Bank of America credit cards work well if you already bank there and want rewards tied to your checking account, but they carry real costs that matter depending on how you use them
Bank of America issues several credit cards, each with different annual fees, rewards rates, and perks. The most common ones are the Bank of America Cash Rewards card (no annual fee), the Bank of America Premium Rewards card ($95 annual fee), and the Bank of America Travel Rewards card ($0 annual fee). Whether any of them is "good" depends on three things: whether you carry a balance month to month, what interest rate you'll pay if you do, and whether the rewards you earn actually offset the annual fee.
The honest answer is that Bank of America cards are competitive for people who pay off their balance every month and want to link rewards to their existing Bank of America checking account. They are not competitive if you carry a balance, because the interest rates run 18% to 28% depending on your credit score, which is standard across the industry but still expensive. The rewards themselves—1% to 3% back depending on the card—are middle-of-the-road compared to cards from other issuers.
Key Takeaways
- Bank of America cards have no annual fee or a $95 annual fee depending on which card you choose, and you need to earn enough rewards to cover that fee if you pick the paid version.
- Interest rates on these cards range from 18% to 28% if you carry a balance, so they are only worth using if you pay off what you owe each month.
- The rewards rates—1% to 3% cash back or points—are standard across the credit card market and not higher than competitors offer.
- Bank of America cardholders who also have a Bank of America checking account can link rewards to that account and sometimes get bonus categories or higher rewards rates.
- You should compare the annual fee against the rewards you actually expect to earn in a year before opening any Bank of America card.
How the annual fee works and whether it pays for itself
The Bank of America Premium Rewards card costs $95 per year. The card gives you 1.5x points per dollar spent, which converts to 1.5% cash back if you redeem for cash. To break even on the annual fee, you need to spend about $6,300 per year on the card—that's roughly $525 per month. If you spend less than that, you lose money. If you spend more, the rewards start to add up.
The Bank of America Cash Rewards card and the Travel Rewards card have no annual fee, so there is no break-even calculation. You earn rewards on every purchase with no fee attached. The trade-off is that the rewards rates are lower (1% to 2% depending on the card and the category) and you do not get some of the perks that come with the paid card, like travel protections or lounge access.
Before you open any Bank of America card, write down how much you spend per month and multiply by 12. If that number is less than $6,300 and you are considering the Premium Rewards card, the no-fee cards are the better choice. If you spend more than $6,300 and use the card for most of your purchases, the Premium Rewards card may make sense.
Interest rates and what happens if you carry a balance
Bank of America credit cards charge interest rates between 18% and 28% depending on your credit score and the specific card. That rate applies to any balance you do not pay off by the due date. If you carry a $1,000 balance at 24% interest, you will pay roughly $20 per month in interest alone—money that goes nowhere except to the bank.
This is where credit card rewards become almost meaningless. If you earn 2% cash back on $1,000 in spending, you get $20 back. But if you carry that $1,000 as a balance for one month at 24% interest, you pay $20 in interest. The rewards and the interest cancel out. Carry the balance for two months and you have lost money overall.
Bank of America does offer 0% introductory rates on purchases for new cardholders—usually 6 to 12 months depending on the card and current promotions. If you plan to pay off a large purchase during that window, the 0% period is valuable. But once the introductory rate ends, the regular rate kicks in when ready. Do not open a Bank of America card expecting to carry a balance long-term.
How rewards work and what they are actually worth
Bank of America cards earn rewards in two ways: a base rate on all purchases, and bonus rates in certain categories. The Bank of America Cash Rewards card, for example, earns 1% on all purchases, 2% at gas stations and grocery stores, and 3% at restaurants. Those bonus categories are common across the credit card industry.
The rewards are worth roughly what they say: 1% cash back means $1 back for every $100 you spend. You can redeem the rewards as cash, statement credits, or transfers to a Bank of America investment account. The redemption is straightforward—no minimum, no expiration date, no hidden rules. That is one area where Bank of America cards are genuinely straightforward.
