The Ultimate Guide to Credit Cards
Tuesday, March 19, 2024

Bank of America® Premium Rewards® credit card Review

Eric Bank

By: Eric Bank

Eric Bank
Eric Bank

Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.

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Editor: Ashley Fricker

Ashley Fricker
Ashley Fricker

Ashley Fricker has more than a decade of experience as a finance contributor and editor, and has specialized in the credit card industry since 2015. Her credit card commentary is featured on national media outlets that include CNBC, MarketWatch, Investopedia, and Reader's Digest, among many others. She has worked closely with the world’s largest banks and financial institutions, up-and-coming fintech companies, and press and news outlets to curate comprehensive content and media. Ashley holds a bachelor's degree in multimedia journalism from Florida Atlantic University.

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Reviewer: Danielle Spurlin

Danielle Spurlin
Danielle Spurlin

With more than 10 years of accounting experience, Danielle Marshall has a deep understanding of many financial disciplines, including personal and commercial lending, retirement annuities, financial forecasting, and general bookkeeping. She has a bachelor's degree from the University of Florida's Fisher School of Accounting and currently manages all accounts receivable and payable for the parent company of CardRates.com. She works directly with credit card issuers and advertising partners to ensure our content meets compliance expectations and regulatory standards.

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Bank of America® Premium Rewards® credit card Review

Rated 4.6 /5.0 ★★★★★

The personal finance industry scored a smashing success when it invented the travel credit card. It’s a product that focuses its rewards and benefits on travel, dining out, and hotel stays, perfect for short trips or extended vacations.

The Bank of America® Premium Rewards® credit card is, in fact, a travel card, despite its generic name. We review it and three top competitors to see which, if any, belong in your wallet.

Highlights and Observations

      • The Bank of America® Premium Rewards® credit card is for consumers with good to excellent credit who want to accumulate bonus points on all eligible purchases.

      • It charges an annual fee of $95 and a 20.24% - 27.24% Variable APR on purchases and balance transfers.

      • It has a generous signup bonus but no introductory 0% APR promotions.

      • The card has numerous travel and purchase benefits that justify its annual fee.

    If you’re going to own just one credit card, I advise you to give the Bank of America® Premium Rewards® credit card a good look. I like its mix of travel and consumer benefits, and you can unlock higher rewards if you keep substantial deposits at Bank of America or Merrill. But it faces stiff competition from Chase Sapphire Preferred® Card, which offers superior perks for the same fee.

    How to Qualify & Apply For the Card

    Bank of America may invite you to be a Bank of America® Premium Rewards® credit card cardowner through mailed, emailed, or (if you’re a bank customer) the online screen or mobile app. However, the most straightforward way to obtain the card is to submit an online application. You can start the process on Bank of America’s website by clicking on the Apply Now link below:

    Disclosure: When you apply through links on our site, we often earn referral fees from partners. For more information, see our ad disclosure and review policy.

    Advertiser Disclosure

    CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across CardRates.com (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.

    Bank of America® Premium Rewards® credit card Review

    at Bank Of America'ssecure website

    BEST OVERALL RATING

    ★★★★★

    4.6

    OVERALL RATING

    • Receive 60,000 online bonus points - a $600 value - after you make at least $4,000 in purchases in the first 90 days of account opening.
    • Earn unlimited 2 points for every $1 spent on travel and dining purchases and unlimited 1.5 points for every $1 spent on all other purchases. No limit to the points you can earn and your points don't expire as long as your account remains open.
    • If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more points on every purchase. That means you could earn 2.5-3.5 points on travel and dining purchases and 1.87-2.62 points on all other purchases, for every $1 you spend.
    • Redeem for cash back as a statement credit, deposit into eligible Bank of America® accounts, credit to eligible Merrill® accounts, or gift cards or purchases at the Bank of America Travel Center.
    • Get up to $100 in Airline Incidental Statement Credits annually and TSA PreCheck®/Global Entry Statement Credits of up to $100, every four years.
    • Travel Insurance protections to assist with trip delays, cancellations and interruptions, baggage delays and lost luggage.
    • No foreign transaction fees.
    • Low $95 annual fee.
    • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
    Intro (Purchases)
    Intro (Transfers)
    Regular APR
    Annual Fee
    Credit Needed
    N/A
    N/A
    20.24% - 27.24% Variable APR on purchases and balance transfers
    $95
    Excellent/Good

    Additional Disclosure: Bank of America is a CardRates advertiser.

