If you’re using a cashback credit card, your goal is almost certainly to get as much cashback as possible for your daily expenses. When choosing a cashback card, you usually have to choose between fixed rate cashback cards, which give you cashback at a lower rate but on all purchases, or bonus category cards, which provide increased rewards depending on the categories chosen, such as travel or groceries.
However, with a Bank of America® Customized Cash Rewards credit card, you can receive bonus cash back in one of six categories of your choice, which you can change each month.
This flexible cashback card eliminates the need to change cards as your spending habits change, as you can easily customize which category will earn the highest reward rate. However, for some types of cardholders, this card will be easier to maximize, and for others, it won’t be worth it in the long run.
When should I use my Bank of America Customized Cash card?
When you spend on different categories
Instead of offering cashback across multiple fixed bonus categories, the Customized Cash Rewards card gives you a 3% bonus for one of six categories you can choose from. These categories are:
- Gas
- Online shopping
- Canteen
- Travel
- Pharmacies
- Home improvement and furniture
And the best part: you change the selection category up to once a month. So, if in one month you do a lot of online shopping updating your wardrobe, and the next month you are buying a lot of furniture to decorate your apartment, this card is for you.
Its benefits don’t end there. In addition to the selection category, it gives bonus cashback in two useful everyday categories – 2 percent cashback on grocery purchases and bulk club purchases. And 1% cashback on other purchases. Keep in mind, however, that the 2 percent and 3 percent categories have a spending cap of $2,500 per quarter. Once you reach this limit, all purchases will still earn 1% cashback.
When you use Bank of America or Merrill banking services
Anyone with a bank account with Bank of America or an investment account with Merrill may be eligible to become a member of the Preferred Rewards program. As a member, you can get up to 75 percent more cashback, depending on the number of accounts and the amount you have invested in banks.
To receive the 75% cashback rate increase, you must qualify for at least the Platinum Honors tier, which requires at least $100,000 per day on average in your accounts for three months. This increase can be incredibly lucrative – raising the cashback rate from 3 percent to 5.25 percent and from 2 percent to 3.5 percent. With these increased rates, Bank of America’s Customized Cash Rewards card can be quite valuable to have in your pocket.
When you have credit card debt
For cardholders who have a small amount of debt on another card with high interest rates, the Bank of America Customized Cash credit card is a great card for a quick fix.
This card offers 15 billing cycles with zero annual funding for both new purchases and balance transfers made within the first 60 days, with a balance transfer fee of 3% (or $10, whichever above). After the introductory period, the usual variable annual interest rate of 16.24 to 26.24 percent will apply. Because the 15-month initial offer is relatively short (compared to other balance transfer cards offering 18 or 21 months), the Customized Cash card is best for those of you with less debt.
When is a Bank of America Customized Cash card not worth it?
When you often travel abroad
Despite the high reward potential, the repayment options for the Bank of America Customized Cash Rewards credit card are very limited. Options include cash back, credit statement, and direct deposit into account. Unfortunately, it is not possible to exchange for travel – unlike some other cashback cards, such as Citi Custom Cash℠ Card or Pursuit of Unlimited Freedom®.
Another reason why this card is not ideal for traveling abroad is its 3 percent international transaction fee. While it may not sound like much, the 3% commission on every purchase you make overseas can add up quickly. If you prefer travel, you should buy a more flexible cashback card or a travel credit card.
When you consistently spend in one or two categories
If the majority of your purchases fall into multiple categories, such as restaurants or groceries, you should consider a different card. While the Bank of America Customized Cash Rewards card allows you to change your selection category up to once a month, you can technically use the card as a fixed category card, keeping the selected category the same month after month. However, this is not the best way to use it.
For those who often spend in the same category, it makes no sense to get a card with a flexible category. Instead, you can opt for a card with fixed bonus categories and even higher cashback rates, such as a meal card or grocery card. This way, it will be easier for you to maximize your rewards and potentially earn even more money back.
Should you get a Bank of America Customized Cash Rewards card?
When it comes down to it, Bank of America Customized Cash is best for the humble spender. The spending ceiling of $2,500 per quarter is about $833 per month, which may seem like a limitation to some consumers.
If these monthly expenses are below your regular credit card statement, then we suggest looking for another fixed bonus card with higher spending limits or a flat cashback card with no spending limit at all. Some cards you might want to consider include American Express Blue Cash Everyday® Card or Citi® Dual Cash Card.
However, if $833 is close to or above your monthly budget, then the Customized Cash Card is a great way to maximize your spending. By calculating and assuming an average annual expense of $15,900 (3 percent on $2,500 quarterly and 1% on all other purchases), you can get $359 in cash. Including a $200 welcome offer, the Bank of America Customized Cash Rewards credit card can give you back $559 in your first year if you can max it out.
| Potential Maximum Credit Card Cash Refunds with Bank of America Personalized Cash Rewards | |
|---|---|
| 3 percent choice category | $2,500 X 4 (quarters) X 0.03 (3 percent) = $300. |
| 1 percent on all other purchases | ($15,900 (average annual expenses) – $10,000 ($2,500 X 4)) X 0.01 (1 percent) = $59. |
| Bonus for registration | 200 dollars |
| Total money back for the first year | $559 |
bottom line
The Bank of America Customized Cash Rewards Credit Card offers a new take on the concept of earning extra cash on certain purchases. This allows you to select the categories for which you want to receive the bonus, and you can change it as often as every month.
Some cashback cardholders will be better off if these categories are automatically selected if you don’t know how to predict your monthly expenses. But if you like being able to plan ahead and choose these categories yourself, you should definitely consider the Customized Cash Rewards card.
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