Great deal from BOA credit card

[disneysteve]

Yes, I know, some of you hate Bank of America. I get it so let's not go there. For those who don't feel that way, BOA has a great credit card deal. I had my daughter sign up for her first credit card over the summer in preparation for her heading off to college. The bank rep explained the available cards and we chose the Better Balance Rewards card (https://www.bankofamerica.com/credit...ce-rewards.go).

Basically, as long as you use the card once each month and pay more than the minimum balance, they give you a $25 bonus every quarter. If you are also a BOA account holder, you get an additional $5/quarter for a total of $30/quarter or $120/year.

The amount of your monthly charge doesn't matter. There is no minimum purchase required. You could charge $1/month, pay it in full, and get $30 back every quarter.

DD has now had the card for a full quarter and got her first $30 bonus a few days ago. Her total charges for the quarter were about $100. Of course, she paid her bill in full each month so no interest charges or late fees. And the card has no annual fee. So she essentially earned 30% cashback for the quarter, and will continue to do the same every quarter. Can't beat that.

[creditcardfree]

Yes, I know, some of you hate Bank of America. I get it so let's not go there. For those who don't feel that way, BOA has a great credit card deal. I had my daughter sign up for her first credit card over the summer in preparation for her heading off to college. The bank rep explained the available cards and we chose the Better Balance Rewards card (https://www.bankofamerica.com/credit...ce-rewards.go).

Basically, as long as you use the card once each month and pay more than the minimum balance, they give you a $25 bonus every quarter. If you are also a BOA account holder, you get an additional $5/quarter for a total of $30/quarter or $120/year.

The amount of your monthly charge doesn't matter. There is no minimum purchase required. You could charge $1/month, pay it in full, and get $30 back every quarter.

DD has now had the card for a full quarter and got her first $30 bonus a few days ago. Her total charges for the quarter were about $100. Of course, she paid her bill in full each month so no interest charges or late fees. And the card has no annual fee. So she essentially earned 30% cashback for the quarter, and will continue to do the same every quarter. Can't beat that.

That is a great rewards card without having to rack up the charges to get those rewards at 1%. Was your daughter approved for her first card on her own?

[disneysteve]

That is a great rewards card without having to rack up the charges to get those rewards at 1%. Was your daughter approved for her first card on her own?

Yes, she got approved on her own - no co-signer - with a $900 credit limit. Not bad for an 18-year-old today.

[creditcardfree]

Yes, she got approved on her own - no co-signer - with a $900 credit limit. Not bad for an 18-year-old today.

Excellent. Yes, perfect! I think my first credit card limit was $500, and it sure seemed like a lot at the age of 18.

[safari]

That's a great card for someone who doesn't spend much. I have one question though. It says in order to earn the bonus, you have to pay more than the minimum payment, but what if your statement balance is so small that the minimum payment equals to the statement balance? For example, if my statement balance is $10 and the minimum payment is also $10, will I qualify for the bonus if I pay $10? Or does the statement balance has to be greater than the minimum payment in order to qualify for the bonus?

[disneysteve]

That's a great card for someone who doesn't spend much. I have one question though. It says in order to earn the bonus, you have to pay more than the minimum payment, but what if your statement balance is so small that the minimum payment equals to the statement balance? For example, if my statement balance is $10 and the minimum payment is also $10, will I qualify for the bonus if I pay $10? Or does the statement balance has to be greater than the minimum payment in order to qualify for the bonus?

You can just pay the balance in full if it's a small amount. She has only charged a little each month and paid it in full.

Obviously, if you aren't going to pay in full, the bonus would get wiped out by the fees and interest charges and you've got no business having a credit card in the first place.

[safari]

You can just pay the balance in full if it's a small amount. She has only charged a little each month and paid it in full.

Obviously, if you aren't going to pay in full, the bonus would get wiped out by the fees and interest charges and you've got no business having a credit card in the first place.

Of course I would be paying the balance in full each month. That wasn't my question though. I was specifically talking about the example when the statement balance equals to the minimum payment, since in the terms it says that in order to qualify for the bonus, I'd have to pay more than the minimum payment amount, which I thought was a way for them to prevent people from using the credit card to charge a small amount just to earn the bonus. Otherwise, I can charge $1 each month, pay that $1 in full every month, and they will give me $20/$25 credit each quarter, while I charge all other expenses to a different credit card where I earn cashback. Wouldn't that be nice?

[disneysteve]

Otherwise, I can charge $1 each month, pay that $1 in full every month, and they will give me $20/$25 credit each quarter, while I charge all other expenses to a different credit card where I earn cashback. Wouldn't that be nice?

Exactly! That's why it's such a great deal. Obviously, they don't expect many people to limit their charges to small amounts and they expect people to carry a balance. But you can play the game and get a great return by just charging small amounts and paying them off in full each month like my daughter is doing.