    To qualify for the card, you must be a US citizen or permanent resident, at least 18 years old, and have enough income to afford the monthly minimum payments.

    The application collects basic information, including your name, residential address, phone number, and email address. You must also provide your Social Security number, birth date, employment status, and how much you earn each year. During the process, you can also request a card for an authorized user.

    The bank does a hard pull of your credit when you apply, which may slightly impact your credit score. Assuming the bank approves your application, you should receive the card within a week. You can activate the card online or by calling the phone number on the back of the card.

    Benefits & Drawbacks to Consider

    Considering the pros and cons of the Bank of America® Premium Rewards® credit card ensures you understand both the benefits it offers and the costs or limitations that come with it. You want to make an informed decision based on your spending habits and financial goals.

    Being a Bank of America account holder, especially within the Preferred Rewards Program, can significantly enhance the card’s value through higher rewards rates and additional benefits, but only if you keep substantial balances in Bank of America or Merrill accounts.

    Conversely, you may find the card’s advantages less compelling if you’re not already a Bank of America customer, which is why you should evaluate how the card aligns with your lifestyle.

    Benefits

      • Rewards on purchases: Earn unlimited 2X points for every $1 spent on travel and dining purchases and 1.5 points for every $1 spent on all other eligible purchases.

      • Signup bonus: Receive a surplus of points after you spend a set amount on purchases within the first three months of account opening.

      • Travel credits: Get up to $100 in Airline Incidental Statement Credits annually for qualifying purchases such as seat upgrades, baggage fees, in-flight services, and airport lounge fees charged by the airline.

      • Global Entry or TSA PreCheck credit: Receive up to $100 every four years as a statement credit for the application fee for Global Entry or TSA PreCheck.

      • No foreign transaction fees: Make purchases abroad without worrying about foreign transaction fees when you spend outside the United States.

      • Bank of America Preferred Rewards program: Increase your rewards by qualifying for the Preferred Rewards program. This program offers bonus rewards on purchases, which can enhance the points you earn up to 75%, depending on your membership tier.

      • Flexible redemption options: Redeem points for cash back, travel, gift cards, or merchandise.

      • Travel protections: Enjoy peace of mind while traveling from benefits that include travel insurance, trip delay reimbursement, lost luggage reimbursement, and emergency evacuation and transportation coverage.

    Drawbacks

      • Annual fee: There’s a $95 annual fee, which may outweigh the card’s benefits if you don’t spend enough to earn as much in rewards and credits.

      • High spending required for maximum benefits: You must keep a balance of at least $20,000 in Bank of America or Merrill accounts to truly benefit from the highest rewards rates and bonuses through the Bank of America Preferred Rewards program.

      • Limited transfer options for points: Unlike some other rewards cards, this one doesn’t let you transfer reward points to airline or hotel loyalty programs.

      • High credit score requirement: Bank of America says you need at least good credit to qualify for this card, which is a minimum FICO Score of 670. This requirement limits your access if you have average or subprime credit.

      • Travel credits specificity: The $100 airline incidental statement credit, Global Entry/TSA Precheck credit, and a few other perks benefit you only if you travel.

    These factors impact the card’s overall value, making it important for you to compare it to other credit cards with similar cost/benefit profiles.

    Other Cards Worth a Look

    Two of the following cards charge no annual fee. They are a good bet if you don’t mind sacrificing the many travel benefits of the Bank of America® Premium Rewards® credit card. The third card, from Chase Bank, has the same annual fee as the Bank of America card but delivers more, in my humble opinion.

    Bank of America® Travel Rewards credit card Review

    at Bank Of America'ssecure website

    BEST OVERALL RATING

    ★★★★★
    4.9

    OVERALL RATING

    • Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don't expire as long as your account remains open.
    • 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases.
    • Use your card to book your trip how and where you want - you're not limited to specific websites with blackout dates or restrictions.
    • Redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants including takeout.
    • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% - 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
    • If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more points on every purchase. That means instead of earning an unlimited 1.5 points for every $1, you could earn 1.87-2.62 points for every $1 you spend on purchases.
    • Contactless Cards - The security of a chip card, with the convenience of a tap.
    • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
    Intro (Purchases)
    Intro (Transfers)
    Regular APR
    Annual Fee
    Credit Needed
    0% Intro APR for 15 billing cycles for purchases
    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%)
    18.24% - 28.24% Variable APR on purchases and balance transfers
    $0
    Excellent/Good

    Additional Disclosure: Bank of America is a CardRates advertiser.

