Bank of America® Customized Cash Rewards credit card Review

Bank of America issues excellent credit cards. If you have a Bank of America checking or savings account, getting one of its credit cards is a natural choice. But the offerings are so good that you should consider them even if you bank elsewhere.

In this review, we examine the Bank of America® Customized Cash Rewards credit card and three competing cards with similar reward structures. If you’re looking for cash back rewards, one of these reviewed cards may suit you perfectly.

A Cash Back Card That Puts You in Control

The Bank of America® Customized Cash Rewards credit card caters to consumers who want to decide where they earn rewards. You choose your top-tier 3% reward from a list of eligible merchant categories. You can change the category each calendar month or leave it unchanged indefinitely.

You automatically earn the card’s middle rewards tier, 2%, on eligible purchases at grocery stores and wholesale clubs. The card limits bonus rewards to the first $2,500 of combined net purchases made each calendar quarter. All other eligible purchases earn an unlimited 1% cash back.

How to Qualify & Apply

You can see more details below and apply directly on the Bank of America website by clicking on the Apply Now button:

You need to meet certain criteria to qualify for the card, including having a:

• • Good to excellent credit score: Typically, you need a good to excellent credit score, meaning a FICO score of 670 or higher. However, the exact score requirement can vary based on additional factors.

• • Stable income: You must disclose your employment status and demonstrate a stable source of income. The bank needs to verify that you can afford your monthly minimum payments.

• • Low debt-to-income (DTI) ratio: Your DTI ratio, which is your monthly debt payments and housing costs divided by your gross monthly income, should be relatively low (i.e., below 36%). A low DTI ratio reassures the bank that you are not overextended and are likely to manage new credit responsibly.

You must also be at least 18 years old (19 in some states) and a legal resident of the United States to apply. You can apply for the card online, by phone, or in person at a Bank of America branch. You need to provide personal and financial information, including your Social Security number, income, and employment details.

Before applying, it’s a good idea to check your credit reports for inaccuracies. You can order copies of your reports from the three major credit bureaus and review them yourself.

Disputing and removing incorrect, obsolete, or unverifiable credit report items may quickly boost your credit score. And if you don’t have the time, you can hire a credit repair agency to do the heavy lifting.

Benefits & Drawbacks

Let’s take a closer look at the card’s pros and cons. It offers relatively generous benefits, considering its low fees.

Benefits

• • Cash back rewards: You can earn significant cash back on your eligible purchases. Specifically, you’ll earn 3% cash back in the category of your choice (from a list the bank provides), 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases. Note that the 3% and 2% cash back rates apply on the first $2,500 in the combined choice category, grocery store, or wholesale club purchases each quarter.

• • Introductory APR offer: New cardowners benefit from a 0% Intro APR for 15 billing cycles for purchases. The same rate applies to any balance transfers made within the first 60 days of opening the account. This introductory rate lasts for a set period after account opening. After which, a regular APR will apply.

• • Signup bonus: The card typically offers a one-time signup bonus for new cardholders who meet a specific spending threshold within the first three months of account opening.

• • Annual fee: This card comes with a $0 annual fee, so you have more money to spend on purchases.

• • Flexible redemption options: Your cash rewards don’t expire, and you can redeem them at any time and for any amount.

• • Bank of America customer bonuses: If you’re a Bank of America Preferred Rewards member, you can earn 25% to 75% more cash back on every purchase.

The Preferred Rewards program is lucrative for members. The exact bonus depends on your tier in the rewards program.

Drawbacks

• • Reward category limitations: The 3% cash back categories have limits. The bank caps your bonus rewards at $2,500 in combined purchases each quarter. After reaching this limit, the cash back rate drops to 1%.

• • Foreign transaction fees: It charges a fee for foreign transactions. This fee can add up quickly if you travel internationally or make purchases in foreign currencies.

• • Balance transfer fee. There is a fee for balance transfers, which will reduce the overall savings. As mentioned, only balance transfers you complete within the first 60 days receive the introductory APR.

