Posted by William Charles on August 23, 2018
Credit Card Review

Published on August 23rd, 2018 | by William Charles

56

Ally CashBack Credit Card Review – Bonus Increased To $150

Update 08/23/18: Bonus has been increased to $150 (from $100) after $500 in spend. Still not very attractive. Hat tip to reader Steve

Original post 06/16/16:

As I predicted yesterday, Ally Bank has released its first credit card called simply ‘CashBack’. The card is issued by T.D Bank and apparently Ally are using this to gauge interest before possibly releasing cards issued by themselves in the future. Let’s take a quick look at the features and benefits of this card:

  • No annual fee
  • Sign up bonus of $150 after $500 in spend within the first three billing cycles
  • Card earns at the following rates:
    • 2% cash back at gas stations and grocery stores
    • 1% cash back on all other purchase
  • Get a 10% Ally Deposit Bonus when you deposit your cash rewards into an eligible Ally Bank account
  • No cap on the amount of rewards you can earn
  • 0% Introductory APR for first twelve billing cycles

ally cash back

Our Verdict

This card is pretty useless, let’s see why:

It’s good to see Ally getting into the credit card space as they are a pretty good bank, but this offer just isn’t of interest to me at all, fingers crossed they come up with something better.



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HG
HG

It’s not useless but the T&Cs are not friendly whatsoever.

Bob
Bob

Lol, what use would the card have, sitting in the bottom of your drawer?

Ian
Ian

Aren’t the TD Bank’s TD Bank credit cards (TD Cash Visa*, First Class Visa Signature*, Ameritrade Client Rewards, or Aeoroplan Visa Signature) better? *has no FTF.

money
money

lol, Seeing this card actually makes me feel better about my do-nothing BoA Cash Rewards. (Don’t mind me, I’m still bitter that I can’t get them to PC it to the BBR.)

MrWho
MrWho

Since it’s issued by TD, I’m curious if you can PC it to other TD products if you are not in the TD’s footprint.

Bill
Bill

I wonder if this card is only available to those who have Ally accounts, those who have TD accounts, or only available to those that have both Ally and TD accounts?

It will be interesting to see if Ally sends preapproved offers to their Ally online banking customers.

This card shows that TD is looking to start expanding their credit card business, which could lead to other cards that perhaps are more beneficial.

Suzy
Suzy

No, you can get the card whether or not you have a relationship with Ally or TD. You get an extra 10% CB if you redeem it to an ally account.

Greg
Greg

Looks alright if I can open a checking account somewhere funded by this card. The 10% deposit is a joke though.

Walker
Walker

Hi, would this be worthwhile if you already have Ally checking account and then the 10% deposit comes into play?

Thanks!

Alix
Alix

Doubt it. It’s 10% of 2% rewards redeemed. So that’s 0.2 + 2 = 2.2% for depositing to checking account. Only for gas and groceries. Amex blue is probably better.

Donald
Donald

If you have an Ally account or are thinking of opening one, then I don’t see why you wouldn’t get one of these, spend $500 for the $100 bonus and be done with it. After that, I agree, not very useful.

zjts
zjts

Anyone fund a bank account with this card (such as USBanK)? ANyone know
1. What is the minimum cash advance limit?
2. Can the cash advance limit be set to 0? Or is it a percentage of the total credit line?
3. What is the total minimum credit line allowed?

I am waiting for a reply from Ally secure mssaging, but often find others’ real life experience is more reliable than answers from reps.

mike
mike

This is a quick way of making $150. Spending $500 is no problem. I applied, however they advised they would let me know via mail…..not sure if its because I’m over the 5/24?

focusonthemeta
focusonthemeta

Know it might be minor but does anyone know if you get the 10% deposit on the $150?

Joe
Joe

What bureau do they pull usually? If it’s not EX, I’ll apply. LOL/24

Aahz
Aahz

They seem to pull Experian

Bob Newbie
Bob Newbie

I wouldn’t say useless… $150 on $500 spend is pretty nice, especially when you don’t have many other options.
Of course it’s useless after the bonus though..

