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Bank of America® Customized Cash Rewards Credit Card Review: Flexible Cash‑Back Perks in Your Hands
February 6, 2025
If you’re hunting for a no-annual-fee cash‑back card that lets you choose where you earn extra rewards, the Bank of America Customized Cash Rewards Credit Card deserves a close look. This popular card offers 3% cash back in a category of your choice (from a list of everyday options) – and even 6% back for new cardholders in the first year.
You’ll also earn a solid 2% back at grocery stores and wholesale clubs, plus 1% on everything else, all while paying a $0 annual fee. To sweeten the deal, there’s a $200 online cash bonus after you spend $1,000 in the first 90 days. Sound interesting? Let’s break down how this card works, its pros and cons, and tips to maximize its rewards.
Key Features at a Glance
- Cash‑Back Rewards: 3% cash back in one category of your choice, 2% at grocery stores and wholesale clubs, 1% on other purchases.
- Quarterly Cap: The 3% and 2% rewards apply to the first $2,500 in combined purchases each quarter . That’s up to $75 in bonus-category cash back per quarter under the standard rates.
- Welcome Bonus: $200 online cash rewards bonus after spending $1,000 in the first 90 days – an easy target for a nice chunk of cash back.
- Intro APR: 0% intro APR for 15 billing cycles on new purchases (and on balance transfers made in the first 60 days), then a variable APR of ~18.24%–28.24% applies. This can help if you plan a big purchase and want to pay it off over a year.
- Fees: Annual fee $0. Foreign transaction fee 3% (so it’s not ideal overseas). Balance transfer fee 3% intro.
- Card Network/Type: Visa Signature® – comes with perks like concierge, purchase protection, etc., though no deluxe travel perks.
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Pros and Cons
Pros:
- Customize Your 3% Category: Flexibility to choose where you earn 3% (gas, online shopping, dining, travel, drug stores, or home improvement) and switch monthly as your spending needs change.
- No Annual Fee: You keep all the rewards you earn; the card costs nothing to carry.
- Great for BoA Customers: Bank of America banking clients in the Preferred Rewards program can get a 25%–75% rewards bonus on all points – meaning that 3% could become up to 5.25% cash back for top-tier clients!
- Intro APR & Bonus: The 0% intro APR period and easy $200 bonus add significant upfront value for new cardholders.
Cons:
- Quarterly Spending Cap: The 3% (or 6%) and 2% rewards are limited to $2,500 in combined quarterly spend. If you’re a big spender in bonus categories, any purchases beyond that earn just 1%. This cap makes the card less rewarding for high spenders.
- Category Management Required: Getting the most value means actively choosing or changing your 3% category based on your spending. Forget to change it, and you might earn just 1% on a big purchase that month. There’s also a bit of complexity in tracking the quarterly cap across combined categories.
- Foreign Transaction Fee: A 3% fee on overseas purchases means leave this card at home when traveling abroad.
- Requires Good Credit: You’ll likely need a good to excellent credit score (670+ recommended) for approval.
How to Maximize Your Rewards
One of the best aspects of the Customized Cash Rewards card is the control it gives you. To fully maximize your cash back:
Pick the Right 3% Category
Choose a category where you spend most consistently. For many, Gas is popular, while others might choose Online Shopping if they’re frequent Amazon/online shoppers. The good news is you can change your category once a month via the BoA app or site. A smart strategy is to plan ahead: for example, if you know you’ll be traveling next month, switch your 3% to Travel for that period; during holiday season, Online Shopping might yield more bang for your buck, as one Bankrate editor did to maximize gifts spending.
Watch the $2,500 Quarterly Cap
Keep an eye on your combined spending in the 3% and 2% categories. If you’re nearing the $2,500 cap in the middle of a quarter, consider shifting some purchases to a different card once you hit the cap, so those extra dollars earn more than 1% elsewhere.
Leverage Bank of America Preferred Rewards
If you have sizeable savings/investments with Bank of America or Merrill, you might qualify for Preferred Rewards, which boosts every reward by +25%, +50%, or +75% depending on your balance tier. At the highest tier, that 3% category actually earns 5.25%, and your 2% groceries become 3.5% – that’s huge.
Put Your Cards to Work with Kudos
Managing multiple cards and bonus categories can get tricky. Kudos is your ultimate financial companion, helping you effortlessly organize your credit cards and maximize rewards – all in one convenient (and free!) platform. With the Kudos browser extension, for example, you can get real-time advice on which card to use at checkout to earn the most rewards. Stay on top of your game – add Kudos to Chrome – it’s free.
