The allure of “invitation-only” offers can be hard to resist for many. In the realm of credit cards, black cards represent the epitome of exclusivity. These cards come with exceptional services and perks, but they also come with a steep price tag, exemplified by the Centurion Card from American Express, which demands a $10,000 initiation fee and a $5,000 annual fee.
In contrast, Ally Bank’s range of credit cards falls under the category of invitation-only financial products, but they aren’t necessarily tailored for high spenders. This guide will walk you through the details of Ally’s credit cards and assist you in determining if one of them aligns with your financial needs.
What Is Ally Bank Credit Cards?
Launched in 2017 by Fair Square Financial Holdings, Ally’s brand of consumer credit cards is dedicated to addressing the requirements of individuals who may not receive adequate service from major financial institutions. The company is steadfast in its commitment to doing right by its consumer, commercial, and corporate clients and aspires to become a leading full-service digital bank.
Ally Credit Cards Overview
Ally Bank’s current credit card lineup features three distinct options: the Ally Platinum Mastercard®, Ally Everyday Cash Back Mastercard®, and Ally Unlimited Cash Back Mastercard®. These cards are administered by Ally Card Services and issued by Ally Bank. Here’s a concise overview of the key details and standout advantages of each card:
Ally Platinum Mastercard
Rewards Rate: N/A
Introductory Offer: N/A
Other Notable Features:
Automatic account reviews for potential credit line increases
Free online FICO score access
Zero fraud liability protection
Round-the-clock customer service
Access to valuable credit education resources
Ally Everyday Cash Back Mastercard
Rewards Rate: 3 percent cash back at gas stations, grocery stores, and drugstores; 1 percent cash back on all other purchases
Introductory Offer: N/A
Other Notable Features:
Earned rewards do not expire
No minimum requirement for redeeming rewards
Zero fraud liability protection
24/7 customer service support
Access to beneficial credit education resources
Ally Unlimited Cash Back Mastercard
Rewards Rate: Earn an enticing 2 percent cash back on all purchases.
Introductory Offer: Benefit from a 0 percent introductory APR on new purchases and balance transfers for the first 15 months, which then adjusts to a variable rate of 19.99 percent* thereafter.
Other Notable Features:
Accumulated rewards never expire.
No minimum threshold for redeeming your cash back.
Enjoy the convenience of an instant ”Lock It” tool if your card is misplaced.
Rest easy with zero fraud liability protection.
Access 24/7 customer service assistance and valuable credit education resources.
Ally Platinum Card: Features and Advantages
Exploring the Ally Platinum Mastercard: Details and Benefits”
The Ally Platinum Mastercard is Ally’s introductory credit card option, catering to individuals with fair or good credit. While this card doesn’t provide rewards for spending, it distinguishes itself through its straightforward fee structure, making it a favorable choice among credit-building cards. Notably, the Ally Platinum Mastercard features no annual fee, no returned payment fee, and no over-limit fee. Additionally, it stands out as an excellent option for frequent travelers and international online shoppers, thanks to its absence of foreign transaction fees.
Also Read: Carter’s Credit Card: Your Ultimate Shopping Companion
Though the card does carry some fees, including charges for late payments, balance transfers, and cash advances, these are relatively easy to avoid with responsible use. In the event of a late payment, the fees amount to $28 for the first instance and $40 for each subsequent late payment within six billing cycles.
Ally Everyday Cash Back Card: Features and Advantages
The Ally Everyday Cash Back Mastercard represents the next tier of Ally’s credit card offerings, sharing some similarities with the Platinum card while also presenting significant differences. Unlike the Platinum card, the Ally Everyday Cash Back card enables you to earn cash back for your spending but comes with an annual fee that can reach up to $39.
Cardholders can enjoy a generous 3 percent cash back on purchases made at gas stations, grocery stores, and drugstores, and they receive 1 percent cash back on all other purchases wherever Mastercard is accepted. The best part? There’s no cap on the cash back you can earn, and your rewards remain valid as long as your account is open and in good standing.
