Why is BankAmericard Privileges with Cash Rewards not popular?

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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okswerve16
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Why is BankAmericard Privileges with Cash Rewards not popular?

Postby okswerve16 » Tue Apr 16, 2013 3:43 pm

Just signed up for this card (getting it within the week) since I was looking for a cash rewards card to complement my Chase Freedom, but I see that not many on here have this. I am wondering why since by being a Bank of America customer you get 1.5% back on everything 3% on groceries and 4.5% on gas. It also has a $150 bonus currently.

I think this could be a good addition for others!


trumpet-205
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Location: CA, USA

Postby trumpet-205 » Wed May 01, 2013 2:51 pm

Because it is either $75 annual fee or $50K of asset under BofA's account.
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)

FutureBillionaire
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Postby FutureBillionaire » Wed May 01, 2013 3:35 pm

trumpet-205 wrote:Because it is either $75 annual fee or $50K of asset under BofA's account.


I didn't know you could get it with the annual fee and not have the other qualifications.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

Sevenfeet
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Postby Sevenfeet » Wed May 01, 2013 4:25 pm

Recently I had to go into my local BofA branch to discuss a change in a checking account. And I took the opportunity to bring up the fact that the BofA Privs card didn't make any sense unless you already had the prerequisite $50k assets under management. When that happened, the annual fee is waived. If you get the card with the annual fee, yes you get 50% cash back benefit but the annual fee charge changes the math to how much you have to spend before you are truly getting your money's worth. It wouldn't be so bad for big spenders on the card except that the card is capped at $1500 a quarter just like the regular card with no annual fee.

When I did the math, you came out a little ahead on the Privs card if you used it strictly for gas (3% benefit). But if you use it for groceries (2% benefit), it's pretty much a wash...in other words, not worth the trouble. If the cap was raised to a larger number or removed altogether, then the product would be much more attractive.

Also, keep inn mind that I was comparing this to my Penfed Platinum Reward Visa which up until recently has been the gold standard for gas/grocery benefits. (5% gas, 3% groceries, no caps). But there is some worry that this benefit will be dialed back to be a 3/2/1 card six months from now. If this is truly the case, the math will change.
Cards:
American Express Platinum (NPSL)
Penfed Platinum Reward Visa ($28K)
Chase Freedom Visa ($25K)
Fidelity American Express ($20K)
American Express Blue Cash Preferred ($20K)
Bank of America Cash Rewards MasterCard ($20K)
Citi Thank You Preferred Visa ($9.5K)
Chase Sapphire Preferred ($7.5K)
US Bank Cash + Visa Signature ($7K)
Discover IT ($4K)

pewpew
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Postby pewpew » Wed May 01, 2013 5:02 pm

that card is all sorts of pointless. i personally have a Susan G Komen card, which is exactly like the BoA 3-2-1 cashback card you have, except that it is a mastercard rather than a VISA and donates a small portion of your spend to a breast cancer research charity.

even though it has no annual fee, its features are nearly identical to the card you are getting, except that you get a 50% bonus when moving those rewards to your BoA checking account while i would only get 10%.

the biggest problem with both of these cards are those spending caps, and in your case the problem is the annual fee. for those people who don't spend a lot, they would need to spend 19K a year just to break even on that annual fee. (0.4% of 19k is about $75). for those people who spend a ton of cash a year, there are MUCH better cards out there from competing banks and credit unions. for example, Chase Sapphire preferred and Ink cards. if used correctly they pick up points ridiculously fast. Chase give 11 points per dollar spent at Khols, 3 points per dollar at Dell, etc. and those points are easily worth 1.5 cents a piece when redeeming for travel.

and as a side note, form my experience, BoA's customer support is absolutely clueless about everything. It took me a month and half and 17 calls just to get a simple product conversion done. chase did the same thing in 3 days and only 1 call, plus i got to keep my old CC number with chase.
Junk I use:
AmEx Platinum for Mercedes Benz from, 75k spending ability
AmEx Everyday 8.99% + Prime, 44k CL
Chase Ink Bold, 35k
Chase Freedom (Converted from WaMu VISA) from '07, 5.99% + Prime, 30k CL

Junk I don't use
BoA Susan G. Komen Cash Rewards (converted from World Points MC) from '07, 7.9% Fixed APR, 30k CL
Discover IT (Converted from Discover More) from '08, 5.74% + Prime, 20k CL
AmEx Clear from '07, 4.99% + Prime, 10k CL
All 3 credit scores are over 800.

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Z06Biker
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Postby Z06Biker » Wed May 01, 2013 6:11 pm

Sevenfeet wrote:Also, keep inn mind that I was comparing this to my Penfed Platinum Reward Visa which up until recently has been the gold standard for gas/grocery benefits. (5% gas, 3% groceries, no caps). But there is some worry that this benefit will be dialed back to be a 3/2/1 card six months from now. If this is truly the case, the math will change.


