Bank of America is souping up its cash-back credit card.
As of June 1, BankAmericard Cash Rewards cardholders can earn 2% cash back at wholesale clubs (think Costco and Sam’s Club) in addition to 3% cash back on gas, 2% cash back on groceries, and 1% cash back on all other purchases. The bank also raised the card’s quarterly rewards caps, allowing cardholders to earn cash back on $2,500 each period instead of $1,500.
The change comes ahead of the June 20 rollout for Citi’s Costco Anywhere Visa credit card. That card, which replaces Costco’s TrueEarnings Card from American Express, will allow eligible cardholders to earn 4% cash back on gas (up to $7,000 per year, then 1%); 3% at restaurants and on travel purchases; 2% on Costco and Costco.com purchases, and 1% elsewhere. You can read more about that card here. (Full Disclosure: Citibank, Bank of America and American Express advertise on Credit.com, but this does not result in preferential editorial treatment.)
The BankAmericard Cash Rewards credit card has no annual fee and carries an annual percentage rate (APR) between 13.24% and 23.24%, depending on applicants’ creditworthiness.
A Cash-Back Card Primer
Remember, it’s always important to read the terms and conditions carefully when trying to decide what credit card is right for you. Choosing a cash-back credit card also means evaluating your spending habits, since it’s best to opt for a card that offers the highest earning potential in a category you already spend on. If you don’t have a car, for instance, a straight gas rewards card may not be the best fit for your wallet. Having said that, you can use Credit.com’s list of the best cash back credit cards in America as a starting point in your search.
Keep in mind, too, rewards credit card generally work best when you pay your balances off in full each month — otherwise, you’ll lose the points, miles or cash that you’ve earned to interest. And you should check your credit before applying for any new plastic, since the better cards on the market typically require a good credit score. You can see where your credit stands by viewing your two free scores, updated each month, on Credit.com.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
More Money-Saving Reads: