If you’re considering getting an Amazon credit card, chances are you’re aware of their rewards packages.
The platform orients customers about them via their Amazon credit card login page. To most, their rewards programs look tempting.
This credit card is more attractive for big-time Amazon spenders. But because of the super attractive deals, some remain skeptical about the benefits.
Therefore, we have created this blog post to shed light on these promotions. Let’s dive in to understand whether creating an Amazon credit card login is worth the investment. Let’s get right into it:
Amazon Credit Card in a Nutshell
The Amazon credit card is a branded card issued by Synchrony Bank. With it, customers garner a stellar rewards rate when shopping on either Amazon.com or Whole Foods.
Amazon offers four different types of cards — two of them can accumulate points at any outlet.
Where the Cards Can Be Used
Depending on the Amazon card type that you have, you can use it anywhere that Visa is accepted — not only just Amazon.com. However, both Amazon store cards can only be used at Amazon.com.
Minimum Credit Score Necessary
Because Amazon offers four different types of cards, there is a good chance you will be able to get one even with a fair credit score. According to Amazon’s website, you will need at least a 640 credit score to be approved.
If you want a card with many benefits and rewards, you will need to have at least a 720 credit score.
Amazon Credit Card APR
If you’re a new Amazon cardholder, you’ll have to deal with a standard variable purchase APR of 27.74%. This percentage is the interest you’re charged over a 12-month period. The minimum interest charge is $1.50.
Keep in mind that the APR might vary with the market based on the Prime Rate (as defined in your credit card agreement).
How the Amazon Credit Cards Work
Amazon divides their cards into different categories to make things simple. The card you’ll get depends on a few things, including your credit score — the higher your credit the better the rewards and benefits. The four types of credit cards that Amazon issues are:
- Prime Rewards Visa Signature Card
- Rewards Card
- Store Card
- Store Prime Card
The first two cards on the list have more flexible use. That’s because these cards allow you to earn rewards in any establishment that accepts Visa cards. This includes restaurants, pharmacies, gas stations, and corner stores.
Let’s take a closer look at all of these cards and their specific features:
Amazon Prime Rewards Visa Signature Card
Just like all other Amazon credit cards, the Amazon Prime Rewards Visa Signature Card offers its users discounts on the purchases that they make with it. These discounts are determined based on reward points.
Best Buy calculates a percentage off of the purchase price and assigns a reward point to each percentile.
The breakdown of these respective percentages is as follows:
- 5% on Amazon.com
- 2% on restaurants, drugstores, and gas stations
- 1% on all other purchases
Moreover, once a user’s credit card has been approved, they receive a $70 gift card from Amazon. That means that as long as a user opens an account with this card, Amazon grants them this gift card.
To top it all off, the card does not accrue any annual credit card fees. Having said that, this card is only accessible to Amazon Prime Members.
As of November 2019, the standard subscription fee for an Amazon Prime membership is $119 annually. Therefore, while the card might not cost you any money in card fees, one must bear in mind the subscription fee associated with the card.
Amazon Rewards Card
Amazon members who don’t have Prime membership can use an Amazon Rewards card. In order to access this card, there are no specific requirements other than being an Amazon member.
Here’s a breakdown of the benefits of using it:
- 3% off purchases on Amazon.com
- 2% on restaurants, drugstores, and gas stations
- 1% on all other purchases
In addition to the perks listed above, Amazon Rewards card users also enjoy a gift card of $50.
Just like the Amazon Prime Rewards Visa Signature Card, as long as you have an Amazon account, you will get the gift card.
Amazon Store Card
The Amazon Store Card is yet another card that shoppers can access. To issue these cards and facilitate their payments, Amazon teamed up with Synchrony Bank.
Users who have an account with Synchrony can log on to their online banking and see their history of Amazon charges and payments.
The main perk to getting an Amazon Store Card is its special refinance option. Called ‘Special Financing’, this is a finance program that Amazon started in 2015 as a means to help users manage their finances. With it, if shoppers pay their purchases in full within a timeframe, they get charged zero interest.
However, customers who do not meet these requirements incur both interest and late fees.
It is divided into three thresholds according to the user’s purchases and their corresponding monthly payments:
- $149 and more (6 months)
- $599 and more (12 months)
- $799 and more (24 months)
What’s more, individuals who qualify for this card also get a gift card of $10.
Amazon Store Prime Card
The Amazon Store Prime Card has most of the features of the Amazon Store Card.
Its main difference lays in the fact that the card offers a 5% rewards point on all purchases done via Amazon.com.
Amazon offers this perk as an alternative option if the customer is not interested in taking the special finance options.
In order to access this card, a customer must have a Prime membership.
Amazon is also launching the Amazon Credit Builder, a new credit card offered in partnership with Synchrony Bank. This card is aimed at those who are looking to build their credit history.
How to Get an Amazon Credit Card
There are four steps you’ll need to take to apply for an Amazon credit card. They are:
- Choose which credit card makes the most sense for you to have. You can go to Amazon’s Credit Card Marketplace to do that.
- Click “apply now”. This will redirect you to the application form.
- Complete the application form with your personal information.
- Submit your application.
Knowing which Amazon credit card is right for you depends on three main factors:
- Your finances
- The frequency of your purchases on Amazon
- The amount of money you spend when purchasing
If you are a customer who makes frequent purchases, it is wise to capitalize on that to build your rewards points.
Therefore, either the Amazon Prime Rewards Visa Signature Card or the Amazon Rewards Card would be the ideal choice. If you are not yet a Prime member, in all likelihood, it isn’t in your best interest to upgrade for the perks of the card.
To put things into perspective, you only get to recoup the $99 spent on the membership from rewards points after you have spent $4950 in Amazon purchases yearly.
If you do not make purchases that exceed that amount, then neither the Prime membership nor its card is for you. In general, a “good” credit score is needed to secure either of these cards. With regard to Amazon Store cards, the only worthy perk that they offer is their special refinancing options.
Consequently, they work best for persons who have other monthly expenses. That way, they get to organize their repayments without putting too much strain on their pockets.
To paint a clearer picture, let us examine how employees making monthly student loan payments can benefit from this type of card.
Pick Your Amazon Credit Card
All in all, there is no one Amazon credit card which is the perfect fit for everyone.
Do not feel pressured by the ads that pop up on your Amazon credit card login. Otherwise, you may rush into making a decision that will not be in your best interest.
Knowing which one is right for you involves careful analysis and evaluation of your needs and finances.
Besides Amazon’s credit card options, there are many other alternatives for you to choose from. Stores such as Best Buy, Target, Costco, and Lowe’s offer excellent options of credit card, so it’s worth it to compare the benefits.
Only then will you be able to weigh the pros and cons of each type of card and make the right decision for you.