Bank of America Unlimited Cash Rewards $250 Welcome Bonus: Is It Worth It?

The Bank of America® Unlimited Cash Rewards Credit Card currently offers a limited-time online bonus: Limited Time Offer! $250 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

That's on top of the card's standard perks: unlimited 1.5% cash back on every purchase and a $0 annual fee. But the card's long-term value and this bonus's value are two different questions. Whether the bonus is worth it comes down to how you'd earn it, not the dollar amount.

• What it takes to earn it: Limited Time Offer! $250 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. A bar many cardholders can clear through everyday spending alone.
• No fee working against it: Since the card's annual fee is $0, there's no membership cost offsetting the $250 cash rewards bonus offer, unlike bonuses on cards that charge an annual fee.
• It's separate from the card's ongoing value: Unlimited 1.5% cash back keeps paying out long after the 90-day window closes.
• The real tradeoff: Applying triggers a hard credit inquiry, and a new account lowers your average account age, so it makes the most sense if you were already planning to get a no-fee cash-back card.

To earn it, new cardholders can enjoy their welcome bonus offer - Limited Time Offer! $250 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

Once you clear the spending requirement, the $250 cash rewards bonus offer posts to your account as an online cash rewards bonus and can be redeemed the same way as any other cash rewards you earn on the card: as a statement credit, a deposit into an eligible Bank of America checking or savings account, or to pay for purchases at Amazon.com or through PayPal.

Spread out, $1,000 over 90 days works out to about $333 a month, or roughly $11 a day. For many households, that's not a stretch. Putting routine expenses like groceries, gas, streaming subscriptions and a phone bill on the card for three months will often clear it without any deliberate effort.

Falling short is less of a risk than overshooting on purpose: spending more than you normally would just to hit the threshold. The card's intro APR is 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 17.74% - 27.74% 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 5%. Balance transfers may not be used to pay any account provided by Bank of America. Once it ends, any balance you're still carrying will be charged the card's variable APR, which can quickly outweigh the $250 cash rewards bonus offer.

Because the Unlimited Cash Rewards card charges no annual fee, the bonus doesn't have to offset a membership cost the way larger bonuses on premium travel cards often do. You get unlimited 1.5% cash back on every purchase, with no bonus categories to track and no rewards expiration as long as the account stays open.

Cardholders enrolled in BofA Rewards™ can push that rate even higher. Members earn a 10% to 75% bonus on their cash back depending on their tier, which works out to 1.65% at the entry Member tier, 2.25% at Preferred Honors and up to 2.625% at the top Premier tier. In short, the $250 cash rewards bonus offer is a one-time head start on a card that keeps paying you back long after the offer expires.

The bonus makes sense if you already plan to use a no-annual-fee cash-back card as your everyday spending card and can naturally hit $1,000 in 90 days without changing your normal habits.

It makes less sense if you'd open the account only to close it shortly after collecting the bonus. Closing the card removes its credit line, which can push up your credit utilization, and you'll have taken on a hard inquiry and a younger average account age for a one-time payoff.

It's also worth pausing if you're planning other credit applications soon, since a new hard inquiry can affect approval odds elsewhere. Hard inquiries stay on your credit report for two years, though they only factor into FICO® Scores for 12 months. And if hitting the spending requirement means carrying a balance past the intro APR period, the interest charges can erase the bonus's value.

The Unlimited Cash Rewards card isn't the only no-annual-fee option in Bank of America's lineup.

• Customized Cash Rewards: Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category. Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.

• Which one fits better: If you'd rather not manage a spending category, the flat rate and larger bonus on Unlimited Cash Rewards is the simpler pick. If a big share of your spending lands in one category, Customized Cash Rewards' elevated first-year category rate may outpace the bonus difference. For a fuller look, see our Bank of America credit cards comparison or compare cash-back credit cards side by side.

Which card actually makes sense largely comes down to your own spending habits.

"If you're someone who manages credit cards responsibly and pays the balance off consistently, switching to a card with better or more useful rewards can make sense. But I generally wouldn't recommend opening a new card just for rewards or a sign-up bonus if someone regularly carries a balance or struggles with overspending," explains Patrick Yaghoobians, CFP®.

The Unlimited Cash Rewards card's $250 cash rewards bonus offer is one of the easier welcome offers to earn: a modest $1,000 spending requirement, no annual fee eating into it and a flat 1.5% rate that keeps earning after the bonus posts. It's most valuable if you were already in the market for a simple, no-fee cash-back card and can reach the threshold with spending you'd do anyway. Because the offer is limited-time, confirm the current terms on Bank of America's site before you apply.

How much do I need to spend to get the $250 bonus?

At least $1,000 in purchases within the first 90 days of opening the account.

Does the Unlimited Cash Rewards card charge an annual fee?

No. It's $0, so there's no membership cost offsetting the bonus.

How is the bonus paid out?

As an online cash rewards bonus posted to your account after you meet the spending requirement, redeemable the same way as the cash rewards you earn on regular purchases.

Does the BofA Rewards™ bonus increase the $250?

No. The BofA Rewards™ bonus boosts the cash back you earn on purchases, but Bank of America doesn't apply it to account-opening bonuses.

Is the $250 offer permanent?

No. Bank of America markets it as a limited-time offer that can change, so it's worth confirming the current bonus amount on Bank of America's site before applying.

• Bank of America: Unlimited Cash Rewards credit card product page, current welcome offer, rewards rate, intro APR and terms

• Bank of America: Customized Cash Rewards credit card product page, for comparison

• Bank of America: Increase your BofA Rewards with an eligible credit card, tier bonuses and eligibility

• Experian: What is a hard inquiry?

• Experian: Does closing a credit card hurt your credit?

Disclosures BestMoney may receive compensation from some of the card issuers featured on this page, including Bank of America. This may influence which products we cover and where they appear, but it does not affect our editorial evaluations. Not all card offers available in the market are included. Card details are accurate as of publishing date and are subject to change. Your APR will depend on your creditworthiness. Terms and conditions apply. See the issuer’s website for current rates, fees, and full terms. All cards are subject to credit approval. Prequalification is not a guarantee of approval. Checking prequalification uses a soft inquiry that won’t affect your credit score; submitting a full application results in a hard inquiry. Examples are for illustration only and are rounded. They assume no additional purchases, on-time payments, and no other fees. Your actual costs will depend on your APR, balance, and payment behavior.