Bank Of America Prepaid Card and Credit Cards Explained
Bank of America is the nation’s second largest full-service bank (by total assets). Only J.P. Morgan Chase & Co. This article explains Bank Of America Prepaid Card and Credit Cards:
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Bank Of America Prepaid Card and Credit Cards
Bank of America’s Consumer Payments Prepaid Card Overview
The Bank of America Consumer Payments Prepaid Card is a prepaid card, not a credit card, and does not offer a credit line. Instead, a “sponsor” who may be your employer pre-loads this type of prepaid card with cash.
With a Bank of America Consumer Payments Prepaid Card, you can spend money on your account anyway you wish. In some cases, you may be given a prepaid business card that can only be used to buy goods or services from your sponsor.
The Consumer Payments Prepaid Card can be used to make purchases in-store or online, and even to withdraw cash from an ATM. Your sponsor also sets your spending limit, so you can use your prepaid card until it runs out.
What are the benefits and drawbacks?
Buying in person or online using the Consumer Payments Prepaid Card
If your sponsor chooses this option
No need for cash
Fees can vary and are only communicated to the sponsor ahead of time
Examining the present card offer
* Purchase intro APR: 0%
* Balance transfer intro APR: 0%
The Bank of America Consumer Payments Prepaid Card doesn’t reward spending.
Not being a credit card, the Bank of America Consumer Payments Prepaid Card offers little consumer benefits. However, there are other advantages to be aware of, including:
Global ATM access
If your sponsor chooses this option, the Bank of America Consumer Payments Prepaid Card is preloaded with cash. Bank of America says you can use your card at Visa or Cirrus ATMs. Also, while using your Maestro card at Maestro-branded retailers, you can request cash back at the point of sale.
Use wherever Visa is accepted.
You can use your card to make purchases in person or online. Anywhere Visa is accepted.
ALERTS BY EMAIL
You can set up email or text alerts to notify you when a deposit is made or when your account balance is low. These alerts can help you keep track of your prepaid account balance.
While the Bank of America Consumer Payments Prepaid Card does not impose interest, there may be an annual fee or transaction fees. The fine print also says an account closing fee may apply.
* Enroll eligible Bank of America and Merrill Edge investing accounts in the Preferred Rewards program to earn more points.
There are no yearly fees on many Bank of America cards.
BankAmeriDeals offers cash back at select businesses.
Your Bank of America card may be a free museum admission ticket through the Museums on Us program.
Access to Online and Mobile Banking is included with all cards.
* Sign-up bonuses aren’t as good as comparable cards.
Some competitors allow more redemption options.
* Unless you’re a Preferred Rewards member, your card’s rewards program is undervalued.
Some non-travel cards carry a 3% foreign transaction fee on purchases made online from foreign merchants.
How to choose the right card
It’s critical to know what you want from your credit card. Before applying, consider the following:
What are your financial goals and habits?
No one credit card fits all. Your goals and spending patterns will determine which card is best for you. If you enjoy traveling and want to earn rewards, one of Bank of America’s travel rewards cards may be right for you. If you want to manage high-interest debt, check for the finest Bank of America balance transfer offer.
Your purchasing patterns are also essential because some cards within a category may give bonus benefits for specific purchases. Knowing your monthly spending habits will help you choose a card with the best benefits.
What are the perks?
A decent credit card should have simple perks and a rewards scheme that suits you. For frequent travelers, a travel rewards card with benefits like travel statement credits, lounge access, and trip insurance is ideal. A flat-rate cash back card with extended warranty and purchase protection may appeal to parents and other everyday shoppers.
Can I get the signup bonuses?
Sign-up bonuses are common after certain spending thresholds. But a big sign-up bonus doesn’t indicate a card is better for you.
When evaluating sign-up bonuses, consider your ability to meet the minimum spending requirements. On the other hand, a lower sign-up bonus may be easier to qualify for.
What is APR?
If you plan to carry a balance on your credit card, APR is vital because it impacts how much interest you pay. Variable APRs range from 17 to 30% depending on creditworthiness. Some cards offer a 0% APR period when you first sign up, which might help you pay off major purchases without incurring interest.