• • Other fees: The card has a 19.24% - 29.24% Variable APR on purchases and balance transfers. The rates may be higher for cash advances, and a fee applies for each advance. Don’t miss a payment, as you will have to cough up a late payment fee, and your regular APR may zoom up to around 30%. Of course, you can maintain a 0% purchase APR indefinitely by paying your entire balance each billing cycle.

• • Limited bonus categories: While you can choose your 3% cash back category, Bank of America limits your options. You won’t maximize your potential cash back if your major spending categories don’t align with the 3% options.

• • Requires good to excellent credit: Qualifying for this card typically requires a good to excellent credit score, which may currently be out of your reach.

• • Changing categories requires management: You must actively manage and select your preferred category if you want to optimize your 3% cash back. This task can be a hassle if you prefer a more set-it-and-forget-it type of rewards card.

Overall, the benefits of the Bank of America® Customized Cash Rewards credit card seem to outweigh its drawbacks, although the balance depends on your particular requirements.

Other Cash Back Cards Worth Considering

The following three cards feature cash back rewards, introductory 0% APR promotions, and $0 annual fees. But its rewards programs differ from the Bank of America® Customized Cash Rewards credit card, and it’s up to you to determine which one makes the most sense for your everyday spending.

The Chase Freedom Unlimited® card’s high rating stems from its excellent introductory promotions and extra cash back rewards on up to $20,000 of purchases in several common spending categories during the first year.

New cardowners receive a 0% Intro APR on Purchases 15 months and 0% Intro APR on Balance Transfers 15 months. This no-annual-fee card also provides purchase protection, extended warranties, and travel insurance.

The Discover it® Cash Back card delivers generous benefits to new cardowners. It provides bonus cash back, up to the quarterly limit, on rotating categories, including restaurants, grocery stores, gas stations, and other merchants.

You must activate the new category each quarter to earn the bonus rate. New cardmembers also get a 0% Intro APR (15 months) on eligible purchases and 0% Intro APR (15 months) on balance transfers, as well as unlimited Cashback Match at the end of the first year. Keep in mind, a regular APR will apply at the close of the promotional period. The card also provides valuable privacy and security protections.

The Citi Custom Cash® Card lets you choose your merchant category each billing cycle to earn the top bonus rate on the first $500 you spend. Eligible categories include restaurants, gas stations, grocery stores, select travel, transit, streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment options.

The card features a $0 annual fee, a signup bonus, and an introductory 0% 15 months Purchases and Balance Transfers promotion. Its app can alert you to low balance levels, payment due dates, and attempts to spend beyond your credit limit.

Cardholder Reviews on Reddit

Online reviews of the Bank of America® Customized Cash Rewards credit card are fairly positive. For example, MysteriousHedgehog23 gushes:

“The Bank of America Customized Cash card is great. I use the ‘Online’ category for my 3%, and it counts as an online purchase when I use the card via Apple Pay for gas & food purchases via the app. Groceries and Wholesale stores like Walmart automatically get you 2%. It’s a versatile card, and they’ve been very generous to me with credit line increases. Also, they just recently counted my cell phone bill payment as eligible for the 3% back online purchase.”

Several commentators mention the higher cash back rates available through the Preferred Rewards Program. chethrowaway1234 says: 

“The Bank of America Customized Cash Rewards Card is a pretty mid-card by itself. That said, Bank of America has a lot of perks if you stash $100k or more in assets/cash with them, and that’s when the multiplier goes up to 5.25% cash back. Only then does it become a pretty sweet deal.”

Maximum-Excitement58 has a more ironic take on the Preferred Rewards Program:

“The Customized Cash Card is great — all you need is $100,000 parked at Merrill Lynch/Bank of America, and you’ll get 5.25%.”

The consensus seems to be that affluent cardowners get the best value from this card. That’s a bit of a paradox since the same cardowners can easily afford luxury cards with much better perks.

FAQs: What is the Card’s Credit Limit?

The minimum credit limit for this Visa® Signature card is typically $5,000, but cardholders report limits of $50,000 or more. The Bank of America considers several factors when determining credit limits, including:

• • Your credit score: A higher credit score may qualify you for a higher credit limit because it indicates a strong credit history and lower default risk.

