- Earn a $25 cash reward for each calendar quarter in which all of your monthly payments are received on or before the due date and are more than the minimum payment due. Your account must remain open and you must have a payment due in each of the monthly cycles of the calendar quarter to be eligible for the quarterly cash reward; a zero balance or a credit balance does not qualify.
- Earn an additional $5 cash reward per quarter if you have a Bank of America checking or savings account.
- Cash back is automatically credited to your card balance, unless otherwise directed into your BofA bank account.
- No annual fee.
The draw is that you could charge just $5 to the card every month, wait for the statement to close, and then pay off that $5 every month, and end up with $100 a year in rewards (or $120 a year with BofA account). It would take $5,000 of total purchases at a theoretical 2% cashback rate to get to $100 in rewards.
The first catch is that you need to maintain this every single month. If you skip just one month and have a zero balance, or somehow a refund has you end up with a negative balance, or you don’t pay the minimum due on time, then you forfeit the entire $25 for that quarter. Remember that by default the $25 reward is applied to your credit card balance, so even that could put you negative in a month. You have to pay attention to this card.
The second catch is that there is no other rewards structure, not even a flat 1% cash back. There is no incentive to put any significant purchases on this card, as you won’t get any additional cash back.
In the end, this card would work best for:
- People who naturally charge very little on their cards, but at least something every month. Maybe you’ll miss out on a quarter here and there, but with small total purchase amounts it would still be more than you’d get from a normal rewards card.
- Detail-oriented folks who are willing to jump through the hoops to get that $100 to $120 per year by charging small amounts and paying them off every month. (Then put all your other charges on a 1%/5% or flat 2% cashback card or other better card.) You could try and automate this somehow with a scheduled $5 monthly charitable contribution, put Netflix bill on auto-pay, or something similar. I can’t recall if BofA lets you also automate the payment.
I think the best play here is to try and convert an existing Bank of America credit card that you don’t use anymore (cash out the rewards completely first!). Ideally you’ll get access to the benefits without an additional credit check. Otherwise, in the current environment, it is quite easy to get $500 or more value upfront out of a new credit card application. A credit pull is valuable and I’d rather have a big bonus now instead of having to jump through hoops for 4-5 years. If/when the bonuses start to drop, then this card would start to look better.