Choosing a credit card has become a more complex process than it used to be. With credit card issuers continuing to compete, it seems that there are now more options than ever. As such, there are a lot of aspects to consider to ensure you are getting the best card for you.
Features, fees, rewards, benefits, and more, are all aspects you will want to look into. In this Amazon credit card review, we’ll try to make it as simple as possible so you can see why the Amazon credit card is one of the best credit cards you can find in the market.
Hopefully, once you are done reading what we have to say, you will be able to decide if the Amazon credit card is right for you. Spoiler alert: The Amazon credit card is suitable for almost everyone. Let’s get started!
What Are Amazon Rewards Cards?
We must be honest; we lied to you. Now, we didn’t lie by saying that the Amazon credit card is a must-have. We genuinely believe that every financial-savvy person should have one. We lied to you by using the phrase “Amazon credit card review.”
The fact is that there are two amazon credit cards you can (and should) consider applying for. However, as they are similar in many aspects, we have decided to cover both of them in this review. From now on, if we refer to the Amazon credit card, you should be aware that we are referring to both.
Unless we specifically clarify something we say only applies to one, of course.
The two credit cards offered by the e-commerce giant are:
The main difference between them is that the latter requires an Amazon Prime subscription. Let’s be honest, most of us do by now, and as such, we will be able to get additional benefits.
If you do not use Prime, getting one of Amazon’s cards may incline you towards subscribing, as their cash back rewards apply to that service’s payments. And hey, you can literally buy anything on Amazon these days!
Applying for the Amazon credit card is a process that can be done entirely online quickly and easily. This is because Amazon attempts to maintain a response time of fewer than 15 seconds. Yes, that quick!
The Amazon credit card has many features that have quickly made it a favorite among Amazon users and non-users alike.
Another excellent benefit of getting this card is that you can get up to a $100 Amazon gift card when you get approved. If you don’t want to miss it, go and get your free bonus gift card now!
What Rewards Does The Amazon Credit Card Provide?
Let’s start by talking about the rewards you can expect to receive from this credit card.
Amazon and Whole Foods
The first and most important is the cashback at Amazon and Whole Foods. When paying in any of these markets, you will receive 3% in cashback rewards.
If you are a Prime member, this cashback is increased to 5%! Now, with Amazon offering virtually everything you can need… This is basically a cashback benefit you can apply when buying anything you might need.
Restaurants, Gas, Drugstores
Now, if you are paying at restaurants, gas stations, or drugstores, you will receive 2% in cashback. While not exceptional, this is the usual cashback rate offered by most credit cards.
Any payments in establishments that don’t meet any of the previous criteria will receive 1% in cashback.
That being said, if you want higher rewards, just use Amazon!
Amazon 10% Rotating Cash Back
Finally, we have a 10% cashback reward. This is only available on selected Amazon products which change periodically. However, it has proven to be a pretty sweet deal for millions of people and is something unseen with other credit cards.
Unfortunately, this particular percentage is only available to Prime members. Another reason to join the club!
Free Gift Card
Now, let’s talk about that sweet gift card we mentioned earlier in this Amazon credit card review. As soon as you are approved, you will get a Gift Card loaded into your Amazon account. These gift cards will have a value of $50 for the regular card and $100 for the Prime credit card. Sounds good? Just head up to Amazon and take advantage of this unique gift!
While $100 may be a slightly less sign-up reward than other no-fee cash back cards, which typically range from $150-200, it is an instant benefit. You do not have to spend any money on the card to get it.
What Are The Costs Associated With The Amazon Credit Card?
Let’s be real: Credit cards are not a charity, and there are costs associated with providing the service that needs to be covered. While credit card providers can provide you with rewards that surpass the fees, this is possible due to partnerships. As such, there are fees and interests associated with credit cards.
The Amazon credit card is no different. That being said, it uses a fee structure that is pretty easy to understand. Also, when you consider the benefits you will receive, the fees are entirely worth it.
Annual Percentage Rate (APR)
Depending on your credit score, Amazon will offer you an APR that goes anywhere from 14.24% to 22.24%. This usually works in the same way with other card issuers, making it extremely competitive.
