Credit Cards Reviews

Ally CashBack Credit Card Review: Is an Ally Card Worth It?

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The new Ally CashBack is a credit card that provides good returns on grocery and gas spending. Those who deposit rewards toward an eligible Ally bank account also receive an additional 10% bonus. Qualifying deposits include non-IRA, money market, and interest checking accounts. You get 2% cash back at gas stations and grocery stores along with 2.2% when you deposit your rewards into an Ally account.

The Ally CashBack pros

  • No annual fee. Ally bank is known for being consumer-friendly and therefore waives annual fees to save their reputation.
  • $100 sign-up bonus once you spend $500 on eligible purchases within 90 days of opening your account. This goes well with the 10 percent bonus for depositing your rewards, as you will get $110.
  • Up to 2%, cashback rewards on groceries and gas. While this is not as high as the average 3 percent that other credit cards provide, what you have to consider is that these other cards cap your purchases each quarter, meaning you can only get so many rewards back for purchases then you have to wait until the next quarter to get more. Ally doesn’t give you a cap on shopping rewards, which is a major plus.
  • Earn 1% cashback on other purchases. a basic rate among many credit cards.
  • Intro APR- 0 percent on balance transfers within the first twelve billing cycles after opening your account, and 15.24 percent, 20.24 percent or a 25.24 percent variable thereafter.

Ally CashBack credit card review

While they are not the best, these are above average rewards for cardholders with an average credit score. Other bank cards pay even more for gas and grocery spending like the Blue Cash Everyday from American Express.

The Ally CashBack credit card also has a decent welcome bonus as well but it is nothing special. In fact, other credit cards that offer no annual fee give better bonus rewards.

Right now, you can get a $100 bonus when you spend $500 on eligible purchases within the first three billing cycles as long as your account is open and in good standings. If you deposit this $100 reward into your Ally bank account, the 10 percent bonus will apply and you will get $110. Note, only purchases are eligible for the bonus. Therefore, things like balance transfers, fees, and cash advances do not qualify. Certain purchases considered as cash equivalents are recognized as cash advances, such as foreign currency, lottery tickets, and traveler’s checks.

The 3% foreign transaction fee makes the Ally credit card a poor choice for traveling overseas. Therefore, if you travel a lot, you might want to look elsewhere.

Moreover, there is no annual fee associated with an Ally Credit card and the regular APR is 13.24%, 18.24%, and 23.4% variables. However, you need to have excellent credit in order to qualify for an Ally credit card with a score of 670 to 850. Thus, the Ally credit card doesn’t set a cap on how much rewards you can receive as some other credit cards do.

It would be a smart move to get the Ally credit card to purchase all your gas and groceries with if your credit score is in the higher range and you qualify. As for all other shopping you do, you might consider using another card with higher bonus rewards.

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Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned and has not been endorsed by any of these entities. Opinions expressed here are author's alone

The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.

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