• • Income and employment: Your income and employment record are essential factors. You must show that you can afford the monthly minimum payments for your assigned credit limit.

• • Debt-to-income (DTI) ratio: This is the ratio of your monthly debt payments to your monthly income. A lower debt-to-income ratio can allow the bank to issue you a higher credit limit.

• • Existing credit limits: Your current credit limits and how much of those limits you use play a role. Generally, you’ll benefit from a low credit utilization ratio (i.e., the percentage of credit used compared to credit available).

• • Bank of America’s lending policies: The bank’s internal policies and risk assessment procedures influence your credit limit.

The bank evaluates each application on a case-by-case basis, and the credit limit for one person may differ from that of another depending on their circumstances.

Which Categories are Eligible for the Top Rewards Rate?

The top rewards rate of the Bank of America® Customized Cash Rewards credit card is 3%, which you earn on net purchases from merchants in one category you select. You can earn 3% in the choice category and 2% cash back at grocery stores and wholesale clubs on up to $2,500 in combined purchases each quarter. All other eligible purchases earn unlimited 1%.

Eligible merchants for 3% cash back include those whose primary line of business falls under the following choice categories:

• • Gas/electric vehicle (EV) charging stations: You can earn cash back on gas and electric vehicle charging station purchases on your road trip, your everyday commute, and beyond. Earn your cash back at the pump, service stations, marinas, and fuel dealers.

• • Online shopping: Cash back makes online shopping even more rewarding. This category includes cable, internet, and streaming service purchases, books and music, fashion, electronics, and toys, among others. You will earn the top cash back rate whether you shop online or through your mobile device.

• • Dining: Whether you dine in or take out, you can earn top cash back on dining purchases when someone else does the cooking.

• • Travel: This category includes your everyday travel purchases (e.g.,  parking, public transit, taxis, and rideshare) as well as getaways to visit family or new destinations. The top cash back rate applies to traditional travel, including airfare, hotels, tourist attractions, campgrounds, and boat rentals.

• • Drugstores: Includes your annual flu shot, prescriptions, health and beauty items, vitamins, and batteries. Earn top cash back when you buy these items at your local drugstore.

• • Home improvements and furnishings: This category Includes hardware store supplies, furniture, and accent pieces. It also includes contractors such as plumbers, electricians, landscapers, and carpenters.

When you open a new account, the default choice category is gas/EV charging stations. To change your category for future purchases, you must navigate to online banking or use the mobile banking app.

You can select a new category once per calendar month. The category will remain the same if you don’t change it.

How Do You Redeem Bank of America Cash Rewards?

You can redeem cash rewards for a check, statement credit, or deposit directly into a Bank of America demand account. You can also receive a credit to a qualifying 529 account or cash management account with Merrill Lynch.

Some redemptions may be subject to a minimum amount, such as $25. You can request redemptions at any time.

Rewards do not expire as long as your account remains open and in good standing. Unless specifically authorized by the bank, you will forfeit unredeemed cash rewards if you or the bank closes your card account.

You can get a 25% to 75% rewards bonus if you enroll in the Bank of America Preferred Rewards Program. You earn benefits based on your Bank of America and Merrill Lynch account balances.

The four reward tiers vary according to your three-month combined average daily balance:

• • Gold Tier ($20K to less than $50K): 25% rewards bonus

• • Platinum Tier ($50K to less than $100K): 50% rewards bonus

• • Platinum Honors Tier ($100K to less than $1M): 75% rewards bonus

• • Diamond Tier ($1M and up): 75% rewards bonus and no international transaction or ATM fees

You also get a better deal on mortgages, savings rates, brokerage and banking fees, home equity loans, and auto loans, among other financial products and incentives.

You must maintain a balance of $100,000 to earn the most lucrative rewards. Unless you are affluent, these rates may be out of reach.

Cash rewards do not expire as long as your card account remains open with active charging privileges. However, you must redeem the cash rewards within 90 days if you voluntarily close the card account or the bank closes the account for inactivity.

