Wednesday, October 5, 2022

Is Amazon Credit Card Good

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I-Team: Is Amazon’s Credit Builder Card Worth It?

After youve had the Amazon Prime Secured Card and demonstrated responsible credit use for 12 months, you may have the chance to unlock some store card benefits on your card. This includes an upgraded earning rate of 5% back on Amazon.com purchases.

Earning 5% back on a secured card is noteworthy, as even the best secured credit cards earn 2% to 3% back in bonus categories at most. If you have a limited credit history or are on the road to recovering past financial missteps, you wont have much to earn at such a high cash back. Although it will take you one year of responsible use to upgrade from the 2% to the 5% rate, this level of cash back potential is a big selling point for the Prime Secured Card.

How Amazon Credit Builder Works

Amazon.com offers two different versions of its Credit Builder account, the Amazon.com Store Card Credit Builder and Amazon Prime Store Card Credit Builder. Both are issued by Synchrony Bank. Like Amazon’s standard Store Card and Prime Store Card, these accounts only allow you to make purchases from Amazon.com, as they are not part of a payment network such as Visa, Mastercard or American Express.

Instead of offering an unsecured credit line, the Credit Builder cards require you to submit a refundable security deposit before your account can be opened. The size of your security deposit becomes the amount of available credit that you can spend at Amazon.com.

If you have an Amazon Prime membership, then you can receive the Amazon Prime Store Card Credit Builder, which offers you 5% back on all purchases or a promotional financing offer. Otherwise you’ll receive the Amazon.com Store Card Credit Builder, which doesn’t offer rewards. Either way, there’s no annual fee for these cards.

Once you start using your Amazon.com Store Card Credit Builder or Amazon Prime Store Card Credit Builder, it will work just like any other store credit card. You’ll receive a monthly statement and be required to make at least a minimum monthly payment on the account. And if you don’t pay your entire statement balance in full, then you’ll incur interest charges.

How Can You Earn More Cashback With My Amazon Prime Rewards Visa Card

The Amazon Prime Rewards Visa already comes with a high rewards rate of 5% cashback on Whole Foods and Amazon purchases. You could earn more by taking advantage of exclusive offers available to Prime Rewards cardholders that let you earn another 10% to 25% on Amazon purchases — on top of the 5% rewards.

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Amazon Prime Rewards Visa Signature Card Vs Bank Of America Customized Cash Rewards Credit Card

The Bank of America® Customized Cash Rewards credit card is another popular option that lets you choose how you want to earn rewards. You’ll earn 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs , 1% cash back on all other purchases

The 3% purchase categories include gas, online shopping, dining, travel, drug stores or home improvements and furnishings, and you can choose your bonus category monthly. If you happen to spend more at Amazon, or on other online purchases, in a particular month, you can choose to earn 3% on online shopping.

The sign-up bonus may be harder to achieve for some consumers: Online $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. If you prefer to diversify your spending, the Bank of America® Customized Cash Rewards credit card can help adjust your rewards to your specific needs.

Amazon Credit Card Review Summary

Pay Amazon Prime Credit Card

The is a good credit card for frequent Amazon.com and Whole Foods shoppers with good credit or better, especially Prime members. The Amazon Visa is worth it thanks to a $0 annual fee and attractive rewards.

Even if you dont have an Amazon Prime membership, you will earn 3 points per $1 on purchases from Amazon.com, Whole Foods and other merchants that accept Amazon Pay. Youll also earn 2 points per $1 spent at gas stations, restaurants and drug stores, as well as 1 point / $1 on all other purchases. New cardholders get a $50 Amazon.com gift card as an initial bonus, too.

If you are a Prime member, youll earn even more rewards. Given that Amazon.com Credit Card points are basically as good as cash, its pretty clear that the Amazon.com Credit Card is a must-have for online shoppers.

