Bank of America Premium Rewards Credit Card Review: Full Details

If you are eligible for the Bank of America® Preferred Rewards® program, Bank of America® Premium Rewards® Credit Card has the potential to be a pretty lucrative card to use for everyday spending. For those who prefer other banks, there are better earning travel cards. Card Rating*: ⭐⭐⭐½

* Card Ranking Based on the opinions of TPG editors and not influenced by card issuers.

It took me a while to appreciate the value of Bank of America’s credit card offerings. Many have low or no annual fees, but they tend to lack the perks I’ve always associated with my favorite cards. The rewards earned also don’t transfer to airline or hotel programs. Now that I understand better, Preferential reward bank programThe more I see the benefits of owning a Bank of America credit card.

Despite its premium name, this card isn’t like other products with annual fees in the $400-$500 range and a ton of perks. Instead, it has a lower $95 annual fee and more modest perks. However, it offers great flexibility in redeeming points and can generate a superior earning rate if you can maximize Bank of America’s Preferred Rewards program. We recommend it. credit score at least 670 for this card.

With Premium Rewards CardYou’ll receive 60,000 bonus points after you spend $4,000 on purchases in the first 90 days of opening your account. These points are worth a flat 1 cent each, meaning this bonus is worth $600. It’s not the most attractive bonus, but $600 can save you a lot on airfare, hotels, or anything else.

While Bank of America doesn’t publish any restrictions that apply specifically to earning the welcome bonus, keep in mind that the bank has a notorious Rule 2/3/4 on card applications. You can only be approved for two Bank of America cards within a two-month period, three cards within a 12-month period, and four cards within a 24-month period.

Keep in mind that your entire credit profile will be reviewed, so approval is not guaranteed even if you fall within these numbers. Finally, there are no restrictions in the application terms that say you can’t get this bonus if you’ve had the card before or that you have to wait a certain amount of time before reapplying.

Related: Here are the best credit card welcome offers

While Premium Rewards Card can’t compare to top cards like The Platinum Card® from American ExpressIt comes with nice perks for a low annual fee. Notable perks on this card include:

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• Up to $100 annual statement credit for eligible airline incidental charges
• Up to $100 statement credit for TSA PreCheck or Global Entry every four years
• Trip Delay, Interruption and Cancellation Insurance
• Purchase Protection
• Car Rental Collision Damage Waiver

This is a solid set of benefits for a card with a $95 annual fee. As long as you maximize the annual airline surcharge credit, you’ll get positive value from this card. Cardholders also enjoy certain Visa Signature® benefits, such as access to the Visa Signature Luxury Hotel Collection.

Related: 9 Valuable Travel Benefits You Can Get When Using a Credit Card

With Premium Rewards CardYou’ll earn 2 points per dollar spent on travel and dining and 1.5 points per dollar spent on everything else. Travel and dining are defined broadly, meaning there are a lot of expenses that can qualify for double points.

The real value here is in the Preferred Rewards program. If you’re a Preferred Rewards member, you can earn 25-75% more points on every purchase, up to 2,625 points per dollar spent outside of rewards. That’s more than any other flat-fee card out there.

Related: Why You Should Get a Fixed Rate Rewards Credit Card

One more thing I like about Premium Rewards Card It’s stress-free and takes very little time. You don’t have to jump through hoops to find rewards, and you don’t have to go to a specific portal if you want to use your points to pay for a gym membership.

Since points are worth the same regardless of what you redeem them for, you won’t be penalized for redeeming them for cash.

There are several ways to redeem points:

• Refunds:Once your score reaches 2,500 points or more, you can receive cash back as a statement credit or deposit it into an eligible Bank of America checking or savings account, Merrill or 529 college savings account.
• Shopping while traveling: You can book flights directly through the Bank of America travel portal. This is a good way to redeem points because you can still earn bonus miles and elite credits by flying on a paid ticket (although buying directly from the airline may be better because you can get a lower fare class when booking through the portal).
• Gift card: The final option allows you to convert your points into gift cards at popular retailers like Amazon, Whole Foods, and Starbucks. I don’t recommend doing this. It’s better to buy gift cards with your credit card outright because you’ll get the purchase protection benefits that way.

You can also cash out your points and deposit them directly into a 529 college savings account. This is an impressive option that can be a great way to prepare for the expensive cost of college for yourself or someone in your family.

And if you’re focused solely on travel rewards, this card can cover travel expenses that you can’t redeem miles for, like offsetting surcharges on award tickets or great experiences on the ground.

Hearing that each point is worth 1 cent can be disappointing at first, especially when compared to other points. Valuable points and milesHowever, the simplicity of not having to jump through many hoops or stress about “maximum redemption value” can be a strong point here.

Related: Get started with points, miles and credit cards for travel

Best cards to compare with Premium Rewards Card are cards with similar annual fees. Let’s take a look at some of these cards:

• If you like Chase: The Chase Sapphire Preferred® Card has a $95 annual fee. The card offsets that fee with a free DashPass membership (activate by December 31) and up to $50 in statement credits for hotel stays booked through Chase Travel℠. The card earns 5 points per dollar for travel booked through Chase Travel, 3 points on dining and online grocery purchases (excluding Walmart, Target, and wholesale clubs), 2 points on all other travel, and 1 point on all other purchases. To learn more, read Full Review of Chase Sapphire Preferred.
• If you like Citi: The Citi Strata Premier℠ Card (see prices and fees) also comes with a $95 annual fee, which includes a $100 discount on eligible hotel stays of $500 or more when booked through Citi Travel. The Strata Premier earns 10 points per dollar on hotels, car rentals, and tours booked through Citi Travel, 3 points on flights, other hotel purchases, restaurants, grocery stores, gas stations, and electric vehicle charging stations, and 1 point per dollar on all other purchases. To learn more, read full review of Citi Strata Premier.
• If you like American Express: The Blue Cash Preferred® Card from American Express has an introductory annual fee of $0 (then $95 per year, see prices and fees). The card’s main perks are up to $84 in statement credits each calendar year (up to $7 per month) on qualifying Disney Bundle purchases of $9.99 or more per month (signup required; subject to auto-renewal). The card earns 6% cash back (in the form of bonus dollars that can be redeemed for statement credits) at U.S. supermarkets (on the first $6,000 per year, then 1%) and on select U.S. streaming subscriptions, 3% cash back on transit and gas, and 1% cash back on all other purchases. To learn more, read full review of Amex Blue Cash Preferred.

For more options, check out our picks for best travel card.

Related: Why the Citi Strata Premier and Rewards+ Cards Are a Great Pair

If the transfer partner is not a big deal for you, I recommend you consider Premium Rewards Card. This is especially true if you’re a Preferred Rewards member and can earn extra points for every dollar spent. Either way, this card offers solid perks for its annual fee.

Register here: Bank of America Premium Rewards Card

Related: Bank of America Travel Rewards Credit Card Review

For rates and fees for the Amex Blue Cash Preferred, click This.