Premium Rewards® Elite from Bank of America Review

In the ever-expanding world of credit cards, choosing the right one can be a daunting task. With each card offering a unique mix of rewards, benefits, fees, and interest rates, it can be difficult to determine which one best suits your financial needs and lifestyle. In this review, we will be taking an in-depth look at the Premium Rewards® Elite credit card from Bank of America. This card, which targets frequent travelers and dining enthusiasts, boasts a range of impressive features, including lucrative rewards points, travel credits, and exclusive perks. Let’s dive into the specifics to see if this card is the right fit for you.

Premium Rewards® Elite from Bank of America Key Takeaways

Before delving into the detailed review, here are some key takeaways of the Premium Rewards® Elite credit card from Bank of America:
– Rewards Structure: Earn 2x points for every $1 spent on travel and dining purchases and 1.5x points for every $1 spent on all other purchases.
– Sign-Up Bonus: Earn 75,000 bonus points after spending at least $5,000 in the first 90 days from account opening.
– Annual Fee: $550 annually.
– APR: Variable APR of 20.24% – 27.24% for purchases and balance transfers.
– Travel Credits: Up to $300 annually in airline incidental statement credits and up to $150 annually for lifestyle conveniences, such as streaming services and food delivery.
– Security Perks: Up to $100 in statement credits for Global Entry or TSA PreCheck® application fees every four years.
– Exclusive Discounts: Save 20% on domestic or international airfare for any class when you pay with points.
– No Foreign Transaction Fees: A significant advantage for frequent international travelers.
– Credit Score Requirement: Excellent credit score recommended (740-799).

Premium Rewards® Elite from Bank of America Pros and Cons

Pros:

1. Generous Rewards Program: The card offers a high rewards rate of 2x points on travel and dining, and 1.5x points on all other purchases.
2. Sign-Up Bonus: The 75,000 bonus points after spending $5,000 in the first three months is highly attractive.
3. Travel Credits: Up to $300 in airline incidental credits and $150 for lifestyle conveniences annually.
4. Security Perks: Up to $100 statement credit for Global Entry or TSA PreCheck® every four years.
5. No Foreign Transaction Fees: Ideal for international travelers who want to avoid extra charges.
6. Exclusive Discounts: 20% savings on airfare when paying with points.

Cons:

1. High Annual Fee: The $550 annual fee may be a deterrent for some users.
2. High Variable APR: With an APR ranging from 20.24% to 27.24%, this card is not ideal for those who carry a balance.
3. Excellent Credit Required: Requires an excellent credit score, limiting accessibility for some potential cardholders.
4. No Introductory APR: Lack of an introductory APR offer for purchases or balance transfers.

Premium Rewards® Elite from Bank of America Benefits

Reward Points

The Premium Rewards® Elite credit card provides a competitive rewards structure:
– 2x Points on Travel and Dining: For every dollar spent on travel and dining, you earn double points. This is particularly appealing for frequent travelers and food lovers who spend a significant portion of their budget in these categories.
– 1.5x Points on All Other Purchases: For all other purchases, you earn 1.5 points per dollar spent. This is higher than the standard 1 point per dollar offered by many other cards.

Sign-Up Bonus

One of the card’s standout features is its sign-up bonus. You can earn 75,000 bonus points after spending at least $5,000 in the first 90 days from account opening. This is a significant incentive, and those points can be redeemed for various rewards, including travel, cash back, gift cards, and more.

Travel Credits

The card offers up to $300 annually in Airline Incidental Statement Credits for qualifying purchases such as seat upgrades, baggage fees, airline lounge fees, and in-flight services. Additionally, you receive up to $150 annually for lifestyle conveniences, including streaming services, food delivery, fitness subscriptions, and rideshare services. These credits can effectively offset the annual fee if you take full advantage of them.

Security Perks

Frequent travelers will appreciate the up to $100 in statement credits for Global Entry or TSA PreCheck® application fees every four years. This benefit can expedite your airport security experience, saving you time and hassle.

Exclusive Discounts

Cardholders can save 20% on domestic or international airfare for any class when paying with points. This exclusive discount can result in significant savings for frequent flyers.

No Foreign Transaction Fees

For those who travel internationally, the absence of foreign transaction fees is a significant benefit. This can save you money on every purchase made abroad, as many other cards charge a fee of up to 3% for foreign transactions.

Purchase and Balance Transfer APR

The card comes with a variable APR for purchases and balance transfers ranging from 20.24% to 27.24%. While this is on the higher side, it is fairly standard for premium rewards credit cards. However, it is important to note that this card does not offer an introductory APR for purchases or balance transfers, so it is not the best choice for those looking to finance a large purchase over time or transfer a balance from another card.

Fees

– Annual Fee: $550 annually.
– Balance Transfer Fee: Either $10 or 3% of the amount of each transaction, whichever is greater.
– Cash Advance Fee: Either $10 or 3% of the amount of each transaction, whichever is greater.
– Penalty Fees: Up to 29.99% APR and up to $40 for late payments.

Credit Score Requirement

The Premium Rewards® Elite credit card from Bank of America requires an excellent credit score, typically between 740 and 799. This means that it may not be accessible to individuals with lower credit scores.

Conclusion

The Premium Rewards® Elite credit card from Bank of America is a premium card designed for individuals who frequently spend on travel and dining. With its generous rewards structure, lucrative sign-up bonus, and numerous travel credits and perks, this card offers substantial value to its target audience. However, the high annual fee and variable APR may be prohibitive for some users.

Is It Right for You?

If you are a frequent traveler or dining enthusiast with excellent credit and can take full advantage of the card’s rewards and benefits, the Premium Rewards® Elite credit card from Bank of America could be a highly rewarding choice. The generous points system, travel credits, and exclusive discounts can more than offset the annual fee if used strategically. However, if you carry a balance or are looking for a card with an introductory APR offer, you might want to consider other options.
Ultimately, the decision to apply for the Premium Rewards® Elite credit card should be based on your individual spending habits, financial goals, and ability to maximize the card’s benefits. By carefully evaluating the pros and cons outlined in this review, you can make an informed decision that aligns with your financial needs and lifestyle.