BankAmericard Cash Rewards for Students Visa Review

bofa_cash_rewards_visaThe BankAmericard Cash Rewards for Students Visa is aimed at college students, or those just out of college, who are starting to build their financial future. It offers a solid cash back rewards program as well as 0% introductory APR rates and a new member signup bonus. This card is part of the Visa network and is issued by Bank of America.

New account holders have the opportunity to earn $100 in bonus cash rewards. To qualify, you must make at least $500 in eligible net purchases on your card within the first 90 days that your account is open. Net purchases are the total amount of your transactions minus any fees, returns, or adjustments. Once you qualify, you should allow 8-12 weeks for the bonus cash rewards to post to your account. This is an online-exclusive offer and is available to new cardholders only.

The BankAmericard Cash Rewards for Students Visa is currently offering new members a 0% introductory APR on purchases for the first 12 billing statements once your account is open. This 0% APR also applies to balance transfers. However, please note: Balance transfers must post to your account within 60 days of opening your account to qualify for the 0% introductory APR. After this time, your annual percentage rate on purchases and balance transfers will be between 12.99% and 22.99% based on your creditworthiness at the time of approval. All rates are variable and based on the Prime Rate.

Important: Even during the introductory APR period, balance transfers are subject to a fee of either $10 or 3% of the total balance transfer amount- whichever is greater. 3% is a fairly standard rate among banks for this service. However the $10 minimum is nearly double what most credit card issuers charge.

Card members earn cash back rewards at the following rates:

  • 3X per dollar spent on qualifying gas purchases
  • 2X per dollar spent on qualifying grocery store purchases
  • 1X per dollar spent on all other purchases

Gas and grocery purchases must be submitted by retailers with the accepted industry standard merchant code to qualify for the triple and double cash back rewards. Be aware that most superstores and discount warehouse retailers (Target, WalMart, Costco, Sam’s Club) that sell groceries and/or gas do not qualify for the bonus rewards rate. Purchases from these types of merchants will earn 1% cash back.

The Gas and Grocery Bonus Categories have a quarterly cap of $1,500 in combined qualifying purchases. Any purchases over this amount will earn the 1% cash back rate.

Cash rewards do not expire as long as your account is in good standing. There is no limit to the amount of rewards you may earn overall. Cash rewards may be redeemed in the following ways:

  • A statement credit
  • A check
  • An electronic deposit to a Bank of America checking or savings account
  • A contribution to a Merrill Lynch Cash Management Account

A notable perk to cardholders is that any deposit made to a Bank of America checking or savings account or to a Merrill Lynch Cash Management Account will earn a 10% bonus on the amount you deposit. For example, $50 in rewards will be worth $55.00 when deposited into one of these accounts.

Members have access to Bank of America services which can help you stay on top of your finances. These include:

  • Mobile Banking- Allows you to pay your bills online, check available credit, and perform other financial transactions securely from nearly any location.
  • Text Banking- Allows you to send a text requesting account information. A reply only takes seconds to receive.
  • Account Alerts- Allows you to keep track of balances and payment due dates. You have the option of either text alerts or emails.

Account holders are charged a 3% foreign transaction fee on all purchases made outside of the U.S.

The BankAmericard Cash Rewards for Students Visa includes smart-chip technology for added protection and security when making purchases at chip-enabled terminals. This will soon be the security standard in the U.S. and is already widely used and accepted throughout the world.

There is no annual membership fee for this card.

The Facts

Below we have broken down the details of the BankAmericard Cash Rewards for Students Visa to help you determine if it’s a good choice for you.

The Good:

Signup bonus:

This online-exclusive offer gives new members the opportunity to earn $100 in cash back rewards. To qualify for this bonus, you must spend at least $500 on qualifying net purchases within the first 90 days that your account is open. Net purchases are the total amount of your transactions minus any credit, returns, or fees. Once the spending threshold is met, it may take 8-12 weeks for the $100 bonus amount to post to your account. Current cardholders are not eligible for this offer.