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Amazon Platinum Mastercard Review: Who Is It Best For

If youre a frequent Amazon shopper, or an Amazon Prime member, then a credit card that rewards you every time you shop there could be a good option for you. The Amazon Platinum card does just that, giving you points for your online shopping that can be translated into Amazon vouchers .

But rewards arent everything, so before you apply its important to understand how interest rates compare and how the card stacks up against its competitors. If you pay off your card in full each month, you will gain the points without such charges.

A 5% balance transfer fee on top of the APR, and the requirement for a good credit score means this isn’t the best option for people looking to refinance existing debt, and who want to transfer balances.

And if you are looking to clock up rewards outside of Amazon, the 0.5 points per £2 spent, isn’t brilliant.

Citi Double Cash Card: Best For Flat Rate Cash Back

Why we picked it: Among Citi credit cards and other flat-rate credit cards, the Citi® Double Cash Card is hard to beat. It earns 2% cash back on all purchases 1% at the time of purchases and 1% when you pay your bill. Theres no limit to how much cash back you can earn. And the flat-rate cash back makes it easy to earn cash back on all your purchases, including those you make on Amazon.com.

Pros

  • Ability to transfer cash back to Citi ThankYou points at a rate of 100 ThankYou points for every $1
  • No category restrictions
  • Cash back redeemable for check, statement credit, gift card or direct deposit

Cons

  • No more rewards shopping at Amazon than anywhere else
  • Rewards expire if card is inactive for over 12 months

Who should apply: If youre looking for a credit card that can consistently earn you solid cash back rewards on online shopping and everything else, the Citi Double Cash may be your best bet.

Who should skip: Those who think up to 2% cash back is too little should skip this card. Cardholders who like the thrill of playing with rotating categories and such will find the cards flat rate boring.

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Does Amazon Do A Hard Credit Check

The Amazon Store Card will do an inquiry of the checking account referred to as a hard pull, which can cause your credit score to decrease for a brief time. The Amazon Store Card does not require you to pre-qualify. Credit scores of at least 640 will be required. Those requirements are comparable with what is required by most store cards.

The Best Credit Card For Amazon Prime Members

Amazon Rewards Credit Card – Starter Card with Excellent Cash Back

As with many retail brands, Amazon has several co-branded store credit cards. The options include unsecured, secured, consumer, and business cards:

  • Amazon Secured Card
  • Amazon Business American Express Card

Picking an Amazon credit card from the co-branded options will depend primarily on your credit history.

If you have good credit, the Amazon Rewards Visa Signature Card is the best pick. It earns bonus rewards at Amazon and Whole Foods, as well as on dining, gas, and drugstore purchases. Plus, you can use it anywhere Visa is accepted. If you have Prime, you’ll receive the Amazon Prime Rewards Visa Signature Card. If you don’t have Prime, you’ll have the Amazon Rewards Visa Signature Card.

If your credit is in the fair range, the Amazon.com Store Card may be a good option. Prime members earn bonus rewards on Amazon purchases. You can also get special financing on eligible purchases. Watch out for deferred interest, though. You won’t be able to use this card anywhere except Amazon.

Prime members who need to build credit can go with the Amazon Secured Card to earn cash back on Amazon purchases. This card can also only be used on Amazon. If you don’t have Prime, stay away from this card. Check out the best secured credit cards instead.

Although the co-branded Amazon credit cards have no annual fee, they aren’t without cost. To get the most out of any of these cards, you’ll need to pay for an Amazon Prime membership.

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Amazon Platinum Mastercard: What Could Be Improved

Although there are a number of Amazon Platinum Mastercard positives, there are also areas where it falls short compared to other credit cards. Most importantly, youll need to ensure your credit report is squeaky clean before you apply as you need a high credit score to qualify.

