Gig workers, freelancers, small business owners and anyone starting a business should consider having a business credit card to separate their personal expenses from company-related ones. This Bank of America Business Advantage Customized Cash Rewards credit card review explores the card as an option.
Even if you don’t have established business credit, you could apply and get a business credit card using your personal credit. The Bank of America Business Advantage Customized Cash Rewards credit card could earn you the most cash back when the bulk of your company spending occurs in one type of category.
Balance Transfer Fee Either $10 or 4% of the amount of each transaction, whichever is greater.
Balance Transfer APR12.24% to 22.24% Variable APR on purchases and balance transfers
Foreign Transaction Fees 3% of the U.S. dollar amount of each transaction
- 3% cash back in the category of your choice (on the first $50,000 in combined choice category/dining purchases each calendar year)
- 2% cash back on dining (on the first $50,000 in combined choice category/dining purchases each calendar year)
- Unlimited 1% cash back on all other purchases
Before choosing a business credit card, it’s best to weigh the benefits and drawbacks of each. In this review, we’ll cover everything you need to know about the card, including pros and cons, features, and frequently asked questions. Continue reading to learn more and decide if this card is right for your business.
Pros:
- Choose one spending category for a higher rewards rate of 3%
- You can change the selected spending category each month
- 0% introductory APR for the first nine statement cycles
- Rewards won’t expire
- Select Bank of America business bank account holders could earn higher rewards rates
Cons:
- A foreign transaction fee of 3%
- Higher 2% and 3% rewards categories revert to 1% after the first $50,000 in spending.
How do you qualify for this card?
This card is meant for business spending. You’ll be required to provide information about your company, such as annual business income and tax identification number. However, a business can be interpreted in many ways. Home businesses, crafters, startups, freelancers, or people who work as rideshare or delivery drivers could qualify.
Approval depends on your personal credit score instead of your company’s. You’ll need good credit (or better) for the best odds of approval.
How do you apply?
To apply for the Business Advantage Customized Cash Rewards Card, fill out the online application on their website. Bank of America claims the whole process should take about five to ten minutes, provided you have the following information ready:
- The legal business name, address
- Federal tax ID number
- Business entity type (LLC, sole proprietorship, corporation)
- The legal names, contact information, Social Security numbers and ownership percentage for all business owners
- Your personal Social Security number
- Personal income information
Does Bank of America check your company’s credit if applying for a business credit card?
Bank of America business credit cards check your personal credit score to approve or deny your application. Small businesses that haven’t established a business credit history yet could still be eligible for a credit card. Keep in mind that your business card activity will be reported to the consumer credit bureaus, ultimately affecting your personal credit score instead of your company’s credit history.
What are the cashback rewards?
Once you’re approved for the credit card, you’ll receive it in the mail in seven to ten business days. The card will display the business name you provided during the card application. You’ll have 90 days to spend at least $3,000 to earn a $300 bonus. Once you meet the requirement, Bank of America will apply the bonus to your card as a statement credit.
Before you start spending, set up your preferred category to earn 3% cashback. Keep in mind that you’ll automatically receive 2% cashback on dining and 1% cashback on all other purchases.
To designate a 3% back category, choose from:
- Office supply retailers
- Travel
- Gas
- Business consulting
- TV, wireless, and telecom
- Computer services
You could change your categories from one month to another, which could be helpful if you have a large, upcoming purchase you’d like to receive higher cash rewards on. If you don’t select a category, gas purchases will be the default.
Keep in mind that spending over $50,000 per year in dining or your chosen category will drop the rewards rate down to 1%.
What are the relationship rates?
If you’re already a Bank of America business account holder at a higher-tier level, you could earn up to 75% more in cash rewards on your business card spending. card relationship reward rates bump as much as:
- 5.25% on your category of choice
- 3.5% on dining
- 1.75% back on all other purchases
How do you redeem my cashback rewards?
Once you’re ready to redeem the cash rewards, the options aren’t as extensive as other rewards cards. You’ll be able to:
- Request a check
- Receive a statement credit
- Request a transfer into your Bank of America business account
What are the business features?
A business credit card is beneficial because of the reports available to make expense management and tax filing easier. The Business Advantage Customized Cash Rewards credit card integrates with QuickBooks. You can grant custom access to users such as a bookkeeper or business manager to run reports. Lastly, you could request an unlimited number of employee cards for no additional charge.
How secure is the card?
Bank of America’s card security features aren’t innovative, but they’re effective. Your card is monitored to watch for and block unusual activity. As long as you report suspicious transactions right away, you’ll have zero-liability protection for unauthorized transactions. Besides safety features, the card comes with extended warranty coverage and protection against damage, theft or loss.
How do you contact customer service?
If you need to reach customer service for help, Bank of America has two phone numbers for business cardholders:
- For help applying for a business card or to open a new account: 1-866-283-4075
- For existing customers: 1-800-892-3219
What is the bottom line?
The Bank of America Business Advantage Customized Cash Rewards credit card is a good credit card for businesses with high fuel spending or who tend to make card purchases for one particular category. Cardholders will be able to choose one category each month, including fuel, office supplies or travel, to earn 3% cashback. The Bank of America customers who have a business account with the bank may also qualify for higher rewards rates based on the account tier.
Are there alternative cards worth considering?
Bank of America’s Business Advantage Customized Cash Rewards credit card has a higher-than-average rewards rate of 3% on a category of your choice.
Other business cards with high rewards rates include the Ink Business Cash® Credit Card with 5% on select categories and the American Express® Business Gold Card that earns 4x points on purchases.
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