Is the Bank of America Unlimited Cash Rewards Card Worth It?

Before deciding whether it’s worth signing up for a Bank of America® Unlimited Cash Rewards credit card, it’s important to understand its reward rate, fees, and benefits. With that in mind, the Unlimited Cash Rewards card offers users a flat 1.5% cash back on all purchases, and new customers within 90 days of opening an account after spending at least $1,000 on purchases. , you should know that you can get a $200 online cash bonus. .

Another feature worth highlighting is the zero interest rate offer upon introduction. New cardholders who apply will enjoy an initial APR of 0% over 18 billing cycles for both purchases and balance transfers made within the first 60 days of opening an account (then 18.24 followed by a variable APR from % to 28.24%).

Add in the fact that there are no annual fees, and it’s easy to see why the Unlimited Cash Rewards card is worth checking out.

When is the Bank of America Unlimited Cash Rewards card worth it?

If you prefer simple and easy rewards

If you’re looking to skip the bonus category and instead look for a cash back credit card that offers generous flat rewards, the Bank of America Unlimited Cash Rewards Card is worth considering. After all, you get a flat 1.5% cash back on everything you buy. For cardholders who simply want to swipe and earn rewards without worrying about whether or not certain purchases earn bonus cashback, this card is a good choice.

Redeeming cashback is as easy as earning it. Rewards can be redeemed for statement credit, deposits into eligible Bank of America checking or savings accounts, or transfers into eligible Merrill investment accounts (including 529 savings plans).

If you already have an account with Bank of America or Merrill

This Bank of America Card is well worth getting if you are a member of the Bank of America Preferred Rewards Program. To enter the lowest of her five tiers in the program, you must maintain an average balance of at least $20,000 for three months, but becoming a member increases your savings by 25% to 75% for every dollar you spend. Earn % more cashback.

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Especially with the Unlimited Cash Rewards card, becoming a member of this program increases the cashback percentage on all your purchases from 1.87% to 2.62%. is higher than the best flat rate cashback cards.

When is the Bank of America Unlimited Cash Rewards card worthless?

When you want to maximize your flat-rate cashback

Unless you’re already a Bank of America customer, you can apply for a different cash back card if you have a Preferred Rewards membership or have demonstrably deep loyalty to your card issuer. Other issuers offer fixed cash back cards that give you even higher fixed rates, such as the Wells Fargo Active Cash® Card, which offers unlimited 2% cash back on all purchases and no annual fee.

What’s more, its redemption options are relatively diverse, with cashback being able to travel via statement credits, gift cards, and even the Wells Fargo Rewards Portal.

When you have credit card debt

If you need a card specifically because you want to consolidate high-interest debt, the Bank of America Unlimited Cash Rewards card may not be your strongest option. The card’s 18-month introductory APR period (18.24% to 28.24% variable APR thereafter) helps you save interest, but if you have a small amount of debt, there is a minimum balance transfer fee of $10 per transfer. can hinder savings.

Cardholders with significant credit card debt should also consider balance transfer cards that offer an introductory APR offer of 0% on transferred balances for up to 21 months. This is six months longer than what the Unlimited Cash Rewards card offers.

If you find that 18 months is enough to pay off your debt, but prefer a lower balance transfer fee, the Citi® Double Cash Card also offers a 0% introductory annual interest rate for 18 months of balance transfer. provide (18.24%). After that, up to 28.24% of the variable APR), but the card has a low onboarding fee of at least $5 (3%).

Should I get a Bank of America Unlimited Cash Rewards card?

If you’re determined to have a Bank of America credit card, the Unlimited Cash Rewards Card will do just fine for you with 1.5% cash back – no limits on how much you can earn in a year. , there are no category restrictions or spending caps. Cardholders who have already qualified for the Preferred Rewards Program have an even better reason to apply for this card as it promises higher cash back rates.

However, if you’re not an avid Bank of America supporter, there’s no reason not to find other cash back cards. Higher reward rates and longer introductory APR periods are attractive. Additionally, other issuers also offer flexible redemption options for their cash back cards, allowing you to redeem rewards beyond statement credits and direct deposits.

Conclusion

If you still can’t decide on this cash back credit card, reading Bankrate’s review of Bank of America Unlimited Cash Rewards can help.

You can also compare the Unlimited Cash Rewards card with other Bank of America cards such as the Bank of America® Customized Cash Rewards credit card and the Bank of America® Premium Rewards® credit card.

Also, compare this card with similar options from other issuers. Some research and comparison shopping will ensure you find the right fit.