The Bank of America Premium Rewards Credit Card has become a reliable travel rewards card. The card earns 2 points per $1 on travel and dining purchases and 1.5 points per $1 on all other purchases. While there are certainly some cards that return better value, those cards may not offer the extra travel benefits this card offers. The only real big red flag with this card is the $95 annual fee.
No foreign transaction fees make the card ideal for international travel, especially for those using up to $100 of TSA PreCheck or Global Entry Statement credit every four years. Insurance against trip cancellations and delays, delayed or lost luggage, and emergency evacuation and transit protection are all benefits of this card. Even damage and collision allowances for car rentals are included along with many other allowances.
The card doesn’t have an introductory 0% APR, which means it’s not a great place to make a big purchase or relax for a while while paying bills, and its balance transfer fee and high APR make up for that, it’s not a great place to be. A good card balance transfer. But overall, these perks aren’t what most people look for when buying a premium travel rewards card.
At first glance
- No foreign transaction fees
- $95 annual fee
- Earn 2 points per dollar on travel and restaurant purchases, and 1.5 points per dollar on all other purchases
- New cardholders can earn 50,000 Online Rewards Points on purchases of at least $3,000 within the first 90 days of account opening
- Airline bill credit of $100 per year for eligible purchases such as: B. Seat Upgrades and Baggage Fees
- Trip Delay, Trip Cancellation, Baggage, Rental Car Damage Insurance All Inclusive
- TSA PreCheck and Global Entry fees are billed every four years.
Bank of America Premium Rewards Credit Card Rewards
Earning rewards with the Bank of America Premium Rewards Card is still fairly simple. Cardholders earn unlimited 2 points per dollar on travel and dining purchases and 1.5 points per dollar on all other purchases. There is no bonus cap and bonus expiration unless the cardholder closes the account.
Bank of America Preferred Rewards members earn 25% to 75% more points per purchase, up to 3.5 points per dollar on travel and dining and 2.62 points per dollar on all other purchases.
The card offers a welcome bonus, and new cardholders can earn 50,000 Online Rewards Points on purchases of at least $3,000 within the first 90 days of account opening.
Bank of America increases redemption rewards by allowing cash exchange by direct deposit into an eligible Bank of America checking or savings account, credit card cashing into a Merrill Lynch account, return to the card as a statement, or gift or purchase at Bank of America’s Travel Center Flexibility offers.
Compared to redeeming cash points for years without the welcome bonus, the $95 annual fee is worth it, and cardholders need to spend at least $4,750 on travel and dining, or $6,333.33 on all other purchases to break even . Therefore, cardholders looking to spend a combination of travel, dining and other purchases between these amounts should be aware that only after that will they see a positive net return of points.
Some people may prefer to compare the annual fee with other benefits, and the card offers many perks, including an additional $100 per year in flight costs such as seat upgrades and luggage fees.
To determine the reward potential of the Bank of America Premium Rewards Card, we need to look at the reward categories and calculate how much a sample U.S. household might spend in those areas. Eragoncred uses data from various government agencies to determine basic income and average spending for each category. 70% of wage-earning households bring in $107,908 per year, and our spending is based on that number.
The consultants estimated that the family had $32,072 in charges that could reasonably be charged to the credit card. We estimate that our example household will spend a total of $8,273 on travel and food, and $23,799 on other purchases that can reasonably be charged to the credit card. This results in a total of 52,244 points earned each year. These points can be redeemed for a credit limit of $522.44 per year.
Cardholders who are members of Bank of America’s Preferred Rewards program can do better.
- Gold – 65,305 points (equivalent to $653.05 points)
- Platinum – 78,366 points (equivalent to $783.66 points)
- Platinum Honors – 91,427 points (equivalent to $914.27 in bank statement)
Bank of America Premium Rewards Credit Card Offers
- $100 annual airline bonus point: Unlike the American Express card, this card’s annual airline credit can be used on any airline.
- TSA PreCheck or Global Entry Statement Credit: Receive a $100 TSA PreCheck or Global Entry membership statement credit every 4 years.
- Travel Delay Reimbursement: Available to cardholders and cardholders’ family members for delays greater than 12 hours.
- Trip Cancellation/Interruption Insurance: Unused, non-refundable, prepaid travel charges for travel cancellations due to insurance reasons.
- Baggage Delay: Essential items are valid for up to 5 days if the bag is delayed for more than 6 hours.
- Lost Baggage Compensation: Baggage and its contents will be insured if stolen or lost due to shared carrier error routing.
- Emergency Evacuation and Transportation Insurance: You may be entitled to medical benefits and transportation if the cardholder or the cardholder’s family is injured or sick while traveling away from home, resulting in an emergency evacuation.
- Purchase Safe: Get your money back for theft or damage caused by fire, water leaks, vandalism, or certain weather conditions.
- Extended Warranty Service: Extend the warranty for one year.
- Returns Protection: Returns Protection reimburses the cost of covered items that retailers refuse to return.
- Car Rental Collision Damage Waiver: If you opt out of your car rental damage insurance, the card’s coverage provides secondary protection if the rental vehicle is damaged or stolen.
- Regular APR: 18.24% – 25.24% Variable APR on purchases and transfers
- Purchase introductory APR: Not applicable
- Introduction to Balance Transfer APR: N/A
- Annual fee: $95
- Balance transfer fee: $10 or 3% of each transaction amount, whichever is greater.
- Cash Advances: See Conditions
- Foreign purchase transaction fee: none
Is the Bank of America Premium Rewards Card right for you?
There are better high-end rewards cards out there, but the Bank of America Premium Rewards Card package offers premium benefits for frequent travelers. Incentives are attractive to those who can live with annual payments. Extras like TSA PreCheck or Global Entry points and a $100 per year flight incidental credit are especially attractive because they can be used to offset the annual fee when used.
Additional travel benefits such as travel, luggage and rental car insurance and the lack of international transaction fees make the card a great addition for domestic and international travelers. Applicants are advised to have good credit before applying, but for those approved, it may not disappoint.