Ally Unlimited Cash Back Mastercard vs. the Wells Fargo Active Cash Card
The Wells Fargo Active Cash card has 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 is only a drawback if you travel abroad or make online purchases with foreign merchants.
Ally Unlimited Cash Back Mastercard vs. the Blue Cash Everyday® Card from American Express
The Blue Cash Everyday Card from American Express is a tiered cash back card that 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 for the Disney Bundle (including Disney+, Hulu, and ESPN+) and Home Chef meal kits (these credit benefits are subject to auto renewal).
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 the 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 $8,500 in combined spending on groceries, gas and online purchases. That comes out to $255 cash back with the Everyday card’s bonus categories ($8,500 x 3 percent = $255). If you spend that same amount with the Ally Unlimited card, you’d only receive $170 cash back ($8,500 x 2 percent = $170). 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.
Amount spend |
$8,500 |
$8,500 |
Cash back rate |
3% |
2% |
Total cash back |
$255 |
$170 |
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.
Amount spend |
$6,000 |
$6,000 |
Cash back rate |
1% |
2% |
Total cash back |
$60 |
$120 |
Best cards to pair with this card
Flat-rate rewards cards are almost always better when used to support a tiered cash back or rewards card. Instead of using a 2 percent flat-rate card for all purchases, a rotating bonus or tiered rewards card that fits your spending habits can help you maximize your rewards.
For example, combining both the Blue Cash Everyday card and the Ally Unlimited will give you more optimal cash back coverage. Based on the previous example, if you were able to fit $8,500 of spending in the Everyday card’s bonus categories and spend $6,000 using the Ally Unlimited card, you’d earn a total of $375 cash back. A strategy like this uses the strengths of both cards to give you a 2 percent bottom line on cash back earnings.