1. High APR

Amazon offers a three-month interest fee-free period on purchases, but this is subject to you meeting certain conditions. If you fail to make at least the minimum payment on time or if you go over your credit limit, Amazon will take away the 0% rate and youll face much higher charges. In that case, youll have to pay Amazons standard rate, which is typically about 21.9%. However, rates vary according to customer, so your personal rate could be higher or lower. Once the three months is up, youll also have to pay the APR for any purchases that arent paid off in full each month.

2. Benefits are loaded towards on Amazon-use

You dont get points for balance transfers or for any cash related transactions. Cash-like spending includes things such as gambling, lottery tickets, foreign currency exchange and money transfers. And 0.5 points per £2 spent in non Amazon stores, isn’t great.

3. High balance transfer and foreign transaction fees

How To Get The Most Out Of This Card

Consider buying everything you can from Amazon.com and Whole Foods to earn 3% back. Then make sure you use the card for all your restaurant, gas, and drugstore purchases to max out the 2% category. Consider, however, buying your over-the-counter drugstore purchases from Amazon instead of a drugstore, so youll get 3% instead of 2% back.

Redeeming points for Amazon purchases is not the best way to use rewards. By covering part of the purchase with points, youre not earning cash back on that amountin the highest rewards category.

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Amazon Platinum Mastercard: What We Liked

The key benefit is Reward Points. These are added to your Amazon Rewards Account and you should be able to see them online by the end of each day.

Each time you hit 1,000 points a £10 voucher will be added to your linked account automatically – you dont need to do anything to claim the voucher. It should appear within two working days of your next statement.

1. £20 Amazon gift card

The first perk Amazon offers is a £20 gift card, which youll get when you sign up . The voucher is loaded to your linked Amazon.co.uk account either when youre first approved or when you activate your new credit card depending on whether or not you qualify for instant spend.

2. Points when you spend online

The second major perk is that you get points when you spend online. These can be translated into Amazon vouchers. For every 1,000 points you earn, youll get a £10 gift card. The card also offers:

  • 0% interest on all purchases for three months

  • No annual fee

  • Instant spend a £500 initial credit limit instantly upon approval for qualifying customers

  • The ability to add up to three extra cardholders

You earn Amazon points by shopping. The number of points you get depends on where you spend and whether you have Prime membership.

Unsurprisingly, you get the most points when shopping with Amazon, but you can get points for shopping anywhere that the Amazon card is accepted.

Amazon Prime Credit Card Benefits

Credit Card Review: Amazon Prime Rewards Visa Signature ...

Available exclusively to Prime members, the card is designed to help members maximize rewards when shopping on Amazon.com

Rewards

With the Amazon Prime Rewards Visa Signature card, customers can earn 5% cash back on purchases at Amazon.com, 2% cash back on purchases made at restaurants, gas stations, and drug stores, and 1% cash back on everything else.

Amazon credit card customers can redeem their points at checkout to pay for Amazon.com purchases. They can also redeem points for travel, gift cards, and other items made available. Finally, cardholders who have accumulated 2,000 or more points can choose to redeem points for cash back, which will appear as a statement credit or can be transferred to an eligible checking or savings account.

Travel Perks

This Amazon credit card offers several basic travel perks including the following:

Shopping Perks

In addition to the Amazon card rewards program, cardholders will also be able to take advantage of the following perks:

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Understanding Your Points And Redemption Options

Weve touched on earning points with the Amazon Prime Rewards Visa Signature Card now lets take a look at how you can use your points. The good news is that there are lots of options here, as well.

On Amazon.com, you can redeem your points to pay for part or all of your eligible purchase.

To use your points at Amazon.com, select the Amazon Prime Rewards Visa Signature Card as your payment method when checking out. You can then choose the dollar amount you want to cover using your points. Using your points this way gets you a redemption value of $1 per 100 points.

You can also redeem your points for cash back, gift cards or travel. The redemption value may vary for other types of redemptions, but 100 points also equals $1 for Amazon.com, travel, gift cards and cash back.

