New credit cards from Ally Bank

[masscredit]

It looks like just myself and @user979797 have the card. Both of us were approved for a $2500 SL. 

[captainsensation]

Saw the everyday cash back on my Credit Karma guarantee or i get $50. I am tempted to go for it but i see not many of you guys have got it or said you enjoy it. Any one else have thoughts on these cards? I cant apply without a mailer or going through credit karma it seems.

[CYBERSAM]

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@captainsensation wrote:

Saw the everyday cash back on my Credit Karma guarantee or i get $50. I am tempted to go for it but i see not many of you guys have got it or said you enjoy it. Any one else have thoughts on these cards? I cant apply without a mailer or going through credit karma it seems.

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I don't see any value on this card or other two that they offer!

There is no signup bonuses and for you to get $50 that is through 3rd party site.

If you want to burn a HP and add new account, try much better cards that are out there with better bonuses.

For example AAA Credit cards you'll get better rewards and $100 (no membership required)

There are many more cards out there that offer better signup bonuses if you look for them.

[Zoostation1]

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@captainsensation wrote:

Saw the everyday cash back on my Credit Karma guarantee or i get $50. I am tempted to go for it but i see not many of you guys have got it or said you enjoy it. Any one else have thoughts on these cards? I cant apply without a mailer or going through credit karma it seems.

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I think the Ally cards are primarily geared towards people towards the upper end of sub prime...think rebuilders who have made some progress but who would be a borderline decision on a more prime card (same market as Mercury goes after).  Ally cards aren't open to everyone, you either have to get an invite from them or be shown them through a 3rd party partner like CK etc. 

[Anonymalous]

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@Zoostation1 wrote:

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@captainsensation wrote:

Saw the everyday cash back on my Credit Karma guarantee or i get $50. I am tempted to go for it but i see not many of you guys have got it or said you enjoy it. Any one else have thoughts on these cards? I cant apply without a mailer or going through credit karma it seems.

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I think the Ally cards are primarily geared towards people towards the upper end of sub prime...think rebuilders who have made some progress but who would be a borderline decision on a more prime card (same market as Mercury goes after).  Ally cards aren't open to everyone, you either have to get an invite from them or be shown them through a 3rd party partner like CK etc. 

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I think they're trying to provide a range of cards. Ally's suite of cards include those aimed at fair, good, and excellent credit. Most CC issuers are either sub prime pretty much exclusively, or they require good credit or better, with the exception of any secured cards. Ally's approach seems most similar to Capital One's, ranging from borderline subprime on through the prime spectrum, and this similarity even extends to having different versions of the same card for those in different credit tiers (if the Everday with and without a $39 AF is confirmed). I think this makes the most sense given Ally's general approach -- simple, minimal fees -- as well as their other prodcuts. They have a big auto loan business and they're one of the biggest online deposit banks, so it would be only logical to develop a roster of cards that can appeal to as many as their existing customers as possible, rather than carving out a specialized niche that doesn't synergize with their other products.

[Roisin]

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@Zoostation1 wrote:

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@captainsensation wrote:

Saw the everyday cash back on my Credit Karma guarantee or i get $50. I am tempted to go for it but i see not many of you guys have got it or said you enjoy it. Any one else have thoughts on these ca@rds? I cant apply without a mailer or going through credit karma it seems.

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I think the Ally cards are primarily geared towards people towards the upper end of sub prime...think rebuilders who have made some progress but who would be a borderline decision on a more prime card (same market as Mercury goes after).  Ally cards aren't open to everyone, you either have to get an invite from them or be shown them through a 3rd party partner like CK etc. 

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@Zoostation1 I've been getting Ally offers in the mail for awhile now; I don't have subprime CCs, have several prime and superprime cards, and my scores don't put me in "the upper end of subprime." Based on my experience,  it seems that Ally is targeting more than borderliners. 

[Zoostation1]

Good to know.  I was speaking both anecdotally from what I've seen and from info passed on by a friend who works at Ally.  I guess it's a it's a wider target audience, but people still can't cold apply from their website without having received an offer.

[Anonymalous]

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@Zoostation1 wrote:

Good to know.  I was speaking both anecdotally from what I've seen and from info passed on by a friend who works at Ally.  I guess it's a it's a wider target audience, but people still can't cold apply from their website without having received an offer.

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Well, their credit card business comes from their acquisition of Ollo, which was definitely a subprime lender (though one the better ones, it sounds like). So it makes sense that that's their initial strength. And the application restriction may just be a throttle, allowing them to gradually scale up instead of opening the doors and getting overwhelmed. Which is probably a good idea. Ally's earlier forays into CCs weren't that successful, so taking it slow seems like a reasonable approach.

[masscredit]

I was approved for my card around 6 months after my DC. Scores were in the mid-upper 600s. I guess I'd be considered boarderline.

[Roisin]

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@Zoostation1 wrote:

Good to know.  I was speaking both anecdotally from what I've seen and from info passed on by a friend who works at Ally.  I guess it's a it's a wider target audience, but people still can't cold apply from their website without having received an offer.

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I admit, their marketing approach is compelling. I mean, why nurses and teachers? Could one reason be (of course, I'm sure there are many) that according to Gallup, nurses are considered to be the most honest and ethical of all professionals (google: Nurses Retain Top Ethics Rating)? Moreover, following medical doctors and pharmacists, teachers rank fourth in the poll. And, unlike doctors and pharmacists who pull in relatively high salaries, nurses and teachers make considerably less salary-wise.

So, wouldn't this population be perfect for a bank trying to get a bigger foothold in the CC market?

Specificaly, you have two groups of professionals, each consisting of relatively well-educated people, in "stable" professions, considered to be highly ethical (think: they pay their debts), yet also, their salaries are not astronomical. Therefore, with lower salaries, they could use some extra credit, while at the same time, their credit expectations may not be as high (think: smaller SLs) as say, doctors, pharmacists, or lawyers who make more, and most likely spend more, and lose more if they default. Plus, because these potential CC holders are "honest" and "ethical," already many have very good -- excellent even -- CRs. Even better! Not to mention, both professions generally report feeing underappreciated. How lovely, as a hardworking nurse or teacher, to be thought of as being "worthy" enough to be reached out to "by invitation only" for a card designed just for you. That's a sweet little emotional perk, that is. 

It seems reasonable that hooking reliable nurses and teachers into new CCs might very well represent a decent risk for a bank on the threshold of new CC operations. Add all this to the Ollo invitation-only format, plus sub-prime, prime, and super-prime options, and it looks like a very potent package, does it not?