K
K

Why does this site always say $150 bonus for $500 over 3 months is “not attractive”? That’s pretty much the best bonus out there. A lot of them have it, but I think that is the going rate.

$200 bonuses for any amount are pretty rare. I think Wells Fargo had $200 for $1000 in purchases, and the new Propel has $300 for $3000. I think M&T had $200 for $500 once.

Some banks are only $100 for $500. I think that’s what Santander, Citizens and PNC are.

Toad
Toad

Pretty much every single Chase, BoA, Citi, Barclays, Capital One, AMEX, and US Bank card that has an associated bonus in cash back or the bank point system (UR, MR, etc.), can be converted directly to a cash back bonus greater than or equal to this. That is why this is not all that great.

For example, I have recently signed up for 2 AMEX cards that can be cashed out directly for greater than $700 after the AF cost, 1 Chase card that can be cashed out directly for $1,100 after the AF, 1 Capital One card that was a $1,000 cash bonus directly, etc.

K
K

How much do did spend to reach those cashback levels?

Toad
Toad

Certainly higher (ranging from 5k-10k). Normally I agree with looking at things from a ROI perspective which I can see is where you are taking this: i.e. a $500/$150 is 30% cash back considering the bonus only where a $10,000/$1,000 is only 10% cash back considering the bonus only.

I do not think that is a valid way of looking at signup bonuses though because they are finite (I can’t do 20 $500/$150s to replace the 1 $10,000/$1,000), and increasing your spend without actually increasing how much you spend is not difficult.

I think you need to look at signup bonuses strictly as which one gives you the maximum overall value because each hard pull hit you take reduces the chances of the next card.

Note that I rarely spend more than $700 or so a month so it’s not like I am actually spending enough myself without some additional but minimal work to hit these. Still totally worth it and effectively makes this card useless. Even if the bonus were $500/$250 (absurd) this would be fairly low on the list for me because it is a personal card and there are so many others with a higher value.

K
K

But if I keep doing this for every credit card it comes out to more.

20*500 = 10,000. Let’s say 10 of those were 150, and 10 were 100. That’s $2500 in bonuses if I spent that money on 20 individual cards. There’s also the immediate cashback %, which I don’t like that it is only 1% for most purchases here, but the majority of cards give you 1.5 and sometimes more for gas etc. Some like Bank of America have an additional 10% redemption bonus into your checking.

Over the last two years I’ve probably done 12-13 cards. My credit score hasn’t been impacted in any way.

Toad
Toad

The point I am making is that spend is not a finite amount. This is not a limitation to bonuses as you can quite easily increase your spending to >10k/mo without actually increasing your spending. There is no way anyone can get approved for 20 cards in a 3 month period (if there is a way, please enlighten me) which is what would be the equivalent of the 10k/1k spend.

Even getting 7 approved in 3 months is a stretch for personal cards which is needed to match the 1k bonus amount, and this would not be able to be done repeatedly.

gli
gli

Will send mailed response = not good… they must be inquiry sensitive.

Brandon
Brandon

Got the same. Oh well 🤷🏽‍♂️

AndyK
AndyK

Same me

AndyK
AndyK

Well, finally got their letter today and it said to call them. So I did and a few security questions later I was approved. That’s cool since I was denied the recent $200 bonus BoA cards, at least it’s $150 vs Zero 😉

gli
gli

surprising received the card in the mail a few weeks later – so obviously I was approved of.

Charlie
Charlie

The card seems to a case of Ally “going through the motions.” Because they are an internet bank, their current banking customers are folk who know a good deal when they see it, which is how they found Ally in the first place, so they aren’t likely to sign up for an inferior card. Those who don’t bank with Ally are probably equally unlikely to find this card attractive, so I don’t see it bringing in new banking customers. What’s the point of the card?

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