Amazon is one of the largest onle world and offers a variety of services to its customers, including the Amazon credit card. The Amazon credit card is a rewards card that allows customers to earn points on purchases made through Amazon and other retailers. However, the question remains: is the Amazon credit card worth it?
The answer to this question depends on several factors, including how often you shop on Amazon, how much you spend, and what types of rewards you are interested in. The Amazon credit card offers a variety of rewards, including cash back, points towards future purchases, and discounts on select items. Additionally, the card offers perks such as no annual fee and no foreign transaction fees. However, it's important to weigh the benefits against the potential drawbacks, such as high interest rates and fees for late payments.
Benefits of the Amazon Credit Card
The Amazon Credit Card is a popular choice among shoppers who frequently purchase from Amazon and Whole Foods. It offers several benefits that make it worth considering for those who are looking for a credit card that can help them save money and earn rewards.
Rewards System
One of the primary benefits of the Amazon Credit Card is its rewards system. Cardholders earn 3% cash back on purchases made on Amazon.com and at Whole Foods Market. They also earn 2% cash back on purchases made at gas stations, restaurants, and drugstores, and 1% cash back on all other purchases. These rewards can add up quickly, especially for those who frequently shop at Amazon and Whole Foods.
Sign-Up Bonuses
Another benefit of the Amazon Credit Card is the sign-up bonus. New cardholders can earn a $50 Amazon.com gift card upon approval of their application. Additionally, Prime members can earn a $70 Amazon.com gift card upon approval. These bonuses can be a nice way to offset the cost of purchases made with the card.
Exclusive Discounts for Cardholders
Finally, the Amazon Credit Card offers exclusive discounts for cardholders. For example, cardholders can receive a 5% discount on eligible purchases made on Amazon.com or at Whole Foods Market. This discount can be applied on top of other discounts and promotions, which can help shoppers save even more money.
Financial Considerations
Annual Percentage Rate (APR)
One important financial consideration when it comes to the Amazon credit card is the Annual Percentage Rate (APR). The APR for this card varies depending on the type of card you have and your creditworthiness. For example, the Amazon Rewards Visa Signature Card has a variable APR of 15.99% to 23.99% as of 2024. This means that if you carry a balance on your card, you will be charged interest on that balance at a rate within that range.
It is important to note that the APR can change over time, depending on various factors such as changes in the prime rate or your credit score. Therefore, it is important to pay attention to your statements and any notices you receive from Amazon regarding changes to your APR.
Annual Fees
Another financial consideration when it comes to the Amazon credit card is the annual fee. The Amazon Rewards Visa Signature Card has no annual fee, while the Amazon Prime Rewards Visa Signature Card has a $119 annual fee. This fee is waived for Amazon Prime members, so if you are a frequent Amazon shopper and already have a Prime membership, this card may be a good option for you.
Credit Score Requirements
Finally, it is important to consider the credit score requirements for the Amazon credit card. While there is no official minimum credit score required to be approved for the card, generally, a good credit score (above 670) is recommended to increase your chances of approval. Additionally, having a higher credit score may also result in a lower APR and higher credit limit.
Comparison to Other Credit Cards
Rewards Comparison
When compared to other credit cards, the Amazon credit card offers competitive rewards in certain categories. The card offers 5% back on Amazon.com purchases for Prime members, 2% back at gas stations, restaurants, and drugstores, and 1% back on all other purchases. However, other credit cards may offer higher rewards in specific categories such as travel or groceries. It is important to compare rewards programs and choose a card that aligns with your spending habits.
Fee Comparison
The Amazon credit card does not charge an annual fee, which makes it an attractive option for those looking for a no-fee credit card. However, it is important to note that the card does charge foreign transaction fees, which may not be ideal for frequent international travelers. Other credit cards may offer additional benefits such as waived foreign transaction fees or travel insurance, but may come with an annual fee.
