When it comes to business credit cards, the Bank of America® Business Advantage Cash Rewards Mastercard® stands out with its robust rewards program, attractive introductory offers, and flexibility. Whether you’re a small business owner looking to maximize your spending, seeking flexible redemption options, or wanting to benefit from a no annual fee card, this card could be a valuable addition to your financial toolkit.

With its tailored cashback categories and additional perks, it’s designed to help you make the most of your business expenses efficiently and effectively.

Main information about the card

The Bank of America® Business Advantage Cash Rewards Mastercard® offers a $300 online statement credit after you make at least $3,000 in purchases within the first 90 days of account opening. This card features a tiered cashback program, allowing you to earn 3% cash back in a category of your choice, 2% on dining purchases, and 1% on all other purchases.

This structure provides the flexibility to tailor your rewards to align with your business spending patterns, maximizing the value you get from every dollar spent.

Cashback categories

• 3% cash back in the category of your choice (gas stations, office supply stores, travel, TV/telecom & wireless, computer services, or business consulting services).
• 2% cash back on dining purchases.
• 1% cash back on all other purchases.

You earn 3% and 2% cash back on the first $50,000 in combined choice category and dining purchases each calendar year, and 1% cash back on all purchases thereafter. Additionally, this card comes with no annual fee and offers a 0% introductory APR on purchases for the first nine billing cycles.

After the introductory period, the APR transitions to a variable rate ranging from 18.49% to 28.49%, depending on your creditworthiness. This structure allows you to maximize rewards while providing an initial period of interest-free purchases.

Qualification requirements

To qualify for the Bank of America® Business Advantage Cash Rewards Mastercard®, you must have a good to excellent credit score, typically 700 or above. Additionally, you need to be a U.S. resident and at least 18 years old.

Bank of America may also assess your business’s creditworthiness and financial health as part of the application process. These criteria ensure that applicants are financially stable and capable of managing credit effectively, aligning with the bank’s standards for issuing business credit cards.

Benefits

The benefits of the Bank of America® Business Advantage Cash Rewards Mastercard® extend beyond its cashback rewards:

• Flexible redemption options: Redeem your cash rewards as a deposit into your Bank of America® checking or savings account, as a statement credit, or receive a check by mail. Cash rewards do not expire as long as your account remains open.
• Additional cashback with preferred rewards: If you have a business checking account with Bank of America and qualify for the Preferred Rewards for Business Platinum Honors tier, you can earn up to 75% more cash back on every purchase. This could translate to up to 5.25% cash back in your selected category and up to 3.5% on dining.
• Travel and emergency services: Enjoy $100,000 in travel accident insurance, auto rental insurance, emergency ticket replacement, lost-luggage assistance, and legal and medical referrals when traveling.
• Cash flow management tools: Utilize online services for automatic payments, transfers, and downloading transactions into QuickBooks, which helps streamline your business finances.
• Security features: Zero liability protection for unauthorized transactions and additional purchase protections against loss, damage, theft, or fire. There’s also fraud monitoring and the option for paperless statements.

Pros

The Bank of America® Business Advantage Cash Rewards Mastercard® has several advantages:

• No annual fee: Enjoy all the benefits and rewards without an annual fee.
• Generous cashback program: Earn significant cash back in categories that align with typical business expenses.
• Flexible redemption options: Redeem your rewards in a way that suits your business needs.
• Introductory APR: Benefit from 0% APR on purchases for the first nine billing cycles.
• Additional rewards for preferred members: Increase your cashback earnings if you qualify for the Preferred Rewards for Business program.

Cons

However, there are a few drawbacks to consider:

• Category caps: The 3% and 2% cashback rates are only applicable up to $50,000 in combined purchases per year.
• Variable APR: After the introductory period, the APR can be as high as 28.49%, which could be costly if you carry a balance.
• Qualification criteria: Requires a good to excellent credit score, which may exclude some small business owners.

How to apply

Applying for the Bank of America® Business Advantage Cash Rewards Mastercard® is straightforward:

• Online application: Visit the Bank of America website and fill out the online application form with your business and personal information.
• Required documents: Prepare necessary documents such as your business’s financial statements, tax identification number, and personal identification.
• Submit application: Submit the completed application and wait for approval. Bank of America may contact you for additional information if needed.

Is the card worth it?

Ultimately, the Bank of America® Business Advantage Cash Rewards Mastercard® is an excellent choice for small business owners seeking a versatile and rewarding credit card without an annual fee. The cashback program is particularly beneficial if your business spending aligns with the high-earning categories, allowing you to maximize rewards.

Additionally, the introductory 0% APR offer on purchases can help manage short-term financing needs effectively, providing a financial cushion during the initial months of card ownership. This combination of features makes it a valuable tool for optimizing business expenses. However, it’s essential to consider the variable APR that applies after the introductory period, which can be as high as 28.49%.

Additionally, the rewards on specific categories are capped at $50,000 per year. If your business spending exceeds this cap or if you anticipate carrying a balance beyond the introductory period, you might need to evaluate other options. These factors can impact the overall value you receive from the card, so it’s crucial to assess your business’s spending patterns and financial needs before deciding.