Picking a cash back credit card can feel overwhelming when there are so many options. You want something simple, but you also want to earn the most rewards possible. The Bank of America® Customized Cash Rewards credit card offers something unique: control. It lets you choose where you earn your highest rewards, which makes it different from many other cards with no yearly fee. But does this flexibility actually put more money in your pocket? We’ve looked at every detail to help you decide.
Quick Verdict: Is This Card Worth It?
The Bank of America® Customized Cash Rewards credit card is a strong choice among cards with no yearly fee. Its best feature is letting you pick your own 3% cash back category each month, giving you control that few other cards offer.
It’s an excellent card for people who can use the Bank of America Preferred Rewards® program, which can increase the top rewards rate to an amazing 5.25%.
It’s best for people who want control over their bonus rewards and for current or future Bank of America or Merrill customers. However, you might want to look at other options if you travel internationally often, since the foreign transaction fee will eat up your earnings, or if your spending is too spread out to benefit from one bonus category.
Deep Dive into Earning
Understanding how you earn rewards is the first step in evaluating any credit card. This card uses a simple tiered system, but the details are what make it powerful. It’s designed to reward you most in the areas where you spend the most, as long as you plan ahead.
The 3-2-1 Rewards Structure
The earning structure is easy to remember:
- 3% cash back in the category you choose from six options.
- 2% cash back at grocery stores and warehouse clubs.
- 1% cash back on all other purchases.
The 3% and 2% reward rates are the heart of this card’s earning power. The 1% base rate means you’re still earning something on every purchase that doesn’t fall into the bonus categories.
Your 3% Choice Categories
The main attraction is the customizable 3% category. You can change your selection once each month, or if you don’t do anything, your previous choice will continue. The six categories cover many common spending areas:
- Gas
- Online Shopping
- Dining
- Travel
- Drug Stores
- Home Improvement & Furnishings
The “Online Shopping” category is especially broad and valuable. It includes purchases at online stores, streaming services, and online subscription boxes, making it a flexible choice for modern spending habits. The “Home Improvement & Furnishings” category is another great option for those planning a big project or moving into a new home.
Understanding the Quarterly Cap
It’s important to understand the spending limit on these bonus categories. You will earn 3% and 2% cash back on the first $2,500 in combined choice category, grocery store, and warehouse club purchases each quarter.
Once you hit this $2,500 quarterly cap, all future purchases in those categories, as well as all other purchases, will earn a flat 1% cash back for the rest of the quarter. This cap is a key factor to consider when calculating the card’s maximum potential value for your spending patterns.
Unlocking Value with Rewards
While the base 3% earning rate is competitive, the true power of the Bank of America® Customized Cash Rewards credit card is unlocked through the Bank of America Preferred Rewards® program. This is the card’s “secret sauce” and what takes it from a good card to a great one for the right person.
What is Preferred Rewards?
The Preferred Rewards program is a system-wide benefit for Bank of America and Merrill customers. To qualify, you need to maintain a three-month combined average daily balance in your qualifying Bank of America deposit accounts and/or Merrill investment accounts. The program has tiers, and the higher your balance, the bigger your credit card rewards bonus.
The Three Tiers
There are three main tiers that give a rewards bonus on all Bank of America credit cards, including the Customized Cash Rewards card:
- Gold Tier: Requires a combined balance of $20,000 to $49,999. This tier provides a 25% rewards bonus.
- Platinum Tier: Requires a combined balance of $50,000 to $99,999. This tier provides a 50% rewards bonus.
- Platinum Honors Tier: Requires a combined balance of $100,000 or more. This tier provides a 75% rewards bonus.
Your New Earning Rates
This percentage bonus is applied directly to your earning rates, dramatically increasing your cash back. A 3% category becomes much more profitable with a 75% bonus. Here’s how the math works across the different tiers.
| Reward Tier | Base Rate | Gold Tier (25% Bonus) | Platinum Tier (50% Bonus) | Platinum Honors (75% Bonus) |
|---|---|---|---|---|
| 3% Choice Category | 3.00% | 3.75% | 4.5% | 5.25% |
| 2% Grocery/Wholesale | 2.00% | 2.50% | 3.0% | 3.5% |
| 1% Everywhere Else | 1.00% | 1.25% | 1.5% | 1.75% |
As the table shows, a Platinum Honors member can earn 5.25% in their chosen category and 3.5% at grocery stores and warehouse clubs. These rates are among the highest available on any credit card, especially one with no yearly fee. Even the 1.75% rate on all other purchases is competitive with many flat-rate cash back cards.
