Bank Of America^® Unlimited Cash Rewards Credit Card vs. Bank Of America^® Travel Rewards Credit Card: Which Is Better?

Bank of America^® Unlimited Cash Rewards credit card vs. Bank of America^® Travel Rewards credit card

	Bank of America® Unlimited Cash Rewards credit card	Bank of America® Travel Rewards credit card
FinanceBuzz value calculation1 <p class="">These values are based on the <a href="https://financebuzz.com/financebuzz-credit-card-valuation">FinanceBuzz Credit Card Rewards Valuation Model</a>, which takes a look at rewards earned via spending, the welcome offer, and the annual fee. We used a valuation of 1 cent/point unless otherwise stated above. These are estimated values - your actual earnings will depend on how much you spend and in what categories.<br></p>	Year 1: $763 Year 2: $563	Year 1: $888 Year 2: $638
Annual fee	$0	$0
Earning rate	Unlimited 1.5% cash back on all purchases	1.5 points per $1 spent on all purchases
Redemption methods	Statement credits Deposits into an eligible Bank of America checking or savings account Credits into eligible Merrill® investment accounts Pay for Amazon purchases or check out with PayPal	Statement credits for travel and dining purchases Deposits into an eligible Bank of America checking or savings account Credits into an eligible Cash Management Account® with Merrill Gift cards Mailed checks
Foreign transaction fee	3%	0%
Credit score recommended	Excellent, Good	Excellent, Good
Welcome offer	Earn a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening	Earn 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases
	Learn more	Learn more

When to go with the Bank of America Unlimited Cash Rewards

You should choose the Bank of America Unlimited Cash Rewards card if:

• You prefer earning cash back over points.
• You want to cash out for cash.
• You want to invest rewards.

You want to earn cash back

The Bank of America Unlimited Cash Rewards is a cash back credit card, while the Bank of America Travel Rewards earns points. Overall, you typically want a card that earns cash back rewards if you prefer cash-related redemption options. But a card that earns points or miles would typically have travel-related redemption options.

I suggest thinking about not only how you spend but also how you like to redeem your credit card rewards to choose between the two.

You want to redeem rewards for cash

Rewards for this card can be redeemed for statement credits, deposits to a Bank of America bank account, or credits into eligible Merrill® investment accounts. The nice thing about this card compared to the Travel Rewards card, which also lets you redeem points as credits and deposits, is that you can cash out your rewards at the same rate you earn them. So if you end up with $50 in cash back in your account, you can redeem that for a statement credit of $50.

For comparison, redeeming Travel Rewards points is more complicated and less rewarding. One point is worth $0.006 when redeemed for cash rewards, so I don’t recommend the Travel Rewards card to anyone who plans to primarily redeem points this way.

You want to invest rewards

The option to invest rewards is unique for credit cards, and both of these have it. However, the Bank of America Unlimited Cash Rewards card actually gives you one more choice in which Merrill investment account you send your earnings to. You can cash out to either of the following:

• A Cash Management Account® with Merrill
• A qualifying 529 account held at Merrill

On the flip side, the Bank of America Travel Rewards card only lets you cash out to an eligible Cash Management Account® with Merrill. So, for investing rewards, I give this one to the Unlimited Cash Rewards (although this might only matter if you have a 529 plan).

When to go with the Bank of America Travel Rewards

You should choose the Bank of America Travel Rewards if:

• You’d prefer earning points over cash back.
• You want to redeem points for travel purchases.
• You want travel benefits.
• You want more purchase protection and insurance.

You want to earn points

As I mentioned, you should generally stick with a card that earns travel rewards points if you plan to mostly or exclusively redeem your rewards for travel. The Travel Rewards card earns 1.5 points per $1 spent on all purchases. This is a solid flat rate, but a lot of travel cards offer elevated rates on travel. The no-annual-fee Capital One VentureOne Rewards Credit Card, for example, earns up to 5 miles per dollar.

You want more ways to redeem rewards (including travel)

The redemption choices are fairly similar between these two cards, but the Bank of America Travel Rewards card has a leg up on the Unlimited Cash Rewards card for variety because it has many of the same redemption options as the Unlimited Cash Rewards plus a few extra options. This includes gift cards and mailed checks. These methods may not give you as much value as bank deposits or statement credits, and they definitely won’t give you as much value as travel redemptions. But it can be nice to have more choices.

However, keep in mind that more doesn’t mean better, and there are a few cases when the Bank of America Unlimited Cash Rewards provides a little more flexibility. “Statement credits,” for example, aren’t limited to travel and dining purchases like they are on the Travel Rewards. Also, “credits into eligible Merrill® accounts” includes eligible cash management and 529 Merrill accounts, while the Travel Rewards redemption only includes the cash management option.

You want other travel benefits

The best travel credit cards don’t typically have foreign transaction fees because frequent travelers want to avoid extra expenses. The Bank of America Travel Rewards is no exception. Unlike Bank of America Unlimited Cash Rewards, which comes with a 3% foreign transaction fee, the Travel Rewards card doesn’t charge anything for this.

You want more insurance and purchase protection

Both the Bank of America Unlimited Cash Rewards and Travel Rewards are Visa Signature credit cards. This means they have additional benefits for cardholders. But the Bank of America Travel Rewards provides more everyday purchase benefits and travel-focused benefits.

For comparison, the Bank of America Unlimited Cash Rewards offers these Visa Signature benefits:

• Extended warranty protection
• Roadside dispatch
• Travel and emergency assistance services
• Visa Signature concierge

The Bank of America Travel Rewards offers these Visa Signature benefits:

• Secondary rental car insurance
• Lost luggage reimbursement
• Extended warranty protection
• Roadside dispatch
• Travel and emergency assistance services
• Visa Signature concierge

Both cards qualify for Bank of America Preferred Rewards®

Many Bank of America credit cards offer access to the Bank of America Preferred Rewards® program. You have to meet certain requirements to become a Bank of America Preferred Rewards® member — such as having an active and eligible Bank of America checking account and having $20,000 or more in eligible accounts over three months — but you could earn up to a 75% rewards bonus on your credit card purchases if you reach the Platinum Honors tier.

FAQs

Bottom line

The differences between Bank of America Unlimited Cash Rewards and Bank of America Travel Rewards primarily come down to how you earn and redeem rewards. You earn cash back with the Unlimited Cash Rewards card that you can redeem for statement credits and deposits, and you earn points with the Travel Rewards card that you can redeem for travel.

The Travel Rewards card has an edge for travel because it has no foreign transaction fees and includes limited travel insurance, but the Unlimited Cash Rewards wins for Merrill Edge fans.

Easy-to-Earn Unlimited Rewards

Bank of America^® Travel Rewards credit card

4.1

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^® Travel Rewards credit card

Apply Now

Annual Fee

$0

Benefits and Drawbacks

Benefits

• $0 annual fee
• Simple, flat-rate rewards
• Flexible redemption options
• Up to 75% preferred Rewards bonus potential

Drawbacks

• Lower earnings than category-specific travel cards
• Limited travel perks

Card Details

• Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don't expire as long as your account remains open.
• 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases.
• Use your card to book your trip how and where you want - you're not limited to specific websites with blackout dates or restrictions.
• Redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants including takeout.
• 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 18.49% - 28.49% 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%.
• If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more points on every purchase. That means instead of earning an unlimited 1.5 points for every $1, you could earn 1.87-2.62 points for every $1 you spend on purchases.
• 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.

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

Apply Now

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 18.49% - 28.49% 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.