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Ally CashBack Credit Card - Everything You Need To Know
The Ally Cashback credit card is a solid earner geared toward those who spend a lot on gas and groceries and have an Ally bank account. While this card won’t wow you, it does have a few advantages over the competition, including unlimited earning in popular purchase categories, a bonus for Ally bank account holders and a solid sign-up bonus.
This no-fee card offers 2.0 percent cash back at grocery stores and gas stations. Unlike some other cashback cards on the market, there are no caps on how much you can earn at that rate. You can also bump up that return a bit if deposit your rewards directly into an Ally Bank checking or savings account.
The card’s $100 sign-up bonus isn’t the most valuable offer, but it’s nice to get a quick infusion of cash. Many no-fee cards don’t even offer a bonus.
If you’re carrying a balance on a card with high interest rates, you can transfer that debt over to the Ally card and get 0% APR for 12 months. That makes this card a great option for paying down existing debt while earning cash rewards on everyday purchases.
Ally CashBack Credit Card Features and Benefits
Knowing what benefits come with a credit card can help you decide if it’s a good fit for you. Here we cover the bonuses and perks that the Ally CashBack Credit Card offers and the value of the TD Bank cashback you earn.
You’ll get unlimited 2.0 percent back at grocery stores and gas stations, which is a great feature considering that most consumers spend a lot in those categories. All other purchases earn 1.0 percent cash back.
In order to receive the $100 sign-up bonus that comes with this card, you’ll need to spend $500 within three months of account opening. That’s a low minimum spending requirement and a solid bonus for a card without an annual fee.
What You Get
- 2.0% back at gas stations and grocery stores
Get a 10% Ally Deposit Bonus when you deposit your cash rewards into an eligible Ally Bank account
$100 bonus when you make $500 in eligible purchases during the first 3 billing cycles
- Intro APR on balance transfers: 0% for 12 months
- No annual fee
Cash back can be redeemed in the form of check, statement credit or a direct deposit into your bank account. Depositing cash back directly into an Ally bank account earns a 10 percent bonus.
The Ally Cashback card offers 0% Intro APR for the first 12 billing cycles after Account opening to new cardholders. If you have outstanding debt on another card, you can save a lot of money by transferring that balance to the Ally card. Without interest, you’ll be able to pay down the balance more quickly, too.
Note that you will be charged a balance transfer fee. It costs 5$ or 3%, whichever is greater, to transfer to an Ally card account. That may sound like a shady move by the issuer, but just about every card charges a transfer fee. In the end, you’ll still save a lot of money by going interest-free.
Be sure to pay off the balance before the end of the special financing period. If you don’t, you’ll face pretty steep interest rates of 14.49% to 24.49% Variable±, based on your creditworthiness. That will quickly negate any cashback rewards you earn with the card.
If you have an Ally Bank account, you’ll earn a little more with this card. When your cash back is deposited directly into your Ally account, you’ll get a 10 percent bonus. So, if you spend $1,000 on groceries and gas, you’ll get $20.0 cash back. If you then deposit that into an Ally bank account, you’ll get an extra 10 percent, or $2.0.
Your bonus earning rate effectively goes up by .2 percent, meaning that gas and groceries now earn 2.2 percent back. All other purchases go up by .1 percent, earning a total of 1.1 percent back. That’s not a huge bonus, but it can add up over time.
Everyday Earnings with Ally CashBack Credit Card
You’ll get 2.0 percent back for gas and groceries and 1.0 percent back for all other purchases. That’s comparable with several other cards on the market, but there are no limits on how much you can earn at that rate.
The Discover it Chrome card, for example, earns 2.0 percent back for gas and dining out, but it limits that to $1,000 in purchases per quarter, which is just $250 a month. If you spend a significant amount on gas and groceries, that can be a major advantage of the Ally card over the competition.
