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.
Before choosing a business credit card, weigh the benefits and drawbacks of each to compare.
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.
Bank of America Business Advantage Customized Cash Rewards credit card at a glance
Here are some of the card’s important features:
Card type: Business cashback rewards Mastercard
How to earn rewards: Earn 3% cashback in one category of your choice and 2% cashback on dining for the first $50,000. All other categories, as well as purchases over $50,000, earn 1% cashback.
How to redeem rewards: Request a check or deposit into your Bank of America account or redeem it as a statement credit.
Approval bonus: Receive a $300 statement credit when you spend at least $3,000 within 90 days after approval.
Annual fee: $0
APR: Intro APR of 0% the first nine statement cycles, then 12.24% to 22.24% variable APR
Foreign transaction fee: 3%
Credit score: Good to excellent
Special features:
Preferred Rewards business bank account holders can earn up to 5.25% on a chosen category, 3.5% on dining and 1.75% cashback on other purchases.
Unlimited rewards
Quickbooks-compatible
$100,000 in travel accident insurance and other travel protections
Bank of America Business Advantage Customized Cash Rewards credit card Review
Most Bank of America business cards are travel-rewards cards. However, the Advantage Customized Cash Rewards Card focuses on cashback.
Who may qualify
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 to apply
To apply for the Business Advantage Customized Cash Rewards Card, fill out the online application. 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
How the card works
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%.
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:
Redeeming cash 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:
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.
Security
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 to get support
If you need to reach customer service for help, Bank of America has two phone numbers for business cardholders:
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.
Bank of America Business Advantage Customized Cash Rewards credit card FAQ
What Bank of America Business Advantage Customized Cash Rewards categories can I choose from?
You can choose from the following categories to get 3% cashback. If you don’t choose one, gas purchases will be the default option.
Office supplies
Gas
Travel
Business consulting
TV, wireless and telecom
Computer services
What business credit cards have the highest cashback rewards rates?
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.
Does Bank of America check my company’s credit if I apply 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.
