BofA – 5 causes to get the Bank of America Premium Rewards bank card

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A part of the enjoyable of award journey is studying how one can maximize your points and miles. You will get outsized value by reserving by way of airline and lodge loyalty applications, however there’s one thing to be stated for the simplicity of cash-back rewards. With that in thoughts, listed below are 5 causes so as to add the Bank of America® Premium Rewards® bank card to your pockets. The data for the Bank of American Premium Rewards card has been collected independently by The Points Man. The cardboard particulars on this web page haven’t been reviewed or supplied by the cardboard issuer.

In This Submit

1. Diversify your rewards

Transferable points are the royalty of the award journey world, however a well-rounded portfolio must also embrace points or miles that operate like cash. The Premium Rewards card lets you redeem points at a fee of 1 cent apiece as a press release credit score towards any buy. That provides you the pliability to wipe away miscellaneous journey bills together with taxis, practice tickets and parking charges that might in any other case be paid for out of pocket.

In fact, you too can use these points to cowl typical journey purchases akin to airfare and accommodations. When costs are excessive, you’ll be higher off reserving awards by way of airline and lodge loyalty applications. However when costs are low, you may get higher value from cash-back rewards. Having each choices obtainable will enable you maximize your return for every redemption.

Associated: Not touring for now? How you can maximize your rewards points on different redemptions

2. Redeem beneficial journey credit

The Premium Rewards card has a $95 annual price, however you possibly can greater than offset that value with the cardboard’s annual as much as $100 airline incidental assertion credit score. Whereas this credit score can’t be used to buy airfare, you possibly can apply it to pay for a spread of incidentals together with baggage charges, in-flight leisure and seat upgrades. The profit is obtainable every calendar 12 months, so you possibly can probably stand up to a complete of $200 in credit throughout your first 12 months as a cardmember.

The cardboard additionally provides a credit score of as much as $100 each 4 years to cowl the applying price for International Entry or TSA PreCheck. This may appear inconsequential in case you’ve already enrolled in an expedited safety program, or in case you nonetheless have the same credit score obtainable on one other card. Nevertheless, needless to say this profit works for any International Entry or TSA Precheck utility — it doesn’t should be your individual. You should utilize your card to pay the price for a good friend or member of the family, and will probably be reimbursed simply the identical.

Associated: High bank cards for International Entry and TSA PreCheck

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The cardboard additionally provides a credit score of as much as $100 each 4 years to cowl the applying price for International Entry or TSA PreCheck. (Photograph by Shutterstock.com)

3. Rating a big sign-up bonus

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The Premium Rewards card is presently providing a sign-up bonus of 50,000 points after you spend $3,000 within the first 90 days of account opening. With a base incomes fee of 1.5 points per greenback, you’ll have at the very least 54,500 points after you meet the spending requirement — that’s worth $545 in assertion credit. And if a few of your spending is on journey or eating, you’ll find yourself with a bit extra, because you earn 2x points per greenback on these purchases.

You’ll find extra profitable bonuses among the many present prime journey rewards bank cards, however it is a sturdy provide for a cash-back product. Opponents such because the Barclaycard Arrival Plus World Elite Mastercard and the Capital One Enterprise Rewards Credit score Card include fewer or much less versatile points, or each. These playing cards additionally lack a few of the extra compelling perks (just like the as much as $100 journey credit score) that set the Premium Rewards card aside.

4. Get a powerful return on on a regular basis spending

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(Photograph by DANIEL SLIM/AFP by way of Getty Photographs)

The usual incomes charges on the Premium Rewards card are 1.5 points per greenback for many purchases, and a couple of points per greenback on journey and eating. These numbers are unexceptional, and also you’ll come out forward (or at the very least even) through the use of a card that earns 2% cash again or one which earns extra beneficial rewards.

Nevertheless, you possibly can increase your return by as a lot as 75% by way of Bank of America’s Most popular Rewards program. To take part, you’ll want an eligible Bank of America checking account and a mean day by day steadiness of at the very least $20,000 in qualifying deposit or funding accounts. The most important bonus is obtainable to clients with a steadiness of $100,000 or extra — at that stage, you’ll earn 3.5 points per greenback on eating and journey, and a powerful 2.62 points per greenback on non-bonus spending.

If you have already got high-value accounts with Bank of America, then getting this card is a no brainer. If not, establishing a brand new banking relationship — like TPG himself did final 12 months — may be a worthwhile transfer.

Associated: Cease ignoring Bank of America Most popular Rewards

5. Unfold out your functions

When it comes to rewards bank cards, Bank of America has traditionally been overshadowed by Amex, Chase and Citi. These three issuers have a monitor document of providing supersized sign-up bonuses and high-end advantages, however additionally they restrict what number of accounts you possibly can have and the way usually you possibly can open new ones. Focusing an excessive amount of on any single card issuer makes it more durable to benefit from future alternatives, so the Premium Rewards card is an efficient possibility in case you’re trying to diversify your portfolio.

Sadly, your utility will nonetheless rely in opposition to you in relation to Chase’s notorious 5/24 rule, which pertains to the variety of accounts you’ve opened throughout all card issuers. Bank of America additionally has its personal set of utility restrictions, so it’s best to wait to use in case you’ve already reached the restrict.

Associated: The most effective Bank of America bank cards of 2020

Backside line

The Bank of America® Premium Rewards® bank card doesn’t include flashy journey perks like lounge entry or elite standing. As an alternative, it provides cash-back rewards which might be versatile and simple to redeem, and the chance to earn a stable return on on a regular basis spending. The sign-up bonus offers loads of additional value up entrance, and the cardboard successfully pays for itself by way of the annual airline credit score. So in case you’re trying to earn points outdoors of airline and lodge loyalty applications, this card is an efficient place to begin.

For extra data on the cardboard, try the next posts:

Further reporting by Peter Rothbart

Featured picture by Isabelle Raphael/The Points Man.