Bank of America Unlimited Cash Rewards Credit Limit – Benefits, Use Cases, and How to Apply
The Bank of America Unlimited Cash Rewards credit card is designed to simplify your spending while offering unlimited 1.5% cash back on every purchase. It’s one of the most accessible cashback cards on the market, and understanding its credit limit is key to using it effectively. In this comprehensive guide, we’ll explore how the credit limit works, its benefits, how to increase it, and real-world alternatives with similar reward structures.
Understanding the Bank of America Unlimited Cash Rewards Credit Limit
The Bank of America Unlimited Cash Rewards Credit Card is a flat-rate cashback card that not only offers value through rewards but also allows consumers to establish a strong financial foundation through responsible credit use. A major element of that process is understanding how your credit limit works and what it means for your everyday financial management.
The credit limit is the maximum amount of money Bank of America allows you to spend on the card at any given time. This limit impacts everything from your purchasing power to your credit score, and understanding the mechanics behind it will help you use the card more efficiently.
When you’re approved for the Bank of America Unlimited Cash Rewards card, your initial credit limit is determined by a variety of factors. These can include your current credit score, annual income, existing debt, and your overall credit history. Typically, users can expect an initial credit limit ranging from $1,000 to $15,000, although high-income and high-credit-score applicants may receive even higher limits.
How Credit Limits Work with This Card
The credit limit on the Bank of America Unlimited Cash Rewards card is assigned based on your credit score, income, and current debt-to-income ratio. New applicants typically receive starting limits ranging from $1,000 to over $15,000, but high-credit applicants may qualify for significantly higher limits.
This limit directly affects your purchasing power and credit utilization—both critical factors in maintaining or improving your credit score. Responsible use of the credit line, such as keeping utilization under 30% and paying on time, can lead to automatic credit line increases over time.
Factors Influencing Your Credit Limit
Bank of America uses various factors to determine your credit limit:
- Credit score: Applicants with scores above 700 often receive higher limits.
- Income: A higher income can result in a larger credit line.
- Existing debt: Your current debts and liabilities will be reviewed.
- Credit history: A longer, well-managed credit history usually helps.
Once approved, you can request a credit limit increase through your online banking account, although it may involve a hard credit inquiry.
Benefits of the Bank of America Unlimited Cash Rewards Credit Card
Unlimited 1.5% Cashback on All Purchases
This card offers an unlimited 1.5% cash back on every purchase, with no category restrictions or rotating bonus categories. Whether you’re buying groceries, paying for gas, or shopping online, you’ll earn consistent rewards.
The cashback is automatically credited to your account, and you can redeem it as:
- A statement credit
- A direct deposit into a Bank of America account
- A contribution to an eligible Merrill investment account
Introductory APR Offers
New cardholders enjoy:
- 0% intro APR for 15 billing cycles on purchases and balance transfers
- No annual fee, making it cost-effective for everyday users
After the introductory period, a variable APR of 18.24%–28.24% applies based on creditworthiness.
Preferred Rewards Program Boost
If you’re a Bank of America Preferred Rewards member, you can boost your cash back rate by 25% to 75%, depending on your tier. That means your 1.5% cashback can increase to 2.62% for the highest tier—an unmatched benefit in the cashback card market.
Mobile Banking and Security
Bank of America’s robust app offers:
- Real-time transaction alerts
- Virtual card numbers for safer online shopping
- Contactless payment support (Apple Pay, Google Pay)
The card also includes $0 fraud liability and advanced security monitoring.
Real-World Alternatives to the Bank of America Unlimited Cash Rewards Card
1. Chase Freedom Unlimited
One of the most direct competitors, the Chase Freedom Unlimited offers 1.5% cashback on every purchase just like the Bank of America card. But it goes further by providing bonus rates on travel booked through Chase Ultimate Rewards and on dining and drugstore purchases.
Benefits:
- 3% cashback on dining and drugstores
- 5% on travel booked through Chase
- $200 bonus after spending $500 in the first 3 months
- Intro APR: 0% for 15 months
2. Citi Custom Cash℠ Card
Though not unlimited, this card offers 5% cashback on your highest eligible spend category each billing cycle (up to $500), then 1%. A good option for those whose spending habits vary.
Benefits:
- 5% on top spend category (like gas, dining, groceries)
- $200 welcome bonus
- 0% APR on purchases for 15 months
3. Wells Fargo Active Cash®
This card mirrors the Bank of America Unlimited Cash Rewards with unlimited 2% cash rewards on all purchases—offering a stronger base cashback rate.
Benefits:
- 2% unlimited cash rewards
- $200 cash rewards bonus
- 0% APR for 15 months
4. Capital One Quicksilver Cash Rewards Credit Card</strong
Similar 1.5% cashback with excellent mobile tools and customer service. Good for users who want simplicity with international usage (no foreign transaction fees).
Benefits:
- 1.5% cashback on every purchase
- $200 welcome bonus
- No foreign transaction fees
5. Discover it® Cash Back
Offers 5% cashback in rotating categories and 1% on all other purchases. A great pick for strategic spenders.
Benefits:
- Cashback Match: All cashback earned in your first year is doubled
- Rotating 5% categories like gas, groceries, and Amazon
- No annual fee
Real-Life Use Cases: Why People Choose Unlimited Cashback Cards
Simplified Everyday Rewards
If you’re not a fan of tracking bonus categories, the Bank of America Unlimited Cash Rewards card gives you a consistent cashback rate without added complexity. It’s perfect for users who value simplicity and steady rewards on everyday spending.
Example: A family using this card for $2,500 in monthly expenses can earn $450 annually in cashback (before Preferred Rewards boosts).
Credit Building Tool
For users with strong credit, this card provides a good platform for building higher credit limits over time, improving credit scores via low utilization and timely payments.
Cash Flow Optimization
By combining the 0% intro APR with cashback earnings, users can spread out large purchases (like home improvements) while earning rewards and avoiding interest.
How and Where to Apply for the Bank of America Unlimited Cash Rewards Card
Applying is straightforward. You can apply directly through the official Bank of America website. Before applying, check your credit score to ensure eligibility and consider signing up for Preferred Rewards to increase your cashback rate.
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FAQs
What credit score do I need for the Bank of America Unlimited Cash Rewards card?
A good to excellent credit score (typically 700 or higher) is recommended for approval and to qualify for a higher credit limit.
Can I increase my credit limit after approval?
Yes. You can request a credit limit increase online or by calling customer service. Increases depend on your payment history, income, and credit profile.
Does this card have foreign transaction fees?
Yes, the Bank of America Unlimited Cash Rewards card has a 3% foreign transaction fee, making it less ideal for international travelers compared to no-foreign-fee cards like Capital One Quicksilver.
