Bank of America credit cards work well if you want rewards on everyday spending, but whether one is right for you depends on your credit history, how you plan to use it, and what you're trying to accomplish

Bank of America offers several credit cards aimed at different situations — some for people building credit, some for people with good credit who want cash back, and some for people who travel frequently. None of them are universally "good" or "bad." A card that works perfectly for someone who pays off their balance every month might cost someone else hundreds of dollars in interest. The real question is whether a Bank of America card matches your specific situation.

The most common Bank of America cards are the Cash Rewards card (which gives you cash back on purchases), the Travel Rewards card (which gives you points toward flights and hotels), and the Secured Credit Card (which is designed for people with no credit history or a damaged one). Each one has different fees, different rewards rates, and different credit requirements.

Key Takeaways

  • Bank of America credit cards come in different versions for different credit situations — some require good credit, others are built for people starting from scratch.
  • Most Bank of America cards charge an annual fee ranging from $0 to $95, so compare what you get back in rewards against what you pay to carry the card.
  • If you carry a balance month to month instead of paying it off, interest charges will likely outweigh any rewards you earn.
  • Bank of America customers who use online banking and mobile apps can sometimes earn bonus rewards, so check whether you already bank there.

How Bank of America rewards work and what they cost

Bank of America's main rewards cards give you cash back or points on purchases. The Cash Rewards card typically gives you 1% cash back on most purchases and higher rates (usually 2% or 3%) in categories like gas, groceries, or online shopping — the exact categories and rates change, so check the current offer. The Travel Rewards card gives you points on all purchases that you can redeem for flights, hotels, or other travel expenses.

The catch is the annual fee. Some Bank of America cards have no annual fee, but others charge $95 per year. If a card charges $95 annually and you earn $80 in rewards, you've actually lost $15. This matters most if you don't spend much on the card or if you're not in the categories where the rewards rate is highest.

Bank of America also offers a bonus when you first open the card — usually cash back or points if you spend a certain amount in the first few months. This bonus can be substantial (sometimes $200 or more), but you only get it once, and only if you meet the spending requirement.

When a Bank of America card makes sense

A Bank of America credit card works well if you have good credit (usually a credit score of 670 or higher), you pay off your full balance every month, and you spend enough to earn back more in rewards than you pay in annual fees. If you already bank with Bank of America and use their online platform, some cards offer bonus rewards for linking your accounts, which can tip the math in your favor.

A Bank of America card also makes sense if you're trying to build credit from scratch. The Secured Credit Card requires a cash deposit (usually $500 to $2,500) that becomes your credit limit, and it's designed specifically for people with no credit history or a history of missed payments. After you've used it responsibly for several months, you may be able to move to an unsecured card.

Travel rewards cards from Bank of America work best if you actually take trips and can use the points before they expire. If you book one flight every three years, the points might sit unused while you pay the annual fee.

When a Bank of America card might not be the right choice

If you carry a balance from month to month, interest charges will almost certainly cost more than any rewards you earn. Bank of America credit cards typically charge interest rates between 16% and 24% annually on unpaid balances. If you owe $1,000 and pay 20% interest, you're paying $200 per year in interest — far more than the $50 or $100 you might earn in rewards.

If your credit score is below 670, you won't be approved for most Bank of America cards. The Secured Credit Card is an option in this case, but it requires a deposit and has a higher interest rate than their other cards.

If you don't spend much money on credit cards, the rewards won't add up to much. Someone who spends $200 per month on a card earning 1% cash back earns $24 per year — which doesn't cover a $95 annual fee.

How to compare Bank of America cards to other options

Before you open a Bank of America card, compare it to cards from other banks. Look at three things: the annual fee, the rewards rate in the categories where you spend the most, and the introductory bonus. A card with no annual fee and 2% cash back on all purchases might be better than a Bank of America card with a $95 fee and 3% back in only certain categories.

You can also compare based on credit requirements. If your credit is fair but not excellent, Bank of America might approve you when other banks won't. If your credit is very good, you might find better rewards elsewhere.

Use a rewards calculator if one is available — many card issuers and financial websites let you plug in your typical monthly spending and see how much you'd earn with different cards. This takes the guesswork out of whether the rewards will actually be worth the annual fee.

What happens after you open a Bank of America card

Once approved, you'll receive your card in the mail within 7 to 10 business days. You can usually set up it online or by phone before it arrives. Set up automatic payments through your bank account if possible — this helps you avoid missing a payment, which damages your credit score and triggers late fees.

Track your rewards as you spend. Bank of America shows your balance and rewards in their mobile app and online banking portal. Some people set a reminder to redeem rewards before they expire, since points and cash back don't last forever.

If you're using the card to build credit, use it for small purchases you'd make anyway, then pay it off in full each month. This shows lenders you can handle credit responsibly without paying interest.

Frequently Asked Questions

Do I need to be a Bank of America customer to open one of their credit cards?

No, you don't need to have a checking or savings account with Bank of America to open a credit card. However, if you already bank there, you may get bonus rewards for linking your accounts, so it's worth checking the current offer.

What's the difference between the Cash Rewards card and the Travel Rewards card?

The Cash Rewards card gives you cash back that you can use for anything. The Travel Rewards card gives you points that you redeem specifically for flights, hotels, rental cars, and other travel expenses. Cash back is more flexible if you don't travel often.

Can I get approved for a Bank of America credit card with fair credit?

It depends on your exact score and credit history. Bank of America's main cards typically require good credit (670 or higher), but the Secured Credit Card is designed for people with lower scores or limited credit history. You'll need a cash deposit, but it can help you build credit over time.

What should I do if I can't pay my full balance?

Pay as much as you can, but understand that interest will accrue on what you don't pay. If you're carrying a balance, focus on paying it down rather than earning rewards — the interest cost will be much higher than any rewards you gain.

How long does it take to earn enough rewards to cover the annual fee?

That depends on the card's rewards rate and your spending. If a card charges $95 annually and gives 1% cash back, you'd need to spend $9,500 per year just to break even. If you spend less than that, the card costs you money overall.