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Is the Bank of America Unlimited Cash Rewards Card Your Secret Cashback Weapon?
February 6, 2025
Overview of the Bank of America Unlimited Cash Rewards Card
The Bank of America Unlimited Cash Rewards credit card is a simple, no-frills cash-back card that can become surprisingly rewarding if you’re a Bank of America loyalist. It earns a flat 1.5% cash back on all purchases, unlimited – so you don’t have to juggle bonus categories.
Plus, it comes with a nice sign-up bonus and introductory APR offer. Here’s a quick rundown of the key features and terms:
- Unlimited 1.5% cash back: Earn 1.5% back on every purchase, every day. There are no rotating categories or spending caps to worry about.
- First-year bonus rate: New cardholders currently earn 2% cash back on all purchases for the first year. This is a limited-time enhancement to help you earn extra rewards early on.
- Welcome bonus: Earn a $200 cash rewards bonus after spending $1,000 in the first 90 days of opening the account. This bonus is fairly standard for a no-annual-fee card, but still a great perk.
- 0% intro APR: Enjoy a 0% introductory APR for 15 billing cycles on new purchases and on balance transfers made in the first 60 days. This can help if you need to finance a big purchase or transfer high-interest debt. After the intro period, a variable APR of around 18.24%–28.24% applies, depending on your creditworthiness.
- No annual fee: It costs $0 to carry this card, so any rewards you earn are pure cashback in your pocket.
- Foreign transaction fee: The card has a 3% fee on purchases made abroad. That means it’s not the best choice if you travel internationally often.
- Credit needed: You’ll generally need good to excellent credit to get approved. Bank of America markets this card to those with solid credit history.
In short, the Unlimited Cash Rewards card is easy to use and fairly rewarding on its own. But its real power shows up if you’re able to take advantage of Bank of America’s loyalty program, which we’ll explore next.
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Maximizing Cash Back with Preferred Rewards
One unique aspect of Bank of America credit cards is the Preferred Rewards program. If you also bank or invest with Bank of America (or Merrill), they reward your loyalty by boosting your credit card rewards by 25% up to 75%. Here’s how that works for the Unlimited Cash Rewards card:
Preferred Rewards tiers: There are three main tiers: Gold (>$20k with BofA), Platinum (>$50k), and Platinum Honors (>$100k). Respectively, these tiers give you a 25%, 50%, or 75% bonus on your credit card rewards. In practical terms:
- Gold (25% bonus) → 1.875% effective cash back on all purchases
- Platinum (50% bonus) → 2.25% cash back on all purchases
- Platinum Honors (75% bonus) → 2.625% cash back on all purchases
If you qualify for even the Gold tier, your flat rate goes from 1.5% to 1.875%, edging past many no-annual-fee cards. And at Platinum Honors, 2.625% back on everything is market-leading for a flat-rate card. This is where Bank of America Unlimited Cash Rewards can outshine even the popular 2% cards by other banks.
Maximizing the first-year offer: Notably, the current 2% first-year cashback promotion stacks with Preferred Rewards partially. The extra 0.5% isn’t boosted by Preferred Rewards, but the base 1.5% is. If you’re not a Bank of America banking customer, don’t worry – the card is still solid at 1.5% flat cash back. But the Preferred Rewards program is worth knowing about, as it’s the key to unlocking this card’s full potential. For many users, this will determine whether the Unlimited Cash Rewards card is “okay” or outstanding.
If you have at least $20,000 in deposits or investments with Bank of America/Merrill, be sure to enroll in Preferred Rewards. Even the entry Gold tier boosts your Unlimited Cash Rewards earnings from 1.5% to 1.875% on every purchase, and the highest tier yields 2.625% back – beating typical 2% cash-back cards.
Comparing Bank of America Unlimited Cash Rewards with Other Credit Cards
When considering the Bank of America Unlimited Cash Rewards, it's helpful to compare it with other popular options in the cashback credit card category:
- Annual fee: $0
- Sign-up bonus: Cash bonus after meeting spending requirements
- Key rewards: 5% on travel purchased through Chase Travel℠, 3% on dining and drugstores, 1.5% on all other purchases
- Standout feature: Flexible redemption options including cash back, travel, and gift cards
Capital One Savor Cash Rewards Credit Card:
- Annual fee: $0
- Sign-up bonus: Cash bonus after meeting spending requirements
- Key rewards: 3% on dining, entertainment, popular streaming services, and grocery stores
- Standout feature: No foreign transaction fees
Blue Cash Everyday® Card from American Express (rates & fees):
- Annual fee: $0
- Welcome offer: Cash bonus after meeting spending requirements
- Key rewards: 3% at U.S. supermarkets (up to $6,000 per year, then 1%), 3% cash back up to $6,000 per year, then 1%. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout
- Standout feature: This card offers a generous intro of APR on purchases and balance transfers
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
Each card offers unique benefits tailored to different spending habits and preferences. Consider your personal financial goals when choosing the best card for you.
