Wednesday, November 23, 2022

What Is The Interest Rate On Amazon Credit Card

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Amazon Credit Cards: Key Differences

Amazonâs âpredatoryâ new credit card

Amazon store cards issued by Synchrony Bank share some key features with the Amazon Visa cards issued by Chase including exclusive Amazon financing offers and a chance at bonus rewards on Amazon purchases. But they are completely separate products geared toward very different consumers. Here are some of the most important differences to keep in mind.

Which Amazon Credit Card Is Best For You

Along with your Prime membership status, your credit score will be the main factor in deciding which Amazon credit card is the best match for you.

If you have a damaged credit score or a limited credit history or even if your credit score is just average youll likely have a hard time qualifying for one of the Amazon Visa cards from Chase. Stick with one of the secured or unsecured Synchrony store cards while you build your score, after which you can apply for a more lucrative Amazon credit card from Chase.

If, on the other hand, your score is in good shape, one of the Chase Amazon cards is the obvious choice, as you cannot only earn more plentiful rewards but also enjoy a lower APR and take advantage of Amazon financing on large purchases.

*All information about the Amazon Prime Rewards Visa Signature Card, the Amazon Rewards Visa Signature Card and the Amazon Prime Secured Card has been collected independently by CreditCards.com and has not been reviewed by the issuers.

Using A Personal Loan To Pay Off Purchase Interest Charges

Fortunately, there are alternatives to help you avoid accruing purchase interest charges while you pay down your balance. For example, you can take out a personal loan to pay off your credit card debt, which can ideally set you up with a lower interest rate.

The first benefit: Personal loans can offer fixed terms. This means that if you make your payment each month, at the end of the loan duration you signed up for, it is all paid off. Credit cards have no set term, which means you could pay the minimum every month and still not see the finish line for months or even years.

Additionally, using a personal loan with a lower interest rate than your credit card means that your debt can potentially cost you less money in the long run. Hypothetically, if your personal loan has an interest rate of 5.5% and your credit card has an interest rate of 18%, you would pay less with a personal loan because you wouldnt be paying as much in interest.

Using a personal loan can help you pay off your debt sooner and spare you from continuing to accumulate purchase interest charges on your credit card. Remember that not all personal loans are created equalsome come with origination or prepayment fees that may make consolidating your debt to a personal loan less worth it. SoFi offers low-rate personal loans without origination fees or prepayment penalties.

Learn more about how a personal loan from SoFi can help you get out of credit card debt.

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How To Calculate The Apr On Your Credit Card

We break it down here:

  • Calculate your daily periodic rate

    The APR is given as an annual ratebut card issuers typically calculate the interest that you owe on a daily basis. To find this daily interest amount, they will divide the APR by 365 to generate the DPR.

    So, if a card has an APR of 11.24%: divide 11.24% by 365. The resulting DPR is 0.0308%.

    Note that some card issuers use 360 instead of 365, so it’s important to check with your issuer to confirm their methodology.

  • Determine your average daily balance

    Another key component of interest calculations is your average daily balance, or the sum of your daily balances divided by the number of days in the month.

    Calculating your average daily balance will be your most difficult math problem when calculating your interest, especially as many credit card statements do not provide your daily balances. Move backwards through your statement to see what the final balance was on each day of the month.

    Let’s say you start the month with a zero balance for a 30-day statement cycle.

    On day one: you spend $200. On day 21 you spend another $200. That means your daily balance was $200 from day one to day 20 , and then $400 from day 21 to day 30 .

    To find the total sum of every daily balance in that 30 days, you do the following:

    + = + = $8000.

    To find your average daily balance, you divide that sum of $8000 by the number of days in your billing cycle as $8000/30, which gives you an average daily balance of $266.67.

  • Best For Building Credit: Amazon Prime Secured Card

    Amazon.com: Amazon Rewards Visa Signature Card: Credit ...

    If you have a limited credit history or are working on rebuilding your credit after a few financial missteps, both the Amazon store cards and the Chase Amazon cards may be temporarily out of reach. And since nearly every new credit card application will result in a hard pull of your credit report, it makes sense to limit applications to cards that offer a decent chance at approval.

    A great starting point is the Amazon Prime Secured Card, a secured version of the Amazon store cards. Also issued by Synchrony Bank, the Amazon Prime Secured Card charges no annual fee but requires you to put down a refundable deposit of $100 to $1,000 , which doubles as your credit limit.

    To start, the card offers 2% back on Amazon.com purchases for Prime members. After 12 months of responsible use, you may be able to graduate to an unsecured Amazon store card, get your deposit back and boost your cash back rate to 5% on Amazon.com purchases with a Prime membership. The card also charges an ultra-low fixed APR of just 10% and a late fee of up to $5 .

    Once your credit score improves, you can also look for a more flexible cash back credit card like one of the Amazon Visa cards. Just keep in mind that since the Amazon store cards and Amazon Visa cards have different issuers, you cant request a product change from one to the other. Youll need to put in a separate application and face a separate hard credit inquiry.

