Bank of America Unlimited Cash Rewards Review: Decent Rate, Intro APR

The $0-annual-fee Bank of America® Unlimited Cash Rewards credit card is the issuer's only flat-rate cash-back credit card. It can be paired with other Bank of America® credit cards to earn maximum rewards, but you won’t get the most value from it unless you’re a loyal Bank of America® customer.

You’ll get a decent 1.5% rewards rate on all purchases if you don’t keep bank accounts or Merrill accounts with Bank of America®. That's the industry standard, but it doesn’t beat the solid 2% rewards rate offered by multiple competitors. It also doesn’t outperform other credit cards as a get-out-of-debt option with a 0% intro APR on balance transfers. You can get a longer interest-free window elsewhere.

At best, it’s a decent no-frills option for rewards or paying down debt, but it’s not the best.

» MORE: See NerdWallet's best cash-back credit cards

Bank of America® Unlimited Cash Rewards credit card: The basics

Card type: Cash back.

Annual fee: $0.

Sign-up bonus: $200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening.

Rewards: Earn 1.5% cash back on all purchases. (Preferred Rewards members earn 25% to 75% more cash back on every purchase, which means you could earn up to 2.62% cash back on every purchase if you qualify.)

Redemption options: Statement credit, deposits made directly into a Bank of America® checking or savings account or credit to an eligible Merrill account. Cash rewards don’t expire.

Interest rate: 0% intro APR on Purchases for 18 billing cycles and 0% intro APR on Balance Transfers for 18 billing cycles for any balance transfers made in the first 60 days, and then the ongoing APR of 17.99%-27.99% Variable APR

Balance transfer fee: 3% of the amount of each transaction

Foreign transaction fee: 3%.

No annual fee

With a $0 annual fee, the Bank of America® Unlimited Cash Rewards credit card can stay in your wallet for a long time. You'll never have to worry about counting rewards to determine if you're offsetting the annual cost.

» MORE: Benefits of the Bank of America® Unlimited Cash Rewards credit card

A decent sign-up bonus

The Bank of America® Unlimited Cash Rewards credit card offers a decent sign-up bonus that’s easy to earn. You get a $200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening. (This offer is only available online on select channels.) That’s a small spending threshold that you can likely meet with groceries alone or common everyday purchases over the required time frame.

1.5% cash back

The Bank of America® Unlimited Cash Rewards credit card earns a decent 1.5% cash-back rate. That’s fairly standard among flat-rate rewards cards and the least you should settle for if you have good credit (a FICO score of 690 or higher). The flat rate makes this card easy to manage. You don't have to keep tabs on rewards categories or jump through any hoops to earn rewards.

Flexible cash-back redemptions

Reward redemptions are flexible with the Bank of America® Unlimited Cash Rewards credit card. You can redeem for cash back as a deposit to an eligible Bank of America bank account, credit to Merrill accounts (including 529 accounts) or statement credit. Some cards allow you to redeem cash back in only some of these categories.

» MORE: Credit cards that can help you save for — and pay for — college

Breathing room on interest charges

The Bank of America® Unlimited Cash Rewards credit card offers a lengthy introductory interest rate: Get a 0% intro APR on Purchases for 18 billing cycles and 0% intro APR on Balance Transfers for 18 billing cycles for any balance transfers made in the first 60 days, and then the ongoing APR of 17.99%-27.99% Variable APR. That’s enough time to finance a large purchase or several small ones.

A long get-out-of-debt window

It may sound counterproductive to apply for another credit card to pay down debt, but that’s why balance transfer offers exist, and the Bank of America® Unlimited Cash Rewards credit card has a good one. As stated above, you can get a 0% intro APR on Purchases for 18 billing cycles and 0% intro APR on Balance Transfers for 18 billing cycles for any balance transfers made in the first 60 days, and then the ongoing APR of 17.99%-27.99% Variable APR. The balance transfer fee is also on the low end: You’ll pay 3% per transaction.

Rewards redemptions favor current Bank of America® customers

Although the Bank of America® Unlimited Cash Rewards credit card offers flexible cash-back redemption options, most of them tend to favor Bank of America® customers. Other credit cards, like the $0-annual fee Discover it® Cash Back and the $0-annual-fee Chase Freedom Unlimited®, don’t require you to redeem rewards with an in-house bank account from the issuer when you want a deposit. You can redeem rewards for deposits into qualifying bank accounts at other institutions. Plus, these cards earn 5% cash back in rotating quarterly categories (on up to $1,500 spent per quarter) when you activate. All other purchases get 1% cash back. The Chase Freedom Unlimited® also earns rewards in other categories.

Other cash-back cards offer 2%

While 1.5% cash back isn't bad, it’s possible to get 2% cash back on a no-annual-fee card. The $0-annual-fee Wells Fargo Active Cash® Card, for example, offers an unlimited 2% cash back on all purchases, and it has some noteworthy incentives for new cardholders. The introductory offer is: 0% intro APR on Purchases for 15 months and 0% intro APR on Balance Transfers 15 months from account opening on qualifying balance transfers, and then the ongoing APR of 19.99%, 24.99%, or 29.99% Variable APR. There's also a nice sign-up bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. It has a $0 annual fee.

» MORE: Credit cards that earn 2% cash back or more on purchases

Longer intro APR offers for purchases and balance transfers exist

The Bank of America® Unlimited Cash Rewards credit card already offers a lengthy 0% intro APR period, but if you’re willing to go without rewards, you can buy yourself a few more months. The $0-annual-fee U.S. Bank Visa® Platinum Card offers 0% intro APR for 18 billing cycles on purchases and balance transfers, and then the ongoing APR of 19.49%-29.49% Variable APR. It has a balance transfer fee: 3% or $5 minimum, whichever is greater.

It’s a good practice not to make new purchases with a card if you’re using a balance transfer to pay down debt. But you can choose a card with rewards to look forward to long after you’ve paid off the balance. The $0-annual-fee Citi® Double Cash Card has a pretty good deal. It has a 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 18.99%-28.99% Variable APR. It also earns 2% cash back: 1% when you buy and 1% when you pay it off. There’s a balance transfer fee of 3% or $5, whichever is greater, for the first four months and a 5% fee or $5, whichever is greater, after that.