Bank of America has added a new cash-back credit card to its lineup of business credit cards. The Business Advantage Unlimited Cash Rewards credit card offers a flat rewards rate on every purchase, along with some other features standard on many cash-back business credit cards. Select Bank of America customers can get a higher rewards rate.
- The new Business Advantage Unlimited Cash Rewards credit card offers business owners who prefer Bank of America an option that doesn't involve keeping track of bonus categories.
- The card offers a decent, 1.5% rewards rate and $300 welcome offer, with the opportunity to earn more rewards for select Bank of America customers.
- For most small business owners, however, the card doesn't stand out enough to warrant applying.
Bank of America Business Advantage Unlimited Cash Rewards Credit Card Details
The new Business Advantage Unlimited Cash Rewards card offers a flat 1.5% cash back on every purchase you make, a rewards rate that falls short of the 2% gold standard.
However, if you're a Preferred Rewards for Business member, you could earn 25%, 50%, or 75% more cash back on every purchase you make, up to a maximum of 2.62% back, which is hard to beat.
In order to qualify for the Preferred Rewards program, you must have an active Bank of America business checking account and a three-month combined average daily balance of $20,000 or more across your Bank of America business deposit accounts and Merrill Lynch business investment accounts.
The $20,000 minimum qualifies you for 25% bonus cash back, and you'll get 50% or 75% if you have at least $50,000 or $100,000 in combined balances, respectively.
Beyond that, the card also offers a $300 statement credit when you spend $3,000 or more in the first 90 days from account opening, plus an introductory 0% APR on purchases for the first nine billing cycles. After that, the variable APR jumps to between 12.24% and 22.24%, depending on your creditworthiness.
The card has no annual fee.
Who Should Consider This New Card?
The new Business Advantage Unlimited Cash Rewards credit card doesn't make sense for most small business owners, who can get a higher flat rewards rate—or even bonus rewards rates—with a different card.
However, if you're all-in with Bank of America and keep enough money on deposit to qualify for the Preferred Rewards for Business program, you could earn up to 2.62% back on all of your purchases, which might make it worthwhile.
As with any business financing decision, it's important to shop around and compare multiple cards to find the best fit for your and your company's needs. Investopedia publishes regularly updated ratings of the best business credit cards for different types of users.