There are many types of credit card rewards, but nothing beats unlimited cash rewards. The best part is that they don’t require anything else except using the credit card and reaping the benefits. Today we’re going to check out what the latest Bank of America unlimited cash rewards credit card has to offer.
Preferred Reward members can have up to 2.62% in cash back rewards.
- Prefered Reward members can have up to 2.62% in cash back rewards
- There is no limit to the amount of cash back you can earn, and cash rewards don’t expire
- Reports to all three credit bureaus
- Contactless cards
- No annual fee
- 3% foreign transaction and bank transfer fee
- Cash back rewards can’t be credited to an account at another bank
- To qualify for Preferred Rewards status, you must keep a three-month daily average of $20,000-$100,000 on your Bank of America accounts
Bank of America® Unlimited Cash Rewards Credit Card Overview
While using the Bank of America unlimited cash reward credit card, you’ll get a 1.5% cash back reward on all purchases. Until recently, that was the best you could get as a cash back reward, but with a growing number of cards offering 2% on all purchases, nowadays, the Bank of America's unlimited cash rewards credit card falls short.
The Bank of America cash back credit card really shines when combined with its Preferred Reward member program to bring the reward up to 2.62%, but we’ll go into the details later.
Eligibility and Fees
You must have a good to excellent credit score (FICO score 670–850) to apply for a Bank of America® unlimited cash rewards credit card. A security deposit is not necessary, as is the case with most credit cards that require a good or higher credit score. Always keep in mind other factors when applying for and using a credit card.
Because there are no annual fees, you will not have to worry about accumulating enough rewards to keep your account active.
The card has a 0% APR for the first 15 billing cycles on purchases and balance transfers made in the first 60 days, and it’s a great way to pay off any debts you may have. This isn't the best zero-interest deal, but the card’s grace period is longer than what some competing cards provide.
After the introductory period, your APR for purchases and balance transfers will be 14.74%- 24.74%, depending on your creditworthiness. The lower end of the APR range is below the current average interest rate of 16.73%. The APR for cash advances ranges from 17.74% to 27.74%, with a maximum of 29.74% for bank cash advances.
Moreover, the Bank of America cash back credit card charges additional fees for:
- Any bank transfer - 3% or $10, whichever amount is greater.
- Wire transfer from a non-financial institution - 5% or $10, whichever amount is greater.
- Direct Deposit and Check Cash Advances - 3% or $10, whichever amount is greater.
- ATM, Over-the-Counter, Same-Day Online, and Cash Equivalent Cash Advances - 5% or $10, whichever amount is greater.
Except for the already mentioned fees, there is an additional 3% fee for any transaction made outside of the United States or in a foreign currency.
If you spend $1,000 on purchases during the first 90 days of card ownership, you will receive a $200 sign-up bonus. The bonus is easy to get, but it’s not the best out there, as some cards have bigger bonuses or require less spending to become eligible.
As stated, the Bank of America's unlimited cash rewards card provides 1.5% on all purchases. The only payments that don’t qualify for any rewards pertain to gambling and account fees (balance transfers, cash advances, etc.), but this applies to most credit cards irrespective of the bank.
When applying for a card, it’s always prudent to check with the bank if any specific purchases are exempt from the cash back reward since the terms can vary for each card.
You earn 1.5% on every dollar spent, which equates 1.5 cents and the cash back reward can be redeemed in three ways:
- As a statement credit to your card.
- As a direct deposit to your checking or savings account with Bank of America.
- As a credit to an eligible Merrill account.
Other Bank of America Cardholder Perks
Besides the rewards the Bank of America unlimited cash credit card offers, you also get access to other perks for being a cardholder at this bank. Most of them sweeten the deal, and the Preferred Rewards program makes cash back cards even better.
Bank of America's Preferred Rewards
Enrolling in the Bank of America Preferred Rewards program isn’t as easy as applying for a credit card. To start with, there is no application process. Instead, membership is by invitation only.
To be invited, you must have an average daily balance of $20,000 to qualify for the lowest (Gold) tier. Once you qualify, you’ll be invited to join through online banking.
The system will keep an eye on your average balance over the last three months, and you'll be moved up automatically when you reach the minimum needed for the next tier. If you fail to meet the minimum requirements of your tier, you’ll keep all the benefits for a year, which leaves you with enough time to stabilize your finances if you wish to keep all the benefits.
When you qualify for one of the tiers, in addition to the other rewards that the program provides, you also get a percentage boost to your cash back rewards for Bank of America cards.
