Bank of America Travel Rewards Credit Card Review: 25,000-Point Welcome Bonus, No Annual Fee

Bank of America Travel Rewards Credit Card Overview:

Highlights

• Preferred Rewards bonus: On top of the base 1.5x, eligible account holders can earn an additional bonus, for up to 2.625% back on all purchases. If you have the right BofA relationship accounts, this card can effectively earn 2.625% back on everything, which is very strong. (The welcome bonus does not receive the Preferred Rewards boost.)
  • Regular BofA Checking/Savings customers can get a 10% rewards bonus (1.65x)
  • BofA Gold (Checking + investment balances >$20,000) can get a 25% rewards bonus (1.875x)
  • BofA Platinum (Checking + investment balances >$50,000) can get a 50% rewards bonus (2.25x)
  • BofA Platinum Honors (Checking + investment balances >$100,000) can get a 75% rewards bonus (2.625x)
  • See the requirements here: official link
• Redeeming rewards: Points earned from the welcome bonus and spending can be redeemed 1:1 (100 points = $1) toward travel purchases. You first need to use this card to pay for airfare, hotels, cruises, etc. After the charge posts, select the purchase in your account activity and redeem your points against it. There is no minimum points requirement. This is much easier than trying to squeeze value out of airline miles. Points on this card can now also be redeemed for restaurant and takeout purchases at 1c/p.

• Extra 1.5x through the BofA Travel Center: Through this card’s online account, you can access BofA’s travel center (powered by Expedia, so pricing should presumably be the same). Purchases made through the travel center earn an extra 1.5x points in addition to the card’s regular 1.5x earning rate.

• No Foreign Transaction Fee (FTF): Most no-foreign-transaction-fee cards charge an annual fee, so it’s nice that this one has no annual fee. See: FTF introduction
• 0% APR on purchases: For balances generated by purchases within the first 12 months, you only need to pay the minimum each month to avoid interest. Please read carefully: “How 0% APR credit card payments work”
• Product change option: You can product change into this card from a BofA Secured Card (can be applied for even without an SSN). You can also product change from other BofA credit cards. If you don’t want to keep paying another card’s annual fee, switching to this card is a good option.

BofA credit card benefits

• Free museum admission: On the first weekend of each month, BofA cardholders get free admission to many museums across the country. You can add authorized users for family members so they can also get in for free. For the list of participating museums by state, click here
• BofA Deal: Offers 5%-15% back or fixed-amount rebates at various merchants. Good deals that have appeared before include Sears 15% back (up to $25), Nordstrom Rack 15% back (up to $37.5), plus an extra $5 for using any one BofA Deal. See: BofA Deals guide
• Free credit score: BofA credit cards now provide a free TransUnion credit score. See: comparison of free credit scores

Cons

• Reward redemptions are limited to travel purchases; redeeming directly for cash gives poor value

My take:

If you have a high-tier deposit relationship with BofA, I strongly recommend this card. Earning 2.6% back on all purchases with no cap is extremely convenient and useful. Most people will have at least some travel purchases every year, so using points this way should not be a concern. On top of that, the card has no annual fee and offers several practical benefits, so it is worth holding long term.

Personally, I have not applied for this card, because I use my AMEX Everyday Preferred credit card (1.5x MR, worth about 3%) for my other everyday spending. In my view, transferable points and miles are more flexible and can deliver higher value. Still, if you are new to points and miles, prefer no-annual-fee cards, or have a high-tier BofA deposit relationship, this card is a solid choice.

Application

• The approval bar for this card is relatively low; in general, having more than 6 months of credit history is enough to apply

• BOA application status check link, or call: (800) 732-9194
• 2/3/4 rule: at most 2 cards approved within 2 months, 3 within 12 months, and 4 within 24 months. However, BofA’s system is not very reliable, and sometimes a card may be approved at first but later shut down.
• The welcome bonus on the same card can only be received once every 24 months, and you need to make sure the card is closed before applying again>
• You need to be a Resident to apply for a BOA credit card online: when applying for a BofA credit card online, if you select Non resident alien, you will not be able to continue and must apply by phone. However, BofA’s definition of Resident alien is different from the IRS definition of Resident alien for tax purpose. No matter what immigration status you used to enter the US, if you have lived in the US for 183 days within the past two years, then select Resident Alien. If you just arrived in the US and cannot meet this requirement, follow the prompt on the online application page and call 1.800.932.2775 to apply.
• You can call the reconsideration line (888-593-6092) to speed up credit card approval or request a review of a denied application.
• More about applying for BofA credit cards

Application Link

• Bank of America Travel Rewards