Amazon Credit Card in 2024: Astonishing Rewards

Here is a quick review of the information found in this article.

Amazon Prime Rewards Visa Signature Card:
5% cash back on Amazon/Whole Foods
2% on dining, gas, drugstores
1% on everything else
No annual fee, but Prime membership required

Amazon Rewards Visa Signature Card:
3% cash back on Amazon/Whole Foods
2% on dining, gas, drugstores
1% on everything else
No annual fee, no Prime requirement

Amazon Store Card:
5% cash back on Amazon purchases
Special financing options
No annual fee, Prime membership required

Amazon Secured Card:
2% cash back on Amazon purchases
Build/rebuild credit with security deposit
No annual fee, no Prime requirement

Pros:

Cash back rewards
No annual fees
Special financing options
Credit building with Secured Card

Cons:

High interest rates
Limited use for Store and Secured Cards
Prime membership requirement
Potential credit score impact

If you are a frequent shopper on Amazon, you might have wondered if getting an Amazon credit card is a good idea. After all, the online retail giant offers several types of cards with different benefits and features. In this blog post, we will review the main pros and cons of each Amazon credit card, and help you decide which one suits your needs and preferences best. Here is a brief summary of what we will cover:

Summary

The Amazon Prime Rewards Visa Signature Card, which offers 5% cash back on Amazon and Whole Foods purchases, 2% on restaurants, gas stations and drugstores, and 1% on everything else. This card has no annual fee, but requires a Prime membership.
The Amazon Rewards Visa Signature Card, which offers 3% cash back on Amazon and Whole Foods purchases, 2% on restaurants, gas stations and drugstores, and 1% on everything else. This card has no annual fee and no Prime membership requirement.
The Amazon Store Card, which offers 5% cash back on Amazon purchases, or special financing options for eligible items. This card has no annual fee, but requires a Prime membership and can only be used on Amazon.
The Amazon Secured Card, which is designed for people with bad or no credit history. This card offers 2% cash back on Amazon purchases, and requires a refundable security deposit. This card has no annual fee and no Prime membership requirement.

If you’re anything like me, Amazon is practically a second home. From daily essentials to impulse buys, the convenience of having everything at my fingertips is unmatched. So, the idea of an Amazon credit card naturally piqued my interest. After delving into the details, here’s my take on whether these cards are the real deal for avid Amazon enthusiasts.

1. The Prime Players: Rewards Beyond the Cart

Amazon Prime Rewards Visa Signature Card: Let’s kick off with the Amazon Prime Rewards Visa Signature Card – the cream of the crop for Prime members. The 5% cash back on Amazon and Whole Foods purchases is a game-changer. Throw in 2% on dining, gas, and drugstores, plus 1% on everything else, and you’ve got yourself a robust rewards system. No annual fee is the cherry on top, but remember, it’s exclusive to Prime members.

Amazon Rewards Visa Signature Card: Now, if you’re not on the Prime train, fear not. The Amazon Rewards Visa Signature Card offers a respectable 3% cash back on Amazon and Whole Foods, along with 2% on dining, gas, and drugstores, and 1% on general purchases. No annual fee here, and no Prime membership required – a solid option for the non-Prime crowd.

2. Exclusive Deals with the Amazon Store Card

Amazon Store Card: For those who eat, sleep, and breathe Amazon, the Amazon Store Card might be your ticket. A sweet 5% cash back on Amazon purchases or enticing financing options for select items – it’s an exclusive club. However, this card ties you to the Amazon ecosystem and, yes, requires that coveted Prime membership.

3. Rebuilding Credit with Amazon Secured Card

Amazon Secured Card: Now, let’s talk about the Amazon Secured Card. If your credit history is on the mend, this one’s for you. Offering 2% cash back on Amazon purchases and the chance to build or rebuild credit, it’s a stepping stone. No annual fee, but you’ll need to throw down a refundable security deposit.

Pros of Amazon Credit Cards

There are several advantages of using an Amazon credit card, especially if you are a loyal customer of the online retailer. Here are some of the benefits you can enjoy:

Cash back rewards: All Amazon credit cards offer cash back rewards on your purchases, which can add up to significant savings over time. You can redeem your rewards for statement credits, gift cards, travel, or shopping on Amazon. The cash back rates vary depending on the card and the category of spending, but they are generally higher than the average credit card rewards.
No annual fees: None of the Amazon credit cards charge an annual fee, which means you can enjoy the perks without paying extra. However, keep in mind that some cards require a Prime membership, which costs $119 per year (or $12.99 per month).
No foreign transaction fees: The Amazon Prime Rewards Visa Signature Card and the Amazon Rewards Visa Signature Card do not charge any fees for transactions made outside the US. This is a great feature for travelers or international shoppers who want to avoid extra charges.

