Bank of America credit cards work well if you already bank there and want rewards on everyday purchases, but they are not the only option and may not be the best fit depending on your credit history and how you spend money.

Bank of America offers several credit cards aimed at different types of spenders: the Cash Rewards card gives cash back on purchases, the Travel Rewards card gives points toward flights and hotels, and the Premium Rewards card targets people who spend heavily and want higher rewards rates. Each card has an annual fee (or no fee, depending on the card), a rewards structure, and may be able to access requirements based on your credit score and income.

Whether one is right for you depends on three things: whether you can pay the full balance each month, how much you spend and in what categories, and whether the rewards rate beats what you would get from a competing card. A card with a $95 annual fee makes sense only if you earn at least $95 more in rewards than you would with a no-fee card. If you carry a balance month to month, the interest rate matters far more than the rewards, and most Bank of America cards charge between 18% and 29% APR depending on your creditworthiness.

Key Takeaways

  • Bank of America credit cards have no annual fee on some cards and annual fees up to $95 on others, so compare the rewards you would earn against the cost.
  • Cash back and points are only valuable if you pay off the balance each month; if you carry a balance, the interest rate (18% to 29% APR) will cost you far more than rewards save you.
  • Bank of America cards require a credit score in the good to excellent range (typically 670 or higher), so check your credit report before you apply.
  • Competing cards from other issuers may offer higher rewards rates in specific categories like groceries or gas, so compare your actual spending pattern against what each card pays.
  • If you already have a Bank of America checking account, the bank may offer you a higher credit limit or waive fees, but this is not a reason by itself to choose their card.

How Bank of America rewards work and what they cost

Bank of America's main cards pay rewards in one of two ways: cash back (a percentage of what you spend, paid as a statement credit or deposited to your account) or points (which you redeem for travel, gift cards, or cash). The cash back rate varies by card and sometimes by category. For example, the Cash Rewards card pays 1% cash back on most purchases and 2% or 3% in categories you choose (gas, groceries, transit, or online shopping), up to a certain amount per quarter.

Points cards typically pay 1.5 to 2 points per dollar spent, and the value of each point depends on how you redeem it. If you redeem through Bank of America's travel portal, a point might be worth 1 cent or slightly more. If you redeem for cash back, the value is usually lower. The Premium Rewards card charges $95 per year but pays higher points rates and gives you a $300 annual travel credit, so the net cost is lower if you actually use the travel benefit.

The catch: rewards only matter if you pay the full balance by the due date. If you carry a balance, the interest charge will erase the rewards and then some. A 2% cash back reward on a $1,000 purchase ($20 back) disappears if you pay 22% APR on that $1,000 for even one month ($18.33 in interest).

Credit score requirements and approval odds

Bank of America typically approves applicants with a credit score of 670 or higher for their standard cards, though the exact threshold varies by card and changes over time. If your score is below 650, approval is unlikely. If your score is between 650 and 670, you may be approved for a card with a lower credit limit or higher APR.

Before you apply, check your credit report at annualcreditreport.com (the only free, official source). Look for errors—wrong accounts, wrong balances, or accounts that should be closed. Errors are common and can lower your score unfairly. If you find errors, dispute them with the credit bureau (Equifax, Experian, or TransUnion) before you apply for the card.

Each application for a credit card triggers a hard inquiry on your credit report, which can lower your score by a few points for a few months. If you are applying for multiple cards, space them out by at least a few weeks to minimize the damage.

When a Bank of America card makes financial sense

A Bank of America card is a good choice if you spend enough in the card's high-reward categories to earn more than the annual fee (if any) and you pay the balance in full each month. For example, if you spend $500 per month on groceries and the card pays 3% cash back in that category, you earn $180 per year in rewards. If the card has no annual fee, that $180 is pure gain. If the card costs $95 per year, you still come out $85 ahead.

A Bank of America card is also reasonable if you already bank with them and value the convenience of managing your card and checking account in one place. Some Bank of America customers get higher credit limits or fee waivers as a result of their banking relationship, though this is not may provide.

