BofA Cash Rewards - Good Deal?

[NRB525]

---

@MaisCher wrote:

All, 

He's working and I want him to have a card in his own name (just one) for gas and his cell phone bill. It would be paid in full on pay day but I want him to get used to the responsiblity.

 . 

---

Why? It is going to be his only card. That card should report a balance every statement. Building responsibility means setting up autopayment to draw from his checking account where his paycheck should go, and then understanding how to manage that cash account to be prepared to fund the CC autopayment when it comes due. Remember, "pay before statement cut" is not normal behavior. Paying prior to payment due date, is.

As a starter card, I would suggest the BBR is the way to go. The $100 is a reward that you can "pick your measure":

If you want to call it a "5% on everything" card, then annual spend of $2,000.

If you want to call it a "3% on everything" card, then annual spend of $3,333.

if you want to call it a "2% on everything" card, then annual spend of $5,000.

Don't dismiss the BankAmeriDeals. I regularly get discounts at HairMasters (5% or 10%), ARCO (10% up to a $2 reward), Papa Murphy's (10% on purchases during a time period), FiveGuys burgers, and Starbucks, and there's three sporting good stores now with all purchases up to a limit during a time period. At other times, Sports Authority also has these deals. As I use a merchant deal, they tend to reappear in a few weeks.

These are charges I make on two cards that have BT going on, and I'm able to pay them without mucking up the 0% APR on the BT, without paying any interest.

[icyhot]

But this is a teenager we're talking about. Sure it can be utilized more for rewards chasing adults, but a simple cash back on every purchase card that you don't have to micromanage makes way more sense in this case

[Open123]

Here's my perspective.  

Use the BBR for a small token charge to trigger the free money, and have another card for general spending.  This will teach financial discipline, the concept of maximizing return, and handling multiple TLs.  If it were me (as I had with my Niece), I'd him create 5 no-fee TLs.  

Not suggesting you should do this, but just sharing my views on how a young person can best learn and handle credit.

[Anonymous]

---

@icyhot wrote:
But this is a teenager we're talking about. Sure it can be utilized more for rewards chasing adults, but a simple cash back on every purchase card that you don't have to micromanage makes way more sense in this case

---

I'm sorry, but what's to micromanage with the BBR?  You set it up to automatically pay in full on the statement date, and use the card at least once a month.  Automatic $25 per quarter.  Is that so hard?

Unless is spending is going to be in the thousands, put me firmly on the side of him getting the BBR.

Chris.

[sreneesa]

I think the QS or Citidouble would be a good choice.

Both are no hassel rewards, and he will get a fixed cash back rate for every purchase.  I have several different cash rewards ccs, but honestly, I use my QS way more than the others... I do not have the citidouble.. do not like the apr they were trying to offer so perhaps in the future. Not really in a hurry. 

I do have the BofA card and use it for my 3% gas and it comes in handy if you drive alot and have a huge monthly gas bill.... but since your son gas bill isn't that much may not be worth it overall. His general spend in each category isn't that much. 

QS or Citidouble overall would be more beneficial IMO for a teenager. My daughter has QS, Us Bank, Chase, and Walmart and she does not care too much about rotating categories are maxmizing her rewards. lol.. I try and talk to her about it and she just is uninterested. She likes to swipe and go. She is 20 but started her credit journey almost two years ago. 

All the cards mentioned are great first cards so whatever decision you make will be good.

[icyhot]

Because mom said it will be PIF on PAYDAY, not statement date. They may or may not sync up. I just know that if my 19 year old brother wanted his first CC, the BBR would be the last thing I suggested

[MaisCher]

I liked the suggestion of just having it setup on auto pay instead of him paying in full on payday. He banks with Wells Fargo and has a USAA savings account but neither had cards I thought would benefit him much.

Citi Double Cash is looking good as someone else suggested it's no hassle. I don't think he's ready for the "maximizing benefits" lesson yet since his attention span is terrible lol He needs a swipe and go option. I only want him with one card now because too much credit is still too tempting for a child his age.

[sreneesa]

---

@MaisCher wrote:

I liked the suggestion of just having it setup on auto pay instead of him paying in full on payday. He banks with Wells Fargo and has a USAA savings account but neither had cards I thought would benefit him much.

Citi Double Cash is looking good as someone else suggested it's no hassle. I don't think he's ready for the "maximizing benefits" lesson yet since his attention span is terrible lol He needs a swipe and go option. I only want him with one card now because too much credit is still too tempting for a child his age.

My daughter attention span isn't that great either. lol. I think citi is a great choice.

[icyhot]

Double Cash, QS, BofA Cash, all great choices. Citi and Cap1 have SP CLI options and give a little more return on uncategorized spend

[celluloid17]

I think a general cash back card is the way to go.  The Citi Double Cash is great, but given his spend, it will take him about 6 months before he would cross the $25 redemption threshold to be eligible to receive the cash he has accumulated.  With Quicksilver, he wouldn't have to wait as he can redeem at any amount.  I say this as someone who has the Double Cash, but not the Quicksilver.