Those who frequently travel and want to earn travel rewards without paying a high annual fee might benefit from the Bank of America® Premium Rewards® credit card. This card has a $95 annual fee and everything you would expect from a midrange travel card, including a generous welcome bonus, helpful earning categories, and popular travel benefits.
The Bank of America Premium Rewards Card offers the opportunity to earn rewards points that can be redeemed for travel, merchandise, or cash back. However, this card has some drawbacks that should be considered before signing up. Let’s take a look at the benefits and drawbacks of the Bank of America Premium Rewards Card to see whether it is right for you.
Does a Bank of America Premium Rewards credit card make sense for you?
The Bank of America Premium Rewards credit card is an excellent choice for individuals who wish to earn travel rewards and enjoy travel benefits. Considering the $95 annual fee, this card falls into the mid-range travel credit cards category, competing against Chase, American Express, Capital One, and Citibank cards.
The Preferred Rewards program is a great way to earn bonus rewards with your credit card. With this program, you could earn up to 75% more points than the card’s existing earning potential. This makes it a valuable benefit that few other cards can offer.
Bank of America’s Premium Rewards program offers benefits that help it compete with other credit cards. These benefits include TSA PreCheck or Global Entry fee reimbursement and $100 in annual airline incidental credits that can be used for checked bags or airport lounge access.
Your rewards cannot be transferred to travel partners, which limits your redemption options. Due to the lack of an intro APR offer, this card would not be a good choice for balance transfers as it typically requires good or excellent credit.
Bank of America Premium Rewards credit card pros
- Get 50,000 online bonus points (worth $500) after making at least $3,000 purchases within 90 days of account opening.
- Get 2X points on travel and dining and 1.5X points on everything else.
- Your rewards can be redeemed for statement credits, deposits into eligible Bank of America bank accounts, credit to an eligible Merrill Lynch investment account, or gift cards and travel purchases (such as airfare) through the Bank of America Travel Center.
- Cardholders receive an annual credit of up to $100 for qualifying airline incidental purchases, such as seat upgrades, baggage fees, etc.
- You receive $100 in TSA PreCheck or Global Entry application fee credits every four years.
- As a member of Bank of America Preferred Rewards, you can receive rewards bonuses ranging from 25% to 75%.To be eligible for this program, you must have a combined balance of $20,000 over three months in eligible Bank of America and Merrill accounts (including 529 accounts).
Cons
- This card has an annual fee of $95, which immediately reduces its value. This fee may, however, be more than offset in certain situations by the card’s earning potential and benefits.
- There are plenty of great travel rewards credit cards out there that let you rack up points or miles, which can be transferred to airline or hotel loyalty programs. However, this particular card doesn’t offer that option, which could be a real downside for some travelers.
- To qualify for the Preferred Rewards program and earn bonus rewards on your purchases, you must have a combined balance of at least $20,000. To qualify for the 75% rewards boost, you must have a combined balance of at least $100,000 in the Platinum Honors tier. The benefits offered by these programs will not be available to everyone so other options may be more appealing to some.
Earning Tips
Regarding credit cards, rewards cards typically offer different earning rates in various bonus categories. For example, the Bank of America Premium Rewards Card allows cardholders to earn 2X points on travel and dining purchases and 1.5X points on all other purchases. To make the most of your earning potential, it’s advisable to use your card as often as possible on planned purchases – especially those in the travel and dining categories.
You can improve your earning potential even further by joining Preferred Rewards. You can increase your rewards by 25% to 75% on every purchase, rapidly adding to your points total. A combined account balance of at least $20,000 between Bank of America and Merrill Lynch is required to qualify for this program.
Increase Your Redemptions
With the Bank of America Premium Rewards credit card, points don’t typically vary in value. No matter what redemption option, 5,000 points equal $50 in rewards.
You can redeem your points in the following ways:
- Statement credits
- Deposits into a Bank of America checking or savings account
- Credit to a qualifying cash management account or 529 accounts with Merrill
- A gift card or travel purchases through the Bank of America Travel Center
FAQs
What is the annual fee for the Bank of America Premium Rewards Card?
Bank of America Premium Rewards Card has an annual fee of $95. Points can be earned on travel and dining expenses at a rate of 2X and on all other purchases at a rate of 1.5X. Additionally, you can earn Preferred bonus rewards if you qualify for Bank of America’s Preferred Rewards program.
What credit score do you need for the Bank of America Premium Rewards credit card?
Most people need a good credit score to qualify for the Bank of America Premium Rewards credit card. A FICO score of 670 or above is usually enough to be approved, though a score of 800 or above is ideal.
What is the Bank of America Premium Rewards Card interest rate?
There’s no need to worry about interest rates with the Bank of America Premium Rewards card – you’ll always get a great rate, starting at 19.74% and going up to 26.74% (variable).
