Amazon.com has its own credit card, which earns 3 points for every dollar spent at the vast online store. But is the Amazon Credit Card worth it, even for frequent Amazon shoppers? It faces steep competition from our perennial favorite, the Citi Forward® Card.
Customers may be tempted to sign up for the Amazon card, since it has no annual fee. But the Citi Forward® Card actually delivers much better rewards – even for purchases at Amazon. The Citi Forward® Card gives 5% back on books – and it considers Amazon to be a bookstore. So, despite sharing the name, the store’s branded credit card actually gives 2% less on Amazon purchases than the competition.
The rewards breakdown: Citi Forward® vs. Amazon Visa
The Citi Forward® Card is one of the best rewards credit cards out there: in addition to a 1% base rewards rate, it gives 5% on a number of categories. It pays out in ThankYou points, which can be redeemed for gift certificates at various retailers. We consider ThankYou and Amazon.com points to be worth 1 cent each: 100 points = $1. However, you need to reach a certain threshold of points in order to get their full value.
For example, you need to accumulate 10,000 ThankYou points to get a $100 gift card; you’d get only $50 for 6,000 points, and cash redemptions are reduced as well.
The Amazon Visa credit card also has a 1% base rate, plus a handful of bonus categories. Its rewards take the form of Amazon.com points, which can also be redeemed for gift certificates or cash. Amazon is a bit more friendly in this regard, since you can redeem 5,000 points for $50 in cash.
| Amazon Visa | Citi Forward® Card | |
|---|---|---|
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| Annual Fee | $0 | $0 |
| Base Rewards Rate | 1% | 1% |
| Amazon.com Spending | 3% | 5% |
| Restaurants | 2% | 5% |
| Books, Movies, Music | 1% | 5% |
| Gas, Drugstores | 2% | 1% |
| Signup Bonus | $30 Amazon credit | 1,000 points (paperless) |
| Rewards earned as… | Amazon.com Points | ThankYou Points |
| Minimum to get $1 for 100 points | 5,000 points | 10,000 points |
Interest rates and intro offers
Both the Citi Forward® Card and the Amazon Visa have fairly average interest rates on purchases. Users of either of these cards should probably not carry a balance at all anyway, since the interest charges will outweigh any rewards benefit. That said, the Citi Forward® Card does try to make things easier on those who do carry a balance once in a while, by rewarding good behavior with a 2% interest rate reduction.
The Citi Forward® Card also has an awesome intro offer for those who expect to be out of debt soon: 0% interest on balance transfers for 12 months and on purchases for 7 months*. If you’re carrying a balance or are about to make a big purchase, the Citi Forward® Card will let you earn rewards while you pay off your debt.
The verdict: Citi Forward® Card for all-around better rewards
The Citi Forward® Card trumps the Amazon Visa even on the branded card’s home court of Amazon.com purchases, not to mention restaurants and entertainment purchases. Sure, the Amazon ekes out wins for gas and drugstores, but you’d ideally put those purchases on a card that earns 3-5% back. The American Express Blue Cash Preferred gives 3% back on gas, and the Chase Freedom, Discover Escape and Citi Dividend all have rotating bonus categories, including gas and drugstores, that earn 5% back.
Amazon, then, doesn’t stack up well against the Citi Forward® Card. Combined with a 0% intro purchase/balance transfer offer and ongoing incentives for responsible credit use, the Citi Forward® Card comes out with the win.
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