Bank of America® Premium Rewards® credit card

Robin Saks Frankel  in  Rewards Advertising Disclosure
Bank of America Image

Recommended Credit Score

Good to Excellent (670 - 850)

A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Apply Now On Bank of America's secure website

Best for a large sign-up bonus

Annual Fee:
$95
Purchase Intro APR:
N/A
Balance Transfer Intro APR:
N/A
Regular APR:
18.24% - 25.24% Variable APR on purchases and balance transfers
Terms and Restrictions Apply
Bankrate Score: 92 out of 100

Commonly used for: Excellent Credit, No Foreign Transaction Fees, Rewards, Sign-up Bonus, Travel.

Bank of America’s newest credit card gives top-notch rewards to cardholders who show some loyalty to the bank. In a nutshell, the more money you have deposited with Bank of America, the greater your earnings potential with the Bank of America Premium Rewards credit card. For Preferred Rewards clients, this card is a no-brainer.

Review

On the surface, the goodies offered by the Bank of America Premium Rewards credit card are similar to other mid-level cards. Premium Rewards offers enhanced travel benefits and no foreign transaction fees. But customers enrolled in the bank’s Preferred Rewards program will receive enhanced credit card reward benefits in one of three tier levels based on the combined sum held in their Bank of America accounts.

How the rewards tiers work

Deposit balance Rewards rate Rewards value
No deposit account 2x points on dining and travel 1.5x points all else $5,000 spend on dining and travel = $100 in rewards
3-month average combined daily balance of $20,000 to $50,000 Earn an additional 25% rewards bonus $5,000 spend on dining and travel = $125 in rewards
3-month average combined daily balance of $50,000 to $100,000 Earn an additional 50% rewards bonus $5,000 spend on dining and travel = $150 in rewards
3-month average combined daily balance of $100,000+ Earn an additional 75% rewards bonus $5,000 spend on dining and travel = $175 in rewards

Those at the highest tier though will get a best-in-class rewards rate on all their spending.
If you only qualify for the lowest rewards rate of 2x points on dining and travel and 1.5x points on all other spending, you’re probably going to do better with a card offering different cash-back rewards opportunities.

There’s a nice sign-up bonus of 50,000 bonus points, worth $500, if you spend $3,000 on the card within the first 90 days of opening the account. The card also offers an annual $100 airline incidental credit and a $100 application fee reimbursement every four years for a Global Entry fee application or TSA Precheck.

Who should get this card

If you’re already doing your banking with Bank of America or you have a qualifying Merrill Lynch or Edge account, the rewards benefits potential of this card could be amazing — especially if you qualify for the highest tier.

Advantages
  • If you qualify for one of the higher rewards rates, it's one of the best in the field.
  • There’s no cap on rewards and they never expire.
  • There’s multiple redemption options, all worth the same.
  • The annual fee of $95 is low given there’s an annual airline incidental credit worth up to $200.
  • Redeem rewards for a statement credit, deposit into an eligible Bank of America or Merrill Lynch savings, checking or 529 account, for gift cards or use at the Bank of America Travel Center.
Disadvantages
  • There’s no introductory APR offer.
  • The highest rewards rates go to those who have the most money in a qualifying account, a feat that may not be attainable for some.
  • There’s no airport lounge access.

Fees and APR

  • Annual fee is $95.
  • Balance transfer fee is $10 or 3% of the amount transferred, whichever is greater.
  • Pay no foreign transaction fee for purchases made outside the U.S.
  • This card comes with a variable APR of 18.24% – 25.24%.

Cardholders get Visa Signature perks including travel and auto insurance and protections, as well as benefits and discounts at hotels that are part of the Signature Luxury Hotel Collection.

You can redeem your points, starting at 2,500 points, through the Bank of America website or over the phone. Points can be redeemed for booking travel, buying gift cards, as a statement credit or deposited into your qualifying Bank of America or Merrill Lynch account.

How this card compares

Chase Freedom Unlimited®
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 17.24-25.99%. Balance transfer fee is 3% of the amount transferred, $5 minimum
  • Unlimited 1.5% cash back on every purchase - it's automatic
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • No minimum to redeem for cash back
  • Cash Back rewards do not expire as long as your account is open
  • Free credit score, updated weekly with Credit Journey℠
  • No annual fee
Apply Now On Chase's secure website
Credit Needed

Excellent/Good

Regular APR

17.24% - 25.99% Variable

Annual Fee

$0

Purchase Intro APR

0% Intro APR on Purchases for 15 months

Balance Transfers Intro APR

0% Intro APR on Balance Transfers for 15 months

The Chase Freedom Unlimited is a solid, straightforward cash-back rewards card that’s ideal for cardholders who just don’t have the time or energy to track spending categories. It ranks among the very best cash-back credit cards we track.

There are other cards that offer better rewards, but the Freedom Unlimited’s 1.5% cash back on everything is an excellent reward coming from a no-annual-fee credit card.

Alliant Cashback Visa® Signature Credit Card
  • Earn 3% cash back in year one & 2.5% cash back after.
Credit Needed

Excellent

Regular APR

10.74% to 23.74% based on your creditworthiness. This APR will vary with the market based on the Prime Rate.

Annual Fee

$59, waived for the first year

Balance Transfers Intro APR

The Alliant Cashback Visa Signature Credit Card pays 3% back during the first year of card ownership, then 2.5% thereafter. You have to be a credit union member to be eligible for the card.