The unlimited 3 percent cash-back rewards rate is undoubtedly an attractive feature. However, it’s worth noting that many leading cash-back cards offer a similar rate for all purchases, not just those made at specific types of merchants. Additionally, it’s essential to be aware that the sole way to redeem your earned cash back is in the form of a statement credit. Your cashback balance can be conveniently tracked on the account summary page within the Ally mobile app, and redeeming rewards is a breeze with no minimum requirement.
Apart from its rewarding program and the potential annual fee, the Ally Everyday Cash Back card closely resembles the Platinum card, down to the 28.99 percent variable APR.
Exploring Ally Unlimited Cash Back Card: Features and Benefits
The Ally Unlimited Cash Back Mastercard, the final gem in Ally’s credit card portfolio, can be regarded as an enhanced version of the Everyday Cash Back card. It boasts an unlimited 2 percent cash-back rate on all purchases, with no minimum redemption requirement and no expiration dates.
What sets this card apart even further is the absence of an annual fee, making it an exclusive offering for Ally customers with high credit scores. In addition to the advantages inherited from the previous two Ally cards, Unlimited Cash Back cardholders enjoy the “Lock It” feature, which allows them to freeze their account in case their card is ever lost or misplaced.
Also Read: All You Need to Know About Ollo Credit Cards
While this card may not offer boosted rewards in specific spending categories or the travel benefits found in many top-tier cash-back credit cards, the Ally Unlimited Cash Back’s high earning rate firmly positions it among the best cash-back cards available in the market.
Qualifying for an Ally Credit Card: Eligibility Criteria and Application Process
As previously mentioned, Ally Bank’s credit cards are exclusive and obtainable only by invitation. To initiate the application process for an Ally card, you must either receive a pre-screened offer or find a card match via CardMatch. To receive an offer, your credit report information must align with Ally’s specific criteria. If you receive an invitation to apply and choose to proceed, there is a favorable chance of approval, although no guarantees are provided.
Pros and Cons of Ally Cards
While Ally credit cards offer valuable advantages to cardholders, they also come with their own set of limitations to take into consideration. Here, we outline the pros and cons of Ally credit cards.
Pros:
The issuer conducts automatic credit line reviews after six months, potentially leading to a credit line increase.
There is no penalty APR applied to missed payments.
Individuals with fair to good credit still have a chance of approval.
Cons:
The card carries a relatively high APR of 28.99 percent variable.
The application process is invitation-only, requiring a pre-screened offer to apply.
The exclusive rewards redemption option is limited to a statement credit.
Are Ally Credit Cards a Valuable Choice?
The Worth of Ally Cards: A Consideration Based on Your Financial Situation”
Whether Ally credit cards are a valuable choice largely depends on your financial circumstances, objectives, and your current credit standing. While there are numerous credit-building cards available for individuals with bad to fair credit, only a few of them come with rewards programs for your spending. Unfortunately, the Ally Platinum Mastercard does not fall into this category.
If your credit needs rebuilding after a past setback, you might want to explore options like the Discover it® Secured Credit Card or the Petal® 2 “Cash Back, No Fees” Visa® Credit Card. These cards not only offer opportunities to earn rewards on your purchases but also have low entry requirements.
That said, the Ally Everyday Cash Back card can be a commendable choice, particularly if you tend to concentrate your spending at gas stations, grocery stores, and drugstores. However, it’s worth noting that the Citi® Double Cash Card, which offers a 2 percent cash back rate on all eligible purchases (1 percent when you make a purchase and an additional 1 percent when you pay it off), doesn’t have an annual fee, carries a lower APR, and boasts one of the lengthiest introductory deals on balance transfers available.
In Conclusion
Ally Bank’s credit card lineup is purposefully tailored to cater to individuals who may feel underserved by larger financial institutions, prioritizing the needs of hardworking individuals. Among the offerings, the Ally Unlimited Cash Back Mastercard stands out as a top choice, providing a competitive 2 percent cash back rewards rate on all eligible purchases and eschewing annual fees. It’s essential to note that these credit products are exclusively available by invitation and are not aimed at individuals with substantial net worth or extravagant spending objectives. Instead, they emphasize simplicity, transparency, and affordability when it comes to fees, making them a solid choice for many.