5 Things to Know About the Amazon Store Card
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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.
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 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.
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.
2. You can only use the cards for purchases through some Amazon businesses
Both versions of the Amazon Store Card are closed-loop, which means they can only be used at Amazon.com and some Amazon-owned businesses, like Whole Foods.
The ability to use this card at multiple Amazon-owned businesses certainly sets the Amazon Store Card apart from other closed-loop store cards. But if you only shop at Amazon.com and don't shop at its subsidiaries like Whole Foods, a card that allows broader use could be a better option.
If earning rewards on groceries is your main goal, you could apply for 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.
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.
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 $10 Amazon gift card (as of April 2024). 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 MyLowe’s Rewards Credit Card, for instance. It often gives new cardholders 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 29.99%, as of April 2024. 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.
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