Are you considering an Amazon credit card? You might be wondering if they’re actually a decent deal. The answer depends on your shopping habits. These cards offer rewards for shopping at Amazon and sometimes other stores, but they might also have annual fees or other requirements. You can also link your Amazon Credit Card to another account and use it for shopping.
In this article, we will discuss the types of Amazon credit cards, their earning rewards, associated fees, and interest rates. Additionally, we will break down the pros and cons of each credit card (Prime Visa, Amazon Visa credit card, and Amazon Business Prime American Express Card) to see if an Amazon credit card is worth it.
Let’s dive in!
Types of Amazon Credit Cards
- Prime visa
- The Amazon Visa credit card
- Amazon Business Prime American Express Card
Prime Visa
There are two credit cards offered by Amazon, but the Prime Visa is only for people who have Amazon Prime. If you have both Prime and the Prime Visa, you get the best rewards: 5% back at Amazon and Whole Foods.
The Prime Visa card is described below in some detail.
Earning Rewards:
- Earn 5% back on Amazon purchases (including Whole Foods Market and Amazon Fresh) and travel booked through Chase with Prime (needs a paid Prime membership).
- Earn 2% back on gas, restaurants, and getting around (including rideshare).
- Earn 1% back on everything else you buy.
Fees:
- There is no annual fee for the credit card itself. But you do need a separate Prime membership (starting at $139/year, or $69/year for students).
- There are no extra charges for using your card overseas.
Interest Rates:
- The interest rate you pay on credit card debt can vary between 20.49% and 29.24%.
Bonus Perks:
- Because it’s a Visa Signature card, you get some extras like roadside assistance if your car breaks down, car rental insurance, and protection for things you buy.
Pros and Cons
If you already pay for Amazon Prime and shop a lot on Amazon, this credit card gives you the most cash back you can get on those purchases. Basically, if you spend at least $2,800 a year on Amazon and Whole Foods (combined), the rewards from this card outweigh the cost of your Prime membership.
Here’s the thing: Prime membership already comes with perks like free rapid shipping, video streaming, and music. So, if you use those features and plan to pay for Prime anyway, this card is a fantastic way to earn money back while shopping.
The Amazon Visa Credit Card
The Amazon Visa is a credit card is a great choice if you shop a lot on Amazon and want to earn more rewards for your spending, but you don’t want to pay for a Prime membership.
The Amazon Visa credit card is described below in some detail.
Earning Rewards:
- Earn 5% cash back on Amazon purchases (including Whole Foods Market and Amazon Fresh), as well as travel booked through Chase with an active Prime membership.
- Earn 2% cash back on gas, restaurants, rideshares, and public transportation.
- Earn 1% cash back on everything else you buy with the card.
Costs:
- There is no annual fee for the credit card itself. However, you will need a separate Prime membership (starting at $139/year, or $69/year for students) to get the best rewards.
- There are no extra fees for using your card overseas.
Interest Rates:
- The interest rate you pay on credit card debt can vary between 20.49% and 29.24%, depending on your creditworthiness.
Bonus Perks:
- This card comes with some extra benefits like roadside assistance, car rental insurance, purchase protection, and extended warranties (similar to extra guarantees on products you buy).
Pros and Cons
If you already pay for Amazon Prime and shop on Amazon a lot, this credit card is a fantastic choice. It gives you the most cashback on your Amazon purchases.
Think of it like this: the Prime membership costs $139 a year. With this card, you’d need to spend $2,780 on Amazon or Whole Foods in a year to make up for that cost. But that doesn’t include all the other benefits of Prime, like free rapid shipping, movies, music, and photo storage. If you use those things already, then this card is worth getting.
Amazon Business Prime American Express Card
The Amazon Visa Credit Card lets you earn more rewards when you shop on Amazon, even if you don’t have a Prime membership.
The Amazon Business Prime American Express Card is described below.
Earning Rewards:
- Get 3% back on Amazon purchases (including Whole Foods Market and Amazon Fresh), as well as travel booked through Chase.
