A welcome offer is a significant miss on a card like this, especially because it may charge an annual fee. Although that fee is marginal compared to annual fees on premium rewards cards, this card also misses the chance to make up for that cost with a perks portfolio.
Welcome offer: Lacks a sign-up bonus
Welcome offers are coveted perks on any credit card because they’re a quick way to earn a lump payment for using your new credit card and meeting a spending requirement. Typically, cards with annual fees have the best welcome offers. However, some cards without annual fees have welcome offers worth up to $250 or offers that match all the cash back you earn in your first year. Either way, welcome offers help cards stand out in a competitive landscape.
Unfortunately, the Ally Everyday Cash Back card doesn’t stand out because it skips a welcome offer. Despite its great cash back rates for practical purchases, it fails to bring the outstanding first-year value that several no-annual-fee cash back cards carry. This shortcoming might not be a deal-breaker if you have fair credit, but other cards can add value to your first year if you have good credit.
Annual fee: Potential yearly cost eats into cash back earnings
You aren’t guaranteed to have an annual fee, but you still might. It’ll only be $39 a year at most, which is low for an annual fee on a rewards card, but more affordable options are available.
Whether you have an annual fee or not depends on your creditworthiness. If you have fair credit, you might be more likely to have an annual fee with the Ally Everyday card. However, this doesn’t make the Ally Everyday a bad card. It will still reward you generously for everyday purchases. Plus, it would be relatively easy to offset this card’s annual fee with regular spending. You’ll need to spend at least $110 monthly in the card’s 3 percent categories to earn enough cash back to offset a $39 annual fee.
But offsetting an annual fee with rewards earnings isn’t enough to make the card a good choice. Your credit card should work for you and bring value to your wallet. A card with a lower rewards rate and no annual fee might be a better fit for you if you don’t spend more than $110 per month.
Perks: Limited benefits compared to other cash back cards
Other cards for people with fair credit may come with perks like credit limit increases and introductory APR periods, making them convenient picks for quick, cost-effective credit building. Other cards available with good credit come with perks of monetary value, like the Disney Bundle Credit on the Blue Cash Everyday® Card from American Express.
The Ally Everyday is a compromise between a helpful credit-building card and a strong rewards card. It has a great rewards rate in practical categories and is accessible with average credit. It sounds great on the surface, but other cards make more sense if you want to lean into what you need most rather than trying to make one card do it all.
If you want great rewards and can qualify for the top cash back cards, then the Ally Everyday might not be at the top of your list. If you want credit-building features to build credit at a low cost, consider looking into secured cards or other credit-building cards.