Maximizing Your Card Value
Getting the most from this card requires a bit more active management than a simple flat-rate card, but the payoff can be substantial. By being strategic, you can turn its features into a powerful cash-back-generating tool.
The Art of Category Switching
Changing your 3% category is a simple process. We’ve found it takes less than a minute through either the Bank of America mobile app or the website.
- Log in to your account.
- Navigate to the “Rewards & Deals” section.
- You will see your current 3% choice category displayed prominently.
- Click the option to “Change Category.”
- Select your new category from the list of six options.
- Confirm your choice.
The change takes effect immediately for new purchases. Remember, if you don’t make a change, your current category will automatically continue into the next month. This is a user-friendly feature that prevents you from losing out if you forget to make a selection.
Planning Your Spending
The key to maximization is aligning your 3% category with your expected spending. Think of your year in quarters and plan ahead.
- Q1 Strategy (Jan-Mar): After the holidays, you might be making online returns and new purchases during winter sales. Setting your category to “Online Shopping” can capture significant value.
- Q2 Strategy (Apr-Jun): With warmer weather comes spring cleaning and home projects. Switching to “Home Improvement & Furnishings” can earn you bonus cash back on everything from paint to a new patio set.
- Q3 Strategy (Jul-Sep): Summer is peak travel season. Selecting “Travel” for flights and hotels or “Gas” for a long road trip is a smart move to maximize rewards on vacation spending.
- Q4 Strategy (Oct-Dec): As the holiday season approaches, “Online Shopping” often becomes the most valuable category again, covering gifts, decorations, and Black Friday deals.
Advanced User Tactics
For those who truly want to optimize, there are a few more strategies to employ.
- Leverage the “Online Shopping” category’s breadth. It often includes purchases you might not expect, like concert tickets bought through Ticketmaster, some utility payments made online, or even your doctor’s co-pay if paid through their online portal.
- Don’t overlook the 2% at warehouse clubs. Many popular cash back cards, including some from American Express, specifically exclude warehouse clubs like Costco and Sam’s Club from their grocery bonus categories. This card’s inclusion of them is a significant and often underrated perk.
- Track your quarterly cap. Be mindful of the $2,500 limit on 3% and 2% earnings. If you are a heavy spender and hit this cap early in the quarter, it’s wise to switch your spending to a different card that offers a higher base rate, like a flat 2% cash back card, until the next quarter begins.
The Full Picture: Rates
A responsible cardholder understands all the terms. We believe in full transparency, so you can make a decision with no surprises. Here are the essential rates and fees associated with the Bank of America® Customized Cash Rewards credit card.
Core Fees and Rates
- Annual Fee: $0. This is a true no-yearly-fee card, meaning you can keep it open long-term to help your credit history without any cost.
- Sign-up Bonus: The card typically offers a competitive welcome bonus. A common offer is a $200 cash rewards bonus after you spend $1,000 in purchases in the first 90 days of account opening.
- Regular Purchase APR: The card has a variable APR, which will change with the market. The exact rate you receive depends on your creditworthiness at the time of application.
- Introductory APR: This card frequently features a 0% introductory APR on both new purchases and balance transfers for a promotional period (often 15-18 billing cycles). After the intro period, the standard variable APR applies. A balance transfer fee typically applies.
- Foreign Transaction Fee: 3%. This is a critical point for travelers. For every purchase you make in a foreign currency, a 3% fee will be added to the transaction. This fee will effectively cancel out, and often exceed, any rewards you earn.
- Late Payment Fee: A fee applies if you do not make your minimum payment by the due date.
Perfect Fit or Pass?
This card isn’t a one-size-fits-all solution. Its value depends heavily on your personal financial habits and relationship with Bank of America. Let’s look at a few common profiles to see where it fits best.
