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If you do a heavy amount of shopping on Amazon.com—purchasing books, electronics, clothing, even groceries—then you might want to consider the Amazon Credit Card. In addition to having no annual fee, this card offers a sign-up bonus: an Amazon.com Gift Card will be instantly loaded into your Amazon.com account upon the approval of your credit card application, a way for the company to say thanks to their loyal customers.
|At a glance|
|Foreign transaction fee||3%|
|Rewards program||3 points for each $1 spent at Amazon.com, 2 points for each $1 spent at gas stations, drugstores, office supply stores and restaurants.|
|Signup bonus||an Amazon.com Gift Card will be instantly loaded into your Amazon.com account upon the approval of your credit card application|
|Verdict: This card is only worth it if you spend a lot of money on Amazon.com|
In this article:
The Amazon Credit Card basics
If you shop online at Amazon a lot, this is clearly a good card for you. It comes with a sign-up bonus: an Amazon.com Gift Card will be instantly loaded into your Amazon.com account upon the approval of your credit card application. What’s more, you’ll also earn 3 points per dollar spend on Amazon.com, 2 points per dollar on gas, restaurants and drugstores, plus 1 points per dollar on all other purchases.
Where it shines
This card is good for an individual, a business or a family who actively uses Amazon, especially for large purchases. If you do most of your everyday shopping on the website and spend more than $1,500 per month there, this card seems like a good choice.
Where it falls short
If you don’t spend a ton of money on Amazon each month, then there are better cards out there for you.
For example, the Capital One® Quicksilver® Cash Rewards Credit Card carries no annual fee and offers unlimited 1.5% cash back on all purchases, plus this: One-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening.
In addition, the Capital One® Quicksilver® Cash Rewards Credit Card has a long 0% APR period, whereas the Amazon Credit Card does not come with an introductory rate offer.
Amazon Credit Card vs. the Sallie Mae MasterCard: Which is better?
The Sallie Mae MasterCard looks like a better option than the Amazon Credit Card, especially for college students and recent graduates. You don’t actually need to have a student loan to get this card, either.
The Sallie Mae MasterCard offers 5% cash back on gas and groceries up to $250 spent in each category per month, 5% on bookstores (which includes Amazon.com) up to $750 per month and 1% on all other purchases.
The Amazon Credit Card is worth getting only if you spend more than $1,500 per month on your Amazon purchases. With the Amazon Credit Card, $1,500 in purchases will net you $45 with its 3% rewards rate. However, the Sallie Mae MasterCard will net you the same $45 – with $750 of spending rewarded at 5%, and $750 of spending rewarded at 1%. For the Amazon Credit Card, $2,000 in Amazon purchases will net you $60 in rewards; on the Sallie Mae MasterCard, $2,000 will net you $50.
In order to receive cash back to a bank account, you need to sign up for a Upromise account from Sallie Mae. However, you’ll still be able to receive your rewards in the form of a statement credit on your Sallie Mae MasterCard and as a statement credit on your eligible Sallie Mae student loan.
Because of its high rewards rate for gas, groceries and bookstores each month, the Sallie Mae MasterCard looks like a better deal for normal everyday expenses and smaller purchases, while the Amazon card is better suited for big-time Amazon spenders.