topic Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr in Credit Cards

What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on travel

galahad15 — Fri, 13 Sep 2019 21:19:06 GMT

Hi, I was just wondering what other forum members think what BoA's niche market may currently be for the Premium Rewards card, now that the Cash Rewards card offers a higher 3% cashback rate on travel with no AF, versus the Premium Rewards card's 2% cashback plus AF? Also just curious why would BoA offer a "Premium Rewards" card product with an AF and less cashback rewards than the standard "Cash Rewards" card product with higher cashback return and no AF?

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

K-in-Boston — Fri, 13 Sep 2019 21:28:12 GMT

Cash Rewards 2% and 3% categories are capped at a combined total of $2500 each quarter, after which every category earns 1%. Those who qualify for Premium Rewards and have Honors are quite likely to have significantly higher spend. Premium Rewards has more benefits than the Cash Rewards, including a very easy to use $100 airline credit that makes the net AF -$5.00 even if you never use the Trusted Traveler benefit.

While I have the card with no Honors, the target market for the Premium Rewards card would be those with significant deposits between BoA, Merrill Lynch, and Merrill Edge.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

FinStar — Fri, 13 Sep 2019 21:37:53 GMT

Yes, what @K-in-Boston said. Having the ML/Merrill Edge relationship + Platinum Honors definitely provides a good yield IME with the Premium Rewards card.

I would say that it was the toughest CC to obtain, even with a BoA/ML relationship.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

wasCB14 — Fri, 13 Sep 2019 21:46:39 GMT

@FinStar wrote:
Yes, what @K-in-Boston said. Having the ML/Merrill Edge relationship + Platinum Honors definitely provides a good yield IME with the Premium Rewards card.

I would say that it was the toughest CC to obtain, even with a BoA/ML relationship.

What made it tough for you? I've considered that route if my travel stops, and I figured I could just transfer maybe $200k of stocks there, get a nice M-Edge bonus, and easily pick up a Premium Rewards 3 months later.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

FinStar — Fri, 13 Sep 2019 21:54:33 GMT

Ummmm, well the fact that I was already at the cusp of $100K unsecured exposure with BoA across all products 😜, it had to go through senior management level for approval.

The first hurdle that needed to be cleared was verification/fraud (large CR file), only a few questions about my activities (no grilling thankfully), then the exposure part. That took a few days for the approval and they didn't need to rob Peter to pay Paul as far as a carve out. It would just be harder to get another approval unless I moved things around - fair enough!

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

wasCB14 — Fri, 13 Sep 2019 22:00:23 GMT

@FinStar wrote:
Ummmm, well the fact that I was already at the cusp of $100K unsecured exposure with BoA across all products 😜, it had to go through senior management level for approval.

The first hurdle that needed to be cleared was verification/fraud (large CR file), only a few questions about my activities (no grilling thankfully), then the exposure part. That took a few days for the approval and they didn't need to rob Peter to pay Paul as far as a carve out. It would just be harder to get another approval unless I moved things around - fair enough!

Lol...a problem for you and K, but not for me! No BofA credit or deposit history of any sort. Amex and Chase are the only issuers where I'm pushing the envelope a bit as far as exposure/income.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

kdm31091 — Fri, 13 Sep 2019 22:16:42 GMT

If you have no status with BoA, I don't think the Premium Rewards is really anything special. It's just a 1.5-2% cash back card with an AF. Even if you ignore the AF due to the travel credit, the base cashback rate is still just okay.

If you are Platinum, or Platinum Honors especially, the card becomes much more competitive with 2%+ cash back on everything, although you still have the AF.

An alternative with the same base earn (but not the bonus for dining/travel) is the Travel Rewards, since it has no AF, but you must redeem against travel purchases to get the full value.

Overall I think many of BoA's cards are really best if you have a relationship/Preferred Rewards. Without that they become pretty average.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

Aim_High — Fri, 13 Sep 2019 22:42:17 GMT

There's been another couple of threads on this card lately. Yes, BofA is definitely a relationship bank and the Premium Rewards card is best used in conjunction with Preferred Rewards Program. If you are Platinum Honors status ($100K+) it is really a great card.

$95 AF - $100 (Airline Fee Credit) - $25 (TSA Global Entry Rebate @ $100 over 4 years) = net profit $30 just to carry the card and use it minimally. They PAY you to use it, even without the cash back valuation. Few cards (if any?) fully reimburse the AF and then put money in your pocket.

