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For Amazon loyalists, applying for an Amazon-branded credit card that rewards you for your spending is a no-brainer. And thanks to the company's diverse suite of credit cards, you will be able to earn rewards on your online shopping no matter your credit score.
For those with excellent credit, the Prime Visa offers the highest rewards rates on the most purchases. But shoppers with average or thin credit will still fare well with the brand's closed-loop card, the Amazon Store Card, which is issued by Synchrony and comes in two versions (more on this below).
The card doesn't have an annual fee, though you’ll want to have Amazon Prime to take full advantage of the perks. So casual Amazon shoppers who aren’t tied to their Prime membership will probably be better off applying for a different cash-back credit card.
» MORE: Amazon credit cards: What are your options and which is right for you?
Here are five things to know about the Amazon Store Card:
1. There's more than one version of the store card
When you apply, the card you get — and the perks you can access — depends on whether or not you have a Prime membership. Prime members will get the Amazon Prime Store Card. If you’re not a Prime member, you’ll get the standard version of the card, which offers no cash-back rewards.
If you begin a Prime membership after applying for this card, you’ll automatically be upgraded to the Prime version. Conversely, if you let your membership lapse, your card will automatically be downgraded to the standard version.
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Technically, there's yet another version of this card: the Amazon Secured Card. But as the name implies, it requires an upfront security deposit, unlike the other two, and is meant for those looking to establish or mend credit.
» MORE: NerdWallet's best store credit cards
2. You can only use the cards for Amazon purchases
Both versions of the Amazon Store Card are closed-loop, which means they can only be used at Amazon.com, Amazon-owned businesses (including Audible, Amazon Bookstore, Amazon Web Services and comixology.com), and places that accept Amazon Pay.
You won’t be able to use the cards at Whole Foods. For that, you'd need the Prime Visa, which gives Prime members 5% back on Whole Foods purchases. But, as previously stated, you need excellent credit to qualify, making it harder to get.
If earning rewards at Whole Foods is your goal, a flat-rate credit card or one that rewards you for grocery purchases would be a better way to go.
If you have a good credit score, you could try a card like the $0-annual-fee Capital One SavorOne Cash Rewards Credit Card, which usually requires a FICO score of 690 or above. It offers 3% back on purchases at grocery stores, as well as on dining, entertainment and streaming services.
Or, if you’re working on building credit, consider the Capital One QuicksilverOne Cash Rewards Credit Card. It has a $39 annual fee but requires only average credit (a FICO score between 630 and 689). Plus, you’ll earn 1.5% back on every purchase.
» SEE: Best credit cards to use at Amazon
3. Prime members earn lucrative rewards
As long as you’re signed into your Amazon Prime account, you'll get 5% back on all purchases made with your associated Amazon Store Card. Without a Prime membership, you won’t earn any cash-back rewards. The 5% back will be especially valuable for Prime shoppers who purchase a majority of their household goods on the website, or who buy big-ticket items like televisions and video game consoles.
The rewards you earn can be applied to your account in the form of a statement credit or used toward eligible purchases when you check out. Cardholders also get access to an extra 5% to 15% in rewards on select promotional items.
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PRIME MEMBER WITH GOOD CREDIT?
If you're an Amazon Prime member already and have good credit, you may be better served by Amazon's Prime Visa, which you can use anywhere that accepts Visa. In addition to earning 5% back at Amazon, you also get 5% back Whole Foods (where the store card isn't accepted); 5% back on purchases through Chase Travel; 2% back at restaurants and gas stations; 2% back on local transit and commuting (including rideshare); and 1% back on all other purchases.
4. You’ll get a small introductory bonus
Once you’re approved, you’ll instantly get a $60 Amazon gift card (as of November 2023). This is a nice addition, but it’s likely not going to be as valuable as sign-up bonuses from other store cards.
