Bank of America Announces Negative Changes To Preferred Rewards

Bank of America announced that reward tiers names would be changing in May, but not what the changes were.Then they announced that new incentives for people with high balances would be announced.

We finally have details of the changes and it’s not good news.Here is what you need to know (% in brackets indicates credit card bonus):

Current tiers:

No tier: $0-$19,999 (10% with active checking account)

Gold – $20k-$49.99k (25%)

Platinum – $50k-$99.99k (50%)

Platinum Honors – $100k-$999.99k (75%)

Diamond – $1m+ (75%)

New tiers:

Member – $0-$29.99k (10%)

Preferred Plus – $30k-$99.99k (25%)

Preferred Honors – $100k-$999.99k (50%)

Premier – $1m+ (75%)

Main downgrade is earning the 75% credit card bonus now requires $1,000,000 in funds, previously that was only $100,000.Was really hoping we wouldn’t see this program nerfed this badly.

It’s hard to justify keeping that much invested with Bank of America especially when you consider the opportunity cost of chasing brokerage bonuses.

According to the fine print the business program is not being nerfed (at least not yet).Additionally current customers will keep their benefits for at least six months after the changes go live in May, 2026.

Positive Changes

There is some good news though with a new subscription credit being added.

Charges must be made to debit card, list of eligible merchants isn’t available.

Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by mycardopinions.
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Frequently Asked Questions

Certainly. Unlike personal loans, you won't face any penalties for settling your balance ahead of schedule. However, it's crucial to keep in mind that if your credit card comes with a 0% introductory offer, it's essential to clear your balance completely before the 0% promotion expires and interest charges apply.

However, you can include additional cardholders, each with their own card. While sharing the single credit limit, the primary cardholder remains responsible for settling the debt.

Potentially, yes. Credit card APRs are typically variable, allowing lenders to change rates, impacting your monthly payments. Additionally, be mindful that introductory 0% offers can lead to higher interest rates once they expire. So, it's wise to clear your balance before that happens, if feasible.

Indeed, credit builder cards exist for those with less-than-ideal credit scores. These cards offer lower credit limits (typically £150 to £1,200) and higher interest rates. Responsible use, including full and on-time payments, can gradually boost your creditworthiness, potentially opening doors to better credit card offers down the line.