Uh oh. Really? What source did you hear this from? For those in the community, this is a pretty major game-changer.
AMEX: PRG Gold, Business Simply Cash, Business Costco, BCE.
Chase: United MileagePlus Club, Sapphire Preferred, Amazon Rewards
Barclaycard Arrival World Mastercard
HSBC Cash or Fly World Mastercard
USAA World Mastercard, USAA Platinum Mastercard
Wells Fargo Business Platinum
USC Credit Union Mastercard

Sevenfeet
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Postby Sevenfeet » Wed May 01, 2013 8:12 pm

Z06Biker wrote:Uh oh. Really? What source did you hear this from? For those in the community, this is a pretty major game-changer.


From here. This has been quite the subject of conversation over at myFICO.

http://ficoforums.myfico.com/t5/Credit-Cards/Penfed-Platinum-Rewards-Visa-Signature-Card/m-p/2072399/highlight/true#M575669

To sum up, Penfed began offering a Signature version of the Platinum Rewards Visa a couple of weeks ago and some members have already been notified of its existence and offered to switch. It offers the usual Signature benefits and requires at least a $5000 credit line. So that's the good news. The card also has a new vertical design, much like the Chase Slate.

But then someone noticed something very troubling. The card is a 5/3/1 gas/groceries/all-else product...for a limited time! After 10/31/13, the product reverts back to a 3/2/1 product. The big question is: does this mean that the non-signature PRV card is also going 3/2/1? No one seems to know and Penfed CSRs don't seem to know either right now (but won't be surprised if it does change). For those who qualify for the Signature, you do have the right to opt out, which is interesting. Why offer an opt-out if there is no downside? Will the standard card still be 5/3/1? And the word on the street is that EMV card holders won't be offered a Signature version since they don't have the EMV version ready yet.

If the 5/3/1 benefit on the PRV goes away, then also will go away one of the main reasons I got the card in the first place. If it's just the Signature card that is going to be 3/2/1, then I won't upgrade...while Signature benefits are nice, I have them on other cards (US Bank Cash +, Amex Platinum). But right now, we just don't know what's going to happen.
Cards:

American Express Platinum (NPSL)

Penfed Platinum Reward Visa ($28K)

Chase Freedom Visa ($25K)

Fidelity American Express ($20K)

American Express Blue Cash Preferred ($20K)

Bank of America Cash Rewards MasterCard ($20K)

Citi Thank You Preferred Visa ($9.5K)

Chase Sapphire Preferred ($7.5K)

US Bank Cash + Visa Signature ($7K)

Discover IT ($4K)

FutureBillionaire
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Postby FutureBillionaire » Thu May 02, 2013 10:10 am

I just converted to the Penfed Platinum rewards from the Platinum Cash rewards. If this benefit changes, I'm going to be ticked off.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

Sevenfeet
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Postby Sevenfeet » Thu May 02, 2013 11:32 am

FutureBillionaire wrote:I just converted to the Penfed Platinum rewards from the Platinum Cash rewards. If this benefit changes, I'm going to be ticked off.


You and me both.
Cards:

American Express Platinum (NPSL)

Penfed Platinum Reward Visa ($28K)

Chase Freedom Visa ($25K)

Fidelity American Express ($20K)

American Express Blue Cash Preferred ($20K)

Bank of America Cash Rewards MasterCard ($20K)

Citi Thank You Preferred Visa ($9.5K)

Chase Sapphire Preferred ($7.5K)

US Bank Cash + Visa Signature ($7K)

Discover IT ($4K)

Bksuper
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Location: California

Postby Bksuper » Thu May 02, 2013 11:17 pm

This is making me glad that I chose the SallieMae Rewards Mastercard over trying for Penfed. If PenFed still has the current benefits structure, though, when I actually have to buy lots of groceries, I'll apply then.

[blue cash preferred].[/blue cash preferred]
Sole Ownership Cards:
1st Financial Bank Platinum Student Visa, $500 CL, Open Since 3/2012
Citi Forward Student Visa, $6k CL, Open Since 10/2012
Costco TrueEarnings Amex, $6k CL, Backdates to 1/2012
SallieMae Rewards Barclay Mastercard, $2.5k CL, Open Since 4/2013
Jointly Owned Cards (co-owner with mom, not AU, used and paid only by me):
Chase Amazon Rewards Visa Signature, $2k CL, Open Since 8/2012
US Bank Cash+ Visa Signature, $13.5k CL, Open Since 10/2012
Authorized User (Parents Pay/Use)
Costco TrueEarnings Amex $29.4k CL, AU since 11/2012



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