The best Bank of America card depends on how you spend money, not on which card is objectively "best"
Bank of America offers several credit cards, and each one rewards different types of spending. If you eat out often, one card makes sense. If you travel, another does. If you want to keep things straightforward and earn cash back on everything, a third card might be the fit. The card that works for you is the one that gives you rewards on the things you actually buy.
Before you choose, think about your spending over the last three months. What categories did you spend the most in? Groceries? Gas? Restaurants? Travel? Once you know that, you can match it to a card that rewards those purchases.
Key Takeaways
- Bank of America's cash back cards reward different spending categories, so the best choice depends on where your money actually goes each month.
- The Bank of America Cash Rewards card gives the same cash back rate on all purchases, making it straightforward if you don't want to track categories.
- The Bank of America Premium Rewards card offers higher cash back on travel and dining, but requires higher spending to make the annual fee worthwhile.
- All Bank of America credit cards come with fraud protection and the ability to manage your account online, but rewards and fees vary significantly.
- You can hold multiple Bank of America credit cards at once, so you could use different cards for different types of spending if that matches your habits.
The Cash Rewards card: one rate on everything
The Bank of America Cash Rewards card gives you the same cash back percentage on all purchases, with no categories to track. You earn cash back whether you buy groceries, gas, plane tickets, or anything else. This card has no annual fee.
The cash back rate is lower than what you would earn on a category-specific card if you spend heavily in that category. But if your spending is spread across many different things, or if you do not want to think about which card to use for which purchase, this simplicity might be worth more to you than a slightly higher reward rate.
The Premium Rewards card: higher rewards for travel and dining
The Bank of America Premium Rewards card gives higher cash back on travel purchases and dining, and a lower rate on everything else. It has an annual fee, which means you need to spend enough in those categories to earn back more than the fee costs you.
This card makes sense if you travel regularly or eat out frequently. If you rarely do either, the annual fee will likely cost you more than the extra rewards you earn. Bank of America's website shows the cash back rates and annual fee amount, so you can calculate whether the card pays for itself based on your own spending.
The Unlimited Cash Rewards card: flat rate with no categories
The Bank of America Unlimited Cash Rewards card is similar to the Cash Rewards card—it gives the same rate on all purchases with no annual fee. The main difference is the cash back rate itself, which varies between the two cards.
Both cards are straightforward: you earn the same reward on groceries as on gas as on restaurants. The choice between them comes down to which rate Bank of America is currently offering, which you can compare on their website.
How to compare cards based on your actual spending
To find the card that works for you, gather your last three months of credit card or bank statements. Add up how much you spent in each category: groceries, gas, restaurants, travel, and everything else.
Then look at each Bank of America card's rewards rates for those categories. Multiply your monthly spending in each category by the cash back rate you would earn. Add those numbers together to get your monthly rewards. Subtract any annual fee, then multiply by 12 to see your yearly rewards.
Do this for two or three cards. The card that gives you the highest yearly rewards is the one that matches your spending best. Remember that your spending habits may change—a card that works now might not work as well next year.
What all Bank of America credit cards include
Every Bank of America credit card comes with fraud protection, meaning you are not responsible for unauthorized charges if you report them promptly. You can view your account online or through the Bank of America mobile app, set up payment reminders, and freeze your card if it is lost or stolen.
All cards also come with a grace period on purchases, which means you do not pay interest on new purchases if you pay your full balance by the due date. If you carry a balance from month to month, you will pay interest on that balance, regardless of which card you have.
Things that matter beyond the rewards rate
The cash back rate is not the only reason to choose a card. Some people care about the credit limit Bank of America offers them, which depends on their credit history and income. Others want a card with a lower annual fee or no annual fee at all, even if the rewards rate is slightly lower.
If you already have a Bank of America checking or savings account, you may see different offers or benefits than someone without an account. Bank of America sometimes offers bonus cash back in the first few months for new cardholders, though this changes over time.
Think about whether you will actually use the rewards. If a card earns points on airline travel but you never fly, that feature does not help you. The best card is the one you will use consistently and that matches the way you actually spend money.
Frequently Asked Questions
Can I have more than one Bank of America credit card?
Yes, you can hold multiple Bank of America credit cards at the same time. Some people use one card for everyday purchases and another for travel or dining to maximize rewards in each category. However, each process may affect your credit score temporarily, and Bank of America may limit how many cards you can open in a certain time period.
What is the difference between cash back and points?
Cash back is money deposited into your account or credited to your statement. Points are a separate currency that you redeem for travel, merchandise, or other rewards. Bank of America's cards offer cash back, which is simpler because you can use it however you want. Points often have less flexibility and may expire if unused.
Do I need good credit to get a Bank of America credit card?
Bank of America typically looks at your credit score and history when you explore. Cards with higher rewards rates and no annual fee usually require a higher credit score. If your credit is newer or lower, you may still be approved but for a card with a lower credit limit or different terms. You can check your own credit score for free before explore.
What happens if I do not pay my credit card bill on time?
You will pay interest on the balance you owe, and the interest rate is higher than the cash back you earn. Late payments also hurt your credit score and may result in a late fee. If you struggle to pay bills on time, a rewards card may not be the best choice—focus first on building a payment routine you can stick to.
Can I switch to a different Bank of America card later?
Yes, you can close a card or switch to a different one if your spending habits change. Closing a card may affect your credit score slightly, so if you decide to switch, ask Bank of America whether you can convert your existing card to a different one instead of closing it and explore for a new card.