Ally CashBack Rewards
- Car Rental
- All Other Purchases
The 2.0 percent rate does not include gas or groceries purchased from superstores, such as Walmart and Target, or warehouse clubs, such as Costco and Sam’s Club. Ally applies the bonus based on the merchant’s code, which it does not determine. If the retailer is not registered with the correct code, you will not be able to earn the bonus.
Should You Get the Ally Cashback Credit Card?
The Ally Cashback credit card is a solid choice for anyone looking for a no-frills cashback card. You’ll earn a bonus for the popular purchase categories of gas and groceries. More than that, Ally does not limit the amount you can earn at that rate. If you spend a lot at gas stations and grocery stores, this card is a good option.
You’ll also get interest-free financing on balance transfers for 12 months, a $100 sign-up bonus and a small cashback bonus if you also have an Ally Bank account, all for no annual fee.
However, there are many no-fee cards on the market that offer similar earning schemes and benefits, so you’ll want to compare them carefully to see which one fits your spending habits and needs the best.
Some cards, for instance, require you to pay off your balance in order to earn at the maximum cashback rate. If you tend to carry a balance, you won’t earn much. Other cards have spending caps for their bonus categories, which isn’t great if you spend a lot.
The key is to find the best fit for the way you will use your card. The Ally card is a good choice only if it works with your spending habits and needs.
Need more info? Check out our frequently asked questions. If you have other questions, please click on “Ask Now” below.
- You need to have an account with Ally Bank. There are a variety of account types that qualify, including interest checking, money market and non-IRA online savings accounts.In addition to having one of these accounts, your cashback rewards must be deposited directly into the qualifying account. If you don’t take this additional step, you won’t receive the bonus.While earning extra cash is always good, you should be aware that the 10 percent bonus is calculated based on the actual cash back you’ve earned. For example, if you earn $100 in cash back, you’ll get a $10 bonus.That sounds great, but in order to get $100 in cash back, you’ll have to spend $10,000 in non-bonus categories or $5,000 on gas and groceries. So, in effect you’re getting an extra .1 to .2 percent back on your spending. That’s not a huge bonus. I wouldn’t go out of my way just to get the Ally Deposit Bonus.
- You apply for the Ally Cashback card either through the bank’s website or by calling 1-877-247-2559. It’s a quick and easy process.The issuer will do a hard pull on your credit, though. That means that your credit score will take a slight hit when you apply. For that reason, it’s important to maximize your chances of approval the first time you apply.Most successful applicants for this card report having a credit score of 740 or more. While that doesn’t necessarily mean that you won’t get the card if you have a lower score (or that you will get it if you have a higher score), it’s a good target to shoot for before applying.If you have a lower score, consider boosting it by paying off existing debt and extending your credit history. Strive to always pay off your cards every month. If you can’t do that, at least send in the minimum payment on time.
How long will it take to get the actual Ally credit card after I’m approved? Can I make purchases immediately?Unfortunately, it will take 7 to 10 business days for the credit card to get to you. You will not be able to make purchases on your card account before you receive the card. If you need credit immediately, you’ll have to look somewhere else.
- The 0% APR applies only to balance transfers, not to new purchases. You cannot finance a big purchase on the Ally card with no interest.You can, however, use the card to pay down existing debt. Simply transfer your balance from a high interest credit card to your Ally account, and you’ll enjoy interest-free financing for the first year you’re a cardholder.That’s a great way to get out of debt. You’ll save a ton of cash on interest payments, which you can then use to pay down the principle.Note that there is a fee to transfer a balance. You’ll have to pay 5$ or 3%, whichever is greater. That’s not bad considering how much you’ll save by skipping interest charges of 14 percent or more for an entire year.
