Kicking off Credit Card madness let’s start by reviewing two cards from Bank of America. Today, the BankAmericard Travel Rewards card faces off against the BankAmericard Cash Rewards card. Both cards share several benefits and come without an annual fee. However, one is a pure cash back card while the other offers a unique travel rewards program. We’ll start by reviewing the benefits of both cards and hopefully come up with a winner!
BankAmericard Travel Rewards
The BankAmericard Travel Rewards card is Bank of America’s take on travel rewards credit cards. Unlike traditional airline credit cards, BankAmericard Travel Rewards offers a flexible rewards program not tied to an individual airline. This means Travel Rewards ‘points’ can be used for any seat on any airline or a room at any hotel at any time.
Key Benefits
- Earn 1.5 Travel Rewards ‘Points’ per $1 spent on all purchases everywhere.
- Travel rewards points do not expire so long as your account remains in good standing.
- No foreign transaction fees
- A 20,000 Point sign-up bonus after spending at least $1,000 in the first 90 days following account opening.
- An annual points relationship bonus of up to 75%.
- No annual fee.
How to Use Travel Rewards Points
Travel rewards points are easily redeemed through statement credits to pay for flights, hotels, vacation packages, cruises, rental cars, or baggage fees. Reward points can also be used as cash back or to pay for gift cards, but these redemptions yield lesser value.
BankAmericard Travel Rewards Summary
Essentially, the BankAmericard Travel Rewards card is a cash back card that earns ‘points’ best used to offset travel purchases. Each ‘point’ is worth exactly $0.01 when used to offset travel charges. Points are earned at a rate 1.5 points per $1 spent on all purchases. This card does not carry an annual fee and does not charge foreign transaction fees. Overall, the Travel Rewards BankAmericard is a great option for someone who wants a very simple credit card. The card also comes with a very nice 20,000 point sign-up bonus which is worth $200 when applied to travel charges.
BankAmericard Cash Rewards
The BankAmericard Cash Rewards card is a basic cash back credit card. Cash back is easy to earn and even easier to redeem.
Key Benefits
- No annual fee.
- Sign-up Bonus of $100 cash back after making at least $500 in purchases within the first 90 days following account opening.
- A Bank of America cash back relationship bonus of up to 75%. Minimum 10% for all BOA customers.
- 1% Cash Back on all purchases, everywhere.
- 2% Cash Back on all grocery store / wholesale club stores. (Up to $2,500 a quarter)
- 3% Cash Back on Gas purchases. (Up to $2,500 a quarter)
How To Redeem Cash Back
Redeeming cash back is simple. Log-in to your BankAmericard Cash Rewards card account and select the amount of cash back you’d like to redeem and where you would like the cash delivered. Cash deposited into a Bank of America checking account earns a 10% bonus. Customers with high combined Bank of America balances (>$100,000) can earn up to a 75% cash back bonus.
BankAmericard Cash Back Summary
The BankAmericard Cash Back offers the typical 1% cash back on all purchases, but also offers 2% cash back on groceries / wholesale clubs and 3% back on gas for the first $2,500 in combined spending per quarter. So if you spent all $2,500 on gas you’d earn $75 back! The card does not have an annual fee and is currently offering a $100 cash back sign-up bonus.
BankAmericard Travel Rewards vs. BankAmericard Cash Rewards
Overall, each of these cards offer good value considering neither come with an annual fee. Both cards come with relationship bonuses making them excellent options for existing Bank of America customers. Additionally, both cards are essentially cash back credit cards. The Travel Rewards card earns a flat 1.5% back on all purchases while the Cash Rewards card earning rates vary by merchant type.
And the Winner Is!
This matchup is more difficult than I originally anticipated, but I think the BankAmericard Travel Rewards takes this round for the following reasons:
- Higher Sign-up Bonus: The BankAmericard Travel Rewards card sign-up bonus is worth a full $100 more than the Cash Rewards card.
- No Foreign Transaction Fees: For this matchup I have to assume this is going to be the only credit card the ‘average person’ carries. For that reason, having a card without foreign transaction fees can be extremely valuable and can’t be overlooked.
- More Straightforward Points Earning Structure: To get the absolute most value out of the Cash Rewards card you’d have to make sure to spend the full quarterly $2,500 on Gas purchases. Chances are, if this is your only card, you’d spend at grocery stores in a quarter as well which reduces total cash back earned. The Travel Rewards card earns a simple unlimited 1.5 points per $1 spent everywhere.
Overall, both cards are great no annual fee options, but the average person should get more value out of the Travel Rewards card than the Cash Rewards option.
Featured Image Courtesy of Bank of America
