Bank of America Business Advantage Cash Rewards Mastercard® Review

In today’s rapidly evolving financial landscape, selecting the right credit card for your business can be a game-changer. Whether you are a small business owner looking to maximize your cash flow or a seasoned entrepreneur aiming to optimize your business expenses, the Bank of America Business Advantage Cash Rewards Mastercard® is an enticing option worth considering. In this comprehensive review, we will delve into every facet of this credit card to help you make an informed decision.

Bank of America Business Advantage Cash Rewards Mastercard® Key Takeaways

Before we delve deeper into the specifics of this card, let’s highlight some of the key takeaways:
– Cash Back Rewards: Earn 3% cash back in a category of your choice, 2% cash back on dining, and 1% cash back on all other purchases.
– Welcome Bonus: Get a $300 statement credit when you make at least $3,000 in net purchases within 90 days of your account opening.
– Introductory APR: Enjoy 0% introductory APR for the first 9 billing cycles on purchases.
– No Annual Fee: This card comes with no annual fee, making it a cost-effective choice for businesses.
– Travel Benefits: Includes travel accident insurance, auto rental insurance, and emergency services.

Bank of America Business Advantage Cash Rewards Mastercard® Pros and Cons

Pros:

1. No Annual Fee: One of the most significant advantages of this card is the absence of an annual fee, allowing businesses to save on costs.
2. Flexible Cash Back Options: The ability to earn 3% cash back in a category of your choice offers great flexibility for businesses with varying spending patterns.
3. Generous Welcome Bonus: Earning a $300 statement credit by spending $3,000 within the first 90 days can provide a quick financial boost.
4. Introductory APR: The 0% introductory APR for the first 9 billing cycles on purchases can help manage cash flow and finance large purchases interest-free.
5. Travel and Emergency Services: Comprehensive travel benefits, including $100,000 in travel accident insurance, auto rental insurance, and emergency ticket replacement, enhance the card’s value.

Cons:

1. Foreign Transaction Fee: The card charges a fee for foreign transactions, which can be a drawback for businesses with international dealings.
2. Limited High Rewards Cap: The 2% and 3% cash back rates apply only to the first $50,000 in combined purchases each calendar year, after which the rate drops to 1%.
3. Variable APR: The variable APR of 18.49% – 28.49% can result in higher interest costs if balances are not paid in full.

Bank of America Business Advantage Cash Rewards Mastercard® Benefits

Cash Back Rewards

One of the standout features of this credit card is its robust cash back rewards program. Here’s a detailed breakdown:
– 3% Cash Back: You can earn 3% cash back in a category of your choice. This category can be adjusted monthly, allowing businesses to align their rewards with their spending patterns. Potential categories include gas stations, office supply stores, travel, TV/telecom & wireless, computer services, and business consulting services. This flexibility is particularly beneficial for businesses with varying monthly expenses.
– 2% Cash Back on Dining: Dining expenses are often significant for businesses, whether it’s client meetings or team lunches. Earning 2% cash back on dining can add up to substantial savings over time.
– 1% Cash Back on All Other Purchases: Any other purchases made with the card earn 1% cash back, ensuring that every dollar spent contributes to your reward balance.
It’s important to note that the 2% and 3% cash back rates are applicable on up to $50,000 in combined purchases each calendar year. After reaching this threshold, the cash back rate for these categories drops to 1%. This cap is something businesses with higher annual expenses should consider.

Welcome Bonus

The Bank of America Business Advantage Cash Rewards Mastercard® offers a competitive welcome bonus. By making at least $3,000 in net purchases within the first 90 days of opening your account, you can earn a $300 statement credit. This bonus is relatively accessible for most businesses and provides an immediate return on your spending.

Introductory APR

Managing cash flow is crucial for any business, and the Bank of America Business Advantage Cash Rewards Mastercard® offers a 0% introductory APR for the first 9 billing cycles on purchases. This feature can be particularly advantageous for businesses planning large purchases or looking to consolidate expenses without incurring interest charges. After the introductory period, the APR reverts to a variable rate of 18.49% – 28.49%, depending on your creditworthiness.