Compare Gas and Food Cards
The Ally Cashback card isn’t the only game in town when it comes to earning bonus cash back on food and gas. There are number of cards on the market that offer bonus rewards for those types of purchases. Let’s take a closer look at some of the options.
|Discover it® Chrome||Capital One® SavorOne℠ Cash Rewards Credit Card||Blue Cash Everyday® Card from American Express|
|APR On Purchases||14.24% - 25.24% Variable||14.49% to 24.49% Variable±||16.24% - 26.24% (Variable)||14.99% to 25.99% Variable|
|Second Year Value||$240||$240||$240||$240|
The Discover it Chrome Gas & Restaurant card is perhaps the most similar to the Ally card. With both you’ll get 2.0 percent back at gas stations, but the Chrome card gives you 2.0 percent at restaurants instead of grocery stores.
Another notable difference between the Ally and Chrome cards is that Discover caps the bonus earning at just $1,000 a quarter, or $250 a month. Ally has no caps. The Chrome card does have one advantage over the Ally card, though. You’ll get a 0% APR on purchases and balance transfers for 14 months, instead of 12 months.
The Chrome card does not have sign-up bonus, but Discover matches all of the cash back you’ve earned in the first year. That won’t satisfy your need for instant gratification, but it could easily be worth more than your average bonus of $100 to $150.
You won’t be hit with foreign transaction fees with the Chrome card, but Discover also isn’t accepted very widely abroad. The Ally card adds a 3 percent fee to international purchases.
The SavorOne card from Capital One takes the food obsession to the next level, offering bonus cash back for both dining and groceries. Restaurant purchases earn an impressive 3.0 percent back, where grocery stores earn 2.0 percent. Unfortunately, gas purchases only earn the base rate of 0.0 percent back with this card.
The SavorOne card comes with a quick $150 sign-up bonus after spending $500 in three months, besting the Ally card. It also does not charge foreign transaction fees. You will, however, be limited to just 15 months of interest-free financing for purchases and balance transfers.
The Blue Cash Everyday card from American Express offers 3.0 percent back at grocery stores, 2.0 percent at gas stations and select department stores and 1.0 percent for all other purchases. Those are the same bonus categories offered by the Ally card but with a better earning rate for groceries.
Amex does limit the supermarket bonus to $6,000 in purchases a year, though. That works out to $500 a month, which is probably a reasonable cap for most consumers.
In terms of sign-up bonus and 0% introductory APR periods, Blue Cash is comparable to the Ally card. You’ll get 15 months of interest-free financing for purchases and balance transfers and a $150 bonus after spending $1000 in three months.
Some Alternative Cashback Cards
There are a wide variety of cashback cards on the market, giving you a lot of options. If gas and food aren’t things you spend a lot on, consider one of the following cards that offer bonus earning for other types of purchases.
Best Cashback Card
The Citi Double Cash card is hard to beat with its 2.0 percent return on every purchase. The catch, though, is that you have to pay your bill in order to earn the full 2.0 percent. You’ll get 1 percent cash back when you make a purchase and another 1 percent after paying your bill.
If you always pay off your balance, this is an excellent card to hold. There’s no annual fee, and you’ll get 18 months of interest-free financing on balance transfers. Unfortunately, this card does not offer a sign-up bonus. If you want some quick cash, you better look elsewhere.
Best Rotating Category Card
The Discover it Cashback Match card has a different earning scheme than most. You can earn an impressive 5.0 percent back for certain purchases, but the types of purchases that earn that bonus rotate every four months. If a purchase does not fall into the bonus category, it’ll earn just 1.0 percent back.
The quarterly rotating categories do change from year to year, but they typically include gas stations, wholesale clubs, grocery stores, restaurants and more. Those are purchase categories people typically spend a lot on.
There are few drawbacks to this system. First, you’ll probably want to get a second cashback card for purchases that don’t fall into the bonus categories. You’ll also have to pay attention to what the current bonus category is. Second, you’ll only earn 5.0 percent back on up to $1,500 in purchases per quarter.
Discover doesn’t offer a typical sign-up bonus either, but they will match all of the cash back you earn during your first year as a cardholder. If you have the patience to wait, this Cashback Match will most likely be more valuable than a standard sign-up bonus offered with a cashback card.