Comparing Bank of America Customized Cash Rewards Credit Card with Other Credit Cards
When considering the [Main Card Name], it's helpful to compare it with other popular options in the cashback credit card category:
- Annual fee: $0
- Sign-up bonus: Cash bonus after meeting spending requirements
- Key rewards: 5% on travel purchased through Chase Travel℠, 3% on dining and drugstores, 1.5% on all other purchases
- Standout feature: Flexible redemption options including cash back, travel, and gift cards
Capital One Savor Cash Rewards Credit Card:
- Annual fee: $0
- Sign-up bonus: Cash bonus after meeting spending requirements
- Key rewards: 3% on dining, entertainment, popular streaming services, and grocery stores
- Standout feature: No foreign transaction fees
Blue Cash Everyday® Card from American Express (rates & fees):
- Annual fee: $0
- Welcome offer: Cash bonus after meeting spending requirements
- Key rewards: 3% at U.S. supermarkets (up to $6,000 per year, then 1%), 3% cash back up to $6,000 per year, then 1%. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout
- Standout feature: This card offers a generous intro of APR on purchases and balance transfers
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
Each card offers unique benefits tailored to different spending habits and preferences. Consider your personal financial goals when choosing the best card for you.
Key Takeaways:
- Bank of America Customized Cash Rewards Credit Card excels in offering cash back in a category of your choice
- Chase Freedom Unlimited® offers diverse category bonuses
- Capital One Savor Cash Rewards Credit Card rewards dining and entertainment spending
- Blue Cash Everyday® Card from American Express provides strong rewards on everyday purchases
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Is the Bank of America Customized Cash Rewards Card Right for You?
Consider this card if you spend moderately across common categories like gas, online shopping, dining, etc., and want above-average cashback with no annual fee. It’s especially rewarding for existing Bank of America customers – if you can join Preferred Rewards, the extra cashback can make this one of the highest-earning no-fee cards on the market. Also, if you have an upcoming purchase or three, the first-year 6% promo and intro 0% APR can be very lucrative.
Look elsewhere if you spend well beyond $2,500 in those bonus categories each quarter – the cap will limit you, and a flat 2% or another premium card could earn you more on overflow spending. Also, if you travel abroad frequently, remember this card’s foreign fee; a no-FTF travel card would be better in your wallet for globetrotting.
The Bank of America Customized Cash Rewards Credit Card is a flexible, user-friendly cash-back tool. It puts you in the driver’s seat to choose where you earn extra rewards, which is perfect for people whose spending isn’t one-size-fits-all. With responsible use, a bit of planning, and maybe a sidekick like Kudos to keep you on track, you can truly squeeze a lot of value from this $0-fee card. And with Bank of America’s latest enhancements, it’s more attractive than ever for those looking to customize their cashback.
Frequently Asked Questions (FAQ)
What are the 3% categories for the Bank of America Customized Cash Rewards card?
You can choose one of six 3% cash-back categories: gas/EV charging, online shopping, dining, travel, drug stores, or home improvement/furnishings. You’ll earn 3% back in your chosen category, and you can change the category selection once each calendar month. This flexibility lets you tailor rewards to your plans – for example, picking travel during vacation season and switching to online shopping for the holidays.
Is there a limit to how much cash back I can earn?
No overall dollar limit on cash back, but the 3% (and 2%) rewards rates apply only on the first $2,500 in combined choice category + grocery/wholesale club spending per quarter. After you hit $2,500 in those categories in a given quarter, those purchases earn 1% until the next quarter resets. The 1% category is unlimited. In practical terms, the max you can earn at 3%/2% rates is $75 in rewards per quarter
What credit score do I need to get approved?
This card is generally aimed at people with good to excellent credit. Bank of America will evaluate your overall credit profile, income, and other factors in the application. If you’re in the “good” range or above, you have a solid chance. If you’re new to credit or building credit, BoA also offers a student version of this card and other options for fair credit – or consider applying with a cosigner if available.
How do the first-year 6% bonus and $200 welcome bonus work?
Starting June 1, 2025, new cardholders get a double boost in the first 12 months – your chosen category earns 6% cash back during that period. The 2% at groceries/wholesale and 1% on other purchases remain the same. This promotional rate automatically kicks in when you open the card and drops back to 3% after 12 billing cycles. Separately, the $200 welcome bonus is earned by making at least $1,000 in purchases within 90 days of opening the account. The $200 is typically credited as a statement credit or deposited to your BoA account after you meet the spend requirement – essentially a nice cash reward for starting out!
How can I redeem the cash back I earn?
Bank of America gives you a few easy redemption options: you can deposit your cash back directly into a Bank of America checking or savings account, get a statement credit on your credit card bill, or redeem for paper checks mailed to you. You can even apply cash rewards to an eligible Merrill investment account. There’s no minimum redemption threshold if you redeem into a BoA/Merrill account.
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