Bank of America® Travel Rewards credit card review
Bank of America® Travel Rewards credit card Overview
The Bank of America® Travel Rewards credit card is ideal for travelers who value versatility, or even occasional travelers that dine in more than fly out. You’ll be able to earn generous flat-rate rewards on all your purchases — not just travel expenses. And because this travel rewards credit card isn’t tied to specific hotel or airline partners, you can book your travel with any provider and receive a statement credit.
Bank of America credit cards also have a looser definition of travel compared to cards from other issuers, allowing you to receive a statement credit for purchases at campgrounds, travel agencies, zoos, art galleries and more. If you’ve shelved your travel plans for the moment though, you can also redeem points for a statement credit toward dining purchases.
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What are the advantages and disadvantages?
A deeper look into the current card offer
- Rewards rate: Unlimited 1.5 points per dollar on all qualifying purchases
- Welcome offer: 25,000 bonus points ($250 value toward travel purchases) if you make $1,000 in purchases within 90 days of opening the account
- Annual fee: None
- Purchase intro APR: 0 percent intro APR for 15 billing cycles for purchases
- Balance transfer intro APR: N/A
- Regular APR: 13.99 percent to 23.99 percent variable
Current welcome offer
Bank of America is currently offering 25,000 bonus points when you spend at least $1,000 in qualifying purchases within 90 days of opening the account. If you redeem these points for a statement credit, they’ll be worth about $250 toward travel. Considering that this card has no annual fee, this is a generous welcome offer.
Compared to other no annual fee cards’ sign-up bonuses, its $250 value is slightly higher than the $200 value you see on average. Keep in mind though that you may be spending double to qualify for that extra $50. Several cards like the Chase Freedom Unlimited® offer a bonus worth $200 after spending only $500 within the first three months. However, you’ll probably spend at least $1,000 in your first 90 days with your Bank of America Travel Rewards card anyway, so the higher spending requirement isn’t a big deal.
This card offers a high rewards rate on everyday purchases and travel booked through Bank of America, but these travel rewards work a bit differently than typical bonus miles. Instead of using rewards to book travel, your Bank of America travel rewards go toward statement credits on travel or dining purchases — meaning this card works more like a specialized cash back credit card. If you’re a Preferred Rewards member, you can earn 25% – 75% more points on every purchase. That means you could earn up to 2.62 points for every $1 spent.
Here’s a quick primer on how to earn and maximize your Bank of America travel rewards:
The Bank of America Travel Rewards credit card allows you to earn unlimited 1.5 points for every dollar you spend on all purchases. You can also earn 3 points per dollar on travel bookings and other purchases through the Bank of America Travel Center (except insurance).
However, the Bank of America Preferred Rewards program gives the Travel Rewards card an edge over similar competing cards if you already have an eligible account with Bank of America. Depending on which status tier your hold, you’ll earn 25 to 75 percent bonus points on every purchase. That means Platinum Honors Preferred Rewards members can earn up to 2.62X points on all purchases.
You can redeem your points for gift cards, cash or a statement credit to cover travel-related purchases. Even better, you can request a credit for your travel-related purchases up to 12 months after you make them. That opens the door to exceptional deals that you might not get with other travel reward programs, such as discount bookings through external travel websites. Just keep in mind that there’s a 2,500-point redemption minimum for travel credits and cash and a 3,125-point minimum for gift cards. You can receive cash back as a check or direct deposit to an eligible checking or savings account with Bank of America or an eligible Merrill Cash Management Account.
Perhaps one of the best aspects of the Bank of America Travel Rewards card’s travel credit redemption is that it covers a wide range of purchase categories that may not usually qualify as travel or dining. For example, you can get statement credits for admission tickets to art galleries and aquariums, purchases at bars and nightclubs or even eligible purchases with real estate agents. Some travel or dining-related expenses like in-flights goods/services and duty-free airport purchases aren’t eligible for statement credits, so here’s a handy list of example categories that you can put travel credits toward:
Bank of America Travel Rewards card categories eligible for travel credits
|Eligible travel-related category examples||Eligible dining-related category examples|
How much are points worth?