Interest Rates Comparison
The interest rates on the Amazon credit card are comparable to other credit cards in the market. The card offers a variable APR ranging from 14.24% to 22.24%, depending on creditworthiness. It is important to note that carrying a balance on any credit card can result in high interest charges, so it is recommended to pay off the balance in full each month.
User Experiences
Customer Service
Amazon credit card users have reported positive experiences with the customer service provided by Amazon. Many customers have praised the prompt and helpful responses they received when contacting customer service for assistance with their credit card account.
Amazon's customer service representatives are knowledgeable about the Amazon credit card and can help customers with a variety of issues, including billing questions, account management, and rewards redemption.
Ease of Use
The Amazon credit card is easy to use, with a user-friendly online portal that allows customers to manage their account, make payments, and redeem rewards. The online portal is available 24/7, making it convenient for customers to access their account information whenever they need it.
Additionally, the Amazon credit card is accepted at millions of merchants worldwide, making it a versatile payment option for customers who frequently travel or shop online.
Cardholder Satisfaction
Overall, Amazon credit card users are satisfied with their experience using the card. Customers appreciate the generous rewards program, which offers cash back on purchases made at Amazon and other retailers.
Many customers also appreciate the lack of an annual fee, which makes the card an affordable option for those who want to earn rewards without incurring additional costs.
In conclusion, the Amazon credit card offers a positive user experience with excellent customer service, ease of use, and high cardholder satisfaction.
Additional Perks
Extended Warranties
One of the additional perks of having an Amazon credit card is the extended warranty protection. When you use your Amazon credit card to purchase an eligible item, you can receive an additional year of warranty protection beyond the manufacturer's warranty. This can be a valuable benefit, especially for expensive items like electronics or appliances.
Fraud Protection
Amazon credit cardholders also receive fraud protection. If your card is lost or stolen, you can report it to Amazon and they will investigate any fraudulent charges. You won't be held responsible for any unauthorized charges made on your card. In addition, Amazon monitors your account for any suspicious activity and will alert you if they detect any potential fraud.
Travel Benefits
For frequent travelers, the Amazon credit card offers some travel benefits. Cardholders can receive travel accident insurance, baggage delay insurance, and lost luggage reimbursement. Additionally, the card offers no foreign transaction fees, making it a good option for international travel.
Drawbacks of the Amazon Credit Card
Limitations on Use
While the Amazon Credit Card offers rewards on Amazon purchases, it may not be the best option for those who frequently shop elsewhere. The rewards rate for non-Amazon purchases is significantly lower, making it less appealing for everyday use. Additionally, the rewards earned can only be redeemed on Amazon, limiting the flexibility of the card.
Furthermore, the Amazon Credit Card has a foreign transaction fee of 3%, making it less than ideal for international travel. This fee can add up quickly, especially for those who frequently travel abroad.
Potential for High Interest
One of the major drawbacks of the Amazon Credit Card is its high-interest rate. The interest rate can be as high as 27.24%, which is well above the average credit card interest rate. This high-interest rate can quickly negate any rewards earned, making it important to pay off the balance in full each month.
Additionally, the Amazon Credit Card offers a promotional financing option for certain purchases, but if the balance is not paid off in full by the end of the promotional period, interest will be charged retroactively from the date of purchase. This can result in a significant amount of interest charges, making it important to carefully consider whether the promotional financing option is worth it.
Final Verdict
After analyzing the pros and cons of the Amazon credit card, it can be concluded that it is worth considering for frequent Amazon shoppers. The card offers a high cashback rate on Amazon purchases and a decent reward rate on other eligible purchases. The sign-up bonus is also attractive, making it a good option for those looking to earn rewards quickly.
However, it is important to note that the high APR and annual fee may not be worth it for those who carry a balance or do not spend enough on Amazon purchases. Additionally, the rewards can only be redeemed on Amazon, which may not be ideal for those who prefer more flexibility in their rewards program.
Overall, the Amazon credit card is a solid choice for those who frequently shop on Amazon and are looking for a rewards credit card. However, it is important to carefully consider the fees and rewards structure before applying to ensure it aligns with your spending habits and financial goals.