The catch is that 1% to 3% cash back is not unusual. Many cards from other issuers offer the same rates or higher. The Citi Double Cash card gives 2% on all purchases with no annual fee. The Chase Freedom Unlimited card gives 1.5% on all purchases with no annual fee. Bank of America's rewards are competitive, but they are not better than what you can find elsewhere.
The advantage of linking your card to a Bank of America checking account
If you already have a Bank of America checking account, you can link your credit card rewards to that account. This is useful because it means your rewards post directly to your checking balance instead of sitting in a separate rewards account. Some Bank of America cardholders also get slightly higher rewards rates or bonus categories if they maintain a certain balance in their checking account, though the thresholds and bonuses change frequently.
This is a real convenience if you are already a Bank of America customer, but it is not a reason to become one. If you do not bank at Bank of America, opening a checking account just to link it to a credit card is unnecessary. The rewards themselves are not better than what other banks offer.
Comparing Bank of America cards to competitors
The table below shows how Bank of America's no-fee cards stack up against similar cards from other issuers:
| Card | Annual Fee | Base Rewards Rate | Bonus Categories |
|---|---|---|---|
| Bank of America Cash Rewards | $0 | 1% | 2% gas/groceries, 3% restaurants |
| Citi Double Cash | $0 | 2% | None |
| Chase Freedom Unlimited | $0 | 1.5% | None |
| Bank of America Premium Rewards | $95 | 1.5% | Travel protections, lounge access |
| Chase Sapphire Preferred | $95 | 2% | Travel protections, lounge access |
The Citi Double Cash card earns 2% on all purchases with no annual fee, which is higher than Bank of America's base rate. The Chase Sapphire Preferred costs the same $95 annual fee as the Bank of America Premium Rewards card but earns 2% instead of 1.5%. These are not huge differences, but they matter if you spend a lot on the card.
Bank of America cards are not bad—they are just not exceptional. They are a reasonable choice if you already bank there and want a straightforward card with straightforward rewards. They are not the best choice if you are comparing purely on rewards rate or annual fee.
What to consider before opening a Bank of America card
Ask yourself these questions before you explore: Do you pay off your credit card balance in full every month? If the answer is no, do not open a credit card right now, whether it is Bank of America or anyone else. The interest you will pay will outweigh any rewards you earn.
If you do pay off your balance every month, calculate how much you spend annually on credit cards. If it is less than $6,300, choose a no-fee card. If it is more than $6,300 and you want the perks that come with a paid card, compare the Bank of America Premium Rewards card against the Chase Sapphire Preferred and other $95 cards to see which rewards rate and perks fit your spending.
Finally, check whether you already have a Bank of America checking account. If you do, linking your rewards is convenient. If you do not, that convenience is not worth opening a new account.
Frequently Asked Questions
Do Bank of America credit cards have a sign-up bonus?
Yes, Bank of America periodically offers sign-up bonuses on new cards—usually $100 to $300 in cash back or points if you spend a certain amount in the first few months. These bonuses change frequently, so check the Bank of America website for current offers. A sign-up bonus can be worth opening a card, but only if you were already planning to spend that amount anyway.
What happens to my rewards if I close the card?
Your rewards do not disappear when you close the card. You can redeem them before you close the account, or Bank of America will hold them in your account for a period of time after you close it. Check your cardholder agreement for the exact timeline, but generally you have several months to redeem.
Can I transfer my Bank of America rewards to another bank?
Bank of America rewards can be redeemed as cash, statement credits, or transfers to a Bank of America investment account, but you cannot transfer them directly to another bank's account. You can withdraw the cash and deposit it yourself, but that is an extra step.
Is the 0% introductory rate worth opening a Bank of America card for?
Only if you have a specific large purchase you plan to pay off during the 0% period. Do not open a card just to carry a balance after the introductory rate ends—the regular interest rate will cost you more than the rewards are worth.
What credit score do I need to open a Bank of America card?
Bank of America typically requires a credit score of 670 or higher for most of its cards, though some cards require higher scores. You can check your credit score for free through your bank or through sites like Credit Karma or AnnualCreditReport.com before you explore.