If you redeem your points for a travel statement credit, they’re worth one cent each, so 25,000 points equal $250. Cash and gift cards usually give you less bang for your buck. When you redeem for cash, your points are only worth 0.6 cents each (or $150 for every 25,000 points). The value of your points when you redeem gift cards varies by retailer.
Compared to Chase and other issuers with traditional travel reward programs, you may get more bonus category flexibility but you can’t transfer your points to travel partners at a higher value. Bank of America Travel Rewards card points are stuck at a 1 cent maximum value while Chase Ultimate Rewards points can be worth up to 2 cents apiece with the right transfer partner.
The Bank of America Travel Rewards card isn’t a powerhouse for perks like other travel-oriented rewards credit cards. It offers basic features like free access to your credit score, overdraft protection and account alerts, plus there are a few extra benefits outside the Preferred Rewards program that might be helpful during your travels.
If you bank with Bank of America or invest with Merrill Edge, you may be able to join the Preferred Rewards program, which gives you the chance to earn a higher rewards rate on your purchases. Plus, you could receive other benefits like boosted interest rates on savings accounts and reduced interest rates on your home equity and auto loans.
Depending on how much money you keep in your combined Bank of America and Merrill investment accounts, you could earn up to a 75 percent bonus on your credit card rewards. So if you have a combined balance of at least $100,000 and make a purchase that earns 100 points, you could actually get up to 175 points as a Platinum Honors Preferred Rewards member.
Bank of America Preferred Rewards status tiers
- Gold (at least a $20,000 combined balance): 25 percent bonus rewards
- Platinum (at least a $50,000 combined balance): 50 percent bonus rewards
- Platinum Honors (at least a $100,000 combined balance): 75 percent bonus rewards
Bank of America cardholders have exclusive access to BankAmeriDeals, the issuer’s version of card-linked limited-time offer programs like Amex Offers or Chase Offers. You can log into your account and usually earn anywhere from 5 to 15 percent extra cash back (up to a certain limit) at participating restaurants and other merchants after activating the respective offer. BankAmeriDeals won’t rake in big bucks, but the “coins” you get for regularly using the program can help you obtain upgraded deals.
Visa Signature benefits
As a Visa credit card, your Bank of America Travel Rewards card has access to a portfolio of Visa Signature perks that can come in handy on the road. Contact your issuer to see which features your card specifically carries, but you can expect to receive standard benefits like:
- Purchase protection
- Extended warranty coverage
- Visa Signature concierge services
- Roadside Dispatch®
- Lost luggage reimbursement
- Travel and emergency assistance
Museums On Us
If you love planning day trips to popular museums, then this benefit is an underrated gem. Simply presenting your Bank of America debit or credit card and a valid photo ID will get you free admission to 225-plus “cultural institutions” during the first weekend of each month.
Rates and Fees
One of the main benefits of the Bank of America Travel Rewards card is the lack of fees. There is no annual fee and no foreign transaction fees, which is great news if you’re planning to travel abroad. There’s also a 0 percent introductory APR on purchases for 15 billing cycles, which can be helpful when financing a big purchase during the first year. But the regular variable APR is on the high side at 13.99 percent to 23.99 percent, and you may be charged a penalty APR of up to 29.99 percent variable if you miss a payment.
Another thing to consider is that this card isn’t the best choice for balance transfers with Bank of America. The intro APR doesn’t apply to balance transfers, and you’ll be charged $10 or a 3 percent fee, whichever is greater, for each transfer you make.
Bank of America also charges a late fee of up to $40, a returned payment fee up to $29 and a $10 or 3 percent fee on cash advances, whichever is greater.
