Bank of America offers two flagship cash back cards that differ in their rewards structures but are otherwise quite similar. Both are great choices for customers who prefer cash back over points. Here are four important facts about these two cards:

1. Bank of America® Unlimited Cash Rewards Credit Card

• Fixed Rewards: Earn a fixed 1.5% cash back on every purchase.
• No Limits: There are no limits on the rewards you can earn, and rewards never expire as long as the account is open.
• Visa Signature Benefits: Enjoy all the perks of a Visa Signature card, with a starting credit limit of $5,000.

2. Bank of America® Customized Cash Rewards Credit Card

• Tiered Rewards: Earn 3% cash back on a category of your choice, such as gas (default), online shopping, dining, travel, drug stores, or home improvement/furnishings.
• Moderate Rewards: Earn 2% cash back at grocery stores and wholesale clubs (excluding small stores).
• Rewards Cap: Tiered rewards apply to the first $2,500 in combined purchases each calendar quarter, after which all eligible purchases earn 1% cash back.

3. Common Features

• Credit Requirements: Requires good to excellent credit, with a minimum FICO score of 670.
• Credit Limits: Minimum credit limit is $5,000, with a maximum limit of $99,900.
• Sign-Up Bonuses: Both cards typically offer sign-up bonuses.
• Introductory 0% APR: New cardholders can enjoy 0% APR on purchases and balance transfers for a promotional period, after which a regular APR applies.
• Annual Fee: Both cards have no annual fee.

4. How to Choose the Right Card for You

• Spending Habits: If your spending is consistent and varied, consider the Bank of America Unlimited Cash Rewards Credit Card.
• Control Over Rewards: If you prefer to customize your rewards categories and your quarterly spending meets the tiered rewards requirements, the Bank of America Customized Cash Rewards Credit Card might be better for you.

Do Credit Card Issuers Conceal Payment Data from Credit Bureaus?

Several major credit card companies have come under scrutiny from the Consumer Financial Protection Bureau (CFPB) for their credit reporting practices. The CFPB is urging these credit card giants to change their practices of not sharing certain key information with credit reporting agencies. Here’s a detailed look at this issue:

Complexity of the Situation

• Legal Requirements: There is currently no law that requires credit card companies to report any information about credit card accounts to any credit agency.
• History of Information Sharing: Compared to 10 or 15 years ago, credit reports today contain much more information.

Unreported Data

• Actual Payment Amounts: Some credit card issuers choose not to report the actual payment amounts made by customers to credit bureaus, which can affect credit scores and financing offers.
• Trend Data: Actual payment amounts are part of the trend data in credit reports, but currently, only the FICO 10T and VantageScore 4.0 credit scoring models utilize these data.

CFPB’s Concerns

• Consumer Benefits: The CFPB believes that including actual payment amounts could lead to better credit scores and financing offers.
• Credit Score Impact: Including actual payment amounts could negatively impact the credit scores of cardholders who do not pay off their balances in full each month.

Why Credit Card Companies Stop Reporting Data

• Competitive Factors: Some companies worry that other issuers could use this data to make competitive offers, resulting in a loss of customers.
• Voluntary Reporting: Credit reporting has always been a voluntary process, with no laws forcing companies to report information to credit bureaus.

Conclusion

While there is no legal requirement for credit card companies to report all data to credit bureaus, consumers should focus on the aspects of credit management they can control. Developing good credit card habits can help ensure their credit scores remain unaffected.