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Bank of America Premium Rewards Credit Card: Is it Worth it?

by | Mar 23, 2020

If you love traveling but don’t use a travel rewards credit card, you could be missing out on rewards and benefits. A good travel rewards credit card allows you to earn points for your trips while giving you perks like car rental insurance and lost luggage coverage. 

The Bank of America Premium Rewards credit card is one of the most popular travel rewards credit cards out there right now. Allowing you to earn points for travel, dining, and other purchases, you can build up valuable rewards quickly. 

Here’s why the Bank of America Premium Rewards card is such a great choice. 

Name of card: Bank of America Premium Rewards Credit Card

Best for: The Bank of America Premium Rewards credit card is best for people who are frequent travelers or who spend a significant amount of money dining out. 

Rewards: The Bank of America Premium Rewards card allows you to earn 2X points per $1 spent on travel and dining out. The travel category is more extensive than you may think, so you can earn 2X points on transactions like parking lot fees or tolls. 

You can also earn 1.5X points per $1 spent on all other purchases, such as groceries or retail buys. 

Your points are worth one cent each. You can redeem them in a variety of ways, including:

  • Statement credits
  • Bank deposits
  • Travel expenses
  • Gift cards

You need to have at least 2,500 points before you can redeem them — a $25 value. 

Other perks: Although the Bank of America Premium Rewards credit card offers useful rewards, it also has valuable benefits that can enhance your travel experience. 

  • Airline Incidental Statement Credit: If you use your Premium Rewards card to pay for incidental purchases while onboard a plane, such as to buy WiFi or drinks, you could get a statement credit worth up to $100 each year. 
  • Airport Security Fee Credit: Streamline your airport experience by signing up for TSA Pre✓ or Global Entry. Use your card to pay for the application — it’s $85 for TSA Pre✓ or $100 for Global Entry, — and you could get a statement credit that covers that cost. 
  • Luxury Hotel Collection: Book your travel through the Luxury Hotel Collection website and you could get perks like automatic room upgrades, complimentary breakfast, free WiFi and late checkout. 
  • Visa Signature Concierge: You could get access to the Visa Signature Concierge with the Premium Rewards credit card. The Signature Concierge acts as a personal assistant, helping you book travel and secure reservations. You can call your Visa Signature concierge service 24/7 at 1-800-953-7392.
  • Travel Coverage: The Premium Rewards card offers comprehensive insurance for your next trip, including Trip Delay Reimbursement, Trip Cancellation Insurance, Baggage Delay Coverage, Lost Luggage Reimbursement, Common Carrier Travel Accident Insurance, Auto Rental Collision Damage Waiver and Roadside Dispatch Service.
  • Shopping Coverage: The Premium Rewards card offers coverage on eligible purchases. It offers purchase security, warranty manager service and return protection. 
  • Free FICO Score: You can access your FICO score for free, and it’s updated monthly, helping you monitor your credit. 

Annual fee: The Bank of America Premium Rewards credit card has a $95 annual fee. 

Other fees:  The Premium Rewards credit card has no foreign transaction fees, making it a good choice for those who travel overseas. 

If you do a balance transfer, you’ll have to pay a 5% fee, with a minimum of $10. Cash advances have a 3% fee, with a $10 minimum charge. 

Bonus: If you spend at least $3,000 on purchases within the first 90 days of opening an account, you’ll get 50,000 bonus points. That’s a $500 value. 

How this card might bring joy to your wallet: For a travel credit card, the Bank of America Premium Rewards credit card offers valuable rewards, allowing you to earn points on travel arrangements and dining out. With added perks like a $100 airline incidental statement credit, a fee credit for airport security programs, and travel insurance options, the card provides a great amount of value for frequent travelers. 

If you travel at least a couple of times a year, the Bank of America Premium Rewards credit card could be an excellent addition to your wallet. Offering significant rewards and benefits, you can use it to offset your travel costs and get access to money-saving coverages and services. 

How this card might not bring joy to your wallet: If you only travel occasionally, the Bank of America Premium Rewards credit card may not be worth the $95 annual fee. Instead, you’d be better off with another rewards credit card that allows you to earn a higher rate of return on your routine purchases, like gas or groceries. 

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