Ally Unlimited Cash Back Mastercard® review: Generous cash back without worrying fees

The Wells Fargo Active Cash card offers everything the Ally Unlimited Cash Back card offers and more. On top of the 2 percent flat cash rewards rate, the Active Cash card also has a generous welcome offer with a spend requirement that’s much lower than what you’ll find with many other rewards cards. It also comes with cellphone protection and an introductory APR on qualifying balance transfers and new purchases.

Like the Ally Unlimited card, the Active Cash card doesn’t charge an annual fee, over-the-limit fee or returned check fee and won’t hit you with a penalty APR if you make a late payment. Even though it does charge a foreign transaction fee of 3 percent, this drawback is only applicable if you travel abroad or make online purchases with foreign merchants.

If you have loyalty to Ally bank over other issuers, or extra benefits beyond a high flat rewards rate and minimal fees are not something you place a lot of value on, the Ally Unlimited Cash back could still win out over the Active Cash. The Active Cash also charges a late payment fee of up to $40, unlike the Ally Unlimited Cash Back, which charges no late payment fee. If you’d benefit from the leniency on this front, the Ally Unlimited Cash Back could also be more beneficial. But if you want a more well-rounded cash back card, in addition to competitive rewards rates, the Wells Fargo Active Cash may have much more to offer. 

The Blue Cash Everyday Card from American Express is a tiered cash back card, as cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. It earns 3 percent for purchases at U.S. supermarkets, at U.S. gas stations, on U.S. online retail purchases (up to $6,000 per year per category, then 1 percent) and 1 percent back on all other purchases. It carries no annual fee and comes with a number of perks you won’t find with the Ally Unlimited card, including a welcome offer and credits after using your enrolled Blue Cash Everyday® Card for a subscription purchase.

Compared to the flat rate offered by the Ally Unlimited Cash Back card, the Blue Cash Everyday offers far more cash back potential, even with spending limits in each bonus category.

Here’s an example: Based on data from the U.S. Bureau of Labor Statistics, the average household spends $8,823 in combined spending on groceries and gas. That comes out to about $265 cash back with the Everyday card’s bonus categories ($8,823 x 3 percent = $264.69). If you spend that same amount with the Ally Unlimited card, you’d only receive $176 cash back ($8,823 x 2 percent = $176.46). As long as most of your spending earns triple points, the Everyday card can help you rake in more cash back than the Ally Unlimited card.

But the Ally Unlimited card will be a far more appealing option if you spend more in areas that fall outside the Everyday card’s bonus categories. If you spend $6,000 in categories that only earn 1 percent cash back, you’ll only earn $60 with the Everyday card ($6,000 x 1 percent = $60) but would rake in double that amount with the Ally Unlimited card ($6,000 x 2 percent = $120). As these examples show, the right card for you comes down to your spending habits.

People who don’t spend a concentrated amount in any particular category could get the most out of a flat-rate card like the Ally Unlimited Cash Back. Since you’ll earn the same on every purchase you make, you won’t have to stress about maximizing your rewards with a complicated strategy.

One of the advantages of the Ally Unlimited Cash Back is its very few fees. Besides the ongoing variable APR, you won’t have to worry about most common card fees. If you’re someone who is still learning to manage your credit effectively, and could benefit from the leniency that comes with not having to pay late fees or a penalty APR, this card could be a good fit. 

Not everyone will have access to this card. In fact, only people who are invited will be able to apply for the Ally Unlimited Cash Back. If you already bank with Ally or have another financial product with the issuer, be on the lookout for opportunities related to this credit card. 

No. Ally currently offers three different credit cards and each has different features and requirements. The credit cards Ally offers include The Ally Platinum Mastercard, The Ally Unlimited Cash Back Mastercard and The Ally Everyday Cash Back Mastercard.

No. At this time only consumers who receive an offer from Ally online or by mail are eligible to apply. 

Since you can only apply via invitation, it’s hard to gauge the credit score you’d need for the best approval odds with the Ally Unlimited Cash Back. When comparing this card to others like it on the market, we’d suggest having at least good credit for stronger chances of approval.