Special financing options and Credit Building

Special financing options: The Amazon Store Card and the Amazon Secured Card offer special financing options for eligible items purchased on Amazon. You can choose to pay no interest if you pay off the balance in full within 6, 12, or 24 months, depending on the amount and the item. However, be careful with this option, as you will be charged interest from the purchase date if you do not pay off the balance in time.
Credit building: The Amazon Secured Card is a good option for people who want to improve their credit score or establish a credit history. Since it is a secured card, you need to provide a refundable security deposit that acts as your credit limit. You can choose your deposit amount from $100 to $1,000. As you use the card responsibly and pay your bills on time, you can increase your credit limit and eventually graduate to an unsecured card.

Cons of Amazon Credit Cards

While there are many benefits of using an Amazon credit card, there are also some drawbacks that you should be aware of. Here are some of the disadvantages of these cards:

High interest rates: All Amazon credit cards have relatively high interest rates compared to other credit cards. The APR ranges from 14.24% to 22.24%, depending on your creditworthiness and the market conditions. If you carry a balance from month to month, you will end up paying a lot of interest fees that will negate the rewards you earn.
Limited use: The Amazon Store Card and the Amazon Secured Card can only be used on Amazon.com or its affiliates. This means you cannot use these cards for other purchases or emergencies. If you want more flexibility and convenience, you might want to consider other credit cards that can be used anywhere Visa is accepted.

Prime membership requirement & Credit Score

Prime membership requirement: The Amazon Prime Rewards Visa Signature Card and the Amazon Store Card require you to have an active Prime membership to enjoy the full benefits of these cards. If you cancel your Prime membership or fail to renew it, your cash back rate will drop from 5% to 3% on Amazon and Whole Foods purchases. You will also lose access to other Prime perks such as free shipping, streaming services, and exclusive deals.
Credit score impact: Applying for any credit card will result in a hard inquiry on your credit report, which can temporarily lower your credit score by a few points. If you apply for multiple credit cards in a short period of time, you might hurt your credit score and your chances of getting approved for other loans or credit cards.

Summary of Pros and Cons

Pros of Amazon Credit Cards: Unwrapping the Goodies

Cash Back Galore: Who doesn’t love a little extra in their pocket? Amazon cards offer tempting cash back rates, especially on Amazon and Whole Foods purchases.
No Annual Fees: Good news – none of these cards come with an annual fee. Score extra perks without shelling out extra cash.
Special Financing: The Amazon Store Card and Secured Card sweeten the deal with special financing options. Just be sure to pay attention to the fine print.

Cons of Amazon Credit Cards: Watching Out for Snags

Interest Rate Hurdle: Here’s the catch – all Amazon cards have higher-than-average interest rates. If you’re not paying your balance in full each month, those interest fees can add up.
Limited Utility: The Store Card and Secured Card limit you to Amazon purchases. If you crave flexibility, you might need a card that spreads its wings beyond the virtual aisles.
Prime Membership Required: Prime is the gateway to the best perks. Without it, your rewards might take a hit, and exclusive deals could slip through your fingers.

Takeaway Message: Choosing Your Shopping Sidekick

Amazon credit cards undoubtedly bring perks to the table, but they’re not one-size-fits-all. Consider your shopping habits, budget, and credit goals before diving in. If you’re a Prime devotee with a penchant for Amazon purchases, the rewards might be music to your ears. However, if flexibility and lower interest rates are your game, exploring alternative cards could be a wise move.

In the world of credit cards, knowledge is power. So, armed with the pros and cons, go forth and choose the Amazon credit card that aligns with your shopping style. Happy swiping!

Amazon Credit Card are attractive options for frequent Amazon shoppers who want to earn cash back rewards and enjoy other perks. However, they are not the best choice for everyone, as they have some drawbacks such as high interest rates, limited use, and Prime membership requirement. Before you apply for an Amazon credit card, you should compare it with other credit cards that might offer better rewards, lower fees, or more flexibility. You should also consider your spending habits, budget, and credit goals, and choose the card that suits your needs and preferences best.