Ever wondered how to make your everyday spending go further? With the Bank of America Custom Cash Rewards card, you can earn cash back tailored to your lifestyle. But how does it really work, and how can you maximize those rewards?
Understanding the ins and outs of this card is key to boosting your savings. In this article, we’ll walk you through how Custom Cash Rewards operate, how to choose your highest-earning categories, and tips for making the most of every purchase.
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How Bank of America Customized Cash Rewards Credit Card Works
If you’re looking for a versatile credit card that lets you earn more on spending categories you actually care about, the Bank of America® Customized Cash Rewards credit card could be an excellent pick. This card stands out for its ability to let you pick your top rewards category and offers a simple, yet flexible, cashback program. Here’s a complete breakdown of how the card works, its best features, and tips to make the most of your rewards.
How Does the Bank of America Customized Cash Rewards Card Work?
At its core, the Bank of America Customized Cash Rewards credit card is a cashback card designed to offer tailored rewards.
Key Features
- Choose Your 3% Category: Each month, you pick one category to earn 3% cash back—such as gas, online shopping, dining, travel, drug stores, or home improvement/furnishings.
- Bonus at Grocery Stores and Wholesale Clubs: Automatically earn 2% cash back at grocery stores and wholesale clubs.
- Unlimited 1% on Everything Else: All other purchases earn 1% cash back.
- No Annual Fee: There’s no cost to hold this card.
- Introductory Offers: New cardholders often enjoy a cash rewards sign-up bonus and a 0% introductory APR for purchases and balance transfers for a set period.
Breaking Down the Rewards Structure
Let’s make this simpler by looking at how cashback accumulates:
-
Pick Your Main Category
- Each month, you can select one category you think you’ll spend most on. Choices include:
- Gas
- Online shopping
- Dining
- Travel
- Drug stores
- Home improvement and furnishings
- Each month, you can select one category you think you’ll spend most on. Choices include:
-
Earning 3% and 2%
- For the first $2,500 spent every quarter in the combined 3% and 2% categories, you’ll earn enhanced cashback (3% or 2% based on the category).
- Once you hit $2,500, further purchases in those categories get 1% until the next quarter.
-
Everything Else: 1%
- Outside your chosen categories and above the quarterly cap, you’ll earn a straightforward 1% cash back.
Example:
If you choose “Dining” as your 3% category for April–June and spend $1,200 at restaurants and $1,300 at grocery stores, you’ll hit the $2,500 quarterly limit. Anything above this, in these categories, earns the standard 1% cash back until the next quarter begins.
Step-by-Step: How to Use the Customized Cash Rewards Card
- Apply and Get Approved
- Review your financial details and credit score (typically good to excellent needed).
- Fill out an application either online or in-branch.
- Set Up Online Access
- Create an online account to manage your card, check transactions, and view rewards.
- Choose Your 3% Category
- Log in and select your preferred 3% category at account opening or any time during the month (can be changed monthly).
- Make Everyday Purchases
- Use your card for relevant purchases in your chosen 3% category, at grocery stores, and wherever else you shop.
- Monitor Your Rewards
- Track your progress toward the $2,500 cap in the Bank of America app or website.
- Redeem Cash Back
- Redeem rewards as a statement credit, online bank deposit, or direct contribution to a qualifying Merrill investment account.
- Maximize Quarterly Offers
- Take note of promotional cashback offers or higher earning rates for new accounts (sometimes up to 6% in the first year for select categories).
Benefits of the Customized Cash Rewards Card
1. Flexibility and Control
- You can swap your 3% category every month based on planned expenses. Traveling for summer vacation? Choose “Travel”. Renovating at home? Select “Home Improvement”.
2. Broad Selection of 3% Categories
- The card covers unique categories not typically found on other cashback cards, including home improvement and online shopping.
3. Tiered Cashback in Everyday Spending
- Besides major purchases, you earn steady rewards at grocery stores and warehouses, which is especially helpful for families or frequent shoppers.
4. No Annual Fee
- Every dollar earned in cashback truly adds value since you’re not offsetting rewards with yearly costs.
