Is Amazon’s Credit Card Worth It?

Is Amazon's Credit Card Worth It? - The Credit Repair Blueprint

If you are an avid Amazon user, the idea of getting a credit card from them might sound like a no-brainer. But is Amazon’s credit card worth it? There are some benefits to having an Amazon credit card, but there are also many drawbacks that you need to be aware of before deciding whether or not this is right for you. In this article, we will discuss what the benefits and drawbacks of getting an Amazon Credit Card might be so that you can make a more informed decision.

What Types of Credit Cards Does Amazon Offer?

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There is an Amazon card for everyone whether you have bad credit or excellent credit. Each credit card that is offered has different benefits and we will go over the pros and cons of each card. Amazon has a Prime Store Credit Card, an Amazon Prime Rewards Visa Signature Card, an Amazon Prime Secured Card and an Amazon Business Prime American Express Card.

Amazon Prime Rewards Visa Credit Card

Amazon Prime Rewards Visa Credit Card

The Amazon Rewards Visa Credit Card is a great credit card for earning rewards when you shop on Amazon. It also gives you the option to buy now and pay later. If your purchase is $50 or more you can make 6 equal monthly payments, $250 or more can be 12 equal monthly payments, or purchase $500 or more and make 18 equal monthly payments to avoid paying interest. This card is issued through JP Morgan Chase.

The Amazon Prime Rewards Visa Signature Card offers other benefits as well such as no foreign transaction fees when using your credit card abroad and also provides complimentary travel protection including trip cancellation insurance should plans change due to illness or severe weather conditions. There are some drawbacks though: You need to have either an Amazon Prime membership or a minimum of $119.00 in Amazon purchases each year to qualify for the rewards and as long as you are eligible then it is not necessary to have all your spending come from Amazon, but without meeting these requirements there may be better credit cards out there.

Conclusion: The Amazon Rewards Visa Credit Card offers some solid benefits including no foreign transaction fees, complimentary travel insurance, and cash back on certain types of purchase like restaurants or gas stations depending on how much money was spent during that particular time period with the card. However, if you don’t meet the annual requirement of either having an Amazon Prime Membership or making at least $119 worth of purchases with them per year then this might not be the best option for you because there are better credit cards out there.

Pros

  • You can get a $150 Amazon Gift Card instantly upon approval
  • 5% back at Amazon and Whole Foods Market with an eligible Prime Membership.
  • 2% back at restaurants, gas stations, and drugstores.
  • 1% back on utilities, rideshare, and other purchases.
  • 10% back on select products. This is a limited time offer
  • There is no annual fee.
  • No foreign transaction fees.
  • Options to buy it now and make monthly payments on your purchase to enjoy 0% interest.
  • Travel benefits such as emergency assistance, baggage delay insurance, travel accident insurance up to $500,000 and lost luggage reimbursement up to $3,000 per person.
  • Purchase protection on new purchases for 120 days against damages or theft up to $500 per claim and $50,000 per account.
  • Roadside dispatch
  • Auto rental collision damage waiver
  • Redeem your rewards for cash back, gift cards or travel.

Cons

  • If you choose the buy now and pay later options you won’t be able to earn rewards on that purchase.
  • Need a good credit score in order to receive a higher credit limit otherwise they offer you a minimum of $500.
  • To earn 5% back you need to have an eligible Prime account and needs to be loaded in that Amazon account.

Amazon Prime Store Credit Card

Amazon Prime Store Card

The Amazon Prime Store Credit Card is a step down from the Amazon Prime Rewards Visa credit card but is still a great card option if you shop on Amazon. Unlike the Amazon Prime Rewards card you can only use this credit card on Amazon and you can only redeem your rewards through savings on Amazon purchases or a statement credit. This credit card is issued through Synchrony Bank and is subject to credit approval.

Pros

  • $60 Amazon Gift Card instantly upon approval
  • 5% back on every day Amazon purchases with an eligible Prime membership
  • 5-15% back on select rotating item throughout the year
  • 0% APR financing when you buy now and pay over time with equal monthly payments
  • No annual fee
  • Redeem your rewards as savings on your Amazon purchases or through a statement credit

Cons

  • Need to have an Amazon Prime Account in order to earn 5% back
  • This card can only be used on Amazon and Amazon related marketplaces such as Audible, Amazon 4-star stores, Amazon Fresh, Amazon Bookstore, Alexa Skills, Amazon Pay, Amazon Business, AWS and Amazon Go.
  • Need to have a fair to good credit score.