    The Bank of America® Travel Rewards credit card is for consumers who are willing to forego the many travel benefits of the Bank of America® Premium Rewards® credit card in favor of no annual fee and introductory APR offers. The card’s only travel-related perk is that it doesn’t charge foreign transaction fees.

    In all other respects, it is an unexciting, flat-rate rewards card that may suit you if you want something simple to put in your wallet. If you’re a Bank of America customer and actually travel, even once in a while, consider paying the annual fee to get the Bank of America® Premium Rewards® credit card card instead.

    BEST OVERALL RATING

    ★★★★★
    4.9

    OVERALL RATING

    • $0 annual fee and no foreign transaction fees
    • Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel
    • Earn unlimited 1.25X miles on every purchase, every day
    • Miles won't expire for the life of the account and there's no limit to how many you can earn
    • Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
    • Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
    • Transfer your miles to your choice of 15+ travel loyalty programs
    • Enjoy 0% intro APR on purchases and balance transfers for 15 months; 19.99% - 29.99% variable APR after that; balance transfer fee applies
    Intro (Purchases)
    Intro (Transfers)
    Regular APR
    Annual Fee
    Credit Needed
    0% for 15 months
    0% for 15 months
    19.99% - 29.99% (Variable)
    $0
    Excellent, Good

    The Capital One VentureOne Rewards Credit Card doesn’t charge annual or foreign transaction fees. It offers a flat rewards rate on most purchases and a bonus rate on certain bookings from Capital One Travel. Unlike the Bank of America® Premium Rewards® credit card, this card offers an introductory 0% for 15 months APR to new cardmembers, but its signup bonus is lower.

    You can transfer your Capital One VentureOne Rewards Credit Card miles to any of the bank’s 15+ hotel and airline loyalty programs. You may redeem your miles for cash, travel, and rewards at Amazon.com. You also have access to Capital One Entertainment and Capital One Dining.

    BEST OVERALL RATING

    ★★★★★
    4.9

    OVERALL RATING

    • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
    • Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.
    • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
    • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
    • Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
    • Member FDIC
    Intro (Purchases)
    Intro (Transfers)
    Regular APR
    Annual Fee
    Credit Needed
    N/A
    N/A
    21.49%-28.49% Variable
    $95
    Good/Excellent

    The Chase Sapphire Preferred® Card is my personal favorite among travel cards with annual fees below $100. It offers even more perks than the Bank of America® Premium Rewards® credit card, including a broader range of bonus categories.

    You get a 25% bump in value when you use your points to book travel through Chase. The Bank of America card also gives you a general-purpose increase in point values through its Preferred Rewards program, but you must put at least $20,000 into a Bank of America or Merrill account.

    Cardholder Reviews on Reddit

    Checking the online forums for the opinions of actual cardowners is helpful for several reasons. It provides real-world insights into how a credit card performs in everyday scenarios, in contrast to promotional materials that only sing a card’s praises. Consumer remarks can highlight aspects such as customer service experiences, ease of redeeming rewards, and the practicality of benefits.

    didhe views the card favorably:

    Premium Rewards has no foreign transaction fee and a reasonable set of warranties. If you expect to use that incidental credit every year (which can be iffy, to be fair), I’d take the Premium Rewards card or otherwise have another card for situations where they would be relevant.”

    billywalshscript prefers the Bank of America® Unlimited Cash Rewards credit card:

    “I don’t think I’m going to [switch to Premium Rewards] for the time being. It’s a tough call. In all honesty, $95 isn’t a huge deal. It would be my only annual fee [card], and I could easily use at least $50 or so of the travel credit. I can’t find a competing reason to get it when the Unlimited Cash Rewards card provides like 85% of what the Premium Rewards does with a $0 annual fee.”

    Editor’s note: Reviews have been edited for grammar and clarity.

    FAQs: What is the Card’s Credit Limit?

    Generally, Bank of America limits your total credit line to $99,900, regardless of which and how many of its credit cards you own. It’s more likely that your credit line for the Bank of America® Premium Rewards® credit card will be in the $10,000 to $40,000 range.