5. Bonus for Relationship Customers
- If you keep a checking, savings, or investment account with Bank of America or Merrill, you may qualify for the Preferred Rewards program.
- Members get a boost of 25%–75% on cashback, letting top-tier customers earn up to 5.25% in their chosen category.
6. Special Promotions
- New users may gain access to special offers, such as higher earning rates for the first year.
Are There Any Drawbacks?
No card is perfect—here’s what to keep in mind:
- Quarterly Cap: Once you exceed $2,500 in combined 3% and 2% spending per quarter, rewards drop to 1% for those categories until the next quarter.
- Category Tracking: You need to remember to switch your rewards category monthly if your spending habits shift.
- Good/Excellent Credit Needed: The best odds for approval go to those with solid to strong credit scores.
- No Foreign Transaction Perks: While the card can be used internationally, there’s a foreign transaction fee, making it less ideal for overseas trips.
Practical Tips to Maximize Your Cash Back
- Plan Your Big Purchases: Time large expenses in the 3% category during a single quarter to hit the cap and maximize rewards.
- Switch Categories Wisely: Anticipate upcoming spending shifts—like more online shopping in December for holidays—and update the category accordingly.
- Pair with Other Cards: Use a different card for purchases outside your 3% or 2% categories (like travel, if you’re not using it as your quarterly pick).
- Opt for Relationship Bonuses: If you’re a Bank of America or Merrill customer, enroll in the Preferred Rewards program for higher payouts.
- Redeem Regularly: Don’t let rewards sit—redeem as a statement credit to shrink your balance or transfer to an account to boost savings.
Cost Tips
There are no shipping costs or annual fees for this card, which means all rewards go straight to you. However, be wary of:
- Foreign Transaction Fees: If shopping or traveling abroad, the card charges a fee (typically around 3% of the purchase).
- Interest Charges: If you don’t pay your balance in full each month, interest might outweigh your cashback rewards.
- Take advantage of introductory 0% APR offers but set reminders for when they expire.
How to Apply
Applying is straightforward:
- Check if You Qualify
- A strong credit history increases your chances. Aim for good to excellent credit.
- Prepare Personal Financial Info
- Have your Social Security Number, income details, and employment ready.
- Submit an Application
- Complete the form online, by phone, or in a Bank of America branch.
- Wait for Approval
- Many applicants get an instant decision. If not, wait for notification regarding approval and credit limit.
Summary
The Bank of America Customized Cash Rewards credit card provides a tailored, flexible way to earn cash back. You can choose your 3% category each month, earn strong rewards at grocery and wholesale clubs, and benefit even more if you are a Bank of America customer. Watch the quarterly cap, plan your purchases, and use the card strategically to get the most from your everyday spending.
Whether you want simple rewards with no annual fee or a customizable structure that lets you boost earnings on your favorite category, this card offers value for a wide range of users.
Frequently Asked Questions (FAQs)
How do I change my 3% cashback category?
Log in to your Bank of America online account or app. You’ll find an option to select or update your 3% category. You can make changes once per calendar month, and your choice typically takes effect right away.
What happens if I go over the $2,500 quarterly cap?
After reaching $2,500 in combined 3% and 2% category purchases in a quarter, additional spending in those categories drops to 1% cash back until the next quarter starts.
Can I have more than one 3% category at a time?
You can only select one 3% category per month. You may change it monthly to match your spending, but only one category earns the top cashback rate at a time.
How do I redeem my cash back?
Rewards can be cashed out as a statement credit, deposited into a Bank of America checking or savings account, or contributed to a Merrill investment account. Redemptions can be made online at any time.
Is the Customized Cash Rewards card good for travel?
While you can choose “Travel” as your 3% category for extra earnings on travel purchases, the card has a foreign transaction fee. It’s best for domestic use unless you have another card that doesn’t charge those fees.
With a little planning, the Bank of America Customized Cash Rewards credit card can be a flexible, no-annual-fee powerhouse for cashback, especially for those who want to control where they earn the most.