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

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galahad15
Valued Contributor

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

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?


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40 REPLIES 40
K-in-Boston
Credit Mentor

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

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.

Message 2 of 41
FinStar
Moderator Emeritus

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

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.
Message 3 of 41
wasCB14
Super Contributor

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


@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.

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 4 of 41
FinStar
Moderator Emeritus

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

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!
Message 5 of 41
wasCB14
Super Contributor

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


@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.

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 6 of 41
kdm31091
Super Contributor

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

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.

Message 7 of 41
Aim_High
Senior Contributor

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

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.


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Length of Credit > 40 years; Total Credit Limits >$850K
Top Lender TCL - Chase 156.4 - BofA 99.7 - AMEX 95.0 - CITI 94.5 - NFCU 80.0
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Message 8 of 41
CreditCuriosity
Moderator Emeritus

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

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.

Message 9 of 41
coldfusion
Community Leader
Mega Contributor

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


@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. 

(2/2024)
FICO 8 (EX) 846 (TU) 850 (EQ) 850
FICO 9 (EX) 850 (TU) 850 (EQ) 850

$1M+ club

Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 10 of 41
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