If you use your card to withdraw cash though, the APR will be different. This interest starts applying from the day you extract the cash, at a much higher rate of 24.99%. Using this feature often involves higher fees with credit cards issued by other companies as well, so we can’t complain about this APR.
Amazon charges no annual membership fees on these products. This is nice since many credit cards have membership fees above $95. Thankfully, these outrageous fees don’t exist here. The nonexistent fees make it tempting to consider trying one of these cards and might help you save some money.
Remember we told you people applied for this card for the gift card? Well, as you can see… It’s free real estate! Apply for the card, get your gift card, and spend no money out of pocket!
An important detail to keep in mind with any credit card is the existence of penalty fees. These fees will be charged on late payment or return payment fees and can go up to $39.
While not exceptionally high, paying these fees is something everyone should avoid. As such, we recommend that you follow basic financial rules and avoid being late. By managing your payment schedule correctly, you will further enhance the benefits of the Amazon credit card.
Balance Transfers and Cash Advance Fees
If you are interested in balance transfers or cash advances, consider that you will be charged extra fees. Balance transfers cost either 5% of the amount of each transfer or a minimum of $5. This is about half of what you can expect from other credit cards!
On the other hand, cash advances will get you charged either a $10 minimum or 5% of the transaction. Once again, their fee is average and can be easily avoided.
Foreign Transaction Fees
The good news for those who like to travel is that foreign transaction fees are nonexistent. This means that when using your card abroad, you can rest assured that you won’t be losing money on fees.
What Other Benefits Are Offered By The Amazon Credit Card?
In addition to all the rewards we previously mentioned in this Amazon credit card review, there are more benefits for you. Let’s take a look at some of them:
- Travel and emergency assistance – Request legal or medical referrals and other emergency assistance. Covering the expense of those services will be on your own, of course. However, having experienced and knowledgeable experts helping you in case of an emergency will help you reduce costs.
- Roadside dispatch – You can ask for help like tow, jumpstart, a tire change, lockout service, winching, or gas delivery. This can be charged extra, and you will be informed of the charges when you call to request assistance. However, expect to pay less than you would if requesting the service on your own.
- Baggage delay insurance – You can get up to $100 a day for three days if you experience baggage delays of over 6 hours. A great benefit for frequent travelers!
- Lost luggage Reimbursement – It covers you and your immediate family members for up to $3000 per passenger in case your luggage is damaged or lost. No more ruined vacations.
- Travel accident insurance – You are eligible to receive insurance when you pay for air, bus, train, or cruise transportation with one of these cards. If the worst comes to happen, you will receive financial and logistical assistance.
- Auto rental collision damage waiver – Covers you for theft and collision damage for most rental cars in the US and abroad.
- Zero Fraud Liability – You will never be held accountable for unauthorized purchases done with your cards at no extra cost.
- Extended warranty protection When buying selected products, these cards extend the warranty for an additional year.
- Purchase protection – Your purchases are protected for 120 days against damage or theft.
- Visa Signature Luxury Hotel Collection – When possible, cardmembers receive better rates and in-room Wi-Fi in over 900 luxury hotels worldwide.
- Visa Signature Concierge Service – Visa can help you find tickets for sports and entertainment events, make dinner reservations and even get help sending gifts. This is basically like having a personal assistant!
Is The Amazon Credit Card the Right Fit For You?
Let’s go straight to the point: Yes, it is. The Amazon credit card offers everything anyone could wish in today’s world. Using Amazon has become easier than ever, and by getting this card, you will ensure you save money. With no annual fee, there is no harm in applying for this card and limiting it to be used when buying on Amazon.
Now, we believe the benefits the card offers are not limited to being used when buying in Amazon or whole foods. The truth is that the other cashback rates are competitive enough to warrant making this card your go-to option.
Add to this the fact that you will literally be getting free money when approved… And choosing to apply for this card becomes a no-brainer.
Now that you have made it to the end of this Amazon credit card review, it’s time for you to go and check the card out. Really, there is no reason not to from a financial standpoint. Just make sure to use your free money wisely!
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