AAA Rewards Visa Review

aaa_rewards_visaThe AAA Rewards Visa is a rewards credit card designed for people who regularly use AAA for domestic travel and want to earn rewards when doing so. It currently offers new members a 0% introductory APR on balance transfers in addition to a signup bonus. You do not have to be a current member of AAA to apply. This card is issued by Bank of America.

New cardholders can now qualify for a $100 statement credit the details of which are as follows: Make at least $250 in qualifying Net Purchases within 90 days of when your account is opened. Net purchases are the total amount of transactions minus any credits, returns, or fees. Once you meet the spending threshold it may take 8-12 weeks for the statement credit to post to your account. Note: This offer is not available to current card members.

The AAA Rewards Visa offers a 0% introductory APR on balance transfers for the first 12 billing cycles of your account. Important: To qualify for this rate, any balance transfer must be completed and post to your account within the first 60 days that your account is open. After this promotional period expires, your APR will be 12.99% to 22.99% based on your creditworthiness at the time of approval. All rates are variable and based on the Prime Rate.

A balance transfer fee of 3% of the total amount of the transfer or $10 (whichever is greater) applies to all balance transfers. This fee is not waived during the promotional 0% APR period.

There is no introductory APR offered at this time on purchases. Your specific APR will vary between 12.99% and 22.99% and is determined at the time you are approved for the card.

Card members earn reward points at the following rates:

  • 3 points per dollar spent on qualifying net purchases through any participating AAA Club
  • 2 points per dollar spent on qualifying net purchases at grocery stores, gas stations, and drug stores
  • 1 point per dollar spent on all other qualifying net purchases

Important AAA Member Rewards Program information:

1) To earn triple points, the merchant of record must be AAA or another eligible travel merchant such as individual major airlines, car rental agencies, or hotels, motels, inns, or resorts. Please be aware that AAA Clubs in Northern California, Nevada, and Utah are not participating and any purchases made at these locations will not qualify for the triple points rewards.

2) Superstores such as WalMart and Target and warehouse clubs such as Sam’s and Costco are not included in the eligible merchant list for grocery, gas, and drug store purchases. Transactions from these retailers will not earn double points.

3) Points expire 5 years after the month they are earned.

4) Rewards begin at 2,500 points for air and 5,000 points for cash and AAA rewards vouchers.

5) The current redemption value for cash rewards (statement credit, check or deposits into a checking or savings account) is 1% of the amount of points redeemed.

6) The redemption value for other reward options varies based on the type of reward and amount of points redeemed.

Cardholders have access to Bank of America technology and services including:

  • Mobile Banking- Allows you to check available credit, pay your credit card bill online, and complete other financial transactions quickly and securely from almost anywhere.
  • Account Alerts- Allows you to keep track of balances and payment due dates. Available via email or text alerts.
  • Text Banking- Allows you to ask a question about your account simply by sending a text. Your reply comes in seconds.

Members are charged a 2% foreign transaction fee on all purchases made on the card while traveling outside of the U.S.

The AAA Rewards Visa is chip-enabled for enhanced security and protection.

This card has no annual fee.

The Facts

Below we have broken down the specific details of the AAA Rewards Visa to help you determine if it’s the right card for you.

The Good:

Signup bonus:

New members have the opportunity to earn a $100 statement credit. To qualify, you must spend at least $250 on qualifying net purchases within the first 90 days that your account is active. Net purchases are the total amount of transactions minus fees, credits, or returns. It may take 8-12 weeks for the statement credit to post to your account. This offer is available to new members only.

0% introductory APR:

New cardholders are currently being offered a 0% APR on balance transfers for the first 12 billing cycles from when your account is opened. Balance transfers must be completed and post to your account within the first 60 days that your account is active. You will be assessed a balance transfer fee of 3% of the total amount of the transfer or $10 (whichever is greater) even during this introductory period. After this time, your APR will be between 12.99% and 22.99% (variable) determined at the time of approval.

Good rewards program:

Card members earn reward points at the following rates:

  • 3 points per dollar spent on qualifying net purchases through any participating AAA Club
  • 2 points per dollar spent on qualifying net purchases at grocery stores, gas stations, and drug stores
  • 1 point per dollar spent on all other qualifying net purchases

Easy to redeem points:

Points may be redeemed for cash in the form of a statement credit, check, or deposit into a Bank of America checking or savings account. They may also be redeemed for travel rewards and other merchandise.

Bank of America benefits:

  • Mobile Banking- Allows you to check available credit, pay your credit card bill online, and complete other financial transactions quickly and securely from almost anywhere.
  • Account Alerts- Allows you to keep track of balances and payment due dates. Available via email or text alerts.
  • Text Banking- Allows you to ask a question about your account simply by sending a text. Your reply comes in seconds.

No annual fee:

Members are not charged an annual fee with this card.

The Bad:

No introductory APR on purchases:

Your annual percentage rate on purchases will vary between 12.99% and 22.99% based on your creditworthiness at the time of approval. If you have a lower credit score you may be charged a high APR for purchases and balance transfers (after the introductory period expires on balance transfers).

Foreign transaction fees:

Members are charged a 2% foreign transaction fee on all purchases made while traveling outside of the U.S. For a card that markets itself towards people who travel, this fee is fairly annoying.

Not everyone will qualify:

Bank of America states in its terms and conditions for this card that if you are approved for a credit line of $5,000 or more you will receive the Visa Signature version. However, if your credit line is less than $5,000 you will receive a Platinum Plus card which has significantly different benefits. Some applicants will not be approved for any card.

The Ugly:

Rewards expire:

Rewards expire 5 years from the month after they are earned.

Lots of fine print regarding bonus points:

To earn triple points, the merchant of record must be AAA or another eligible travel merchant such as individual major airlines, car rental agencies, or hotels, motels, inns, or resorts. AAA Clubs in Northern California, Nevada, and Utah are not participating and any purchases made at these locations will not qualify for the triple points rewards.

Superstores such as WalMart and Target and warehouse clubs such as Sam’s and Costco are not included in the eligible merchant list for grocery, gas, and drug store purchases. Transactions from these retailers will not earn double points.

Although you don’t have to be a member of AAA to apply for this card, the way that the rewards are set up definitely benefits those people who are. Triple points are earned at AAA Club locations and other qualified travel merchants so if you don’t travel a great deal it’s going to be hard to realize the greatest return on rewards. The double points rate offered on grocery store, gas station, and drug store purchases is solid but if you routinely shop at discount warehouses or superstores for these products you will only earn one point per dollar as these types of retailers do not qualify for the 2X rate.

The 0% introductory APR on balance transfers is a great opportunity to move an existing high-interest credit card balance. You’ll have a year to pay down your balance (or better yet, pay it off entirely) without getting hit with any finance charges.