    The card’s minimum credit limit is $1,500. I suggest you follow these steps if you want to increase your credit line:

      1. Review your financial standing: Ensure your financial situation supports a credit increase before requesting one. Generally, it would be best if you had a good payment history, a higher income than when you first applied, and a low debt-to-income ratio.
      2. Update your income information: Bank of America looks at your current income when evaluating your request for a credit line increase. Make sure your income information is up to date.
      3. Use your card regularly: Regular use of your card, coupled with consistent, on-time payments, shows you can manage your credit responsibly.
      4. Request online or via phone: You can request a higher credit line by logging into your online account and navigating to the card management section or by calling Bank of America’s customer service at (800) 732-9194 and entering your card number.
      5. Be prepared to provide additional information: During the request process, you may need to give more information about your financial situation, including details about your income, employment, and monthly housing costs.
      6. Understand the impact of a hard inquiry: Be aware that Bank of America will perform a hard inquiry on your credit report when you request more credit. This can temporarily impact your credit score, but not by much.
      7. Wait six months or more between requests: You want to wait at least six months between credit line increase requests. Frequent requests can signal financial distress that will hurt your approval chances. Use the waiting period to demonstrate consistent, responsible credit behavior.

    Is the Card Hard to Get?

    Yes, some applicants will find the card challenging to get, primarily due to its requirement for a high credit score. The bank targets the card at individuals with good to excellent credit, which generally means having a FICO score of 670 or higher.

    Applicants with high credit scores are more likely to get a thumbs-up because such scores indicate a strong credit history, responsible credit management, and a minimal risk of default. It will be challenging to qualify for this card if your credit score doesn’t measure up.

    How Do Its Rewards Work?

    Earning and redeeming the card’s rewards is straightforward. The bank designed the card to benefit frequent travelers and those who dine out often, as well as providing a good earning rate on all other purchases.

    Earning Rewards

    All eligible purchases earn rewards in the form of points. The card employs a tiered approach:

      • Travel and dining purchases: Earn unlimited double points for every $1 you spend on travel and dining purchases. This category includes a wide range of businesses, including hotels, airlines, car rentals, cruise lines, travel agencies, restaurants, fast food establishments, bars, and taverns.

      • Remaining purchases: For all other eligible purchases, you earn 1.5 points for every $1 you spend, with no limit on the amount of points you can earn. This ensures that every purchase contributes to your reward total.

      • Bank of America Preferred Rewards Program: You can increase your rewards earning rate even further if you belong to the Bank of America Preferred Rewards Program. Depending on your tier in the program, you could earn a 25% to 75% rewards bonus on every purchase you make with your Bank of America® Premium Rewards® credit card.

    Your points don’t expire as long as your card account remains open with active charging privileges. However, you will have to redeem your points within 90 days if you voluntarily close the card account or the bank terminates the account for inactivity. You will lose your points immediately if the bank closes your account for any other reason.

    Redemption Options and Values

    Each point is worth a penny. Once your balance reaches 2,500 points, you can redeem them in any of several ways:

      • Travel: Redeem your points for travel through the Bank of America Travel Center, where you can book flights, hotels, vacation packages, car rentals, and cruises. You can also redeem points for travel and dining without going through the Travel Center.

      • Cash: You can redeem your points for cash rewards, including a statement credit, an electronic deposit into a Bank of America checking or savings account, or for credit to a qualifying Cash Management Account or 529 account with Merrill.

      • Gift cards: Use your points to buy gift cards and certificates online by browsing the Bank of America site. The bank does not guarantee the availability of a specific gift card, and the choices available may change without notice.

    The Bank of America® Premium Rewards® credit card is unlike other Bank of America points cards, as the value of its points is always one cent each, regardless of redemption method.

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

    This comprehensive comparison chart highlights the difference between the two cards. The Bank of America® Premium Rewards® credit card offers a wide array of travel and protection benefits ideal for frequent travelers. The Bank of America® Travel Rewards credit card has no annual fee and a simple rewards structure suitable for everyday purchases.