    See related:;How a secured card helped my credit score

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    Re: Strategy To Pay Off Amazon / Synchrony Store Card

    Of course you;can transfer the balance.

    wrote:Don’t charge more than you can pay in full every month? If you don’t have the cash to pay up front in the first place, paying very high interest doesn’t make much sense financially.

    No, it doesn’t make any sense. ;I’m no longer charging anything to this card. ;I admit, I wasn’t financially responsible with the card when I first got it but am now interested in the optimal way of managing this moving forward.

    Of course you;can transfer the balance.

    Could you elaborate on this? ;My online chat with Captial One said I couldn’t BT, perhaps the rules differ by issuer ;

    I’ve done some online searches and have read some conflicting info on feasibility, would love to explore this option if possible.

    Has anyone personally done this that could speak to the process?

    Why You Might Want The Amazon Prime Rewards Visa Signature Card

    High ongoing rewards

    If you spend a lot at Amazon.com or Whole Foods Market, no other card can offer;such consistently high rewards for your loyalty as the;Amazon Prime Rewards Visa Signature Card.;A few other cards do come close, like the;Discover it® Cash Back. It earns;up to 5% cash back in rotating bonus categories that change each quarter, up to a $1,500 quarterly spending cap. And in the past, Amazon.com has been among that card’s 5% bonus categories; but, again, only for a three-month period, and only up to that combined quarterly $1,500 cap.

    » MORE:;Best credit cards for grocery store spending

    Rewards flexibility

    The only thing more fun than earning rewards is redeeming them, and;your earnings on the Amazon Prime Rewards Visa Signature Card can be used in a variety of ways .;Use rewards toward your next Amazon purchase, or;redeem them through Chase to buy gift cards, to book travel or to get straight-up cash back. Points are worth one cent each any way you use them.

    Packed with extras

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    How Do You Reduce Your Credit Card’s Interest Rate

    You can always ask your credit card company to reduce your interest rate, but it’s entirely up to the company whether it wants to or not. These requests can be made with a customer service representative. In general, you’re more likely to get your rate reduced if you have a good history of paying on time and keeping your overall debt level low.

    How To Find Your Credit Card’s Apr

    Amazon Credit Card Review 2021 [Prime & Rewards]

    Your credit card APR may be available in multiple locations: on your most recent credit card statement, in your card’s terms and conditions, on your card issuer’s website, or by reaching out to the credit card issuer directly.

    Note that there may be different APRs for purchases, cash advances and balance transfers. Be sure you refer to the correct one when calculating what you owe. When we say “APR” in this article, we’re referring to the APR for purchases.

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    Amazoncom Effective Interest Rate On Debt % Historical Data

    The historical data trend for Amazon.com’s Effective Interest Rate on Debt % can be seen below:

    * For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company’s associated stock exchange currency.

    Is The Card For You

    This card makes absolute sense for you if you are an Amazon Prime Member and/or Whole Foods enthusiast. While other cards such as the Discover it or Chase Freedom may offer cash back category bonuses on groceries or quarterly bonuses on Amazon purchases, its hard to find a card that offers a higher return rate on both.

    Chances are that if you shop Amazon frequently, you already pay the $119 Amazon Prime membership fee so the card effectively has no annual fee. That said, dont hold a balance on this card as it charges a higher interest rate than many other cards available. If you do need to carry a balance on your card, consider a card thats best for 0% APReither on purchases or on balance transfers. As long as you pay your bill in full every month, you will come out ahead with the Amazon Prime Rewards card.

    To view rates and fees of the Blue Cash Preferred® Card from American Express, please visitthis page.

    To view rates and fees of the American Express® Gold Card, please visitthis page.;

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    How And When Is Credit Card Interest Charged

    Eric is a duly licensed Independent Insurance Broker licensed in Life, Health, Property, and Casualty insurance.;He has worked more than 13 years in both public and private accounting jobs and more than four years licensed as an insurance producer.;His background in tax accounting has served as a solid base supporting his current book of business.

    Most people aim to keep their credit card cost at $0, especially rewards credit card users who work to optimize their credit card perks. Getting a credit card with no annual fee is a start at minimizing credit card costs. However, if you carry a balance, you could still incur a cost in the form of interest. Knowing how and when credit card interest is charged is the best way to avoid paying interest and keep your credit card free.

    Your credit card issuer will charge interest whenever you carry a balance beyond the;grace period. Credit card interest isn’t a one-time thing either. Each month you carry a balance over from the previous month, youll have a finance charge added to your balance.

    You won’t be charged interest if a 0% promotional rate applies to your balance.

    Amazon Prime Rewards Visa Signature Card* Vs Other Amazon Credit Cards

    Interest Rates of Credit Card Amazon Prime Rewards Visa ...