A Bank of America card is not a good choice if you carry a balance most months, if your credit score is below 670, if you spend most of your money in categories the card does not reward highly, or if a competing card offers a significantly higher rewards rate for your actual spending pattern.

How to compare Bank of America cards against competitors

To decide whether a Bank of America card beats the alternatives, list your average monthly spending by category (groceries, gas, dining, travel, online shopping, utilities, and everything else). Then look up the rewards rate for each category on the Bank of America card you are considering, and do the same for two or three competing cards from other issuers.

Multiply your monthly spending in each category by the rewards rate, add up the total annual rewards, and subtract any annual fee. Do the same calculation for the competing cards. The card with the highest net rewards is the one to choose, assuming you can pay the balance in full.

Common competitors to Bank of America cards include the Chase Freedom Unlimited (no annual fee, 1.5% cash back on everything), the American Express Blue Cash Everyday (no annual fee, up to 3% cash back on groceries), and the Citi Double Cash (no annual fee, 2% cash back on everything). None of these is universally better—it depends on your spending.

What happens if you miss a payment or carry a balance

If you miss a payment, Bank of America will charge a late fee (typically $25 to $39 for the first late payment, higher for subsequent ones) and report the late payment to the credit bureaus after 30 days. A single late payment can lower your credit score by 100 points or more and will stay on your credit report for seven years.

If you carry a balance, you will pay interest at your card's APR, which Bank of America discloses in the terms and conditions when you apply. The APR for most Bank of America cards ranges from 18% to 29%, depending on your creditworthiness. Interest is calculated daily and added to your balance each month, so the longer you carry a balance, the more you pay.

If you fall behind on payments, Bank of America may freeze your account, lower your credit limit, or close the card. After 180 days of non-payment, the account may be charged off and sold to a debt collector, which will pursue you for the full amount plus collection fees.

How to use a Bank of America card responsibly

Set up automatic payments for at least the minimum amount due each month, or better yet, set up automatic full-balance payments so you never carry a balance. This prevents late fees and interest charges and keeps your credit score healthy.

Use the card only for purchases you would make anyway, not as a way to spend more. Rewards are not assistance programs—they are a small rebate on money you have already spent. If you spend an extra $100 to earn $2 in cash back, you have lost $98.

Monitor your account regularly through the Bank of America app or website to catch fraudulent charges quickly. If you see a charge you did not make, report it to Bank of America within 60 days. Bank of America's fraud protection typically covers unauthorized charges, but you must report them promptly.

Frequently Asked Questions

Do I need to have a Bank of America checking account to get their credit card?

No. You can apply for a Bank of America credit card without having a checking account with them. However, if you do have a checking account, you may be offered a higher credit limit or other benefits. Check the offer details before you apply.

What is the difference between cash back and points?

Cash back is a direct rebate on your spending, usually expressed as a percentage (1%, 2%, etc.) and paid as a statement credit or bank transfer. Points are a currency you redeem for travel, gift cards, or cash, and their value depends on how you use them. Cash back is simpler; points can be worth more if you redeem them strategically, but less if you redeem them for cash.

Can I get a Bank of America credit card if my credit score is below 650?

Approval is unlikely with a score below 650, but not impossible. If you are rejected, ask Bank of America whether you can reapply after improving your score, or look for cards designed for people with fair or poor credit (though these usually have higher APRs and annual fees).

How long does it take to earn enough rewards to cover the annual fee?

It depends on the card and your spending. If the card charges $95 per year and pays 2% cash back, you need to spend $4,750 per year ($396 per month) to break even. If you spend less than that, a no-fee card is a better choice.

What should I do if I am denied for a Bank of America credit card?

Bank of America will tell you the reason (usually low credit score, insufficient income, or too many recent credit inquiries). Check your credit report for errors and dispute any you find. Wait at least a few months before applying again, and consider applying for a card designed for people with fair credit in the meantime.