The BofA Power User
This person already has their checking, savings, or investment accounts with Bank of America or Merrill. Their combined balances qualify them for at least the Gold tier of the Preferred Rewards program. For this individual, the Bank of America® Customized Cash Rewards credit card is an absolute must-have. The ability to boost cash back to 3.75%, 4.5%, or even a massive 5.25% on a chosen category with no yearly fee is an unbeatable deal. It becomes the centerpiece of their wallet.
The Strategic Spender
This individual may not bank with Bank of America but is a savvy optimizer. They have predictable, concentrated spending in one of the six 3% categories, such as a long commute (Gas) or a major online shopping habit. For them, this card is a very strong choice. Earning a consistent 3% in a key spending area without a yearly fee is a clear win. It pairs exceptionally well with other cards in their wallet, such as a flat 2% card for all other spending.
The Credit Card Beginner
This person is looking for their first or second credit card. They want something simple with no yearly fee to build credit and earn some rewards. The Customized Cash Rewards card is a good, but potentially complex, starting point. The 3% choice category adds a layer of management that might be a hassle for someone new to credit card rewards. A simpler flat-rate card could be easier to manage, but this card offers higher earning potential for those willing to engage with its features. The 0% intro APR can also be a valuable safety net.
Who Should Pass
The primary person who should avoid this card is the frequent international traveler. If you spend significant time and money abroad, the 3% foreign transaction fee is a deal-breaker. This fee will cost you more than any rewards you could possibly earn on those purchases. For this user, a card with no foreign transaction fees is not just a perk; it’s a necessity.
Card vs. The Competition
To truly understand this card’s place, we need to see how it compares to other top cash back cards. Each has a different philosophy on how you should earn rewards.
vs. Chase Freedom Flex℠
The Chase Freedom Flex℠ offers 5% cash back on up to $1,500 in combined purchases in bonus categories that rotate each quarter. This is a higher rate than BofA’s base 3%, but the categories are chosen by Chase, not you. The trade-off is clear: Chase offers a potentially higher earning rate, but the b of a cash rewards card offers complete control and predictability over your top bonus category.
vs. Citi Custom Cash® Card
The Citi Custom Cash® Card is perhaps the most direct competitor. It offers 5% cash back on your top eligible spend category each billing cycle, up to $500. Citi’s card is automatic; it analyzes your spending and awards the 5% without you having to pre-select anything. However, its spending cap is much lower ($500 per billing cycle vs. BofA’s $2,500 per quarter). BofA requires you to choose a category, but it rewards you on a much higher amount of spending.
vs. Flat-Rate 2% Cards
Cards like the Wells Fargo Active Cash® Card offer an unlimited 2% cash back on all purchases. This is the ultimate in simplicity. The b of a cash rewards card only provides superior value if a significant portion of your spending falls into your chosen 3% category and the 2% grocery/warehouse category. To beat a 2% card, you must actively use the bonus categories. For those who value simplicity above all, a flat-rate card may be a better fit.
Application and Final Thoughts
If you’ve decided this card is the right fit for you, the final steps are straightforward.
What You’ll Need to Apply
You will generally need a good to excellent credit score to have the best chance of approval, typically a FICO score of 670 or higher. The application process is standard and can be completed online in minutes.
You can learn more and apply on the official Bank of America® Customized Cash Rewards credit card application page.
Our Final Recommendation
The Bank of America® Customized Cash Rewards credit card carves out a unique and valuable niche in the credit card landscape.
For existing Bank of America and Merrill customers who can qualify for Preferred Rewards, this card is not just a good choice; it’s arguably the best no-yearly-fee cash back card available. The rewards boost transforms it into a financial powerhouse.
For everyone else, it stands as a superb strategic tool. If you have concentrated spending in one of its flexible categories, it allows you to earn a solid, reliable 3% back with no yearly fee. It is a perfect card to pair with another primary card to maximize every dollar you spend.
With its powerful combination of flexibility and boosted rewards through the Preferred Rewards program, the Bank of America® Customized Cash Rewards credit card stands out as a uniquely valuable tool for the savvy spender.
