It’s important to have a firm understanding of what you want from your credit card. The type of card that works best for you depends on your goals and financial situation. Bank of America cardholders might include cash back strategists looking to maximize their spending, frequent travelers who can enjoy perks like statement credits for baggage fees or airport screenings and debt managers who can take advantage of intro APRs for balance transfers to help consolidate debt on other cards.
And if you're a Preferred Rewards member, you can enjoy boosted rates on your Bank of America card. Preferred Rewards members hold checking and/or savings accounts with Bank of America, and their combined balance meets minimums to achieve Gold, Platinum, Platinum Honors or Diamond Tier status. If you reach the highest tier, the rewards rate on your card could be worth 75 percent more.
To help decide which card might fit your aims, here are a few questions to ask yourself:
What are your financial goals and personal spending habits?
There is no one-size-fits-all credit card. Determining which card will offer you the most value comes down to your goals and spending habits. If travel is an important part of your life and you want to earn rewards, one of Bank of America’s travel rewards cards might be a good fit for you. If you’re interested in managing high-interest debt, look for the best offer for doing a balance transfer with Bank of America.
It’s also important to understand your spending habits, because certain cards might offer bonus rewards for certain expenses. Knowing which categories you spend the most in each month will help you choose a card that will earn the most rewards.
What are the perks and benefits?
A good credit card should offer benefits that are easy to use and a rewards system that works best for you. For instance, frequent travelers will find the most value with a travel-focused rewards card that offers perks such as travel statement credits, lounge access and trip insurance. Everyday shoppers might like the simplicity of a flat-rate cash back card, and some might prefer the flexibility of rewards and cash back cards that have rotating or custom categories.
Can I qualify for the sign-up bonuses?
Many cards offer a sign-up bonus after you hit certain spending requirements. Just because a card has a large sign-up bonus, however, does not mean that it’s automatically a better card for you.
When looking at sign-up bonuses, it’s also important to note whether you can realistically hit the minimum spending requirement. If you have a smaller budget, a card with a smaller sign-up bonus might be easier to qualify for.
Bank of America cards typically have sign-up bonuses that require the cardholder to spend moderately. They aren’t the most easily-obtained sign-up bonuses, but they also don’t require you to spend the most. You should opt for a card with a sign-up bonus you can definitely obtain — as long as its rewards rates and categories match your regular spending habits.
Are you going to carry a balance?
If you ever plan on carrying a balance on your credit card, APR (annual percentage rate) is extremely important because it determines how much interest you pay. Variable APRs differ from card to card but usually fall between 17 and 30 percent based on creditworthiness. Some cards also offer an introductory APR period when you first sign up for the card, which can help you pay off large expenses with a temporary break from paying interest.