This post is about the importance of understanding credit scores and how they impact your financial life. **Understanding Credit Scores**
Credit scores are numerical representations of your creditworthiness. They are calculated by credit bureaus, such as Experian, Equifax, and TransUnion, based on your credit history.
We understand that navigating the world of credit cards can be overwhelming. There are so many different types of cards, each with its own set of benefits and drawbacks. Choosing the right card for your needs can be a daunting task.
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The Bank of America Travel Rewards credit card includes a welcome offer, an intro APR offer, flexible redemption options and no annual fee. The Bank of America Premium Rewards credit card comes with a more generous welcome bonus and earns more points on regular dining and travel purchases — although it does charge an annual fee. Although not as popular as travel credit cards from other issuers, Bank of America boasts its own travel rewards credit cards. Stand-out offerings include the Bank of America® Premium Rewards® credit card and the Bank of America® Travel Rewards credit card, both of which offer flexible travel rewards points and a base rate of 1.5X points on regular purchases.
The best credit card for you depends on your spending habits and financial goals.
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Choosing the right credit card can be a daunting task, especially when faced with two popular options: travel rewards cards and cash back cards.
- Points Earning: The Premium Rewards card earns 1.5x points on all purchases, and 3x points on Bank of America Travel Center purchases. * **Annual Fee:** The Premium Rewards card has no annual fee.
Which card earns the the most? ## Annual Fee Winner: Bank of America® Travel Rewards Credit Card
The Bank of America® Travel Rewards credit card consistently earns the top spot for its annual fee.Let’s assume you spend $10,000 on travel expenses each year. With the Bank of America Premium Rewards card, you could earn 10x points on travel purchases. This translates to 10,000 points per year. Now, let’s consider the potential value of those points.
With the Bank of America Premium Rewards credit card, you would earn 59,500 points (worth $595 in rewards): 24,300 points on groceries 7,200 points on dining out 10,000 points on travel (not through the Bank of America Travel Center) 18,000 points on miscellaneous purchases With the Bank of America Travel Rewards credit card, on the other hand, you would earn 55,200 points (worth $552 in rewards): 24,300 points on groceries 5,400 points on dining out 7,500 points on travel (not through the Bank of America Travel Center) 18,000 points on miscellaneous purchases However, if you purchase travel through the Bank of America Travel Center, you’ll earn 3X points on those purchases. That means you’ll instead earn 15,000 points on those travel purchases for a total of 62,700 points (worth $627 in rewards) — which is more than the Bank of America Premium Rewards credit card.
Keep in mind, though, that the Bank of America Premium Rewards credit card offers a higher welcome bonus of 60,000 points (earned after spending $4,000 within 90 days), which is worth $600. That will add considerably more to your first-year rewards haul than the Bank of America Travel Rewards, which offers 25,000 points after spending $1,000 within 90 days and comes in the form of a $250 statement credit. Why should you get the Bank of America Premium Rewards credit card? The Bank of America Premium Rewards credit card can be a better choice if you don’t mind paying an annual fee. You’ll earn a more generous welcome bonus within the first few months and more points on all dining and travel purchases (not purchased through the Bank of America Travel Center).
This benefit is particularly useful for frequent flyers who can use the card to offset the cost of their travel. Frequent flyers often spend a lot on flights, hotels, and other travel-related expenses. This benefit can significantly reduce their overall travel costs.
Redemption options Caret Down When it comes time to redeem rewards, redemption options include: Travel bookings through the Bank of America Travel Center Cash back in the form of a statement credit or a direct deposit to an eligible Bank of America or Merrill account Gift cards Recommended credit score Caret Down The recommended credit score range for the Bank of America Premium Rewards is good to excellent (FICO score of 670-850). Why should you get the Bank of America Travel Rewards credit card? If you’re averse to paying the annual fee for a credit card, the Bank of America Travel Rewards card is easy to love. However, there are other reasons to consider this travel card, including its introductory APR offers and flexible travel redemption options.
Additional benefits Caret Down The main card perks include its welcome offer, intro APR offer, flexible redemption options and the chance to qualify for the Bank of America Preferred Rewards program (terms apply). You can also access your FICO score for free each month, and you can elect to receive account alerts to your mobile phone when your balances are due and paid. Redemption options Caret Down This card allows you to redeem flexible rewards points for: Cash back in the form of a check or direct deposit to an eligible Bank of America or Merrill account A statement credit to cover eligible travel-related purchases (including eligible dining purchases) Gift cards
This score range is considered a strong indicator of financial responsibility and a low risk for the Bank of America. The higher the credit score, the more favorable the terms and conditions offered by the Bank of America. This is because a higher credit score signifies a greater ability to repay borrowed funds, making the bank more confident in extending favorable terms.
The information about the Bank of America® Premium Rewards® credit card and the Bank of America® Travel Rewards credit card was last updated on Sept. 12, 2024.
