking to make the most of this offer should steer clear of using the card for grocery or warehouse club purchases in a bid to maximize the 6% earnings instead. Meanwhile, rather than get the Unlimited Cash Rewards for one year of 2% back, it’s probably better to go for a card like the Wells Fargo Active Cash card or Citi Double Cash card that offers 2% back all the time.
One aspect I’m very curious about involves Bank of America Preferred Rewards. With this program, BofA customers with larger balances can earn increased credit card rewards. Thus, I’d love to know whether or not these customers will be excluded from this offer. After all, the ability to earn 10.5% back on up to $2,500 in purchases per quarter is pretty huge (even if it is just for a simple spending category). If you’re an upper-tier Bank of America Preferred Rewards customer or could become one, that’s something worth keeping an eye on. Otherwise, you’ll want to weigh the pros and cons — including the short and long-term value — of these Bank of America card offers.
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