The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Advertiser disclosure
The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
News
How the Bank of America Premium Rewards Card Stacks up Against Low- and No-Fee Cards
Nick Ewen is TPG's editor-in-chief and helps readers leverage credit cards (he has more than 25 of them) and loyalty programs to travel more for less. He's been at TPG for over 11 years.
October 10, 2017 • 10 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
Related stories
Quick summary
A new travel rewards card has launched, offering a mix of travel credits, flexible redemptions and competitive earning rates, especially for those with significant bank balances.
The card is compared with several other options that feature low or no annual fees, each with distinct perks such as travel credits, car rental coverage or straightforward cash-back.
Some cards reward loyalty to specific hotel programs, while others prioritize simplicity or business spending needs.
The article provides a side-by-side analysis to help readers determine which card aligns best with their spending habits and travel preferences.
What to consider
Certain cards offer enhanced earning rates for customers with qualifying bank relationships or large account balances.
Some options include travel credits or rental car coverage, while others may charge foreign transaction fees or have eligibility restrictions for welcome bonuses.
Point values for hotel and airline loyalty programs are cited per TPG's valuations as of the article's publication.
What you'll miss from the article
A detailed comparison of each card's benefits, ideal user profiles and how to maximize value based on your financial situation.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
One of the more exciting product launches of the year has been the introduction of the Bank of America® Premium Rewards® credit card. The card carries a unique set of perks that make it a terrific option for many travelers, but it also joins an already crowded field of other contenders. How well does the card stack up to other low- and no-annual-fee alternatives? Today's post will attempt to answer that very question.
Let's start with a quick overview table that compares the Premium Rewards Card to other popular and rewarding cards with low (or no) annual fee:
Card
Bonus
Earning Rate(s)
Additional Travel Perks
Annual Fee
Bank of America® Premium Rewards® credit card
50,000 points after you spend $3,000 in the first 90 days
2x points on travel/dining; 1.5x points everywhere else
$100 annual airline fee credit; Global Entry credit; no foreign transaction fees
$95
Chase Sapphire Preferred Card
50,000 points after you spend $4,000 on purchases in the first three months
2x points on travel and dining; 1x point everywhere else
Primary car rental insurance; no foreign transaction fees
$95 (waived for the first year)
Citi Double Cash Card
None
1% cash back when you buy plus an additional 1% cash back as you pay
None
$0
Starwood Preferred Guest® Credit Card from American Express
75,000 bonus points after you spend $3,000 in the first three months. Terms Apply.
6x points at SPG/Marriott properties; 2x point everywhere else. Terms Apply.
Free in-room premium internet access; no foreign transaction fees
$95 (waived for the first year)
The Blue Business®️ Plus Credit Card from American Express
None
2x points on first $50,000 in purchases; 1x point thereafter. Terms Apply.
None
$0
As you can see, all of these cards represent solid values, and you could make a case for why each one should earn a spot in your wallet. Let's take a closer look to see whether the Premium Rewards Card is the best option for you or if another one is a better fit for your unique situation.
Bank of America® Premium Rewards® credit card
Bonus: 50,000 points after you spend $3,000 in the first 90 days Earning rates: 2 points per dollar spent on travel and dining; 1.5 points per dollar spent everywhere else (plus enhanced earning rates for Bank of America Preferred Rewards customers) Additional perks: $100 annual airline incidental fee credit; up to a $100 Global Entry/TSA PreCheck credit every four years; no foreign transaction fees Annual fee: $95
Analysis
As mentioned above, the Premium Rewards card is a great new addition to the travel rewards credit card landscape. It's rare that a card with an annual fee of less than $100 includes travel credits, but that's exactly the case here. You'll enjoy a $100 annual credit toward airline incidentals like baggage fees, seat upgrades, lounge passes and in-flight purchases, and the card will give you a credit to cover the membership fee for Global Entry or TSA PreCheck every four years. If you're keeping score, that's $200 of credit in the first year. Put another way, Bank of America is actually paying you $105 in year one to open the card.
That doesn't even include the sign-up bonus and spending rates, which are solid for all cardholders but especially rewarding for customers with large Bank of America balances. If you have an eligible checking account and at least $20,000 in qualifying Bank of America/Merrill Lynch accounts, you qualify for the bank's Preferred Rewards program and can boost your earning rates even higher:
The third terrific thing about the card is the simplicity of redeeming points. No matter the option you choose, you're getting a constant value of 1 cent per point. You can select cash back (as a statement credit or deposited directly into an eligible bank account), travel purchases or gift cards and get that same value. While this won't snag you premium-class award flights, it's a straightforward program that allows basically anyone to get some solid bang for their buck.
