Bank Of America^® Unlimited Cash Rewards Credit Card Review [2024]: Excellent Rate for Preferred Rewards Members

Card basics

Who should get the Bank of America Unlimited Cash Rewards credit card?

This card has a relatively niche audience. First, you need to prefer simple flat-rate rewards over rotating bonus categories. Rotating bonus categories typically require logging in to activate each quarter and keeping a close eye on spending if you want to make the most of them. And that’s not for everyone.

More importantly, you should be someone who banks at Bank of America or invests with Merrill (or both). Why? The Unlimited Cash Reward card’s cashback rate of an unlimited 1.5% cash back on all purchases is relatively low compared to other cards, including the Wells Fargo Active Cash^® Card, which allows cardholders to earn unlimited 2% cash rewards on purchases.

The cashback rate of the Unlimited Cash Rewards card is greatly improved if you qualify for a higher tier of the Preferred Rewards program. You need to maintain a required daily balance for three months across qualifying accounts to receive a bonus.

Notable benefits and perks

Introductory APR offer

The Unlimited Cash Rewards card offers a couple of strong introductory offers:

• 0% intro APR on purchases for 15 billing cycles, then 19.24% - 29.24% Variable APR
• 0% intro APR on qualifying balance transfers for 15 billing cycles for any balance transfers made in the first 60 days, then 19.24% - 29.24% Variable APR

Note that balance transfers come with balance transfer fees (in this case, 3% for 60 days from account opening, then 4%).

While these are helpful, if your primary reason for getting a card is its introductory balance transfer rate, this isn’t the card for you.

Instead, look for a card with a longer introductory period, like the Wells Fargo Reflect^® Card. It offers a 0% intro APR for 21 months from account opening on qualifying balance transfers, then 18.24%, 24.74%, or 29.99% Variable APR.

The purchase introductory APR offer is similar to other cards on the market, though, so this card would be fine for that. If you’re not a Bank of America or Merrill customer, but you’d like a purchase offer, the Chase Freedom Unlimited^® would be a better option. It offers a similar introductory period on purchases, offers fixed elevated rewards rates in some categories, and tends to have very strong welcome offers.

Overdraft protection

This optional feature can help you prevent overdrafts when you link an eligible Bank of America checking account to your credit card. Obviously, this is a feature that only benefits Bank of America banking customers, and it’s not a reason to get the Unlimited Cash Rewards card, but it doesn’t hurt either. Even the most careful person can have a rough day, week, or month and end up accidentally overdrafting their account, so a little cushioning never hurts.

There is no transfer fee for using this option, but Bank of America cautions that there may be other fees. Transfers are also cash advances, and interest charges start immediately (unlike purchases, which have a grace period), so if you do use it for overdraft protection, I would pay it off ASAP.

Drawbacks: Why you may want a different card

High bar for bonus cashback rates

You need a 3-month combined average daily balance of at least $20,000 across all eligible accounts at Bank of America and Merrill to qualify for Preferred Rewards and get a 25% bonus to your cash back. If you want to earn a 75% bonus, you need at least a $100,000 3-month combined average daily balance across eligible accounts for the Platinum Honors tier. This is a pretty high bar for many.

High spending requirement for the welcome offer

With the Bank of America Unlimited Cash Rewards card, you earn a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. This is a high requirement compared to other cards, including the Wells Fargo Active Cash^® Card, which offers a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.

Foreign transaction fees

This Bank of America credit card comes with a 3% foreign transaction fee, which means it’s not designed for use on trips abroad. You could still technically use it on foreign purchases, but you would have to pay this extra fee.

For information about credit card offers with travel rewards and benefits, check out our list of the best travel credit cards.

Earning & redeeming cash back

Potential earnings in years one and two

Here's a look at how your cash back can add up with the Bank of America Unlimited Cash Rewards credit card.

Remember, this is an estimation. The actual value will be determined by how much you spend and other relevant factors.

Potential first year earnings: $763

Potential second year earnings: $563

These values are based on the FinanceBuzz Credit Card Rewards Valuation Model which takes a look at points earned via spending, the sign-up bonus, and the annual fee.

Keep in mind that your earnings could significantly increase with the bonus rewards available through the Preferred Rewards program.

Best ways to earn

Many rewards cards offer different earning rates depending on your purchases. For example, one card might offer bonus rewards if you make purchases at a grocery store or gas station, while another might reward you for utility expenses or purchases at a drugstore. The Chase Freedom Unlimited is a good example of this type of card.

Unlike these types of credit cards, the Bank of America Unlimited Cash Rewards doesn’t have two or three bonus categories for earning cash back. Instead, you earn an unlimited 1.5% cash back on all purchases. This is the only way to earn cash back with this card, which helps make the process easy and straightforward, especially if you don’t want to track different categories.

Plus, you earn the higher rate of cash back if you’re a Preferred Rewards member, and that’s across all qualifying purchases.

Maximizing your redemptions

Reward redemptions with your Bank of America Unlimited Cash Rewards credit card don’t typically vary in value, regardless of the redemption type. Twenty-five dollars worth of cashback rewards would still be worth $25, whether you redeem it for statement credits or a deposit into an eligible bank account.

Here are the available redemption options:

• Statement credits
• Deposits into a Bank of America checking or savings account
• Paying for purchases at Amazon or PayPal

It doesn't offer redemptions for gift cards or travel, which are a common redemption option with other card issuers like Chase.

An alternative to consider

The Citi Double Cash^® Card is a strong alternative to the Unlimited Cash Rewards card if you don’t qualify for Preferred Rewards. It has a $0 annual fee and offers 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases; plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24.

This earning rate beats out what’s available on the Bank of America Unlimited Cash Rewards if you don’t account for the Preferred Rewards program.

For more information, check out our Citi Double Cash Card review.

A complementary card to consider

Before you commit to the Unlimited Cash Rewards card, you may also want to take a peak at the Bank of America^® Customized Cash Rewards credit card, which has elevated rates in certain categories, and you get a Preferred Rewards bonus there as well.

You earn 3% cash back in the category of your choice and 2% cash back at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and 1% on all other purchases. There is a cap on the highest rates, which is a downside, but you could help mitigate that by switching over to a card like the Unlimited Cash Rewards card once you hit the cap to maximize your rewards.

FAQ

Bottom line

The Bank of America Unlimited Cash Rewards card isn’t going to be right for everyone. And that’s fine, given that there are strong alternatives like the Wells Fargo Active Cash and Citi Double Cash.

But if you qualify for Preferred Rewards, it's definitely worth a look, and at the highest tiers, it beats other flat-rate cashback cards. Before you commit to this one, take a peek at the Bank of America Customized Cash Rewards card, which has elevated rates in certain categories, and you get a Preferred Rewards bonus there as well.

Unlimited 1.5% Cash Back on All Purchases

Bank of America^® Unlimited Cash Rewards credit card

4.5

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Bank of America^® Unlimited Cash Rewards credit card

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Annual Fee

$0

Benefits and Drawbacks

Benefits

• Simple cash back structure
• Intro APR offer for purchases and qualifying balance transfers
• $0 annual fee

Drawbacks

• Limited redemption options
• High spend requirement for the welcome offer

Card Details

• $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
• Earn unlimited 1.5% cash back on all purchases.
• If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 1.87%-2.62% cash back on every purchase with Preferred Rewards.
• No annual fee.
• No limit to the amount of cash back you can earn and cash rewards don’t expire as long as your account remains open.
• 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 19.24% - 29.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
• Contactless Cards - The security of a chip card, with the convenience of a tap.
• This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.