Amazon Prime Secured Card

Amazon Prime Secured Credit Card

The Amazon Prime Secured Card is ideal for someone that has bad credit or no credit. This card will allow to shop on Amazon while building your credit score. Once you’re approved for this card you will be required to provide a security deposit that will act as your credit limit. You can deposit in $50 increments with the minimum of $100 to the maximum of $1,000. You can always choose to pay off your balance and close your account to get your deposit refunded. After you use this card responsibly for 12 months you can opt-in to activate the Amazon Prime Store Card to earn rewards on your Amazon purchases with no new credit inquiry.

Pros

  • No annual fee
  • Best option if you have bad credit or no credit
  • Reports on time monthly payments to credit bureaus to increase your credit score.
  • 2% rewards on Amazon purchases with eligible Prime membership
  • 10% APR non-variable
  • You can apply for the Amazon Prime Store card after 12 months of responsible use and get your deposit back

Cons

  • Requires a minimum of $100 deposit
  • Low credit limit of $1,000
  • Can not earn rewards or cash back
  • Has no sign up bonus offer

Related: What Are The Best Credit Cards For Bad Credit?

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Amazon Business Prime American Express Credit Card

The Amazon Business Prime American Express Credit Card is ideal for business owners and Amazon Business Accounts but everyone can apply. You can earn and redeem rewards points through Amazon. As an Amazon Business Prime member you get exclusive business pricing on more than 5 million products.

Amazon Business Prime American Express Credit Card

Pros

  • Get a $125 Amazon Gift Card upon approval with an eligible Prime membership.
  • No annual fee
  • Choose between 5% back on your first $120,000 in purchases each calendar year on Amazon or get 90 days interest free on purchases.
  • 2% back at restaurants, gas stations, and wireless telephone services purchased through service providers
  • 1% back on all other purchases
  • Enhanced data views with Amazon Business purchases that will be listed item by item so you can track your business purchases.
  • Exclusive business-only pricing on more than 5 million products.
  • Setup multi-user accounts, shared payment methods, approval workflows and spending limits for your employees.
  • Employee cards
  • Return protection
  • Travel benefits such as car rental loss and damage insurance, global assist, and baggage insurance
  • No foreign transaction fees

Cons

  • APR up to 22.24%
  • Requires excellent credit

Related: How To Start Building Business Credit

Why Should I Get An Amazon Credit Card and Is It Worth It?

The main benefit of having an Amazon credit card is that it allows for a simple way to build up points when shopping on Amazon, as long as you have the card with you at all times while making purchases. You can then redeem those points for various perks from gift cards, travel packages, apparel discounts, or other offers they provide.

One thing worth mentioning about applying for this type of rewards-based credit card is that there are no prerequisites (other than being 18 years old). This means if you already have a bank account set up somewhere else and happen not to like where your current credit score stands – even though Amazon does require excellent credit in order to apply for their rewards credit card- you are free to apply for an Amazon credit card and start building up points from day one.

One of the disadvantages of this type of rewards-based card is that there’s no guarantee on where your points can be redeemed, other than through Amazon specifically. Also all of these credit cards do require you to have an Amazon Prime Account which is $119 a year. So if you shop on Amazon frequently and spend over $119 a year and enjoy the fast 2-day free shipping than the Amazon credit card is worth it.

How Can I Apply For Amazon Credit Card?

In order to apply for an Amazon Credit Card online through their website, you need:

– The email address associated with your Amazon account

– A US mailing address where they will send your new card in the mail

– Your Social Security Number

Once these items have been verified , you will be able to go ahead and order your card. Please note that Amazon does require a credit check when you apply for all of their credit cards and you can apply for different credit cards based on your credit level.

Can I Apply For An Amazon Credit Card If I Have Bad Credit?

Yes, you can apply for the Amazon Prime Secured Card if you have bad credit or no credit at all. This card is available to help you build your credit score so you can get a credit card that has better rewards, cash back and no interest. Every month when you make on time payments Amazon will report these payments to the credit bureaus so you can build your credit score.

Related: 10 Best Rewards Credit Cards

Online shopping has become increasingly popular over recent years for many reasons, including the convenience of not having to go out and find what you need (or want) in person. The Amazon credit card is a prime example of this as it can help save you time while also letting you earn rewards with every purchase made through Amazon or any affiliated sites. So if you shop on Amazon then getting an Amazon credit card is worth it.

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