Boost Your Cash Back Rewards

As an avid fan of credit card rewards, particularly cash back, I consistently use credit cards for virtually every purchase. Why? Because it’s like getting an automatic discount of at least 1.5% on everything I buy, which essentially translates to free money.

My Go-To Cash Back Cards

Wells Fargo Active Cash Card For the past few years, the Wells Fargo Active Cash has been my go-to card for all purchases outside of food and travel categories. Why this card? It offers a straightforward 2% cash back on every purchase — no categories, no caps, just a flat, easy return on spending.

Bank of America Unlimited Cash Rewards However, a recent chat with a friend opened my eyes to the potential of the Bank of America Unlimited Cash Rewards card. Initially, it didn’t catch my interest due to its default 1.5% return. But, there’s a twist — being in a “relationship” with Bank of America can bump this up to an impressive 2.625%.

Here’s how it works: to unlock this higher rate, you need to achieve the “Platinum Tier” in Bank of America’s rewards program, which requires maintaining a daily balance of over $100,000 for three months, achievable through accounts or investments held with Bank of America or Merrill Lynch. I decided to transfer my investments to Merrill Lynch (using an ACATS transfer), and I’m currently waiting for the qualification period to complete.

This strategic move should increase my rewards from the card by about 31% — a significant boost considering it involves minimal effort and no additional costs.

Calculating the Benefit

While I haven’t run the exact numbers yet, the potential increase in cash back, especially on large expenditures, makes this shift a no-brainer. Here’s a simple breakdown:

Before: 2% cash back on all purchases with Wells Fargo Active Cash.
After: Potentially 2.625% back with BoA, assuming qualification into Platinum Tier.

Other Cards in My Wallet

American Express Gold Card: My favorite for all food-related expenses. Whether it’s groceries or dining out, this card offers substantial rewards.
Wells Fargo Autograph Card: The best choice for my travel expenses, thanks to its targeted benefits for frequent travelers.

Final Thoughts

For those looking to maximize their credit card benefits, it’s worth exploring how relationships with financial institutions can enhance the rewards received from seemingly straightforward products like cash back credit cards. As I await the completion of my three-month qualification with Merrill Lynch, I’m optimistic about the increased returns on my spending.

Leveraging such opportunities can turn everyday spending into a more lucrative part of your financial strategy.

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