Is the Bank of America Unlimited Cash Rewards card worth it?

Before you decide if the Bank of America® Unlimited Cash Rewards credit card is worth signing up for, it’s crucial to understand its rewards rate, fees and advantages. The Unlimited Cash Rewards card offers users a flat rate of 1.5 percent cash back on all purchases. Plus, new customers can earn a $200 cash back bonus after spending at least $1,000 on purchases within 90 days of account opening.

Another feature worth highlighting is its introductory annual percentage rate (APR) offer (ongoing APR is a variable 19.24 percent to 29.24 percent_. Add in that there’s no annual fee, 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?

This card might be a perfect fit for you depending on the type of rewards you’re looking for and where you bank. Here are situations when the Bank of America Unlimited Cash Rewards card is worth it:

When you prefer simple, easy rewards

If you’re looking for a cash back credit card that skips bonus categories and offers generous flat-rate rewards instead, the Bank of America Unlimited Cash Rewards card is worth considering. After all, you’ll earn a flat 1.5 percent cash back on everything you buy, which can definitely add up over time. For cardholders who simply want to swipe and earn rewards, without concerning themselves with whether certain purchases will earn them bonus cash back, this card is a good choice.

Even better, redeeming your cash back is as straightforward as earning it. You can redeem your rewards in several ways:

• For statement credits
• As a deposit into an eligible Bank of America checking or savings account
• Via transfer to an eligible Merrill investment account — including 529 savings plans
• At checkout with Amazon or PayPal

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

This Bank of America card is worth getting if you’re a member of the Bank of America Preferred Rewards program. This program rewards its members based on how much money you have total in qualifying Bank of American and Merrill accounts. Here’s a breakdown of those tiers and what you could earn:

• Gold: must have total balance of $20,000 to $49,999 and can earn an extra 25 percent per dollar spent
• Platinum: must have total balance of $50,000 to $99,999 and can earn an extra 50 percent per dollar spent
• Platinum Honors: must have a total balance of $100,000 to $999,999 and can earn an extra 75 percent per dollar spent
• Diamond: must have a total balance of $1 million to $9.99 million and can earn an extra 75 percent per dollar spent
• Diamond Honors: must have a total balance of $10 million and up and can earn an extra 75 percent per dollar spent

You’ll have to maintain an average balance of at least $20,000 for three months to qualify for the lowest of the five tiers of this program, but becoming a member lets you earn 25 percent to 75 percent more cash back for each dollar you spend, depending on your tier.

With the Unlimited Cash Rewards card, in particular, becoming a member of this program would increase your cash back rate to between 1.87 percent and 2.62 percent cash back on everything you buy. If you’re able to qualify for the higher tiers, Platinum and above, your cash back rate could be higher than some of the best flat-rate cash back cards out there.

When is the Bank of America Unlimited Cash Rewards card not worth it?

Not every card is right for every circumstance. Here are some situations where the Bank of America Unlimited Cash Rewards card may not be worth getting:

When you want to maximize your flat-rate cash back

Unless you’re a Bank of America customer with a Preferred Rewards membership at a high tier, you may be better off applying for another cash back card. Other issuers offer flat-rate cash back cards that earn at an even higher flat rate, such as the Wells Fargo Active Cash® Card with its unlimited 2 percent cash rewards on purchases and no annual fee.

Plus, its redemption options are relatively diverse, allowing you to redeem your cash back for statement credits, gift cards and even travel through the Wells Fargo Rewards portal.

When your goal is to pay down credit card debt

If you specifically need a card because you want to consolidate high-interest debt, the Bank of America Unlimited Cash Rewards card may not be the strongest option. The card offers a 0 percent introductory APR period for 15 billing cycles on balance transfers made in the first 60 days from account opening, followed by a 19.24 percent to 29.24 percent variable APR. Balance transfers also come with a balance transfer fee of 3 percent for the first 60 days from account opening, then 4 percent after that — a pretty standard offer.

Cardholders with more sizable credit card debt may benefit from balance transfer cards that offer introductory APRs on transferred balances for much longer — up to 21 months, even.

One example is the Citi Simplicity® Card*, which offers a 0 percent intro APR for 21 months on balance transfers made within the first four months of account opening, followed by a 19.24 percent to 29.99 percent variable APR. It has the same intro balance transfer fee of 3 percent that the Unlimited Cash Rewards card has, too. After the first four months of card ownership, however, the balance transfer fee for the Citi Simplicity will rise to 5 percent.

A card with a longer introductory APR offer can help you reach your goal of paying down debt more easily  than the Unlimited Cash Rewards card can.

Should you get the 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 serve you well with its 1.5 percent cash back, with no limit on how much you can earn in a year, no category restrictions and no spending caps.

Plus, its welcome bonus is relatively easy to earn, so you should be able to redeem your cash back rewards in no time. Cardholders who’ve already qualified for the Preferred Rewards program have an even better reason to apply for this card, thanks to the promise of a boosted cash back rate.

However, if you’re not a Bank of America loyalist, there’s no reason for you not to find one of the other best cash back cards, with higher rewards rates and longer intro APR periods, more attractive. Other issuers also offer more flexible redemption options, giving you the opportunity to redeem your rewards for more than just statement credits and direct deposits.

The bottom line

The Bank of America Unlimited Cash Rewards card is likely worth it for Bank of America loyalists looking for a flat-rate cash back credit card. If you’re looking for higher rewards rates in category spending, or if you don’t have any Bank of America accounts, then you’re likely better off looking for other cards.

If you still can’t decide whether this cash back credit card is right for you, consider exploring our guide to Bank of America Unlimited Cash Rewards benefits.

It’s also a good idea to spend some time comparing the Unlimited Cash Rewards card to other Bank of America cards, such as the Bank of America® Customized Cash Rewards credit card. Getting preapproved for a Bank of America credit card can help you understand your options.

Don’t forget to compare this card to similar options from other issuers, too. With some research and comparison shopping, you’re sure to find the right fit.

The Bank of America credit card information in this post was last updated on July 15, 2024.

The information about the Citi Simplicity® Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.