Specifically, the Preferred Rewards Gold Tier ($20,000) offers a 25% boost, which translates into a 1.87% cash back reward. Next comes the Preferred Rewards Platinum Tier ($50,000) and offers a 50% boost - a 2.25% cash back reward.
Finally, the most lucrative one, the Preferred Rewards Platinum Honors Tier ($100,000), provides a 75% boost - a 2.62% cash back reward.
Bank of America Exclusive Deals
Bank of America credit card holders have two additional benefits: BankAmeriDeals and Museums on Us.
BankAmeriDeals provides cardholders with time-limited deals that give them extra 5-15% cash back for using their credit cards at participating locations.
They can also earn virtual coins by frequently participating, which lets them get enhanced rewards. These offers can be browsed and activated online using the Bank of America mobile app or Online Banking.
Museums on Us is a perfect benefit for museum lovers as it offers free admission to more than 225 cultural institutions. To gain free access, you’ll need to show up during the first week of the month and bring a valid ID and a Bank of America card.
The Bank of America unlimited cash rewards is a Visa Signature card. But what does that entail, and what do the cardholders get out of it?
All Visa Signature cards come with perks: travel and emergency assistance, extended warranty protection, roadside assistance, zero fraud liability, credit monitoring, auto rental collision damage waiver, and discounts available with selected businesses. Be sure to check with Bank of America which benefits your card is eligible for.
Like any other credit card, the Bank of America®'s unlimited cash rewards card also has late fees and APR penalties.
To avoid paying interest on your purchases, you should set a due date that’s longer than 25 days after the end of the billing cycle. If you fail to pay on time, you first have a penalty fee of up to $40, but if you fail to pay your debt after 60 days, you’ll also get a penalty APR.
The penalty APR is 29.99%, which is the industry standard. Once your APR increases, it will stay like that and apply to all future purchases and current debts. Thanks to the CARD Act, if you make consecutive on-time payments in the following six months, the bank is required to revert to the previous APR for any outstanding debts.
Online and Mobile Banking
To use the unlimited cash card of Bank of America to the fullest, you have to install the mobile application or use the online banking site. As mentioned earlier, the bank has regular offers as part of BankAmeriDeals that can be claimed only online. You can also use the online banking page to redeem your cash back rewards.
On top of that, the online tool is easy to use and intuitive. All the information can be found with relative ease, making the digital banking experience enjoyable. The mobile app allows you to pay bills, send money, deposit checks, monitor account activity, check your balance, and use its virtual assistant, Erica.
Customer support can be reached via phone, live chat, or email. They also answer questions on Twitter, but we wouldn’t recommend using this social media platform as an official channel to get support. You can reach customer support on the phone from 8 a.m. until 11 p.m. (ET) and on weekends from 8 a.m. until 8 p.m.
Is the Bank of America Unlimited Cash Rewards Credit Card for You?
This cash rewards credit card is an excellent choice if you can qualify for Preferred Rewards membership. Moreover, you need to have Platinum tier membership, which offers 2.25% in cash back rewards, to make this card worthwhile, since many credit card offers out there give you 2% cash back on all purchases.
That said, the Bank of America card we reviewed is still a prudent choice due to providing a good APR for a credit card.
To get the most out of it, you can use it alongside some other cash back card you’ve dedicated to your preferred business, whereas you could stick with a Bank of America unlimited cash credit card for all other purchases.
How do I redeem my Bank of America cash back rewards?
There are two ways to redeem your cash back rewards. One is calling (800) 434-8313 and following the instructions. The second is by signing into your Online Banking account, selecting your credit card, and redeeming your rewards under the Rewards tab.
What credit score is needed for Bank of America's unlimited cash rewards?
To be approved for Bank of America’s cash rewards, you need a good or higher credit score (670+).
How does Bank of America's unlimited cash rewards work?
The Bank of America® unlimited cash rewards credit card earns you 1.5 cents (1.5%) for every dollar spent on all purchases. The cash back rewards you accumulate can be transferred to your checking or savings account with Bank of America. You can also redeem them as a statement credit to your card or credit to an eligible Merrill account. However, you can’t transfer your rewards to accounts outside of Bank of America.
How do I get my $200 cash reward from Bank of America?
Getting a $200 sign-up bonus is easy since the only requirement is to make $1,000 in purchases during the first 90 days.
Is Bank of America's unlimited cash rewards worth it?
Due to its introductory 0% APR, below-average APR after the promotion period, and no annual fee, we consider the Bank of America unlimited cash rewards a good choice. It’s especially beneficial if you are a member of the Bank of America Preferred Rewards membership program.