    Bank of America® Premium Rewards® credit card Bank of America® Travel Rewards credit card
    Annual Fee $95 $0
    Rewards Rate on Travel and Dining Unlimited 2 points per $1 on every purchase Unlimited 1.5 points per $1 on every purchase
    Rewards Rate on All Other Purchases Unlimited 1.5 points per $1 on every purchase Unlimited 1.5 points per $1 on every purchase
    Signup Bonus Yes Yes
    Introductory 0% APR Promotions N/A 0% Intro APR for 15 billing cycles for purchases
    Travel Credits Up to $100 airline incidental statement credit annually N/A
    Global Entry/TSA PreCheck Credit Up to $100 every 4 years N/A
    Foreign Transaction Fees None None
    Earning Potential with Preferred Rewards 25%-75% bonus for Preferred Rewards members 25%-75% bonus for Preferred Rewards members
    Points Value for Redemption 1 cent per point for all redemption options Varies for travel booked through BoA; less for other redemptions
    Minimum Points to Redeem 2,500 points 2,500 points
    Redemption Options Travel, cash back, gift cards Travel, cash back, gift cards
    Travel Insurance Yes Limited
    Lost Luggage Reimbursement Yes No
    Trip Delay Reimbursement Yes No
    Trip Cancellation/Interruption Insurance Yes No
    Baggage Delay Insurance Yes No
    Rental Car Insurance Yes No
    Travel and Emergency Services Yes Limited, from Visa® Signature
    Extended Warranties Yes Yes, from Visa® Signature
    Return Protection Yes No
    Purchase Security Yes Limited, from Visa® Signature
    Roadside Dispatch Yes Yes, from Visa® Signature

    It seems clear to me that the extra perks from the Bank of America® Premium Rewards® credit card more than justifies its $95 yearly fee. Unless you insist on no annual fees, you’ll do better with the Bank of America® Premium Rewards® credit card, especially if you travel frequently.

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

    The answer requires you to consider the card’s intrinsic value independent of the Preferred Rewards program. It provides fairly good, tiered rewards that you may find appealing if you frequently travel and dine out.

    Additionally, the card comes with a variety of travel and purchase protections. The inclusion of up to $200 in statement credits can offset the annual fee, but only if you take full advantage of these benefits.

    However, the value of the card increases substantially for those who can qualify for the Preferred Rewards Program, which offers a 25% to 75% bonus on rewards earned. Without access to these boosted rewards, the card’s value primarily derives from its base rewards rate and benefits package.

    Therefore, if you’re a frequent traveler or dine out often and can utilize the travel credits and protections offered, the card may still be a worthwhile addition to your wallet, even without Preferred Rewards membership.

    Is the Bank of America Preferred Rewards Program Worth It?

    The value of the card’s rewards substantially increases if you qualify for the Preferred Rewards program, which offers a 25% to 75% bonus on rewards earned. Admittedly, the program is for consumers affluent enough to maintain a high balance with the Bank of America or Merrill.

    Let’s work out an example. Suppose you have $150,000 in an eligible Merrill account so that you qualify for the Platinum Honors tier of the Bank of America Preferred Rewards program. This tier provides a 75% bonus on the rewards earned with the Bank of America® Premium Rewards® credit card.

    BOA rewards tiers
    Cardholders with higher balances can access enhanced benefits.

    Without any Preferred Rewards bonus, 100,000 points are worth $1,000, as points are worth one cent each. With a 75% bonus through the Platinum Honors tier, you’ll earn significantly more value from your points: $1,000 base value + ($1,000 x 75%) = $1,000 + $750 = $1,750.

    In this case, the extra $750 in rewards dwarfs the card’s $95 annual fee. So yes, if you can set aside at least $20,000 (the minimum for a 25% boost), the Preferred Rewards Program easily covers the card’s yearly fee.

    However, keep in mind that investing in stocks is risky, and you may lose money through a brokerage account. In other words, the extra credit card rewards should not be the tail that wags the investment dog. Naturally, investing in a Bank of America savings product removes this risk up to the limit on FDIC insurance.

    This Card May Be For You If…

      • You are a frequent traveler: You’ll find the card particularly valuable for its travel credits, absence of foreign transaction fees, and bonus points on travel and dining expenses.

      • You invest with Bank of America or Merrill investment: You’ll benefit from the Preferred Rewards program if you maintain significant balances in Bank of America or Merrill accounts.

      • You are looking for flexible rewards redemption: This card allows you to redeem your points for travel, cash back, or gift cards without losing value.

    Comparing the Bank of America® Premium Rewards® credit card with similar cards is crucial because it helps you identify which one offers the best value for your specific spending habits and reward preferences. You’ll want to ensure you maximize your benefits, such as travel rewards and cash back, and choose a card that matches your lifestyle needs.

    About the Author

    Eric Bank
    Eric Bank Finance Expert

    Eric Bank is an M.B.A. who has covered financial and business topics since 1985, appearing regularly on Credible, eHow, WiseBread, The Nest, Zacks, Chron, BadCredit.org and dozens of other outlets. Eric specializes in taking complex subject matters and explaining them in simple terms for consumer audiences, particularly in the world of personal finance. Eric holds a Master's in Business Administration from New York University and a Master's in Finance from DePaul University.

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