No Annual Fee

One of the most attractive aspects of this card is that it comes with no annual fee. This means you can enjoy all the benefits and rewards without the burden of an annual cost, making it an excellent choice for cost-conscious businesses.

Travel and Emergency Services

For businesses that require travel, the Bank of America Business Advantage Cash Rewards Mastercard® offers a range of travel benefits:
– Travel Accident Insurance: Provides up to $100,000 in travel accident insurance, offering peace of mind during business trips.
– Auto Rental Insurance: Covers damages to rental cars, reducing the need for additional insurance coverage.
– Emergency Ticket Replacement: Assistance with replacing lost or stolen airline tickets.
– Lost-Luggage Assistance: Support in locating and recovering lost luggage.
– Extended Protection: Option to get extended protection on eligible purchases.
These travel benefits can be incredibly valuable for businesses that frequently travel for meetings, conferences, or other business-related activities.

Rate and Fee Information

Understanding the rates and fees associated with the Bank of America Business Advantage Cash Rewards Mastercard® is crucial for making an informed decision:
– Purchase Intro APR: 0% introductory APR for the first 9 billing cycles.
– Purchase APR: Variable APR of 18.49% – 28.49% after the introductory period.
– Balance Transfer APR: Not applicable as this card does not offer a balance transfer option.
– APR for Cash Advances: 29.49% variable.
– How to Avoid Paying Interest: Your due date is at least 25 days from your statement closing date. If you pay your entire balance in full by the due date each month, you will not be charged interest on purchases.

Fees

– Annual Fee: $0.
– Fees for Balance Transfer: 4% of the amount of each transaction.
– Fees for Cash Advances: 4% of the amount of each transaction.
– Late Payment Fees: $19 if the balance is less than or equal to $100; $29 if the balance is between $100.01 – $1,000; $39 if the balance is between $1,000.01 – $5,000; $49 if the balance is greater than $5,000.

Additional Features

– Fraud Protection: Comprehensive fraud protection to safeguard your account from unauthorized transactions.
– Purchase Protection: Covers eligible purchases against damage or theft.
– Payment Flexibility: Offers flexible payment options to manage your business expenses effectively.
– Online Account Management: Manage your account and pay your bill online through the Bank of America website or mobile app.
– Customer Service: Access to dedicated customer service for any account-related queries or assistance.

Excellent Credit Required

To qualify for the Bank of America Business Advantage Cash Rewards Mastercard®, you typically need an excellent credit score, generally ranging from 740 to 799. This requirement ensures that cardholders are financially responsible and capable of managing their credit effectively.

About the Issuer: Bank of America

Bank of America is one of the largest and most reputable financial institutions in the United States. They offer a wide range of credit card options tailored to meet various needs, from personal to business use. With a strong emphasis on customer service, security, and innovative financial solutions, Bank of America has established itself as a trusted name in the banking industry.

Conclusion

The Bank of America Business Advantage Cash Rewards Mastercard® is a compelling option for businesses looking to maximize their cash back rewards while enjoying a host of additional benefits. With no annual fee, flexible cash back options, a generous welcome bonus, and a 0% introductory APR on purchases, this card offers significant value for businesses of all sizes.
However, it’s essential to consider the potential drawbacks, such as the foreign transaction fee and the cap on high rewards rates. Additionally, the variable APR can be high, so it’s crucial to manage your balances responsibly to avoid interest charges.
Overall, if your business can take advantage of the cash back rewards and travel benefits, and you can meet the credit score requirements, the Bank of America Business Advantage Cash Rewards Mastercard® is a solid choice to enhance your business financial strategy.
Before making any final decisions, it’s always advisable to review your business’s specific needs and compare this card with other available options to ensure it aligns with your financial goals. By doing so, you can make the most informed choice and select the credit card that best supports your business’s growth and success.