Why I love the Bank of America Customized Cash Rewards credit card

This page was originally published in late 2023 and reflects the author’s financial decisions during that time. The card details have since been updated. 

You never forget your first credit card. I got the Bank of America® Customized Cash Rewards credit card while I was in college after my financial guru (aka Mom) taught me about the importance of building credit.

I didn’t know much about credit cards at the time, so I went with one of Bank of America’s credit cards since I had a checking account with them. Several years later, I now make a living advising others on credit cards and still have the Customized Cash Rewards card in my wallet.

And you know what? It’s still one of the cards I reach for most often. Here’s why:

Flexible cash back categories

The main draw of the Bank of America Customized Cash Rewards card is its flexible cash back categories. 

You can earn 3 percent cash back on purchases in a category of your choice — which includes:

• Gas and EV charging stations
• Online shopping (including cable, streaming, internet and phone services)
• Dining
• Travel
• Drugstores
• Home improvement stores

For my lifestyle, I’ve only ever selected the online shopping or travel categories.

You also get 2 percent back at grocery stores and wholesale clubs and 1 percent back on all other purchases. Keep in mind that your earnings are capped at $2,500 of combined quarterly spending in the 3 percent and 2 percent categories, then you’ll earn 1 percent back.

Unlike some cash back cards that offer high cash back percentages only for specific rotating categories every quarter, the Customized Cash Rewards card doesn’t come with gimmicks. I’m always rewarded for purchases that I make rather than for very specific spending categories that are useless to me.

I also love that this card gives me the freedom to change my cash back categories once per calendar month. For example, when I booked a trip to Mexico City at the end of June several years ago, I switched my rewards category from online shopping to travel —  minutes before booking my flight. Then, I was able to switch it back on July 1.

My cash back hack

I’m a sucker for a discount, and I never make a purchase without looking for coupons. I like to think of my 3 percent cash back earnings as a further discount on top of whatever I’m already saving. Sometimes, I’ll even buy things online instead of in the store so that the transaction counts as online shopping.

For example, when I had to buy a new MacBook last year, I went to my local Apple Store to compare my options. After I chose a laptop, I purchased it online with my Customized Cash Rewards card (set to the online shopping rewards category) and received 3 percent cash back. With the rewards I received from the purchase, I essentially got a $30 discount on my new laptop.

One downside to this card, however, is the $2,500 spending cap for the 3 percent and 2 percent rewards categories each quarter (then 1 percent) — which means there’s a $300 maximum you can earn each year for the higher rewards categories. With that said, on the very rare occasions that I reach that limit, I still earn 1 percent for my purchases and can always refer to the cheat sheet I have in my wallet to find the next best credit card for my purchases.

No annual fee and good intro APR periods

I also like that the Customized Cash Rewards card has no annual fee, meaning I don’t have to earn enough in rewards each year to justify the cost of card membership.

It also includes a 0 percent intro APR for 15 billing cycles on purchases and balance transfers made within the first 60 days (a 3 percent balance transfer fee applies to balance transfers made during the first 60 days, then 4 percent after). After that, you’ll be charged a variable APR between 18.49 percent to 28.49 percent. Upon opening the card, I could rest easy knowing there was an intro APR offer available should I have a large, unexpected expense come up.

Fuss-free travel card for U.S. excursions

When traveling within the U.S. this year, I probably won’t open another travel-specific credit card. I’ll use my Customized Cash Rewards card and set it to earn 3 percent cash back in the travel category instead. Why? Many travel cards have annual fees, and the Customized Cash Rewards card does not. That’ll save me about $100 that I can put toward a vacation.

In addition, most travel cards give you points, which I find more complicated in terms of redemption. Cash back is simple and doesn’t lock me into using my rewards on a specific airline or hotel chain.

However, for traveling abroad, my strategy is to use my Customized Cash Rewards card to book flights and accommodations. Then, I use my Capital One Savor Cash Rewards Credit Card for on-the-ground purchases to avoid Customized Cash’s 3 percent foreign transaction fee.

The bottom line

The Bank of America Customized Cash card is worth it thanks to its flexible rewards categories, lack of an annual fee and more. It has been my go-to for years and will remain a favorite for years to come.

The Bank of America® Customized Cash Rewards credit card information was last updated on December 10, 2024.