It was a big week for cash back rewards credit cards.
Wells Fargo released their cash back credit card on Wednesday and the next day Ally Bank announced the Ally CashBack credit card.
The Ally CashBack card, issued by TD Bank, offers 2% cash back on eligible gas and grocery purchases and 1% cash back on all other purchases. Cardholders can earn an additional 10% cash-back rewards bonus if they redeem their rewards through an Ally Bank account. According to an email from an Ally spokesperson, this includes Ally Bank non-IRA online savings, interest checking or money market accounts.
There is also a $100 bonus after the cardholder spends more than $500 on eligible purchases during the first three billing cycles of the account opening date. There is no cap on the rewards you can earn and they never expire, as long as your account is open and in good standing.
The new card has no annual fee and a 0% introductory annual percentage rate (APR) for the first 12 billing cycles after the account is opened. After that, there is a variable purchase APR of 13.24%, 18.24% or 23.24%, depending on the cardholder’s credit.
The Ally CashBack card and Wells Fargo Cash Wise Visa are among the latest additions to the growing collection of no-annual fee cash back credit cards on the market. Chase, too, recently released the Freedom Unlimited credit card, which lets cardholders earn 1.5% cash back on all purchases with no annual fee. You can go here to learn more about the best cash rewards credit cards in America.
Before You Apply
Remember, rewards credit cards are best suited to customers who don’t carry a balance; otherwise, those points, miles or cash back will be lost to interest.
If you decide you want a new credit card, whether a cash back credit card or not, the first step you take should be to find out your credit scores. This way, you’ll get an idea of what terms and conditions you can qualify for. Good credit scores, for instance, are generally required for the more competitive cards out there. (You can see two of your credit scores for free, updated every 14 days, on Credit.com.) After reviewing your credit scores, you can start comparing the cards you’re considering. Make sure you read the terms and conditions that accompany each so you have a full understanding of what comes with them to find the right one for you.
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