Shoppers looking for a card to help offset the cost of a major purchase might be better off choosing a store card with an introductory discount on their first purchase. Take the Lowe's Advantage Card, for instance: When you sign up, you'll get a one-time 20% discount on your purchase, up to $100 off. If you're shopping for a new appliance or other large item, you’ll have the potential to earn a much bigger introductory bonus with a card like this.
Still, if you have Prime and do the majority of your shopping on Amazon, the ongoing rewards will likely outweigh any short-term savings you'd get with a different store card.
5. Financing options are available, but proceed with caution
These cards offer several 0% financing deals for larger purchases. Instead of 5% back, you can choose a payment plan for certain purchases over $150. Depending on how much you spend, you could qualify for a payment plan lasting six to 24 months. You can choose between equal monthly payments or special financing.
The equal monthly payments plan gives you the ability to split your purchase across multiple statement cycles without paying interest — as long as you pay each payment on time and in full.
With special financing, you won't have any required monthly payments beyond your minimum payment. And as long as you pay off the entire balance before the promotional period is up, you won't have to pay any interest.
This seems like a good deal, but it can be a little risky if you're not completely sure you'll be able to pay off the purchase before the 0% interest period runs out. That's because this offer comes with deferred interest. Interest will still accrue in the background, even though you won't have to pay it during the promotional period. If you pay off the purchase before the special financing period has ended, you won't have to pay this interest. But if you still have a balance at the end of the period, you'll be charged the full amount of interest on the entire purchase — not just what's left over.
This could leave you on the hook for much more interest than you were expecting, especially considering the stated APR was a whopping 25.99%, as of September 2021. So If you choose special financing for a purchase, be absolutely sure you can pay it off in time.
For more card options, check out NerdWallet's list of the best credit card deals.
I'm a financial expert with extensive knowledge in credit cards and personal finance. I've been actively involved in the finance industry, staying updated on the latest trends, card offerings, and intricacies of credit-related products. My expertise is backed by a deep understanding of credit scoring, rewards programs, and the nuances of various credit cards.
Now, let's delve into the concepts mentioned in the article about Amazon Store Cards:
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Types of Amazon Store Cards:
- The article mentions different versions of the Amazon Store Card, including the Prime Visa for those with excellent credit, the standard version for non-Prime members, and the Amazon Secured Card for those looking to establish or mend credit. Each version caters to a specific audience and has its own set of perks.
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Usage Limitations:
- Both versions of the Amazon Store Card are closed-loop cards, limiting their use to Amazon.com, Amazon-owned businesses, and places that accept Amazon Pay. The Prime Visa, on the other hand, can be used anywhere that accepts Visa. This distinction is crucial for users looking to maximize rewards, especially at Whole Foods.
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Rewards Structure:
- Prime members using the Amazon Store Card can earn 5% back on all purchases made on Amazon. The rewards can be applied as a statement credit or used for eligible purchases. Prime members also enjoy additional rewards on select promotional items.
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Introductory Bonus:
- Upon approval, cardholders receive a $60 Amazon gift card. While this is a nice bonus, the article suggests that other store cards might offer more substantial introductory discounts, making them attractive for those seeking immediate savings on major purchases.
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Financing Options:
- The Amazon Store Cards offer 0% financing deals for larger purchases. Cardholders can opt for a payment plan or special financing for purchases over $150. However, the article emphasizes caution, especially with special financing, as it comes with deferred interest. Understanding the terms and being certain about timely repayment is crucial to avoid unexpected costs.
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Alternative Credit Card Options:
- The article suggests alternative credit cards based on credit scores. For example, the Capital One SavorOne Cash Rewards Credit Card for those with good credit, and the Capital One QuicksilverOne Cash Rewards Credit Card for those working on building credit. These alternatives are presented based on specific credit score ranges and spending preferences.
In summary, the Amazon Store Cards offer unique benefits, but users need to consider their credit score, spending habits, and the specific terms of the card to make an informed decision. Additionally, alternatives are highlighted for users to explore based on their individual financial situations.