Who should get this card?
Consider opening the Premium Rewards card if you:
Regularly have $100 or more in airline incidental fees;
Qualify for Bank of America Preferred Rewards; and/or
Value simplicity and flexibility in redemptions.
Chase Sapphire Preferred Card
Bonus: 50,000 points after you spend $4,000 on purchases in the first three months Earning rates: 2 points per dollar spent on travel and dining; 1 point per dollar spent everywhere else Additional perks: Primary car rental insurance; no foreign transaction fees Annual fee: $95 (waived for the first year)
Analysis
The Sapphire Preferred has been a popular card for a number of years thanks to a relatively low annual fee, a host of valuable perks and the ability to earn very valuable Ultimate Rewards points (2.2 cents apiece, based on TPG's most recent valuations). You'll earn 2 points per dollar spent on travel and dining purchases, and Chase defines these categories quite broadly. Even the standard earning rate of 1 point per dollar spent on all other purchases represents a 2.2% return, and the sign-up bonus alone is worth $1,100. The points you earn can then be transferred to a variety of partners; my personal favorites are Hyatt, British Airways and United.
The card also provides primary rental car coverage, ensuring that you won't need to worry about loss or damage to your rental car when traveling. Like the Premium Rewards card, it also waives foreign transaction fees. All of these things should make you consider the Sapphire Preferred as your first card, especially since the annual fee is waived for the first year.
Know how to make the most of the Ultimate Rewards program.
Citi Double Cash Card
Bonus: None Earning rates: 1% cash back when you buy plus an additional 1% cash back as you pay Additional perks: None Annual fee: None
Analysis
Another card that offers a solid value proposition is the Citi Double Cash. Like the Premium Rewards card, the beauty of it is the simplicity. You'll earn 1% cash back when you buy plus an additional 1% cash back as you pay for those purchases. The card also carries no annual fee, so scoring an automatic return of 2% on all of your purchases without an out-of-pocket cost is quite lucrative. Just be aware that the card does incur a 3% foreign transaction fee, so it isn't a great option for travel outside the US.
Who should get this card?
Consider opening the Citi Double Cash if you:
Are solely interested in simple, straightforward cash back; and/or
Rarely (if ever) travel outside of the US.
Starwood Preferred Guest Credit Card from American Express
You could redeem points earned from the SPG Amex at luxurious resorts like the St. Regis Bora Bora.
Bonus: 75,000 bonus points after you spend $3,000 in the first three months. Earning rates: 6 points per dollar spent at SPG/Marriott properties; 2 points per dollar spent everywhere else Additional perks: Free in-room premium internet access; no foreign transaction fees Annual fee: $95 (waived for the first year)
Analysis
One of the most valuable programs in the points and miles world is Starwood Preferred Guest, and the SPG Amex allows you to boost your Starpoint balance with every purchase. You'll earn 6 points per dollar spent at Starwood and Marriott properties and 2 point per dollar spent everywhere else, giving you a return of at least 2.7% on every purchase (based on TPG's valuations).
The Blue Business Plus Credit Card from American Express
Membership Rewards points earned from the Blue Business Plus card can be quite valuable for redemptions like Lufthansa first or business class.
Bonus: None Earning rates: 2 points per dollar spent on the first $50,000 in purchases each year; 1 point per dollar spent thereafter Additional perks: None Annual fee: $0
Analysis
The Blue Business Plus card is one of American Express' fantastic small business credit cards, and its value proposition is simple. For the first $50,000 in purchases in a year, you'll earn 2 Membership Rewards points per dollar spent. Since TPG pegs these points at 1.9 cents apiece, this is an incredible return of 3.8% on all purchases. There's no worry about different categories of merchants or certain transactions not qualifying for a bonus. Every purchase you make (up to the $50,000 threshold) will earn double Membership Rewards points, and incredibly, the card carries no annual fee.
Who should get this card?
Consider opening the Blue Business Plus card if you:
Have a small business in need of a simple yet rewarding card.
Bottom Line
The Bank of America® Premium Rewards® credit card is a solid addition to the fixed-value category of travel rewards credit cards, as it offers great earning rates, a great collection of perks and a simple yet rewarding redemption scheme. That being said, there are other low- and no-annual fee cards that may be a better fit for your wallet. It all comes down to your own individual spending patterns and what you're looking to get out of a credit card. Hopefully this post has given you some guidance on which of these cards would make the most sense for you!
How do you think the Premium Rewards card stacks up?
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
