Bank of America® Premium Rewards® Credit Card Review: Travel Credits Offset the Annual Fee
Our review reveals how the Bank of America® Premium Rewards® Credit Card's generous travel credits can easily offset its annual fee, making it a compelling option for travelers seeking simple rewards and valuable perks.
| Annual Fee | $95.00 |
| Sign-up Bonus | 60,000 bonus points |
| Rewards Rate | 1.5x-2x Points |
| Intro APR | None |
| Regular APR | Standard APR 19.74% - 27.74% variable |
| Other Fees | Balance Transfer Fee 5% of each transaction |
Overview
The Bank of America® Premium Rewards® Credit Card makes a strong first impression with a generous sign-up bonus worth $600 and a simple, effective rewards structure. Cardholders earn an unlimited 2 points per dollar on travel and dining purchases and a respectable 1.5 points per dollar on all other spending. With no foreign transaction fees and flexible redemption options—including cash back, statement credits, or travel—it’s a straightforward and valuable card for everyday use and trips abroad.
What truly elevates this card is how its benefits can easily offset its modest $95 annual fee. Each year, you receive up to $100 in statement credits for airline incidental fees, covering things like baggage fees or in-flight purchases. Additionally, you can get up to a $100 credit for a TSA PreCheck® or Global Entry application fee every four years. For travelers who can take advantage of these perks, the card essentially pays for itself, delivering premium benefits at a net-zero cost.
This card is an excellent fit for travelers with very good credit who want a simple rewards card with valuable, easy-to-use perks. It becomes an absolute powerhouse for existing Bank of America customers enrolled in the Preferred Rewards program, who can receive a rewards bonus of 25% to 75% on every purchase. If you're invested in the BofA ecosystem, this card is hard to beat for its sheer earning potential.
Pros & Cons
What's great
- Generous sign-up bonus
- High rewards rate on common spending categories
- No foreign transaction fees
- Valuable travel and purchase protections
- Flexible reward redemption options
Things to consider
- Annual fee applies
- No intro APR period
- High regular APR
- High balance transfer fee
Benefits
Valuable Welcome Offer and Rewards
The Bank of America® Premium Rewards® credit card starts strong with a generous sign-up bonus: earn 60,000 online bonus points after spending $4,000 in the first 90 days. This bonus is worth a straightforward $600 when redeemed for cash back or a statement credit, easily offsetting the annual fee for several years. Beyond the initial offer, the card features a compelling rewards structure. You'll earn 2 points per dollar on all travel and dining purchases, which are common spending categories for many. More impressively, the card offers an unlimited 1.5 points per dollar on all other purchases, a 50% boost over the standard 1 point per dollar found on many competing cards.
Supercharge Your Earnings with Preferred Rewards
The true power of this card is unlocked for existing Bank of America customers. If you are enrolled in the Bank of America Preferred Rewards® program, you can earn a bonus of 25% to 75% on every point you earn. For members in the highest tier (Platinum Honors), the earning rates soar to an incredible 3.5 points per dollar on travel and dining and 2.625 points per dollar on everything else. This transforms the card from a solid contender into one of the most rewarding flat-rate cards on the market, making it an exceptional choice for those with qualifying BofA or Merrill accounts.
Travel Credits That Erase the Annual Fee
While the card has a $95 annual fee, it comes packed with travel credits that can easily make up for the cost. Each year, you receive up to $100 in statement credits for airline incidental fees, such as checked bags or in-flight purchases. Additionally, you can get up to a $100 statement credit for a Global Entry or TSA PreCheck® application fee every four years. For travelers who can use the annual airline credit, the card effectively pays for itself. This value is further enhanced by the absence of foreign transaction fees and a suite of travel protections, including coverage for trip delays, cancellations, and lost luggage, providing peace of mind on the road.
Drawbacks
The most significant drawback of this card is its high ongoing APR and lack of an introductory 0% APR offer. With a variable rate of 19.74% - 27.74%, carrying a balance will quickly negate the value of any rewards earned, making this card a poor choice for anyone who doesn't pay their statement in full each month. Similarly, the 5% balance transfer fee is on the high side, so those looking to consolidate debt should look elsewhere.
While the card's $95 annual fee is reasonable, it's only worthwhile if you can take full advantage of the benefits. The up to $100 annual airline incidental credit effectively cancels out the fee, but this credit is limited to qualifying purchases like baggage fees and seat upgrades, not airfare itself. Infrequent travelers or those who don't typically incur such fees may struggle to get their money's worth.
Finally, the card's rewards structure, while solid on its own, offers a completely different level of value for existing Bank of America customers. The card transforms from a good travel card to an exceptional one for members of the Preferred Rewards program, who can earn a 25% to 75% bonus on all points. If you don't have a significant banking or investment relationship with Bank of America, you'll be missing out on the card's maximum earning potential, and other travel cards might offer a better return.
Decision Guidance
This card is an excellent fit for travelers who value straightforward rewards and can use the annual airline incidental credits to easily offset the annual fee. It becomes an absolute powerhouse for existing Bank of America Preferred Rewards members, whose rewards bonus can make this one of the highest-earning cards on the market. If you are not invested in the BofA ecosystem, however, other cards may offer more lucrative rewards in specific spending categories.
Summary
The Bank of America® Premium Rewards® credit card is a smart and straightforward choice for travelers, as its annual airline incidental credit effectively cancels out the modest annual fee. While its rewards on travel and dining are solid for anyone, the card becomes an absolute powerhouse for existing Bank of America customers in the Preferred Rewards program, who can see their earnings boosted by up to 75%.