0% introductory APR:

New card members receive a 0% introductory APR on purchases and balance transfers for the first 12 billing statements that your account is open. An important note: balance transfers must be completed and post to your account within 60 days of opening your account to qualify for this introductory rate. A balance transfer fee of 3% of the total amount of the transfer or $10 (whichever is greater) is not waived and applies to any and all balance transfers.

After this time, your APR will be 12.99%- 22.99% (variable based on the Prime Rate) depending on your creditworthiness at the time you are approved for the card.

Cash back rewards program:

Cardholders earn cash back rewards on everyday purchases at the following rates:

  • 3X per dollar spent on qualifying gas purchases
  • 2X per dollar spent on qualifying grocery store purchases
  • 1X per dollar spent on all other purchases

Note: There is a quarterly spending limit of $1,500 in combined gas and grocery purchases. Amounts over this spending cap earn 1% cash back.

Rewards do not expire:

Cash back rewards do not expire as long as your account remains active and in good standing. Other than the quarterly spending cap on rewards bonus categories, there is no limit on the amount of rewards you can accumulate overall in the program.

Rewards are easily redeemed:

Cash rewards may be redeemed in the following ways:

  • A statement credit
  • A check
  • An electronic deposit to a Bank of America checking or savings account
  • A contribution to a Merrill Lynch Cash Management Account

10% rewards bonus:

Any cash back rewards deposit made to a Bank of America checking or savings account or to a Merrill Lynch Cash Management Account will earn a 10% bonus on the amount you deposit. For example, $50 in rewards will be worth $55.00 when deposited into one of these accounts. This is a definite perk if you are a Bank of America customer.

Additional Bank of America benefits:

Members have access to Bank of America services which can help you stay on top of your finances. These include:

  • Mobile Banking- Allows you to pay your bills online, check available credit, and perform other financial transactions securely from nearly any location.
  • Text Banking- Allows you to send a text requesting account information. A reply only takes seconds to receive.
  • Account Alerts- Allows you to keep track of balances and payment due dates. You have the option of either text alerts or emails.

No annual fee:

This card has no annual fee.

The Bad:

Variable APR:

Once the introductory APR ends, your specific annual percentage rate will be between 12.99% and 22.99% depending on your credit score and financial history at the time of approval. If you have an average or less credit score (670 or below FICO) you may be charged a high APR.

Foreign Transaction Fees:

Members are charged a 3% foreign transaction fee on all purchases made on the card while traveling internationally.

The Ugly:

Bonus Rewards Categories are capped:

There is a quarterly spending limit of $1,500 in combined gas and grocery purchases. Amounts over this earn 1% cash back.

The Fine Print regarding merchant codes:

Gas and grocery purchases must be submitted by retailers with the accepted industry standard merchant code to qualify for the triple and double cash back rewards. Most superstores and discount warehouse retailers (Target, WalMart, Costco, Sam’s Club) that sell groceries and/or gas do not qualify for the bonus rewards rate. Purchases from these types of merchants will earn 1% cash back.

10% rewards bonus favors Bank of America customers:

This bonus is only available to cardholders who deposit their rewards into a qualifying Bank of America checking or savings account or a Merrill Lynch Cash Management account. If you are a non-Bank of America banking customer, you could be losing out on a significant amount of rewards.

The BankAmericard Cash Rewards for Students Visa offers people just starting out financially the opportunity to have a rewards credit card with no annual fee. Even with the quarterly cap on bonus categories, the $1,500 in combined grocery (2X) and gas (3X) purchases is still reasonable. Plus all other purchases earn 1% cash back which is a decent return. The 0% introductory APR for the first 12 months on balance transfers (must be completed within the first 60 days) is a good opportunity to move an existing high-interest credit card balance. It gives you a year to pay off your old balance without incurring any finance charges.