    Another option, especially useful if you dont use Amazon Prime but do shop on Amazon, is the annual fee-free . This Amazon Credit card, which doesnt require Amazon Prime membership, offers 3% cash back on Amazon and Whole Foods purchases, 2% back at restaurants, gas stations and drug stores and 1% cash back on all other purchases.

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    What Is Amazon Financing

    Amazon financing encompasses a range of credit product and service offerings by Amazon.com to help consumer and small business customers to pay for purchases over time. Terms and conditions vary depending on creditworthiness and the structure of loans involve both installment and open-ended credit arrangements.

    Is It Worth Signing Up For Amazon Prime

    Amazon Prime costs $119 per year, comparable to the cost of many credit cards with annual fees. Since the Amazon Prime Rewards Visa Signature Card is only open to existing Prime members, you may wonder if it’s worth opening a membership if you don’t own one already. Here is the list of the ongoing benefits you’ll enjoy with Amazon Prime:

    • Free two-day shipping on millions of eligible products, with free same-day or 2-hour delivery in select cities
    • Extra 10% discount on sale items at Whole Foods
    • Prime Video, offering access to thousands of movies and TV shows for free
    • Prime Music, offering over two million songs ad-free with the opportunity to upgrade to Amazon Music Unlimited at a Prime member rate
    • Amazon Photos, with free unlimited photo storage shareable to up to five family members or friends
    • 30-minute early access to Amazon Lightning Deals
    • Borrow one e-book for free on any Kindle device

    If you live in a metropolitan area, Whole Foods offers free two-hour delivery or one-hour same-day pickup, which can be helpful to grocery shoppers who need items in a pinch. While the shipping benefit alone is why millions of people subscribe to Amazon Prime, there are many entertainment and shopping perks with this subscription.

    Amazon Prime also offers a free six-month trial exclusively for college students. After that, you’ll enjoy a 50% discount on membership while you’re still a student.

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    Add Another Card To Compare

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    Preparing For A Prime Rate Increase

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    In the 1980’s, the American population saw the prime rate change a whopping 38 times, starting the year at 15.75% and topping out at an all time high of 21.50%.

    Predictably, when the prime rate increases, so will your interest rates on any existing balances. Here are three tips for reducing the personal impact of increased interest rates and finance charges:

  • Pay off your credit balances as quickly as possible, either on the due date each month or whenever you make a purchase.
  • Transfer multiple balances to a single credit card with a 0% introductory rate.
  • If you’ve kept your card and credit score in good standing, your credit card issuer may be willing to temporarily lower your interest rate if you ask directly.
  • The section of your titled: “How We Calculate and Determine Rates” will tell you how your credit card issuer sets your rate, and how your personal rate will adjust in relation to the prime rate.

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    Discover It Cash Back

    For three quarters of the year, the Discover it Cash Back card only offers 1% cash back on Amazon purchases, but in the fourth quarter of 2021, the Discover it Cash Back is a winning proposition for Amazon purchases especially for new cardholders. If you remember to enroll in the category that quarter, you will receive 5% back on your Amazon purchases, on up to $1,500 in purchases . And, since Discover matches your cash back at the end of your first year of card membership, new cardholders can essentially earn 10% cash back on Amazon purchases in the fourth quarter.

    Amazon Prime Rewards Card Credit Score

    The Amazon Prime Rewards Visa Signature Card is intended for consumers who have fair or good credit. A FICO® Score of 640 or higher is recommended, although there have been reports of applicants with lower scores getting approved. Don’t forget that you need an Amazon Prime membership to apply. Given that Chase issues this credit card, you’ll also want to keep Chase’s 5/24 rule in mind, as you could be declined for opening too many credit cards.

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    Heres How You Can Pay Your Amazoncom Credit Card:

    • Online: Log into your account, select your Amazon.com Credit Card, click “Pay credit card” and follow the instructions to enter your payment account number and routing number.
    • Chase Mobile app: Get the app and after signing in, choose the account for the card you want and tap “Pay card”. Then, enter the amount, the account you want to pay from, and the payment date. Tap “Schedule,” then confirm your choices and, finally, tap “Schedule it”.
    • You can also pay your Amazon.com Credit Card bill over the phone. Call and follow the prompts from Chases automated system.
    • At a Chase ATM/branch:Find a Chase ATM or branch near you and make your payment there.
    • You can also submit an Amazon.com Credit Card payment by mail. Send your check or money order with your name and account number to:

      Cardmember Services

      Carol Stream, IL 60197-6294

    • Via Western Union: For Western Union payments, use the Code City WALNUT.

    Ultimately, if you want to pay a bill, you will have to choose between slightly different payment methods, as the store version of this card is issued by a different provider the Synchrony Bank.

    The easiest way to apply for the is online. Alternatively, you can submit an application for this card at your nearest Chase branch. You cannot apply for the Amazon.com Credit Card over the phone.

    If you don’t get a decision instantly, you can check your application status by calling .

    Some other Amazon credit card benefits and perks include

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