The Smart Investor has collected card information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.
Ally CashBack Credit Card is a straightforward cashback card that allows you to earn cash back on everyday purchases and also focus on savings. The everyday categories with the highest cashback rewards are gas and groceries. This card also offers a unique saving bonus of 10% when your cashback reward is deposited into an Ally bank account. Ally is a large online bank that does not have a large branch footprint like other large banks and therefore it is able to offer better rates on savings. Additionally, this card is a Visa card, which is widely accepted.
Ally CashBack Card
On Ally’s Secure Website
Our Bottom Line
Simple and Attractive CashBack Card
Credit Rating Requirements
Good – Excellent Credit
Here’s a summary of the main pros & cons (click to see explanation or scroll down):
Ally CashBack Credit Card – Benefits
Let’s take a look at the benefits of the Ally CashBack card and see if it’s the right one for your wallet or not.
Ally CashBack Credit Card has 2% cash back on all gas and grocery purchases with no limits. This does not apply to warehouses or super stores where gas and groceries may be sold.
Ally CashBack Credit Card also has 1% cashback on all other purchases, with no limits.
Ally CashBack Credit Card offers a $100 cashback bonus after you spend $500 on your new card within the first 90 days on eligible purchases.
You do not have to meet a spending threshold in order to offset any annual fee. You can start putting cash back in your pocket immediately.
If you are looking to save money on interest, the Ally CashBack Credit Card offers a 0.00% introductory rate for 12 months on balance transfers. If you have a credit card that you are trying to pay down, you can transfer the account and pay no interest on the transfer for 12 months. This introductory rate applies only to balance transfers and not purchases.
With the Ally CashBack Credit Card, every time you decide to deposit your cashback reward into a money market account, non-IRA savings account, or checking account, Ally will add 10% more cash back. For example, if you deposited $100 of your cash back into an Ally bank account, Ally would give it a 10% boost or $10 match into your account. You can also deposit your sign-up bonus into your Ally account to increase it to $110.
Ally Bank is a big bank with a great savings plan which has some of the best interest rates in the market. Savers can take advantage of the high-interest rates while using the card savings competent.
Ally CashBack Credit Card – Drawbacks
Let’s take a look at the drawbacks of the Ally CashBack credit card and see if it’s the right one for your wallet or not.
The APR for the Ally CashBack Credit Card is a 15.24%-25.24% variable rate, which is high for a card that requires borrowers with excellent credit histories. It is a little lower than other cashback cards. A cash advance is a 25.49% variable rate.
There is a balance transfer fee required if you want to take advantage of the introductory 0.00% APR rate. The fee is incurred when you transfer debts from one or more credit cards to your Ally CashBack Credit Card. This fee is $5 or 3% of the transfer, whichever is bigger. This fee is upfront and will be added to your debt load when transferred.
Most cards that have 0.00% introductory interest rates also include purchases. This card may not be the best to use for a large purchase you are planning to pay off over time.
Ally CashBack Credit Card offers a 12 month 0.00% APR introductory rate, but there are other cards out there that have longer introductory rates. If you are looking to transfer some debts and pay them down, you may want to consider other cards with longer 0.00% APR introductory rates.
There are other cashback cards in the market that offer higher cashback rewards. Some have rotating categories, but with a little planning you can earn more cash back on your purchases. The Ally CashBack Credit Card is really 2.2% cashback on gas and groceries and 1.1% on all others if you include the 10% savings bonus. Other cards offer higher cash back than that in the market.
Ally CashBack Credit Card has a 3% fee for each transaction in another country. If you are traveling outside of the US you may want to leave this card at home.
Alternatives to Ally CashBack Credit Card
There are other credit cards that do offer comparable cash back rewards – we’ve summarized the most popular cards which can use as an alternative to Ally CashBack:
CitiBank Double Cash card is a comparable cashback card. It does not have a sign-up bonus but does offer a longer introductory 0.00% APR, which is 18 months. The CitiBank Double Cash card offers 1% cash back on all purchases and 1% cash back after paying for those purchases. You could make 2% back on all purchases as long as you pay your credit card bill. CitiBank Double Cash rewards does not have an annual fee.
Capital One Quicksilver Cash Rewards Credit Card offers a $150 sign-up bonus after only spending $500 in purchases after 3 months. That is one of the lowest spending thresholds to receive a sign-up bonus. The Capital One Quicksilver card offers 1.5% cash back on all spending. It does not have any rotating categories and the cash back applies to all purchases. This card also offers a generous 0.00% introductory APR for 15 months. There is no annual fee or foreign transaction fees for this card.
The Chase Freedom card offers a $150 sign-up bonus after only spending $500 in purchases after 3 months. That is a low spending threshold to receive a sign-up bonus. The Chase Freedom card has 1% cash back on all purchases. This card also has revolving cashback bonuses of 5% on rotating categories. These categories change once a quarter but can increase your cash back if the consumers pay attention to their spending. It does have a cap of $1,500 on the bonus spending category. The Freedom card does not come with an annual fee.
Is the Ally CashBack Credit Card Right for You?
Ally CashBack Credit Card is a good cashback card for savers. This card is a great complementary card to other cashback rewards cards. The biggest advantage of this card is there are no limits on spending categories. Consumers should use this card with higher cashback rewards cards that change categories every quarter but use the Ally CashBack Credit Card when gas and groceries are not the spending category for the other card.
It can also be used after the spending limit is hit on the other cashback card. This can fill in for those cards to keep cashback rewards high. It also helps people save with Ally by offering a 10% bonus when the cash back is deposited into an Ally bank account. Ally offers some of the highest interest rates for savings accounts in the market. This card should be avoided for borrowers that want to pay for a larger item over time due to the Ally CashBack Credit Card not offering an intro rate on purchases. This card is great for those who spend quite a bit on groceries and gas and who are looking to juice savings.