Keeps it simple by skipping fees in place of perks and a welcome offer
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3.4
Bottom line
This card earns the same generous 2 percent cash back that leading cards in this category earn and waives common fees, making it a great option if you want to fill gaps in your cash back strategy or or stick with a single card everyday spending.
*The information about the Ally Unlimited Cash Back has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
N/A
Intro offer
2%
Rewards rate
2% unlimited cash back on all your purchases
Annual fee
Regular APR
The Ally Unlimited Cash Back Mastercard is a no-annual-fee, flat-rate cash back card that earns unlimited 2 percent back on all purchases. Like most 2 percent cards, it’s a great choice for cardholders who spend nearly the same amount annually across several categories or who make a few key, large purchases each year.
The card is currently available by invitation only, so you can’t apply unless you’ve received a prescreened offer. However, for those who have received an offer, it can be a great choice if you’re looking for a low-maintenance cash back card with few fees, no cash back limits, no expiration dates and no penalty APRs.
While these are all great factors to consider, you should also keep in mind that there is no sign-up bonus and you’ll need to have good-to-excellent credit (a FICO score between 670 and 739). Additionally, 2 percent cash back cards can be restrictive for some cardholders. Despite their value for large and uncategorized purchases with unlimited earnings, cardholders who spend reliably in certain categories may earn more with a tiered rewards card.
If you’re in the good-credit range, you qualify for a host of great tiered rewards cards that you can use to develop a more nuanced and rewarding cash back strategy. That is, if you don’t mind having your overall rewards or cash back split between multiple issuers.
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Unlimited 2 percent back on all purchase makes it a great choice for general and large purchases
No minimum redemption requirements let you access your cash back when you want it
Ally won’t charge late fees or increase your APR after you make a late payment, giving cardholders peace of mind when they’re in a financial pinch
Like all cash back cards, you might be able to find more value with a tiered rewards card if you can handle the extra maintenance
This card is invitation only, so you need to receive an online or mail offer before applying
No sign-up bonus for new cardholders makes this a lackluster option in a competitive cards landscape
The Ally Unlimited Mastercard has a lot to offer in terms of a straightforward rewards program and very few fees. It’s one of the most cost-effective rewards cards available, in addition to offering one of the highest flat-rates you can get.
A flat rate of 2 percent is one of the most competitive rewards rates on the market. Since you’ll earn on every purchase you make, it’s also one of the easiest rewards structures to manage. If you spend generously across many categories, the chance to earn a competitive rate of cash back no matter what you’re buying can prove to be quite lucrative over time.
This card skips almost all of the most common credit card fees you may come across, including an annual fee, foreign transaction fees and even late payment fees (though late payments will still have a negative impact on your credit score). Pairing this lack of fees with the competitive rewards you can earn means that cardholders won’t have to worry about excess fees hindering their earning potential.
Despite its competitiveness in this landscape, the Ally Unlimited Cash back may not be the best fit for everyone. If your spending is concentrated in one or two specific categories, you may have a more worthwhile time earning with a tiered bonus rewards card. Also, if you’re after some of the most popular perks and benefits or first-year incentives, you’ll want to look elsewhere.
The Ally Unlimited Cash Back doesn’t have a welcome offer or any intro APR offers available. Welcome offers are often great first-year incentives for using a new card, and this card misses out on that extra value. Since the card skips intro APR offers on purchases and balance transfers, you won’t see any savings on interest charges if you do end up transferring or carrying a balance. That said, you’ll need to prioritize paying your credit card bill in full each billing cycle to avoid interest charges altogether.
Highly coveted cardholder perks like premium travel insurances and statement credits are not what you’ll find with the Ally Unlimited Cash Back. Outside of the standard perks you’d find on almost any credit card, such as zero fraud liability, there is next to nothing of note that this card will offer in terms of extras. The card relies heavily on its competitive rewards rate and low fees in exchange for some of these valuable perks.
The Ally Unlimited Cash Back Mastercard is a good, low-risk alternative to other flat-rate cash back cards but may not be your best option. If you want a flat-rate card with more perks or a chance to earn higher rewards in specific categories, here are two alternatives to consider.
Annual fee
Intro offer
Rewards rate
2% unlimited cash back on all your purchases
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Rewards rate
Earn unlimited 2% cash rewards on purchases
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
Annual fee
Intro offer
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Rewards rate
3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%. 1% Cash Back on other purchases.
Recommended Credit Score
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
If you’re after a cash back card that can pack a powerful punch in terms of unlimited, flat-rate rewards earnings, the Ally Unlimited Cash Back could be worthwhile. Here are a few types of people who would benefit the most from this credit card.
Overall, the Ally Unlimited is a solid cash back card and can certainly rub shoulders with the top 2 percent cards despite the lack of additional perks. While welcome offers on other flat-rate cards are solid incentives, there is a place for the Ally Unlimited Card and its waived fees that, on other cards, can amount to massive amounts of debt for some cardholders.
However, if you prefer welcome offers and introductory APRs, then you might want to explore elsewhere. You could also consider a multi-card strategy to maximize your cash back earnings. Pairing the Ally Unlimited card with a tiered rewards card that has many of the perks missing with this Ally card could also provide a rewarding experience.
As a Bankrate credit cards editor, Ashley Parks is fascinated by the ways people can make credit cards work for them when armed with the right knowledge.
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
