Bank of America® Unlimited Cash Rewards Review: Easy Cash Back

The Bank of America® Unlimited Cash Rewards credit card is a great, no-fuss cash back card with unlimited 1.5% cash back on all purchases. An introductory 0% APR offer and no annual fee add to its appeal. However, the increased balance transfer fee after the initial period and the card's foreign transaction fee may be dealbreakers for some consumers.

Bank of America customers with significant deposit balances may be excited by the higher cash back rates available through the Preferred Rewards program. However, the $20,000 minimum deposit threshold to qualify may not be attainable for all.

Overall, this card is a solid choice for those who value uncomplicated cash back and are already Bank of America customers.

The Bank of America® Unlimited Cash Rewards credit card is a straightforward cash back card that rewards users with unlimited 1.5% cash back on every purchase. This card is best for consumers who prefer a simple reward structure without the need to track spending categories.

For Preferred Rewards members, cash back rates climb from 1.87% to 2.62%. While the higher cash back rates are appealing, maintaining at least $20,000 in combined Bank of America savings or Merrill investment holdings to get the 1.87% cash back rate may not be feasible for all cardholders.

The card also boasts an introductory 0% APR for 15 billing cycles on both purchases and balance transfers. Coupled with no annual fee, this card is an attractive option for individuals looking to save on interest and associated costs. Your rewards do not expire as long as the account is active, providing a flexible redemption schedule.

However, this card may not be best for international use due to its 3% foreign transaction fee. Also note that after the first 60 days, the balance transfer fee increases to 4%, which could deter those considering a balance transfer as part of their debt management plan.

>>More: Best Cash Back Credit Cards

The Bank of America Preferred Rewards program boosts the cash back you earn from your Bank of America® Unlimited Cash Rewards card. Your combined average balance over three months must be at least $20,000 in your Bank of America and Merrill accounts to qualify.

The program has different levels, and how much extra cash back you get depends on what tier you qualify for.

Enjoy straightforward benefits and consistent cash back with the Bank of America® Unlimited Cash Rewards credit card. Here's why it might be a smart choice for your wallet:

• 1.5% Unlimited Cash Back: This card gives 1.5% cash back without any caps or categories to track. Your cash back won’t expire, and you can redeem it via statement credits or direct deposits.

• Introductory APR Offer: Users can enjoy a 0% introductory APR on purchases and balance transfers for the first 15 billing cycles. This feature can help manage new expenses or reduce existing debt.

• Earn a $200 Bonus: Earn a $200 cash reward by spending $1,000 within the initial 90 days, effectively a 20% return on the first $1,000 you spend.

• Preferred Rewards Program: The benefits amplify for Bank of America customers. Qualifying for the Preferred Rewards program could increase your cash back rate, making spending even more rewarding.

The Bank of America® Unlimited Cash Rewards card provides a decent cash back rate and 0% intro APR period for purchases and balance transfers. However, consider these potential drawbacks before applying:

• No Bonus Categories: High-spenders in areas like dining or groceries may benefit more from cards with targeted rewards. However, these cards typically come with spending caps and category activations. For example, the Bank of America® Customized Cash Rewards card provides 3% cash back on your chosen category and 2% on groceries and wholesale clubs for up to $2,500 per quarter.

• Higher Cash Back Rates Available: If you prefer a flat-rate cash back card, you can find similar no-annual-fee cards that offer 2% cash back, such as the Citi Double Cash®. If you spend $3,000 monthly, you can get up to $180 more per year with a 2% cash back card. For Preferred Rewards members, you'll need $50,000 or more in your Bank of America account to have a cash back rate higher than 2%.

• Balance Transfer Fee Increase: The balance transfer fee on this card jumps to 4% after the first 60 days, which could diminish the value of the introductory 0% APR offer on balance transfers. Consider this if you're planning to transfer a large balance and may not complete the transfer within the initial period.

We've compared the Bank of America® Unlimited Cash Rewards card to other cash back cards to help you choose the one that best suits your needs.

Bank of America® Unlimited Cash Rewards vs. Bank of America® Customized Cash Rewards

While both offer enticing 0% intro APR periods and no annual fee, the Customized Cash Rewards card stands out with its higher cash back rates in chosen categories, offering more value for targeted spending. However, the bonus categories have a combined spending cap of $2,500 per quarter.

Both cards carry the same foreign transaction fee, which is a downside for international use. Ultimately, the Unlimited Cash Rewards card may be the better choice if your spending is variable. Meanwhile, the Customized Cash Rewards card is ideal for those who can maximize the higher cash back categories.

More: Bank of America® Customized Cash Rewards Credit Card vs. Bank of America® Unlimited Cash Rewards Credit Card

Bank of America® Unlimited Cash Rewards vs. Citi Double Cash®

Both share the perk of no annual fees but have a higher balance transfer fee after a certain period and a 3% foreign transaction fee. The Citi card edges ahead with a 2% cash back rate on all purchases, doubling down on rewards. However, it lacks the Bank of America card's intro APR on purchases. Additionally, the Citi card's more extended balance transfer intro APR period is a better option for those managing debt.

More: Bank of America® Unlimited Cash Rewards Credit Card vs. Citi Double Cash® Card

In addition to the Customized Cash Reward and the Citi Double Cash®, we also compared the Unlimited Cash Rewards card with the following cards:

• Wells Fargo Active Cash Card: For a higher cash back rate on all purchases
• Capital One Quicksilver Cash Rewards: For frequent travelers with higher cash back on travel-related purchases and no foreign transaction fee
• Blue Cash Everyday® Card From American Express: For more rewards on gas and groceries

With its cash back rewards, the Unlimited Cash Rewards card complements cards with bonus categories and spending. Both the SavorOne and Blue Cash Preferred cards offer rewards for grocery purchases. We explore these cards in the table below:

If you're a fan of simplicity and prefer a card with no annual fee and a flat cash back rate on all purchases, this card could be a good fit for your profile. It's particularly advantageous for current Bank of America customers who have substantial savings deposited in their accounts.

However, if you travel abroad frequently or anticipate needing to transfer balances after the first 60 days, the fees associated with this card could diminish its value.

In evaluating the Bank of America® Unlimited Cash Rewards credit card, we considered a spectrum of features against 44 other cards. Our process assigns weights to each feature, reflecting its importance in the card's overall performance. Here's how we measured them:

• Balance Transfer Offer (10% Weight): Evaluated the terms of balance transfer promotions.
• Annual Fee (5% Weight): Assessed the cost of holding the card annually.
• Intro Purchase Offer (10% Weight): Looked at the introductory 0% APR period and its length.
• Recommended Credit (5% Weight): Considered the credit score needed for approval.
• Issuer Satisfaction (5% Weight): Based on issuer satisfaction studies.
• Penalties (5% Weight): Reviewed the penalties and fees for late payments and other infractions.
• Effective Reward Rate (50% Weight): Calculated the real-world value of the card's rewards program.
• Regular APR (10% Weight): Analyzed the ongoing interest rate after any introductory period.

For rates and fees of the Blue Cash Preferred® Card From American Express, please click here.