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Choosing the right travel credit card can give you exciting rewards and benefits that will enhance your travel adventures, whether near or far, but you should consider all of your options before fully committing to one, including the Bank of America® Premium Rewards® Credit Card.
In short, the Bank of America Premium Rewards credit card doesn’t offer many benefits for travel lovers, except for existing Bank of America customers in the Preferred Rewards program. But before we remove this card from our list, we’ll analyze some of its features and who this card is suitable for. Here’s what you need to know about this card:
Quick Card Highlights
- Payout Rate: Unlimited 2x points on travel and dining purchases and unlimited 1.5x points on all other purchases
- Welcome Offer: Earn 60,000 online bonus points after you spend $4,000 on purchases in the first 90 days.
- Annual fee: $95
- Standard APR: 21.24 percent to 29.24 percent (variable)
Additional Card Perks and Benefits
- Up to $100 credit for Global Entry or TSA PreCheck. It covers the application fee for either program every four years (the equivalent of $25 per year).
- Up to $100 in airline incidental credits. It’s an annual credit that covers eligible expenses like baggage fees, seat upgrades, flight changes, lounge access and in-flight food and drink purchases.
- Visa Signature Luxury Hotel Collection. Guests will enjoy perks such as automatic room upgrades (when available), late check-out, free Wi-Fi and breakfast, VIP guest status, and a $25 food and beverage credit.
Premium Rewards points can be used toward travel booked through Bank of America Travel Center, cash back in the form of gift cards, statement credits or deposits into eligible Bank of America or Merrill accounts.
“I use the benefit as a statement credit and to buy stocks in a separate brokerage account with Merrill Lynch,” says Harlan Vaughn, senior editor at Bankrate.
However, there are some notable omissions when it comes to the extra protections and perks typically found in travel cards. Notably, the card doesn’t offer extended warranties or purchase protection, trip cancellation/delay insurance, or rental car coverage. Another unfortunate omission is the lack of travel partners to which you can transfer points.
When should I get a Bank of America Premium Rewards card?
This card offers unlimited 2x points back on all dining purchases while traveling and no international transaction fees, making it a strong choice for occasional travelers or those who travel frequently outside the U.S.
“The chip and PIN feature makes the (Bank of America Premium Rewards Card) a great card for international travel,” says credit card writer Ryan Flanigan. “It’s your go-to card when you’re heading out of the country or need to make a purchase that doesn’t fall into a bonus category.”
Plus, the card takes on a different meaning if you’re a member of the Bank of America Preferred Rewards program, an invitation-only incentive program from Bank of America and its investment division, Merrill. There’s no fee to join, and you can earn an extra 25 to 75 percent in rewards for every dollar you spend on your premium rewards card. The only requirement to qualify is to maintain a significant balance in a checking, savings or investment account with the bank.
Vaughn explains how he reached Preferred Rewards status: “I had an old 401(k) that I rolled over into a traditional IRA with Merrill Lynch. The management company had no hope, so I easily and automatically reached Platinum Honors status, which significantly boosts all of my card earnings.”
Joining the program offers additional benefits, such as savings promotions and discounts on loan products and brokerage services, depending on your level. The table below shows how to qualify for each level.
| Tear | Required balance | bonus |
|---|---|---|
| gold | $20,000 to $49,999 | twenty five% |
| platinum | $50,000 to $99,999 | 50% |
| Platinum Award | $100,000 to $999,999 | 75% |
| diamond | $1,000,000 to $9,999,999 | 75% |
| Diamond Award | Over $10 million | 75% |
While you’ll need to have a significant amount of money in the bank, a premium rewards card can significantly boost your points earning: At the highest level, you can earn up to 3.5x points on travel and dining purchases, and up to 2.62x points on everyday spending categories that don’t fall into the card’s bonus categories of dining and travel.
Even if you’re not sure if you can become a Preferred Rewards member, the $100 annual airline incidental credit is also an attractive benefit worth considering. “The airline incidental credit is available on any airline, and I use it for seat upgrades and in-flight meals,” Vaughan points out. “This benefit alone covers the annual fee of the card, making it worth keeping for the long term.”
When should you not get the Bank of America Premium Rewards Card?
If you’re looking for a mid-level credit card, this card doesn’t compete with similar travel cards in terms of earning and redeeming points. Additionally, the card offers fewer perks and benefits than mid-level cards.
“The biggest reason to avoid this card is if you absolutely cannot afford to pay an annual fee, but the card’s welcome offer is strong enough that you could recoup the annual fee over a few years, making it worth considering,” Vaughn says.
Overall, the Bank of America Premium Rewards card is probably a better value if you’re a Preferred Rewards member, as you’ll at least get a higher rewards rate on spending in certain categories. Still, the redemption options aren’t as valuable as other cards with enhanced travel and redemptions with travel partners, such as the Chase Sapphire Preferred® card or the Capital One Venture Rewards credit card.
Conclusion
While the Bank of America Premium Rewards Credit Card might not be the best option for those who love to travel, it still offers a generous welcome bonus and plenty of travel and dining rewards — plus, it’s a lot more valuable for those who are already Bank of America Preferred Rewards members.
If you’re looking for a mid-level travel credit card, this card may be worth considering, but keep in mind its limitations and that you’ll likely need Preferred Rewards membership to maximize your rewards.
Information about the Bank of America® Premium Rewards® Credit Card was last updated. September 23, 2024.