Key Takeaways:
- Comparing Bank of America Unlimited Cash Rewards excels in offering unlimited cash back
- Chase Freedom Unlimited® offers diverse category bonuses
- Capital One Savor Cash Rewards Credit Card rewards dining and entertainment spending
- Blue Cash Everyday® Card from American Express provides strong rewards on everyday purchases
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Conclusion + A Quick Kudos Note
The Bank of America Unlimited Cash Rewards card proves that sometimes simple is best. With no annual fee, a decent flat cashback rate, and useful perks like a 0% intro APR and a sign-up bonus, it’s a strong contender for anyone seeking easy rewards.
It’s an excellent choice for Bank of America customers who can maximize the card through Preferred Rewards – turning 1.5% into industry-leading 2.625% cash back. Even if you’re not with BoA, the card can serve as a reliable “all purchases” card, though you may compare it against 2% cards for long-term value.
If you want to ensure you’re always getting the maximum rewards from this card, consider using Kudos. Kudos is a free tool that helps you track your cards, compare rewards, and even suggests the best card to use for each purchase to maximize cashback or points. It’s like having a personal credit card advisor in your pocket. Whether you end up choosing the BoA Unlimited Cash Rewards or another card (or both!), Kudos can help you optimize your strategy and keep more cash back in your wallet.
FAQs about the Bank of America Unlimited Cash Rewards
Is the Bank of America Unlimited Cash Rewards credit card worth it?
It can be very worth it for the right person. If you want a simple cash-back card with no annual fee, this card is a solid choice – you get a decent 1.5% back on everything you buy, plus a nice $200 sign-up bonus. It becomes especially valuable if you’re a Bank of America customer who can take advantage of the Preferred Rewards program.
How can I earn more than 1.5% cash back with the Unlimited Cash Rewards card?
The key is Bank of America’s Preferred Rewards program. By keeping enough money in BoA bank accounts or Merrill investment accounts, you can get a rewards bonus of 25% to 75% on all your credit card cash back. In practical terms, 1.5% base rate becomes up to 1.87%, 2.25%, or 2.625% at the highest tier.
What’s the difference between the Bank of America Unlimited Cash Rewards and Customized Cash Rewards cards?
Both are cash-back cards from Bank of America with no annual fee, but they work differently. The Unlimited Cash Rewards gives a flat 1.5% on everything, whereas the Customized Cash Rewards gives 3% back in one category of your choice on the first $2,500 in combined quarterly spend in those categories, then 1% on other purchases. Essentially, Unlimited is about consistency, and Customized is about maximizing a specific spending category. If you have one or two categories where you spend a lot, the Customized Cash card can earn more on those purchases. But its 1% on other purchases is lower than Unlimited’s 1.5%. Many people pair the two: use Customized Cash for its 3% category and the Unlimited Cash Rewards for all other purchases to ensure no spend earns under 1.5%.
What credit score do I need to get approved for the Unlimited Cash Rewards card?
Bank of America generally targets this card to folks with good to excellent credit. That typically means a FICO credit score in at least the high 600s or 700+ range. Of course, approval isn’t guaranteed purely by a score – your overall credit history, income, and existing relationship with Bank of America also factor in. There are reports of people getting approved with scores around ~680, but for the best odds, aim for a solid credit profile. The requires “good/excellent credit” note in BoA’s terms hints that a strong credit score is needed.
Does the Bank of America Unlimited Cash Rewards card have any travel benefits or other perks?
As a straightforward cash-back card, it doesn’t have luxury travel perks like airport lounge access or travel credits – those are usually found on cards with annual fees. The Unlimited Cash Rewards is more about everyday value. That said, it does come with standard Visa Platinum or Visa Signature benefits. This can include purchase security, extended warranty protection, and rental car insurance coverage. It’s also contactless-enabled for convenience.
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