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Bank of America Power Rewards Visa Card Review

More Rewards Options Than Just Cash

About.com Rating 4 Star Rating

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

Who the Bank of America Power Rewards Visa Card Is For

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

Credit Rating Required

  • Fair to Excellent (660+)

About the Bank of America Power Rewards Visa Card

Pros

  • $50 cash back bonus if you spend $500 on retail in first 90 days.
  • No annual fee.
  • No rebate limit.
  • Long zero percent intro period.
  • No preset spending limit.

Cons

  • High balance transfer fee (4 percent).

Rewards

  • 1% rebate on spending.
  • 3% back on gas, grocery and drugstore purchases first six months.

APRs

  • 0% on purchases and balance transfers for first 12 billing cycles.
  • 12.99 to 22.99% after introductory period.
  • Cash advance APR: 22.99% or 24.99% depending on the type of cash transaction.
  • Penalty APR: 29.99%.

Fees

  • No annual fee.
  • Balance transfer fee: $10 or 4%.
  • Cash advance fee: $10 or 4% (or 5% depending on the transaction).
  • Foreign transaction fee: 3%.
  • Late payment fee: Up to $35.
  • Returned payment fee: Up to $25.

Bank of America Power Rewards Visa Card Review

The Bank of America Power Rewards Visa is similar to the Bank of America Cash Rewards Visa Card. 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 $500 in retail purchases in the first 90 days after you open the account. Many other cash back rewards cards are offering $100 bonus for $500 of spending in the first 90 days.

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.

Recommendation

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.

Terms last updated March 4, 2013. Credit card terms and sign-up bonuses are subject to change from the time of this review.

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