I Tried Both Bank Of America Cash Rewards and Chase Freedom Unlimited: Here’s My Verdict
You’re looking for a credit card that maximizes your rewards without overcomplicating your finances. Whether you’re aiming to earn cash back on daily essentials or want flexibility in how you accumulate points, the Bank of America Cash Rewards and Chase Freedom Unlimited cards are two strong contenders that promise to boost your spending power.
| Feature | Bank of America Cash Rewards | Chase Freedom Unlimited |
|---|---|---|
| Annual Fee | $0 | $0 |
| Intro APR | 0% for 15 months | 0% for 15 months |
| Regular APR | 18.24% – 28.24% variable | 20.49% – 29.24% variable |
| Cash Back | 3% in a category of your choice, 2% at grocery stores and wholesale clubs, 1% on all other purchases | 1.5% on all purchases |
| Foreign Transaction Fee | 3% | 3% |
| Sign-Up Bonus | $200 after spending $1,000 in the first 90 days | $200 after spending $500 in the first 3 months |
| Customizable Rewards | ✓ | ✗ |
✅ bank of america cash rewards Pros
- Customizable rewards category adds flexibility in earning cash back.
- No annual fee, making it accessible for budget-conscious users.
- Strong intro APR period for purchases and balance transfers.
❌ bank of america cash rewards Cons
- 3% foreign transaction fee limits its use abroad.
- Categories must be manually selected each month for optimal rewards.
✅ chase freedom unlimited Pros
- Simplified flat-rate cash back on all purchases.
- Lower spending requirement for the sign-up bonus.
- Robust integration with Chase Ultimate Rewards for points transfers.
❌ chase freedom unlimited Cons
- Higher variable APR compared to some competitors.
- No option to customize rewards categories.
Rewards Structure
The biggest difference between these two cards is how you earn rewards. Bank of America Cash Rewards allows you to choose a category for 3% cash back, which is a boon if your spending habits are predictable and concentrated in specific areas like dining or gas. On the flip side, Chase Freedom Unlimited’s 1.5% cash back on all purchases is idiot-proof and great for someone who wants a no-nonsense approach to rewards. If you’re all about optimizing and don’t mind a little monthly tinkering, go Bank of America. If you want simplicity, Chase is your pal.
Sign-Up Bonus
Let’s talk about getting that initial bang for your buck. Both cards offer a $200 sign-up bonus, but the Freedom Unlimited requires only $500 in initial spending, compared to $1,000 for the Cash Rewards. If you’re not planning a big purchase and want to hit that bonus quickly and painlessly, Chase gives you a smoother path. It’s ideal for the impatient or those with tighter monthly budgets.
International Use
Neither card waives foreign transaction fees, so neither is ideal for international jet-setters. That 3% fee can add up quickly if you’re spending abroad. But if you’re primarily a domestic spender, this won’t be a deal-breaker. Both cards are better suited for U.S.-based users who travel infrequently or have alternative cards specifically for international use.
Both cards have their quirks. Bank of America’s customizable categories sound great until you forget to set them, leaving potential rewards on the table. Chase Freedom Unlimited’s flat-rate simplicity is undermined by a lack of category bonuses—which could mean less total cash back for strategic spenders. And remember, neither card is your friend overseas due to those pesky foreign transaction fees.
Our Final Verdict: Which One Should You Buy?
If you enjoy gaming the system and have a predictable spending pattern, go for the Bank of America Cash Rewards. It’s perfect for someone who doesn’t mind a bit of planning to maximize their rewards. But if you prefer a set-it-and-forget-it approach, the Chase Freedom Unlimited is more your speed. The flat-rate cash back makes it ideal for someone who values simplicity and a quick path to the sign-up bonus.
Which card is better for online shopping?
The Bank of America Cash Rewards card is better if online shopping falls under your chosen 3% category. Otherwise, Chase Freedom Unlimited’s consistent 1.5% cash back might suit you better.
Can I have both cards?
Yes, you can hold both cards to maximize cash back. Use the Cash Rewards for category-specific purchases and the Freedom Unlimited for all else.
What happens if I forget to select a category with Bank of America?
If you forget to select a category, your purchases will only earn 1% cash back, potentially losing out on higher rewards.
