Comparison: Blue Cash Everyday® Card from American Express and Bank of America® Cash Rewards Credit Card
One of the most popular types of credit card is the cash back card. Perfect for your ordinary purchases, this card provides the typical credit card benefits while also letting consumers earn a few perks in exchange for doing their regular shopping.
But choosing a cash back card can be difficult. How do you know which one is right for you and what’s a good deal? Many cards offer 1% cash back, but some do even more for common categories such as gas and supermarkets.
The Blue Cash Everyday® Card from American Express, a Credit Cards House advertiser, and the Bank of America® Cash Rewards Credit Card are two prime examples of a cash back card that offers more. They have plenty of similarities, but enough differences to make it possible to find the better option for you and your finances.
See our comparison below to gauge the best pick for you.
The Blue Cash Everyday® Card from American Express
Editorial Note: The information related to Blue Cash Everyday® Card from American Express has been collected by Credit Cards House and has not been reviewed or provided by the issuer of this card.
Consumers can earn a $150 statement credit after they spend $1,000 in three months. The card offers 3% cash back on U.S. supermarkets, 2% at U.S. gas stations and select department stores, and 1% on everything else. You can only spend $6,000 per year on eligible supermarket purchases before your cash back percentage drops to 1%. That equals $500 a month—a sum that even a three-person family can easily beat.
There’s no annual fee with this card and cash back rewards are provided as credits on your statement, so no need to remember to cash them out. Adding authorized users can help you earn rewards and bonuses.
One of the biggest benefits of the card is its 0% APR for 15 months for both new purchases and balance transfers. If you’re currently holding a balance on a different card and paying any sort of interest, it’s likely worthwhile to open this card to save on interest. After the intro period, a variable rate APR of 18.49% - 29.49% applies.
Bank of America® Cash Rewards Credit Card
The Bank of America® Cash Rewards Credit Card is a prime example of a straightforward cash back card. Consumers can earn a $150 online cash rewards bonus after spending $500 on purchases in the first 90 days of account opening. Consumers also earn 3% on gas stations, 2% on grocery stores and wholesale clubs (such as Costco), and 1% on all other purchases.
However, the 3% and 2% cash back categories only work for the first $2,500 spent in each quarter.
If you redeem your rewards into a qualifying Bank of America checking or savings account, you’ll earn an extra 10% on your cash back rewards. Bank of America Preferred Rewards client could earn 25% or more extra on their redemptions. There is no annual fee with this card.
One of the downsides is that this card still charges a 3% foreign transaction fee. That means you’ll be charged an extra fee when you spend money abroad.
How do these cards compare?
One of the biggest differences between these cards is the welcome bonus. The Blue Cash Everyday® Card offers $150 as a statement credit if you spend $1,000 in 90 days, but the Bank of America® Cash Rewards Credit Card offers the same $150 and only requires its users to spend $500 in 90 days.
The cash back percentages are the other major differences—with each card offering 3% cash back but for different categories. Deciding between these two cards will likely come down to what type of spending you do more often, gas or supermarkets.
The Bottom Line
Deciding between these cards requires analyzing your purchases. Families who spend more money at the supermarket would likely benefit more with the , while those who have long daily commutes could likely earn more rewards with the Bank of America® Cash Rewards Credit Card.
First published , last updated
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.