With Platinum Honors Preferred Rewards (x75% bonus) that 2% on travel moves up to very competitive 3.5% and the 1.5% on everything else moves up to an industry-leading 2.625% on anything you buy. That's the highest unrestricted, uncapped limit on the market that I'm aware of. (There are other offers that pay higher but not beyond a temporary promotional period and/or with an AF.) For comparison, the highest I get on my "Chase Trifecta" is 2.25% valuation on my Freedom Unlimited's points but only when I redeem them for travel through Chase, not for cash.

And you have more flexibility in redemptions for even cash value compared to some other cards. For example, that no AF Travel Rewards card only pays 6/10 of penny if redeemed for cash vs a full penny value on the Premium Rewards.

Without the Preferred Rewards program, it's true that it isn't that special. So there is a real incentive from BofA to become a client. I think it's a compelling argument. I have thought about reestablishing a banking and investment relationship with them so that I can be approved for and make full use of this card.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

CreditCuriosity — Fri, 13 Sep 2019 22:49:21 GMT

IMO it is one of the better thought out cards by any bank. Rewards you for having money or investments with them. Assuming trade are fairly equal to any other trading platform.. i.e. schwab, td, etc.. Havent really looked over the overall details, but have an old 401k i have been thinking of rolling over to a IRA. Just sitting at an old employer currently in a fidelity account and no rush to get it out, but possibly once i look at numbers merill might be it.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

coldfusion — Fri, 13 Sep 2019 22:49:11 GMT

@FinStar wrote:
Yes, what @K-in-Boston said. Having the ML/Merrill Edge relationship + Platinum Honors definitely provides a good yield IME with the Premium Rewards card.

I would say that it was the toughest CC to obtain, even with a BoA/ML relationship.

and I had a harder time getting a Cash+. Go figure.

To your point though, based on comments on this site and the dedicated thread on FT many people with strong profiles have been unsuccessful in being approved.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

odd_dog — Fri, 13 Sep 2019 22:51:10 GMT

@K-in-Boston wrote:
Cash Rewards 2% and 3% categories are capped at a combined total of $2500 each quarter, after which every category earns 1%. Those who qualify for Premium Rewards and have Honors are quite likely to have significantly higher spend. Premium Rewards has more benefits than the Cash Rewards, including a very easy to use $100 airline credit that makes the net AF -$5.00 even if you never use the Trusted Traveler benefit.

While I have the card with no Honors, the target market for the Premium Rewards card would be those with significant deposits between BoA, Merrill Lynch, and Merrill Edge.

^^^^^^^^ what this learned man said times 100 having the "honors" ups the percent on each purchase, and I have to put my IRA somewhere, why not Merrill Lynch.......also you do get $100 airline credit and TSA credit.....

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

AverageJoesCredit — Fri, 13 Sep 2019 22:53:36 GMT

@kdm31091 wrote:
If you have no status with BoA, I don't think the Premium Rewards is really anything special. It's just a 1.5-2% cash back card with an AF. Even if you ignore the AF due to the travel credit, the base cashback rate is still just okay.

If you are Platinum, or Platinum Honors especially, the card becomes much more competitive with 2%+ cash back on everything, although you still have the AF.

An alternative with the same base earn (but not the bonus for dining/travel) is the Travel Rewards, since it has no AF, but you must redeem against travel purchases to get the full value.

Overall I think many of BoA's cards are really best if you have a relationship/Preferred Rewards. Without that they become pretty average.

Thanks KDM Sincerely JOE

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

FieryDance — Sat, 14 Sep 2019 00:36:36 GMT

I think the Cash Back card is a great compliment to the Premium card but not a replacement. As others have mentioned it has a cap and you can only pick one 3% category at a time and can only switch it once a month but I do think it will work well with occasional high cost items because the 3% categories such as travel and home improvement are the type of high cost spend you can plan a month ahead.

A reminder for those who want the Cash Rewards, make sure you get the Visa version if you have Costco membership because the 2% grocery include warehouse purchases and the card is better than Citi Costco for Costco purchases if you have Preferred status.

Another interesting tip I read (though I can’t verify): if you have both Travel Rewards and Premium Rewards cards you can move all the points to the Premium and cash them all out at 1cpp. I am not going to try it because the Travel Rewards isn’t useful in the long run when I already have the Premium but for those who only has the Travel Rewards or who are interested in both SUBs you might want to give it a try.

But for me having a 2.625% floor rewards rate is pretty awesome especially when at times I do not know how a particular merchant is coded but I know it will at least get 2.625% cash back.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

Aim_High — Sat, 14 Sep 2019 02:08:21 GMT

@FieryDance wrote:
... the Travel Rewards isn’t useful in the long run when I already have the Premium ...for me having a 2.625% floor rewards rate is pretty awesome especially when at times I do not know how a particular merchant is coded but I know it will at least get 2.625% cash back.