- Earn 2% back on gas, dining, ridesharing, and public transportation.
- Get 1% back on everything else you buy with the card.
No fees:
- There’s no annual fee for using this card.
- Additionally, there won’t be any additional fees for using your card overseas.
Interest Rate:
- The interest rate on your balance can vary between 19.49% and 27.49%.
Bonus Perks:
- This Visa Signature card comes with some handy extras, like help if you get a flat tire, insurance for rental cars, purchase protection, and extended warranties.
Pons and Cons
You don’t need to be a Prime member to get this card, but you won’t earn as much cash back on Amazon purchases without Prime. This card offers the same benefits as the Prime card, except for the rewards.
Think about how much you shop at Amazon and Whole Foods. If you spend more on the categories that earn 1% cash back, you might be better off with a different card that gives you 2% cash back on everything you buy.
Is Amazon Credit Card Worth It – Reddit Opinion
Based on discussions from 2024, here is a summary of Reddit’s general opinion on Amazon credit cards:
Many Reddit users view the Amazon credit card quite favorably, often praising its benefits:
The Amazon credit card offers generous rewards of 5% back on purchases made on Amazon and Whole Foods.
Decent rewards on other purchases (2% back at restaurants, gas stations, and select retail). There is no annual fee on the card.
and rewards can be easily redeemed for statement credits or Amazon purchases. Many users find the Amazon card to be one of the better no-annual-fee cash-back credit cards, especially for those who shop frequently on Amazon.
But some Redditors warn that the card’s value is mostly based on how much you spend at Amazon. In a situation where you don’t spend a lot of money on Amazon, the rewards may not be as appealing as those from other cash-back cards.
Some people don’t like Amazon’s customer service, and the card has a pretty high APR if you don’t pay off the full balance every month. Some Redditors say that because of the rewards, you shouldn’t spend too much.
Most people agree that the Amazon credit card is a good choice for people who shop at Amazon a lot. However, it might not be the best choice for everyone, depending on how they spend their money and what they like. Redditors say that before getting a credit card, you should make sure that the benefits match your needs.
When Compared to Other Credit Cards
Amazon credit cards may not have as many rewards in other areas as some other popular credit cards, but they do offer good rewards on Amazon and Whole Foods purchases.
Take the Chase Freedom Unlimited card as an example. It offers 1.5% cash back on all purchases, which might be more valuable than the 1% cashback that Amazon cards give on purchases made outside of Amazon and Whole Foods.
Citi Double Cash gives you 2% cash back on everything you buy (1% when you purchase, and another 1% when you pay it off). That’s better than most Amazon cards, which only give 1% to 3% cash back outside of Amazon and Whole Foods stores.
But the Amazon Prime Visa’s 5% return on Amazon and Whole Foods is a great deal, especially for people who shop at Amazon a lot.
Is an Amazon credit Card Worth It?
In conclusion, whether or not an Amazon credit card is worth it for you depends on your shopping habits. If you already pay for Amazon Prime and shop frequently on Amazon, you can earn the most cash back with an Amazon credit card. Amazon’s spending to cover Prime membership costs is less than the card’s rewards and Prime benefits. However, if you don’t shop on Amazon that often or don’t want to pay for Prime, you might be better off with a different credit card that offers cash back on all your purchases.
Do I spend a lot on gas, restaurants, or travel?
The Amazon Prime Rewards Visa offers 2% cashback at gas stations, restaurants, and on commuting. However, other cards might offer better rates in these specific categories.
What is my credit score?
There are two Amazon credit cards: the Prime Rewards Visa Signature Card (requires good credit) and the Amazon Rewards Visa Card (requires fair credit). Choose the card that aligns with your
Can I manage multiple credit cards?
If you already have a rewards strategy with other cards, the Amazon card might not be necessary. Consider if you can easily manage another card and its benefits.
Can I see the full list of Amazon card benefits?
Do your research! Carefully compare the Amazon card’s rewards and benefits to other cards you’re considering.
