BOA Card Downgrade for Easy $100-$120 a Year

Bank of America has travel credit cards with partners including Alaska Airlines and Virgin Atlantic that can be tough sells to keep through annual fees, considering their liberal approval of new accounts. Many Alaska Airlines cardholders are happy to pay the annual fee for its companion pass. Not useful to me.

So I was closing out an Alaska and Virgin Atlantic card yesterday when the CRS ran through the typical no annual fee downgrade options of the Cash Rewards and Travel Rewards. Both cards have their uses, which can increase with large banking relationship with BOA. I am not interested in spending on the cards so asked about any other options.

“Well, how about the Better Balance Rewards card? I have it and love it. It pays you $25 a quarter for making your minimum payments.”

BOA Better Balance Rewards

How about that indeed?

Here are the marketing bullets:

  • Earn $25 per quarter to pay down your balance faster when you pay more than the monthly minimum on time each month–that can be up to $100 each year
  • Get more rewards for the banking you already do – an additional $5 bonus per quarter if you have a Bank of America® checking or savings account
  • Cash back is automatically credited to your card balance
  • Pay down your balance faster with a low Intro APR offer
  • No annual fee

I looked through the Terms and Conditions which seems on the up and up:

BankAmericard® Better Balance Rewards™ Program Information. You will earn a $25 cash reward for each calendar quarter in which all of your monthly payments are received on or before the due date and are more than the minimum payment due. Your account must remain open and you must have a payment due in each of the monthly cycles of the calendar quarter to be eligible for the quarterly cash reward; a zero balance or a credit balance does not qualify. If either the primary or co-applicant for this card has at least one checking, savings or individual retirement account with Bank of America N.A., a Cash Management Account®, Merrill Edge® or any other account with Merrill Lynch, Pierce, Fenner & Smith Incorporated or U.S. Trust, the card account will receive a customer bonus of $5 for each quarter you qualify, for a total of $30 per quarter. If you qualify, the cash reward will be issued within 30 days following the end of each quarter. Your cash rewards will be automatically issued in the form of a statement credit to your card account, unless you indicate otherwise. You may choose instead to have your cash rewards deposited directly into a Bank of America® checking account or savings account or a Merrill Lynch Cash Management Account®. Other significant terms apply. Program subject to change. For more information, visit www.bankofamerica.com/betterbalancerewards. Details accompany new card account materials.

Translation: set up a small auto-charge and auto-payment each month and get a statement credit of $25 and the end of each quarter. An extra $5 for having checking, savings or IRA with them.

The one catch I see is that in the months you get the $25 credit, you need to spend over $25 in order to have a payment due in the following month, otherwise the next quarter will be disrupted.

Nothing explicitly prohibiting multiple accounts so in all I converted the Alaska, Virgin, and two old Cash Rewards from prior downgrades. These should be in place in September so in time to start the new quarter. I also am opening a checking account for the extra $5 per card per quarter since was thinking to get one at some point anyway.

Cash for minimal effort and no new credit inquiry. I like.

Disclaimer: I do not receive any compensation for this card, and do not have any financial relationship with Bank of America outside my personal accounts.

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Bank of America BankAmeriCard Better Balance Rewards Intro and Quarterly Bonus Strategy | Travel with GrantBest Travel Credit Card Links Are Updated, Plus: Free Money | The Lazy Traveler's HandbookRapid Travel ChaiDinoBest Downgrade Options & Rules For Each Card Issuer & Rules » Doctor Of Credit Recent comment authors

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Dino
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Dino

RTC, do you know if we can convert the business version of the Alaska Visa into a no annual fee business card? I was told by the rep that they couldnt do it.

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William Charles
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$100 checking bonus: http://bankatwork.bankofamerica.com/, not available to everybody but some may find it helpful
Free museum entry: http://museums.bankofamerica.com/

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I bank at BofA
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I bank at BofA

If you actually bank at Bank of America, you’d probably have their app on your iPhone or Android device. The name of their app on the icon says BofA.

Bank of America started in San Francisco as the Bank of Italy. If you grew up anywhere near San Francisco, you’d be familiar with the jingle “B of A, Bank of America.”

It really is BofA, as far as the bank itself, customers, and community are concerned. If you’ve been hearing otherwise, it’s ok. It just means the bank hasn’t been promoting its brand as strongly at the national level.

I bank at BofA
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I bank at BofA

Bank of America is BofA for short. What do you incorrectly call it “BOA”?

gbh
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gbh

Does the monthly charge to the card have to be more than $25? Often when there is a low balance on the card, the minimum payment is the same as the balance. Does this mean you won’t get the $25 per quarter because you aren’t paying “more” than the minimum payment?

Jivepicnic
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Jivepicnic

I have had this card for almost a year now, and it works as advertised. I make one small charge per month, and I’ve received $30 each quarter (because I have a BofA checking account).

Just one more point…if you have the $30 deposited into your checking account instead of credited to the credit card, you don’t have to worry about spending more than $25 in the months when you receive your reward payment.