You will lose your cash rewards immediately if the bank closes your card account for any other reason.

How Does the Card Compare to the Bank of America® Travel Rewards credit card?

The following chart compares the key features of the Bank of America® Customized Cash Rewards credit card with those of the Bank of America® Travel Rewards credit card:

FEATURE	Bank of America® Customized Cash Rewards credit card	Bank of America® Travel Rewards credit card
Rewards Program	3% cash back in the choice category, 2% at grocery stores/wholesale clubs (up to $2,500 quarterly), 1% on all other purchases	Unlimited 1.5 points for every $1 spent on all purchases
Sign-Up Bonus	Cash bonus after meeting spending threshold in first few months	Bonus points after meeting the spending threshold in the first few months
Annual Fee	None	None
Intro APR Offer	0% Intro APR for 15 billing cycles for purchases and 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days (Balance Transfer Fee 3% for 60 days from account opening, then 4%), then a regular APR applies	0% Intro APR for 15 billing cycles for purchases, then a regular APR applies
Regular APR	19.24% - 29.24% Variable APR on purchases and balance transfers	Variable, higher after the introductory period
Foreign Transaction Fee	Yes	None
Credit Score Requirement	Good to Excellent	Good to Excellent
Redemption Options	Cash back, statement credits, deposits to Bank of America accounts, or Merrill contributions	Travel credits, statement credits, or gift cards

You may want to consider owning both cards, one for your travel expenses and the other for your remaining spending. This arrangement can maximize your total rewards and benefits.

Is the Card Worth Getting If I Don’t Have a Bank of America Account?

You don’t need a Bank of America account to get the Bank of America® Customized Cash Rewards credit card, although having an existing relationship with the bank can be beneficial. Relationships may include having a checking or savings account, a mortgage, or another credit card with the bank.

If you bank elsewhere, consider these factors before getting the Bank of America® Customized Cash Rewards credit card:

• • Rewards program: The card lets you choose the top rewards category. The card can be valuable regardless of your banking relationships if one of the available categories aligns with your spending habits.

• • Annual fee: Since the card has a $0 annual fee, it may be a cost-effective choice for earning rewards without the need for additional Bank of America accounts.

• • Redemption flexibility: You can redeem your cash rewards in several ways, including statement credits, deposits into Bank of America or Merrill Lynch accounts, and other options. Not having a Bank of America account means you can’t take advantage of the direct deposit options.

• • Introductory APR offer: You can benefit from the 0% Intro APR for 15 billing cycles for purchases and 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days (Balance Transfer Fee 3% for 60 days from account opening, then 4%), then a regular APR applies, with or without a Bank of America account.

• • Missed additional bonuses: As a non-Bank of America customer, you miss out on the additional bonuses offered to Preferred Rewards members. Membership would significantly increase the cash back you earn.

Given these considerations, the card may be well worth owning regardless of your banking relationship with Bank of America if it fits your financial requirements.

This Card May Be For You If…

• • You have varied spending habits: This card allows you to choose your top earning category. You may want this flexibility if your spending varies and you want to earn higher cash back in various categories at different times.

• • You frequently spend at grocery stores or wholesale clubs: You benefit from 2% cash back at grocery stores and wholesale clubs.

• • You prefer no annual fees: The card is a low-cost option if you want a rewards card without the burden of a yearly fee.

• • You are interested in introductory APR offers: Getting this card can save you money on interest if you’re planning a significant purchase or want to transfer a balance.

• • You’re a Bank of America customer or plan to be one: As a Bank of America customer, you can join the Preferred Rewards program and earn even higher cash back bonuses.

• • You value flexible redemptions: This card provides flexible redemption options for your rewards, including statement credits, deposits into Bank of America or Merrill accounts, and more.

The Bank of America® Customized Cash Rewards credit card is an obvious choice for bank customers who want control over their cash back rewards. If you bank elsewhere and have good to excellent credit, you would do well to compare the card with the three alternatives we reviewed earlier.