The
Ally Everyday Cash Back Mastercard® is a good credit card to consider if you have limited or bad credit and you want to earn rewards, particularly at gas stations, grocery stores and drugstores. You can earn
1 - 3% cash back on purchases with the
Ally Everyday Cash Back Mastercard®. Breaking even on the
$0 - $39 annual fee therefore requires spending no more than $3,900 per year, assuming you avoid interest charges by paying the bill in full monthly. This card has a high interest rate.
Key Things to Know About the Ally Everyday Cash Back Mastercard®
$0 - $39 Annual Fee
The annual fee for the Ally Everyday Cash Back Mastercard® could be anywhere from $0 - $39, depending on factors such as your credit history, income and debt. The card can be worthwhile in any case, but the amount of the fee determines how much you need to spend per year for your rewards to cancel out the cost of card ownership.
Cheaper and more expensive alternatives are both available to people with limited or bad credit. When considering which card to get, it’s a good idea to estimate how much you might earn from each card’s rewards and then subtract any annual fee it charges to get a sense of your total savings.
1 - 3% Cash Back
The Ally Everyday Cash Back Mastercard® offers 3% cash back on gas station, grocery and drugstore purchases, as well as 1% cash back on all other purchases. The bonus rewards rate is very good for a card that you can get with limited or bad credit and better than average overall. The minimum is standard, though. The average rewards rate on a credit card is just 1.17%.
22.99% - 29.99% (V) APR
Not only is the Ally Everyday Cash Back Mastercard®’s regular interest rate way higher than the average APR among new credit card offers (22.73%), but it actually exceeds what some cards charge for cash advances or as a penalty rate. Fortunately, you can avoid feeling the effects of this high rate by paying your statement balance in full by the due date each month.
If you do that, this card can save you money. If you don’t, you’ll be bleeding money every day.
$0 Foreign Transaction Fee
You won’t have to pay a surcharge if you make purchases while traveling abroad or you buy something from a foreign merchant online. This saves you around 3% compared to the average credit card offer and enables you to take advantage of low card-network currency exchange rates, which can save you even more.
Available to Applicants With Limited/Bad Credit
It’s rare for low-cost unsecured credit cards to be available to people with bad credit, but that’s the case here. People with poor credit can qualify for the Ally Everyday Cash Back Mastercard®, according to Ally, as can people with limited-to-no experience as a borrower. This doesn’t mean approval is guaranteed, however. You still need enough income to afford at least minimum monthly bill payments, and a higher credit score will increase your odds of approval.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