There’s no annual fee with this card, and you’ll get 0% intro APR for 14 months on both purchases and balance transfers.
Get the Biggest Bonus
The Chase Freedom Unlimited offers new card members a $150 sign-up bonus. You just have to spend $500 within three months of becoming a cardholder. That’s not bad considering that the card has no annual fee and will cost you nothing to hold.
Beyond the bonus, the Freedom Unlimited is a solid cashback card. You’ll get 1.5 percent back on every purchase. There are no special categories to worry about, and you don’t even have to pay off your balance to get the bonus. Just buy whatever you want, earn 1.5 cents on the dollar and redeem for cash back in whatever amount you want.
One added perk of the Freedom Unlimited card is that you can transfer the rewards you earn to a premium Chase card that’s part of Ultimate Rewards program. If you have the Sapphire Preferred or Sapphire Reserve, you can convert the cash back from the Freedom card into valuable Ultimate Rewards points.
Why would you want to do that? Simply put, you can get a lot more value out of UR points. Whether you transfer the points to a travel partner for free airfare or buy travel through the UR website, you can easily get more than one cent per point, which is essentially what you get for cash back with the Freedom card.
The Freedom Unlimited offers 0% APR for 15 months on both balance transfers and purchases.
Whenever you apply for a credit card make sure you read the terms and conditions of the card and the rewards program to find out about minimum spend requirements and any restrictions to ensure you can successfully obtain the card and earn the rewards it offers.
Excellent credit score
IssuerTD Bank, N.A.
Card Terms and Conditions
While it's easy to focus on the benefits of the Ally Cashback card, it's worth taking a closer look at the terms and conditions. There's a lot to consider as you think about how you're going to use the card. Will you carry a balance, get a cash advance or maybe make a big purchase? Below is a rundown of the various interest rates, purchase protections, security features and mobile banking options that come with this Visa Signature card.
- Intro APR:
- Intro APR for balance transfers:
- 0% Intro APR for the first 12 billing cycles after Account opening
- Ongoing APR:
- 14.49% to 24.49% Variable±
- Minimum Grace Period:
- 25 days
- Warranty Manager Service:
- Extends coverage for items from U.S. manufacturers with warranties of three years or less. Warranties of less than one year will be doubled, and 1- to 3-year warranties will be extended by one year.
Cash Advance Features
- Ongoing APR:
- 24.74% Variable±
- Cash Advance Fee:
- Either $10 or 5% of the amount of each cash advance, whichever is greater
Security and Protections
The Ally Cashback card comes with standard security protections, including the following:
- Banking On the Go:
- Keep an eye on your Ally accounts wherever you are with their mobile app.
- EMV Chip Technology:
- Get global acceptance and enhanced security at merchants that use chip-enabled terminals.
- Zero Liability:
- You’ll never be responsible for unauthorized charges made to your account.
Additional Cardholder Benefits
The Ally Cashback card is issued as a Visa Signature, which affords cardholders some additional perks and benefits.
Visa Signature Travel Benefits
- Auto Rental Collision Damage Waiver:
- Coverage for theft and collision for most rentals in the U.S. and abroad. Coverage is secondary to your personal insurance.
- Lost Luggage Reimbursement:
- Get up to $3,000 per passenger for damaged or lost bags. Coverage includes cardholder and immediate family members on the same travel itinerary.
- Roadside Dispatch:
- Call 1-800-847-2869 for roadside assistance, including lockout service, towing, tire changing, jump starting, gas delivery and winching. There’s a flat fee of $59.95, though there may be additional charges based on the actual service provided.
- Emergency Card Replacement and Cash Disbursement:
- Visa will help you take the proper steps to block your lost or stolen card and receive a replacement within 1 to 3 days. You can receive cash near your current location within hours.
- Travel and Emergency Assistance Services:
- Call Visa for pre-trip advice, legal and medical referrals, and other travel and emergency assistance. Service charges apply.
Editorial Disclosure: Opinions expressed here are author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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