The Bank of America Travel Rewards is the BOA no annual fee travel credit card. There aren’t too many travel rewards cards without an annual fee that let you redeem your rewards points for any type of travel. Although your points have a fixed value, unlike other valuable miles. The Bank of America travel card is one of the few no annual fee travel cards. And while having a no annual fee travel card is nice, it’s also not the most rewarding.
Is this fee-free travel card worth it or should you upgrade to one with an annual fee?
Zero Annual Fees or Foreign Transaction Fees
You will never pay a foreign transaction fee or an annual fee with the Travel Rewards credit card.
Bank of America is also offering 0% APR on all new purchases for the first twelve months. If you need a balance transfer credit card, this one doesn’t offer any promotions.
The Bank of America Travel Rewards is optimized for budget-savvy travelers that are ready to earn rewards points on every purchase and pay their balance on time each month.
Earn 1.5 Points on Every Purchase
This is a flat rate travel rewards credit card. You earn 1.5 points on every purchase, regardless of the purchase category. For every $100 you spend, you earn 150 points.
The Travel Rewards card has a higher purchase reward payout than it’s primary no fee competitor, the Capital One VentureOne that only earns 1.25 points per $1 spent. With the Bank of America loyalty bonus, the earning difference is even higher.
The 1.5 point payout is still lower than similar flat rate travel rewards cards that charge an annual fee. The Capital One Venture Card and Barclaycard Arrival Plus both earn 2 points per $1 spent on all card purchases.
Earn a Bank of America Loyalty Bonus
If you are a Bank of America or Merrill Lynch customer, you can earn a 10% to 75% point bonus depending on the size of your bank account or brokerage account balance.
Assuming you spend $24,000 a year ($2,000 monthly) in card purchases, you will earn the following loyalty bonus:
- Base Bonus (Non-BofA customer): $360
- 10% customer bonus (BofA & Merrill Lynch customers): $396
- 25% Gold bonus ($20,000 minimum balance): $450
- 50% Platinum bonus ($50,000 minimum balance): $540
- 75% Diamond bonus ($100,000 minimum balance): $630
The loyalty bonus can be a sweet incentive if you keep your money at Bank of America or Merrill Lynch. On a no-fee credit card, the loyalty bonus is pure profit.
Redeem Your Points for Travel Statement Credits
The only redemption options for your rewards points is a travel statement credit or gift cards.
All Bank of America points are worth 1 cent each with a minimum redemption amount of 2,500 points ($25 value) to receive a travel credit. You can also redeem your points for gift cards starting at 3,125 points.
Since this is the Bank of America travel rewards card, your best redemption option will be the travel credit. This means you will need to charge the travel expenses to your card before you can redeem the credit. The good news is that the travel credit is extremely easy to redeem because it applies to just about any airline, hotel, rental car, tour or excursion-related expense.
The one-cent redemption rate is on par with the other rewards credit cards and even the annual fee travel rewards cards when you redeem your points for a travel statement credit.
If you prefer to redeem your points or even transfer your points so you don’t have to pay for the travel to book it, you will need to consider a travel rewards card like the Chase Sapphire Preferred. And, your points can be worth at least 1.25 cents each when you redeem them!
Additional Bank of America Travel Card Benefits
Besides the Bank of America loyalty bonus for purchase rewards, you can also enjoy a few other additional perks with this travel credit card.
Regardless of where you bank, you get free access to your FICO score by owning the Bank of America Travel Rewards card. Your score is updated monthly and can be accessed by the mobile app or online website.
If you are a Bank of America customer, you can link your credit card to your checking or savings account for free overdraft protection. Those hefty overdraft fees can be a thing of the past if you occasionally get hit with them. Instead, BofA will charge your credit card the insufficient amount to avoid the fee.
Besides the free FICO score and overdraft protection, this is a no-fee credit card which means you primarily own it for the travel rewards, not the additional amenities like free hotel nights.
Sign-Up Bonus
The sign-up bonus is 20,000 bonus points after spending $1,000 in the first 90 days. That’s a $200 bonus statement credit that is easy to achieve. For a no-fee travel credit card, this bonus is a little more valuable than most. Many no-fee rewards cards have a bonus of $150.
Advantages of Bank of America Travel Rewards
Here’s why the Bank of America Travel Rewards can be a perfect rewards card for you:
- No annual fee or foreign transaction fee
- Earns 1.5 points per $1 spent (more than other no fee flat-rate rewards cards)
- BofA and Merrill Lynch loyalty bonus of 10%+
- Receive a travel credit for nearly any travel purchase
This travel card will be most lucrative to Bank of America and Merrill Lynch customers because of the loyalty bonus.
Disadvantages of Bank of America Travel Rewards
These are a few reasons to pass on the Bank of America Travel Rewards:
- Rewards points can only be redeemed for travel statement credits and gift cards
- Points only have a maximum redemption value of 1 cent each
- Can only earn 1.5 points per dollar if you aren’t a Bank of America or Merrill Lynch customer
If you want a no-frills rewards card that lets you redeem rewards for any travel purchase, these negatives likely won’t affect you.
Alternatives to the Bank of America Travel Rewards
When you want a more robust travel rewards card, you might consider a fee-free co-brand travel card like these ones to earn points that can be redeemed directly through your favorite travel provider:
- United TravelBank–Earn 2% on United purchases, 1.5% for everything else, plus 25% in-flight purchase credit
- Blue Delta Amex–2x miles on dining and Delta flights, 1 mile for everything else.
- Amex Hilton Honors–7x points on Hilton stays, 5x on gas, groceries, and dining, 3x point on everything else
If you crave the flexibility to redeem points and are willing to pay a reasonable annual fee, these two cards also are good options:
- Bank of America Premium Rewards –$95 annual fee, earn 2 points per $1, $100 air travel credit
- Chase Sapphire Preferred–$95 annual fee, 25% travel redemption bonus, transfer points on 1:1 basis to your favorite airline and hotel loyalty programs.
Summary on the Bank of America Travel Rewards Card
When you need a no-fee travel credit rewards card, the Bank of America Travel Rewards card is one of the better options because of it’s higher purchase reward potential, especially if you bank at BOA. If you’re serious about award travel, you will be happier using a co-branded airline or hotel card or a flexible travel rewards card.