The Platinum Card From American Express

The Platinum Card from American Express is a great all-rounder, offering an extensive list of travel benefits such as airport lounge access and complimentary elite status with Hilton and Marriott, along with annual statement credits for Uber and Saks. Although the card doesnt offer bonus points for Amazon purchases , the very generous purchase protection of $10,000 per claim is excellent for customers who make lots of high-value Amazon purchases.

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Bank Of America Customized Cash Rewards Credit Card

The Bank of America Customized Cash Rewards Credit Card lets you customize your cash back categories according to your spending habits. If you make frequent purchases through Amazon, simply choose online shopping as your top category to earn 3% cashback on all purchases. Youll also earn 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases.

Amazon Credit Card Benefits

Amazon Credit Card Review 2021 [Prime & Rewards]

If you frequently shop on Amazon.com or at Whole Foods, this card can earn you 3% cash back without the additional fee of an Amazon Prime membership.

Rewards

This Amazon card entitles users to similar rewards as those associated with the Amazon Prime Rewards Visa Signature Card. However, Amazon and Whole Foods purchases will earn slightly less. Cardholders can receive 3% back on purchases made at Amazon.com and Whole Foods, 2% cash back on restaurants, gas stations, and drugstores, and 1% cash back on everything else.

Points can be redeemed at Amazon.com while making purchases, or they can be redeemed for travel, gift cards, and more. Cardholders who have earned 2,000 or more points can also redeem their rewards for cash back in the form of a direct deposit to an eligible account or as a statement credit.

Travel Perks

The Amazon Rewards Visa Signature Card offers the same travel perks as the Amazon Prime rewards card. This includes the following:

Shopping Perks

Similarly, this Amazon card offers the same shopping features associated with the Amazon Prime Rewards Visa Signature card. This includes the following:

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There Are Other Amazon Credit Cards Out There

The Amazon Prime Rewards Visa Signature Card isnt the only Amazon card there are several choices you can consider.

  • Amazon.com Store Card
  • Amazon Rewards Visa Signature Card
  • Amazon Prime Rewards Visa Signature Card

You can only use the two store cards on Amazon.com.

The other Amazon Visa card is similar to the Amazon Prime Rewards Visa Signature Card in that you can use it elsewhere, but it doesnt require an Amazon Prime membership. It also only gives you 3% back at Amazon.com and Whole Foods.

Also, know that youll be considered only for the card you apply for, so be sure to apply directly for the Amazon Prime Rewards Visa Signature Card if thats the card you want.

Amazonca Rewards Mastercard Benefits

Whats interesting is that this credit card gives you different benefits depending on if youre an Amazon Prime member or not. If youre a member, youll get the following with the Amazon rewards credit card:

  • No annual fee
  • $10 Amazon gift card at sign up
  • 5% back at Amazon.ca, grocery stores and restaurants for six months after your account is opened
  • 2.5% back at Amazon.ca, Whole Foods Market in Canada and foreign currency transactions
  • 1% back per dollar spent on all other purchases
  • Purchase assurance
  • Common carrier insurance

For non-Amazon Prime members, your earn rate is much lower:

  • 1.5% back per dollar spent at Amazon.ca, Whole Foods Market, physical amazon stores

As you can see, the card is clearly aimed at people who do a lot of their shopping on Amazon and have an Amazon Prime membership. Its honestly tough to beat 2.5% back on Amazon purchases since they dont typically fall into a merchant category that gives you a higher percentage of cash back. I should note that youre not earning cash-back, you earn Amazon Rewards but since it takes 2,000 Amazon Rewards to claim a $20 Amazon.ca gift card, the program is similar to cash back.

Speaking of 5%, you will earn 5% back at Amazon.ca, grocery stores and restaurants for the first six months, up to $3,000 in eligible purchases. This is a great way to get some extra rewards if you have some large purchases coming up. Remember, this credit card has no annual fee so it can really benefit you to sign up.

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