Ally Bank Credit Card Guide

Ally Bank is a subsidiary of Ally Financial, a popular online financial services company that offers a range of products including checking and savings accounts, CDs, mortgages, auto loans and investment services. It was founded in 2009 and is headquartered in Sandy, Utah.

Ally Bank recently introduced three credit cards: Ally Unlimited Cash Back Mastercard®, Ally Everyday Cash Back Mastercard® and Ally Platinum Mastercard®. At the moment, these are invitation cards only, so you can only apply for them if you receive an offer from Ally Bank.

If you’ve received an offer and are unsure whether you should apply, here’s an overview of the features and disadvantages of each card, as well as some alternatives to consider.

Credit cards Elli Bank

Ally offers a combination of credit and reward cards, each with standard features such as zero fraud liability, free FICO score access, and the ability to block your card if it’s lost or stolen. They also do not charge foreign transaction fees, over limit fees, and do not charge penalty interest.

Ally Unlimited Cash Back Mastercard®	Ally cashback for every day Mastercard®	Ellie Platinum Mastercard®
Interest rate 2% cashback	Interest rate 3% cashback at gas stations, grocery stores and pharmacies; 1% back on all other purchases	Interest rate N/A
Annual fee $0	Annual fee from 0 to 39 dollars	Annual fee $0
Other notable features Rewards don’t expire No minimum repayment required Instant “Block” tool if you lost your card	Other notable features Rewards don’t expire No minimum repayment required Instant “Block” tool if you lost your card	Other notable features Higher credit line after the first 5 timely payments Automatic account checks to increase your line of credit Free access to FICO points

Details and benefits of Ally Unlimited Cash Back Mastercard®

Ally Unlimited Cash Back Mastercard offers an unlimited flat rate of 2% cash back on all purchases. This is one of the highest fixed rates, surpassing the popular Capital One Quicksilver Cash Rewards credit card which offers a 1.5% cashback on purchases.

The card has no annual or foreign transaction fees, in line with other top flat rate cards such as the Alliant Visa Signature Card*. And the lack of an APR penalty is refreshing considering that some cards, like the Citi® Double Cash Card, can increase your credit card interest rates by up to 29.99% if you miss a payment.

Aside from a great flat rate and limited fees, the Ally Unlimited cashback card comes with a few extra features that can help make it one of the best flat rate cashback cards out there. It does not include a signup bonus and not all applicants will receive the initial APR offer for purchases and balance transfers. A number of popular cashback cards, including the Wells Fargo Active Cash® card, offer $200 cash bonuses and also offer introductory APR offers for purchases and balance transfers that can help you minimize your interest payments.

Details and benefits of the Ally Everyday Cash Back Mastercard®

Ally Everyday Cash Back Mastercard® offers 3% cashback on gas, grocery and drugstores and 1% on other purchases. Depending on your creditworthiness, your annual fee can range from $0 to $39.

Some of the best cashback cards that offer 3X points on everyday purchases don’t charge an annual fee, but they are for people with a good credit history or higher. If you have fair credit and qualify for the Everyday cashback card, it might be worth paying the annual fee, especially for the opportunity to earn unlimited 3% on gas and groceries, two of the average person’s biggest spending categories.

If you already have good credit, this Ally Bank card may not have the same value as other good credit reward cards that usually have perks beyond bonus rewards such as signup bonuses, APR initial offers and more. The American Express Blue Cash Everyday® Card goes even further than most other no-annual bonus cards by offering credits for the Disney package (including Disney+, Hulu and ESPN+) and Home Chef online food solutions.

Details and benefits of Ally Platinum Mastercard®

The Ally Platinum Mastercard can be a great fit for those involved in lending. This is an unsecured credit card that gives you access to credit and the ability to improve your credit score without having to deal with secured cards and the hassle of posting collateral.

The card’s best perks include charging no penalty APR if you make a late payment, free access to your FICO credit score, and a higher credit limit after your first five on-time payments. These features are similar to those you’ll find on some of the best credit cards designed for people with no credit, bad credit or fair credit. In fact, Ally Platinum’s credit limit policy surpasses the credit limit policy of one of the most popular credit cards, the Capital One Platinum credit card, which requires at least six months of on-time payments and does not guarantee a line of credit. increase. Instead, Capital One only promises to verify your account.

The Capital One Platinum Card also has a high variable APR of 28.49% that applies to all cardholders, while the Ally Platinum Mastercard has an APR range of 17.99% to 28.99%. While not all cardholders qualify for a lower interest rate, it’s great that Ally at least gives you a chance at a low rate based on your credit history.

How to get an Ally Bank card

Ally Bank cards are currently available by invitation only and are not open to the general public. To qualify, you need to receive a pre-verified offer. Only then are you eligible to apply. And while a pre-screened offer means you’re more likely to be approved, approval isn’t guaranteed. If your credit score has deteriorated due to negative scores on your credit report or your income has decreased since Ellie submitted the offer, you may be rejected.

Pros and cons of Ally Bank cards

While Ally Bank cards offer beneficial benefits to cardholders, they certainly come with some downsides. Here are some of the main pros and cons of Ally Bank credit cards:

Should I buy Ally Bank cards?

Ally Bank cards may be suitable depending on your credit score and financial goals. There are definitely better cash back cards on the market compared to the Ally Unlimited and Ally Everyday cards, but if you can’t get approved for a rewards card that offers the best perks, or you just want the card to help you increase your credit score, Ally Bank cards are a good choice. This includes the Ally Platinum Mastercard, which is a great option for lenders who want to avoid making margin deposits but are struggling to get approved for other unsecured cards.

bottom line

If you’ve received an invitation to apply for one of Ally Bank’s new credit cards, it’s worth considering, especially if you’re still working on building your credit score. But before you apply, take the time to compare credit cards to determine if you qualify for a card with extra features.

*All Alliant Visa Signature Card information has been independently collected by CreditCards.com and has not been verified by the issuer. The Alliant Visa Signature Card is no longer available through CreditCards.com.