Nice card, congrats on that!

Can you share some approximate data points as of your approval?

In particular, describe banking relationship, length, deposits, and products you had with BofA.

Maybe also FICO, approximate income, recent inquiries, and other things would be helpful as well.

Just want to know what they are looking for besides relationship.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

FieryDance — Sat, 14 Sep 2019 07:42:31 GMT

@Aim_High

Thanks and sure can.

I got the instant approval a few months back. At the time I had 3 or 4 hard inquiries on Experian and 2 or 3 new cards within a matter of 2 months. I don’t know my exact FICO score at the time but my guess is it was around 810 to 820. BoA pulled Experian.

Banking relationship has been just over 10 years and started with a simple checking account with my parents as co-signers. My husband has since joined my account and we now have pretty significant deposits in BoA and Merrill and qualify for plat honors.

Had a BoA mortgage in 2016 and they gave us a great rate. No car loans.

Two relatively high incomes of over 6 figures.

The Premium is my first BoA card. I have since got a second BoA card (Amtrak World card as I travel for work on the Northeast Corridor a lot).

As one of our primary banks BoA has a lot of insights into our financial state. DH and I are both financially cautious and have good savings compared to others our age. BoA can see that and I think it helps.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

TSlop — Sat, 14 Sep 2019 04:12:28 GMT

@Aim_High wrote:
@FieryDance wrote:
... the Travel Rewards isn’t useful in the long run when I already have the Premium ...for me having a 2.625% floor rewards rate is pretty awesome especially when at times I do not know how a particular merchant is coded but I know it will at least get 2.625% cash back.
Nice card, congrats on that!

Can you share some approximate data points as of your approval?
In particular, describe banking relationship, length, deposits, and products you had with BofA.
Maybe also FICO, approximate income, recent inquiries, and other things would be helpful as well.
Just want to know what they are looking for besides relationship.

Another DP:

BoA Cash VISA (PSU alumni card) - possibly first BoA exposure in 2014.

Merrill Lynch IRA (<$20k) - started in 2013 (although I'm unsure when BoA merged with Merrill, so may or may not have had exposure before credit card).

BoA Premium Rewards: Instant approval in January of 2018.

Income: ~$90k

No other banking relationships, just those 2 things before my PR card. My FICOs were around mid 700s I bet around then. We just bought a house and furniture, so I had a few inquiries.... but no credit card applications since I opened that first BoA one back in 2014. I can't say that anymore though... I think I've opened 5 new credit cards after the PR.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

Anonymous — Sat, 14 Sep 2019 07:38:41 GMT

I guess it also depends on your level of otherwise uncategorized spend. Many people here complain about too many cards, in this case for some it would be an extra card and an additional bank/brokerage account, so would need to make sure that the extra 0.625% was worth the "effort"

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

CreditCuriosity — Sat, 14 Sep 2019 07:49:29 GMT

@Anonymous wrote:
I guess it also depends on your level of otherwise uncategorized spend. Many people here complain about too many cards, in this case for some it would be an extra card and an additional bank/brokerage account, so would need to make sure that the extra 0.625% was worth the "effort"

no "effot" if merrill is your brokerage of choice... right? If all things are equal being trades and returns, etc.. What works for some doesnt work for other and vice versa

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

Anonymous — Sat, 14 Sep 2019 07:56:59 GMT

@CreditCuriosity wrote:
@Anonymous wrote:
I guess it also depends on your level of otherwise uncategorized spend. Many people here complain about too many cards, in this case for some it would be an extra card and an additional bank/brokerage account, so would need to make sure that the extra 0.625% was worth the "effort"
no "effot" if merrill is your brokerage of choice... right? If all things are equal being trades and returns, etc.. What works for some doesnt work for other and vice versa

Right, hence "for some"! I think if Merrill is already your broker, it's probably an easy choice. But for me (for example) I would have to move some assets over from another brokerage, and if I don't move all, then an extra one to monitor.

Re: What is BoA's niche market for the Premium Rewards card with Cash Rewards card's higher 3% on tr

Aim_High — Sat, 14 Sep 2019 12:57:47 GMT

@FieryDance wrote:
@Aim_High
Thanks and sure can.
I got the instant approval a few months back ...

Thanks @FieryFICO! Those DPs help a lot!

One more thing.

You mention the 'instant approval' ... were you prequalified on the BofA website or did you cold app?