Cashback credit cards are generally divided into two types: those with multiple bonus categories and those with a flat rate on all purchases. The Bank of America® Unlimited Cash Rewards credit card, which offers unlimited 1.5% cash back on all transactions, falls into the latter group. This earning rate is immediately competitive with other popular cashback cards.
However, if you are familiar with Bank of America’s excellent Preferred Rewards program, you are aware that you may improve your earning potential with this card. Let’s look at how the Bank of America Unlimited Cash Rewards works, including its benefits and potential drawbacks, to help you comprehend its potential.
Who Should Get This Card?
There is fierce competition for the Bank of America Unlimited Cash Rewards from other cards. If you want a card that earns a set payback rate on every purchase, its 1.5% cashback-making rate is in line with some of the most well-known cashback cards.
However, this card can be handy if you take advantage of the Bank of America Preferred Rewards program. This program allows you to earn 25% to 75% additional rewards with your card, which translates to up to 2.62% cash back on every purchase.
If you’re looking for introductory APR rates on balance transfers and purchases, the Bank of America Unlimited Cash Rewards may be a good option. Remember that you will most likely need strong or excellent credit to qualify.
What Does The Bank Of America® Unlimited Cash Rewards Offer?
- After spending $1,000 in the first 90 days after account opening, you’ll receive a $200 online cash rewards bonus.
- Earn 1.5% cash back on all purchases indefinitely.
- There’s no need to worry about offsetting a yearly cost with a $0 annual fee.
- Cashback points can be redeemed for statement credits, deposits into qualifying Bank of America checking or savings accounts, or credit into qualified Merrill investment accounts (such as 529 accounts).
- Cardholders receive a 0% intro APR on purchases for the first 18 billing cycles, followed by a variable APR ranging from 16.99% to 26.99%. In addition, for any eligible balance transfers performed in the first 60 days, this card offers a 0% initial APR for 18 billing cycles, followed by a 16.99% – 26.99% variable APR. Balance transfers are subject to balance transfer fees (in this example, $10 or 3% of the transaction amount, whichever is greater).
- To join the Preferred Rewards program, you must have a three-month combined average daily balance of $20,000 (across qualified Bank of America and Merrill accounts). Still, you might earn 25% to 75% bonus rewards on your purchases.
- When you link an eligible Bank of America checking account to your credit card, you can use this optional feature to help prevent overdrafts.
- Visa Signature advantages can include extended warranty protection, travel concierge services, and other perks. However, these perks may differ depending on the card issuer. Check your card’s benefits guide to confirm your Visa Signature benefits.
- To qualify for Preferred Rewards and a 25% cash-back incentive, you must have at least $20,000 in preparing combined accounts. You must have at least $100,000 in eligible combined budgets for the Platinum Honors tier. Unfortunately, not everyone will be able to reach these standards.
- There are no bonus categories with the Bank of America Unlimited Cash Rewards. It instead has a fixed, infinite earning rate. This isn’t always terrible, but it might be if you’re looking to optimize your earning potential in specific areas.
- Foreign transaction fees: This Bank of America credit card has foreign transaction fees. Thus, it is not intended for use on international travel. You could still use it for foreign purchases but have to pay the extra cost.
Cash Back Earning
Here’s how your cash back with the Bank of America Unlimited Cash Rewards credit card may pile up.
Keep in mind that this is an estimate. How much you spend and other primary considerations will decide the actual worth.
Potential first-year earnings: $703
Potential second-year earnings: $503
Remember that the added points available through the Preferred Rewards program could significantly improve your earnings.
When comparing credit cards, you’ll see that many reward cards have various earning rates based on your transactions. For example, one card may give bonus benefits for purchases at a grocery shop or gas station, but another may reward you for utility bills or drugstore purchases.
Unlike these credit cards, the Bank of America Unlimited Cash Rewards does not include two or three bonus categories for earning cash back. Instead, you can earn up to 1.5% cash back on all transactions. This is the only way to earn cash back with this card, which simplifies the process, especially if you don’t want to keep track of different categories.
Furthermore, if you are a Preferred Rewards member, you can receive a higher rate of cashback. Depending on the tier you qualify for, this Bank of America program will automatically add 25% to 75% extra to your rewards. To be eligible for the program, you must have at least $20,000 in qualifying accounts.
No matter the form of redemption rewards, your Bank of America Unlimited Cash Rewards credit card usually has the same value. If you redeem $25 in cashback rewards for statement credits or a deposit into an approved bank account, they will still be worth $25.
The options for redemption are as follows:
- Statement credits
- Deposits into a Bank of America checking or savings account
- Credit to a qualifying cash management account or 529 accounts with Merrill
Should I Get This Card?
It is possible to benefit from using the Bank of America Unlimited Cash Rewards card. The Bank of America Unlimited Cash Rewards delivers a reasonable 1.5% rate on all purchases for a primary cashback card. The Capital One Quicksilver Cash Rewards Credit Card and the Chase Freedom Unlimited® are two popular alternatives to this in terms of cashback cards. However, Bank of America Preferred Rewards participants can earn more than this rate, which may make this a good card option.
Is There Any Minimum Credit Score Required?
To be eligible for the Bank of America Unlimited Cash Rewards credit card, you usually need to have at least a decent credit score. This indicates that you would probably require a minimum FICO Score of 670, while a 700 or above would be preferable.
What Is The Credit Limit?
Bank of America doesn’t disclose the credit limits on its credit cards, but you can call or go online to ask for an increase. Although it’s not a strict regulation, Visa Signature cards usually have a minimum credit limit of $5,000.
Bank of America Unlimited Cash Rewards Review
Bank of America Unlimited Cash Rewards
With Bank of America’s Unlimited Cash Rewards card, there’s no annual fee and you earn cash back on every purchase. This makes it a great option for people who want to maximize their rewards. However, unless you’re a Bank of America Preferred Rewards member with a large balance across your checking, savings and eligible investment accounts, you may be better off with another cash back credit card.