Editor’s Note: This is a recurring post, updated regularly with new information and offers.
Part of the fun of award-winning travel is learning how to maximize your points and miles. You can get tremendous value by booking through airline and hotel loyalty programs, but there’s something to be said for the simplicity of cash back rewards.
With that in mind, here are five reasons to add the Bank of America® Premium Rewards® Credit Card to your wallet.
Diversify your rewards
Transferable points They’re royalty in the award travel world, but a well-rounded portfolio should also include points or miles that work like cash.
The Premium Rewards card allows you to redeem points at a rate of 1 cent each as a statement credit for any purchase. This gives you the flexibility to eliminate miscellaneous travel expenses, including taxis, train tickets and parking fees, that would otherwise be paid out of pocket.
Of course, you can also use these points to cover conventional travel purchases like plane tickets and hotels. When prices are high, it will be best to book rewards through airline and hotel loyalty programs. But when prices are low, you might get best value of cash back rewards. Having both options available will help you maximize your return for each trade.
Related: Not traveling for now? How to Maximize Your Rewards Points on Other Redemptions
Redeem valuable travel credits
He Premium Rewards Card It has a $95 annual fee, but you can more than offset that cost with the airline’s annual statement credit of up to $100 for airline incidentals.
While this credit cannot be used to purchase airfare, you can apply it to pay for a variety of incidental expenses, including baggage fees, in-flight entertainment, and seat upgrades each calendar year that you are a cardholder.
The card also offers a credit of up to $100 every four years to cover the application fee. Global Entry either TSA PreCheck®. This may seem inconsequential if you have already enrolled in an accelerated security program or still have a similar credit available on another card.
However, please note that this benefit works for any Global Entry or TSA PreCheck application; It doesn’t have to be yours. You can use your card to pay the fee for a friend or family member and you will be refunded the same.
Get a solid welcome offer
He Premium Rewards Card It currently offers a welcome bonus of 60,000 points after you spend $4,000 in the first 90 days of account opening. Plus, if part of your spending is for travel or meals, you’ll end up with a little more, since you earn 2 points for every dollar spent on those purchases.
You can find more lucrative bonuses among the current ones. Top Travel Rewards Credit Cardsbut this is a good deal for a cash back product. Competitors like Capital One Venture Rewards Credit Card They come with fewer miles or less flexibility or both. Those cards also lack some of the more attractive benefits (like the annual airline incidental credit of up to $100) that set the Premium Rewards card apart.
Get an impressive return on your daily expenses
The standard profit rates in the Premium Rewards Card That’s 1.5 points per dollar spent on most purchases and 2 points per dollar spent on travel and dining. Those numbers are not exceptional and you will come out ahead (or at least tied) if you use a card that earns 2% cash back or one who wins most valuable rewards.
However, you can increase your performance by up to 75% through Bank of America Preferred Rewards Program. To participate, you’ll need an eligible Bank of America checking account and an average daily balance of at least $20,000 in qualifying deposit or investment accounts.
The largest bonus is available for customers with a balance of $100,000 or more. At that level, you’ll earn 3.5 points per dollar spent on dining and travel and an impressive 2.62 points per dollar on non-bonus spending.
If you already have high-value accounts at Bank of America, getting this card is a no-brainer. Otherwise, establishing a new banking relationship with Bank of America may be a cost-effective move.
Related: Stop Ignoring Bank of America Preferred Rewards
Distribute your applications
In terms of rewards credit cards, Bank of America has historically been overshadowed by Amex, Chase and Citi. Those three issuers have a history of offering large welcome offers and high-end benefitsbut they also limit the number of accounts you can have and the frequency with which you can open new ones.
Focusing too much on a single card issuer makes it harder to take advantage of future opportunities, so the Premium Rewards card is a good option if you’re looking to diversify your portfolio.
Unfortunately, your application will still count against you when it comes to Chase’s infamous 24/5 rulewhich refers to the number of accounts you have opened all card issuers. Bank of America also has your own set of application restrictionsso you should wait to apply if you have already reached the limit.
Related: Do you want to open a new Chase card? Here’s how to calculate your position 5/24
In a nutshell
The Bank of America Premium Rewards Credit Card doesn’t come with flashy travel perks like lounge access or elite status. Instead, it offers flexible, easy-to-redeem cash back rewards and the opportunity to earn a solid return on everyday spending. The welcome offer offers a lot of additional value up front and the card effectively pays for itself through the airline’s annual credit.
If you’re looking to earn points outside of airline and hotel loyalty programs, this card is a good place to start.
For more information, see our Complete Bank of America Premium Rewards Credit Card Review.
Apply here: Bank of America Premium Rewards Credit Card
