Tiger Brokers

How to Earn Over 2.5% Cash Back With the Bank of America Unlimited Cash Rewards Card

Motley Fool
15 Oct 2024

KEY POINTS

  • Bank of America offers a credit card rewards bonus for clients in its Preferred Rewards program.
  • The bonus amount ranges from 25% to 75%, with the 75% bonus requiring $100,000 in qualifying balances.
  • A 75% bonus takes the Bank of America® Unlimited Cash Rewards credit card's cash back rate from 1.5% to 2.625%.

On the surface, the Bank of America® Unlimited Cash Rewards credit card looks like a good, not-quite-great card. It has a competitive welcome offer: $200 cash back after spending $1,000 on purchases in the first 90 days. And it earns an unlimited 1.5% cash back on on all purchases. While that's decent, there are plenty of cards that earn more.

But there's a way to unlock a much higher cash back rate with this card -- 2.625%, to be exact. That's better than any cash back card I've seen. Here's how to do it.

Ratings Methodology

Bank of America® Unlimited Cash Rewards credit card

Apply Now for Bank of America® Unlimited Cash Rewards credit card

OnBank of America'sSecure Website.

Rating image, 4.50 out of 5 stars.
4.50/5Circle with letter I in it.Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5Circle with letter I in it.Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score:Circle with letter I in it.Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Recommended Credit Score required for this offer is: Good/Excellent (670-850)
Apply Now for Bank of America® Unlimited Cash Rewards credit card

OnBank of America'sSecure Website.

Credit ScoreCircle with letter I in it.Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Good/Excellent (670-850)

Intro APRCircle with letter I in it.0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.74% - 28.74% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.

Purchases: 0% Intro APR for 15 billing cycles for purchases

Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days

Regular APR

18.74% - 28.74% (Variable)

RewardsCircle with letter I in it.Earn unlimited 1.5% cash back on all purchases.

1.5% cash back

Annual Fee

$0

Welcome OfferCircle with letter I in it.$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening

$200 cash back

  • This is a solid pick for one-card wallet seekers who want a straightforward, unlimited cash back card – plus a strong $200 bonus & 0% Intro APR offer. It’s a particularly good fit for Bank of America Preferred Rewards members, who can earn 25%-75% more points on every purchase, depending on your tier.

    • Unlimited cash back
    • Sign-up bonus
    • No annual fee
    • Great 0% intro APR offer
    • No bonus categories
    • Balance transfer fee
    • Foreign transaction fee
    • $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
    • Earn unlimited 1.5% cash back on all purchases.
    • If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 1.87%-2.62% cash back on every purchase with Preferred Rewards.
    • No annual fee.
    • No limit to the amount of cash back you can earn and cash rewards don’t expire as long as your account remains open.
    • 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.74% - 28.74% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
    • Contactless Cards - The security of a chip card, with the convenience of a tap.
    • This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.

A cash back bonus with Bank of America Preferred Rewards

The secret to earning more with the Bank of America® Unlimited Cash Rewards credit card is the bank's Preferred Rewards program. Bank of America uses this program to reward its loyal customers. If you meet balance requirements across Bank of America deposit and Merrill investment accounts, you can get exclusive perks.

There are quite a few benefits, but the important one here is a credit card rewards bonus. If you're a Preferred Rewards client, you earn a 25% to 75% bonus with eligible Bank of America cards.

The program has multiple tiers, and the bonus amount varies by tier. Here are those tiers, the balance requirements, and the bonus amounts for each one.

TierBalance requirementsCredit card rewards bonus
Gold$20,000 to $49,999.9925%
Platinum$50,000 to $99,999.9950%
Platinum Honors$100,000 or more75%
Data source: bankofamerica.com

There are also Diamond and Diamond Honors tiers with higher balance requirements. But they have the same 75% bonus as the Platinum Honors tier.

If you qualify for the 75% bonus, then your Bank of America® Unlimited Cash Rewards credit card will earn an unlimited 2.625% cash back on on all purchases. That's any type of purchase, no matter the spending category. Even among the very best credit cards, a rate that high on all types of purchases is hard to find.

How to reach the Platinum Honors tier

There are only two requirements to become a Platinum Honors client with Bank of America:

  • An active Bank of America checking account
  • At least $100,000 in three-month average combined balances across eligible accounts

If you don't want to keep your savings in Bank of America accounts, that's understandable. I wouldn't either -- it pays extremely low interest rates. Keep in mind that balances from eligible Merrill investment accounts also qualify.

Some cash back enthusiasts open a Merrill account and move investments there. For example, if you have $100,000 in ETFs, you could transfer those to Merrill. That'd be enough to get into the Platinum Honors tier and earn the 75% credit card rewards bonus.

Remember that you don't need $100,000 to get a bonus. You can get a 25% bonus with $20,000 or more, and a 50% bonus with $50,000 or more.

Maximizing cash back with the Bank of America Unlimited Cash Rewards card

There are some hoops to jump through for a credit card rewards bonus with Bank of America. But if you want to earn more cash back, this process could be well worth it.

The Bank of America® Unlimited Cash Rewards credit card becomes a much bigger earner this way. You could use it for all your credit card spending and earn 2.625% cash back across the board, assuming you're in the Platinum Honors tier. Spend $50,000 per year on your card? You'd earn $1,312.50 in cash back.

Or you could combine it with a card that has bonus categories, such as a gas and groceries card. You'll earn bonus cash back in a few categories, and you can use your Bank of America card everywhere else. Either way, the Preferred Rewards program can make a big difference in how much cash back you earn.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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