How the Bank of America Travel Rewards credit card compares to other travel cards
The Bank of America Travel Rewards card is one of the best travel credit cards with no annual fee if you value flexibility, but it doesn’t operate like a traditional travel card with bonus points or miles. Instead, it works like a flat-rate cash back card except your statement credits are restricted to travel and dining-related categories. If you don’t travel frequently and “flexibility” means occasionally redeeming for cash rewards, you’re probably better off with a true flat-rate cash back card like the Citi® Double Cash Card. That way, you’ll be able to earn up to 2 percent unlimited cash back on all purchases — 1 percent at purchase and another 1 percent upon payment.
The Capital One Venture Rewards Credit Card offers more traditional travel card rewards but keeps the streamlined experience. It offers a higher rewards rate of an unlimited 2X miles on all qualifying purchases, up to a $100 credit for TSA Global Entry or TSA Precheck application fees and the chance to earn a bigger welcome bonus. On the flip side, the card charges a $95 annual fee, doesn’t offer an introductory APR and has a much higher regular APR (17.24 percent to 24.49 percent variable) than the Bank of America Travel Rewards credit card.
If you’re on the fence about investing money into a card with an annual fee but you’d benefit from the Bank of America Preferred Rewards program, you might want to look into the Bank of America® Premium Rewards® credit card. It has the same $95 annual fee as the Venture card, but with higher reward rates and much better travel benefits than the standard Bank of America Travel Rewards card.
Although it’s marketed as a cash back card, the Chase Freedom Unlimited actually earns Chase Ultimate Rewards points that can be redeemed for cash back at a 1:1 rate. Considering that it offers unlimited 1.5% cash back on all purchases and a variety of other unlimited cash back categories with even higher reward rates, it’s even more flexible than the Bank of America Travel Rewards card. Plus, it delivers more ongoing value with beefier travel benefits and the opportunity to pair it with a premium Chase card for 25 to 50 percent more redemption value toward Chase travel.
|Card||Annual fee||APR||Rewards||Welcome bonus|
|Bank of America® Premium Rewards® credit card||$95||15.99% to 22.99% variable||
||50,000 bonus points after spending $3,000 in purchases within the first 90 days of account opening.|
|Capital One Venture Rewards Credit Card||$95||17.24% to 24.49% variable||
||60,000 miles once you spend $3,000 on purchases within three months from account opening, equal to $600 in travel|
|Chase Freedom Unlimited®||$0||0% intro APR for 15 months on purchases and balance transfers, then 14.99% to 23.74% variable||
||$200 cash back after spending $500 on purchases within the first three months.|
Best cards to pair with the Bank of America Travel Rewards credit card
Since the Bank of America Travel Rewards card is a flat-rate card, the best cards to pair with it will reward the categories you spend the most in with higher reward rates. Your Travel Rewards card points’ best use is to cover the travel and dining purchases you make with it, so you’ll want a card that covers your specialized spending outside those two categories.
The Blue Cash Preferred® Card from American Express could be one of the best cash back cards for the rest of your everyday spending. It earns 6 percent cash back at U.S. supermarkets (on up to $6,000 per year, then 1 percent) and on select U.S. streaming services, 3 percent back on transit and U.S. gas station purchases plus 1 percent on all other purchases. Granted, there is a $95 annual fee, but it’s $0 introductory annual fee for the first year and the sheer amount of cash back will more than cover the entry cost.
The Bank of America Travel Rewards card doesn’t provide many travel benefits or rewards on some expenses like in-flight purchases, so it may also be worthwhile to look into a brand-specific airline credit card that will fill in those gaps.
Bankrate’s take—Is the Bank of America Travel Rewards credit card worth it?
The Bank of America Travel Rewards card is a good choice for frequent travelers who value flexibility. You’ll be able to book travel with any provider and receive a statement credit after the fact, so you won’t have to deal with blackout dates or travel restrictions. You’ll also be able to use your points to cover a wide range of travel purchases from aquarium tickets to hotel stays.
If you don’t want to pay any annual fees, this card is also a great choice. It offers a generous welcome offer and rewards rate compared to other no annual fee cards.