Here’s the best of the bunch, but be warned! You can almost always do better than a Bank of America credit card. Travel is a notable exception. Read on for more info and other recommendations.
Best No-Fee Rewards Card: Bank Americard Cash Rewards
To Bank of America’s credit, the Bank Americard Cash Rewards card has gotten better over time. The previous edition offered a 1% rewards rate on all purchases, and 3% back on gas, groceries and drugstore spending for the first six months. With such a tiny window for serious rewards, it was nothing to write home about. The new card has better rewards for gas and grocery purchases, at least: 3% cash back on gas and 2% back on groceries on the first $1,500 in purchases per quarter. Anything above that, and non-bonus category rewards, earn 1%.
Who ever heard of a credit card issuer giving you less rewards for spending more? Rewards caps actually aren’t that uncommon, but a $1,500 spending limit is pretty darn low. Is Bank of America already too large and in charge to need your money? With so many other rewards credit cards paying in the 1.5% – 2% range and above, you’ll easily find a better deal elsewhere. To start off your search, we recommend checking out the Chase Freedom, which offers up to 5% in rotating categories, and the AmEx Blue Cash Preferred, which offers 6% back on groceries and 3% back for gas station and department store purchases. You can also read our list of the best rewards credit cards for additional recommendations.
Best for Small Businesses: Cash Rewards for Business
The Cash Rewards for Business card is pretty similar to the regular cash rewards card, with one major difference: it doesn’t have that weird $1,500 spending cap. There’s no annual fee, and you’ll earn 1% cash back on regular purchases, 2% back at restaurants, and 3% back on purchases at gas stations, computer network services and office supply stores. While that’s not too bad if you don’t do much traveling, you can still do better.
The Chase Ink Cash also offers cash back, but it’s got a better rewards rate and a $250 signup bonus. In addition to 1% back across the board, you get 2% back on gas and dining, and 5% back on office supplies, cable and telecom services for the first $25,000 you spend in each bonus category annually. Now there’s an example of a more reasonable rewards cap. The AmEx SimplyCash Business is also a much better deal. With no annual fee, 5% back on wireless and office supplies, a much better 3% back on gas, and 1% back elsewhere, and no rewards cap, it’s another excellent card worth considering.
Best for Travel: Virgin Atlantic
If you’re looking for another healthy dose of sarcasm, this is the section to skip. The Virgin Atlantic card is actually pretty good, especially if Virgin Atlantic is your primary airline for international travel. You’ll earn 1.5 miles per $1 spent, and twice that much when you buy Virgin Atlantic airfare. They currently have a competitive 20,000 mile signing bonus, and you can even earn extra “anniversary” miles to for each year you have the card. Spend $15,000 within a year and you’ll earn 7,500 bonus miles. Spend $25,000 earn another 7,500. Happy anniversary indeed!
The fees on this card are pretty reasonable too. There’s a $90 annual fee, but if you spend at least $6,000 a year, you’ll easily earn in back in airline miles. Better yet, the foreign transaction fee is a mere 1%. While that’s not as good as free, it’s much, much better than the industry standard 3%. All in all, we have to say nice job on this one, Bank of America. We hope to see more quality cards from you in the future.
Best for Bad Credit: Fully Secured
Congratulations, Fully Secured card. BofA doesn’t offer any other secured cards so you win by default, even with your remarkably average APR of 20.24% and $39 annual fee! If you need a good card for bad credit, this one’s okay, but you can do better. The card’s main redeeming quality is its $10,000 maximum credit line, but that’s not useful for most secured credit card users in the first place. If you’ve got that kind of money, then this card can help you raise your credit score faster, but that’s about it.
If you have bad credit, the Capital One Secured card is among the best options. It has a $29 annual fee, lower than most, and your minimum deposit is a low $49-$200. You can also post your security deposit in installments, if you’re strapped for cash. We also recommend checking out your local credit union, as they often have cards specially designed for bad credit.
Best for Students: Student Platinum Plus
Here’s another anti-climactic win by default. The Student Platinum Plus is marketed as a way for students to build credit. It has a competitive APR at 14.2% and no annual fee. You can enroll it in the Student Identity Theft Protection Program, which automatically alerts you via text or email if something in your credit file looks sketchy. You really should be monitoring you credit on your own anyway, but it’s nice to have help. The real reason to pass on the Platinum Plus? No rewards.
For student credit cards, we recommend the Forward for College Students if you’d like a combination of good spending habit perks and rewards, and the Discover Student More card if you’re all about rewards. Both offer extra cash back on common student purchases like textbooks and music, and both offer a solid 1% back on everything. It’s unquestionably important to build credit, but why not pick up some extra money back while you’re at it?
About WorldPoints
Bank of America World Points are worth about at most 1 cent each (the industry standard), but you’ll have to rack up 25,000 of them before you even redeem them at all! That’s a good $20K before you see any perks. By contrast, other rewards programs let you redeem as few as 2,000 points while still getting full value. BofA requires more than 10x the effort.
Once you redeem those 25,000 points, you’ll get the best deal with a $250 retail gift card, a $50 credit toward a hotel or car rental (at a 1 cent point value), or a $400 or less domestic airline ticket (up to a 1.6 cent point value, provided the planets are aligned correctly and stuff). You can also redeem points online through the WorldPoints Mall, which offers some decent kickbacks when you sign up for services or buy flowers through them.