Bank of America Power Rewards Visa Card Review

This card offers more redemption options than BofA's Cash Rewards Visa Card.

• People with fair to good credit who want a points rewards card.

Credit Rating Required

• Fair to Excellent (660+)

Pros

• $50 cash back bonus if you spend $50 in first 60 days.
• No annual fee.
• No rebate limit.
• Long zero percent intro period.
• No preset spending limit.

Cons

• High balance transfer fee (4 percent).

Rewards

• One percent cash-back rebate on spending.
• Three percent back on gas, grocery and drugstore purchases first six months.

APRs

• Zero percent on purchases and balance transfers for first seven or 10 billing cycles, depending on your creditworthiness.
• 12.99 to 20.99 percent after introductory period.
• Penalty APR: None.

Fees

• No annual fee.
• Balance transfer fee: 4 percent of balance.
• Late payment fee: Up to $35.
• Returned payment fee: Up to $25.

The Bank of America Power Rewards Visa is similar to the Bank of America Cash Rewards Visa CardM. The main difference is the Power Rewards Visa gives you rewards redemption options in addition to cash, so you earn points instead of dollars.

You earn one point for every dollar you spend and, for the first six months, you earn three points per dollar back on gas, groceries, and drug store purchases.

Like the Cash Rewards card, you earn a fat $50 statement credit if you make just $50 in purchases in the first 60 days after you open the account. That's about two tanks of gas for some cars.

You can earn unlimited points which are valid for five years. This is a Visa Signature card, there's no preset spending limit. But that usually doesn't mean you get unlimited credit. Your spending limit may be determined by your income, purchases, and payment history

Besides cash, you can redeem your points for gift cards, airfare and merchandise. Redemptions start at 2,500 points for $25 cash, 3,500 for gift cards, and 15,000 for airline tickets. If you'd like, you can also have your cash rewards redeemed automatically by check, as a statement credit, an electronic deposit to your checking or savings account, or credited to your mortgage loan. The latter two can be sent to any bank - it doesn't have to be BofA.

I prefer cash rewards, because they're easier to understand and there's no mistake what the rewards are worth. Points can be a little nebulous. However, this card gives you both options.