Anyone who loves to shop on Amazon might consider the Amazon credit card a worthy card to apply for, but is it? Before anyone makes the decision to apply for the Amazon credit card, it’s imperative to ask yourself whether or not this card will benefit you in any way. Do you shop often at Amazon? Do you want to increase your current credit limit? Do you know how to responsibly use credit to build and/or maintain a high credit score? Additionally, do you want to take advantage of some of the offers that come along with having an Amazon credit card in your wallet?
If you answer favorably to these questions, you might want to consider the Amazon credit card. While we aren’t always huge fans of store cards, this one is one of the better store cards and is actually a good one for many consumers. That’s why we think that certain consumers should consider the Amazon credit card and all that it has to offer. The retailer sells it all – actually all of it; there are few things that Amazon does not sell. The card offers free shipping on everyday items, and it offers many other benefits that might make frequent Amazon shoppers feel even better about life than they already do; let’s see how the Amazon credit card benefits consumers.
Who Should Use the Amazon Credit Card
There are many people that should consider the Amazon credit card, but the card is not for all people. First and foremost, this is a card that is best used when it is given to those who are frequent Amazon shoppers. If you make at least one or two orders per month with Amazon, you will find that it is very easy to make the most of this particular credit card. Otherwise, the Amazon credit card is better replaced with a card that earns more cash back at locations you are more likely to shop.
Responsible cardholders are also those who should apply for the Amazon credit card. If you have good to excellent credit, you pay your bills on time and you always pay your Amazon credit card balance in full when the statement arrives, this is a good card for you. When you allow a balance to sit on a card like the Amazon credit card, you make it difficult to make the most of your points and you are not getting what you deserve from the card.
If you are an Amazon Prime Member, the Amazon credit card is a great way to get even more bang for your buck. The membership into Amazon Prime is $99 per year, but it includes free two-day shipping on all prime items, which more than pays for itself in a few purchases. Additionally, those who have an Amazon credit card and prime account are eligible for something called Amazon Mom, which I’ve recently discovered and love.
Why Consider the Amazon Credit Card with the Amazon Prime and Amazon Mom Membership
Advocating for parents everywhere, this could potentially be a very profitable endeavor. I don’t personally have an Amazon credit card, but I can see as to how it would benefit me to apply for one in combination with a few other things. Amazon Mom is something I recently discovered. It’s great for families that have small children. When my twins were born last year, I learned that by using my Amazon Prime to sign up for Mom, I could use the Subscribe and Save option to order my diapers, wipes and formula from Amazon and have them delivered two days later to my house free of charge. With Subscribe and Save, I can save as little as 5% and as much as 20% on my purchases – and these are things that I used regularly then and now (save for formula now). I was, at one point, ordering a weekly supply of formula, diapers and wipes and saving around $30 per shipment on these items every single week (more if you count my free two-day shipping).
By saving on every purchase with this program and then using the Amazon credit card as payment, you are earning more points. Points can be redeemed, so you can get free stuff all the time through Amazon, which is what cardholders want. The Amazon credit card is invaluable to anyone who orders things of this nature, and I cannot tell you how much it benefits a mother of multiples who goes through so many diapers, so much formula and so many wipes. When the twins were new, I was ordering 2 boxes of diapers a week, 2 boxes of wipes a week and 5 containers of formula a week. It was around $200 per week to purchase these, huge savings and if I’d have the Amazon credit card, I could have earned 600 points for every order. That’s $6 per order I would have received as cash back – which is more than $300 per year in cash back.
Why You Must Know how to Redeem Points
Now we get to this; if you are a frequent shopper with your Amazon credit card, do not use your points to pay for your items. That is, after all, what they are for; but that’s not want you want to use them for. You use points to pay for purchases and you don’t earn any new points on the purchase. So, instead, go ahead and buy the items with your Amazon credit card and then use your Amazon credit card points as a statement credit to pay the bill at the end of the month.
This is a great way for any Amazon credit card user to maximize points and earn as many as possible while still redeeming points and receiving all the things you’ve earned free of charge. Do it the right way and you can maximize earnings.
Benefits of the Amazon Credit Card
- No annual fee
- No foreign transaction fee
- 1% cash back on every day purchases
- 2% cash back on all purchases at drugstores, restaurants and gas stations
- 3% cash back on all Amazon.com purchases
- There is no maximum points availability
- There is no expiration date on points
If you shop often with Amazon, this is the card for you. If you do not shop often here, the Amazon credit card will prove quite worthless for you – additionally, the card does not offer you any balance transfer options, which is something many consumers are looking to enjoy.
The Biggest Benefit
Clearly, the biggest reward for carrying an Amazon credit card is the rewards. The rewards are great for those who use Amazon a lot to make purchases, but only so-so for those who use their Amazon credit card for other everyday purchases. If you do shop Amazon on a regular basis, however, you are going to find that it is easy to earn points and use them for free items and discounts. What makes this card even better is that the bonus categories do not rotate. With many cash back cards, for example, the points categories rotate so that sometimes you earn more points when you shop at the supermarket and other times you earn more points when you fill up your gas tank.
With the Amazon credit card, however, you earn the same amount of points all the time in the same categories, which is why this card works so well for frequent Amazon shoppers. Another one of the many reasons we think you should consider this card if you shop often with Amazon is the fact that the Amazon credit card reward points do not ever expire so long as your card is always active and you do not close your account with Amazon.
When Not to Consider the Amazon Credit Card
There is only one time you should not consider the Amazon credit card, and that is when you do not shop on Amazon. Let me explain; yes, the rewards on this card are beneficial even in other categories. However, it’s just not a beneficial card if you are not using it frequently to make purchases on Amazon. The Amazon credit card should be used by people who make at least one or two orders every month through Amazon, and not for those who rarely use the site.
Earning 2% cash back on gas, groceries and restaurant purchases is nice for those who do not shop often at Amazon, but other cards are more beneficial to those who do not shop Amazon. Since you are interested in this card for the benefits and rewards and you don’t shop much on Amazon’s website, let’s look at some comparable cards that are similar to the Amazon credit card in terms of rewards but are catered to other people than those who love to shop Amazon.
Cards to Consider for Non-Amazon Shoppers
- Discover it – this card is very similar to the Amazon credit card in that it does offer great rewards and features, but it’s better for those who do not shop much at Amazon and cannot take into consideration the biggest and best rewards offered by the card. Consider this is you are not a frequent Amazon shopper.
- 5% cash back on rotating categories every quarter
- 1% cash back on all purchases
- No APR for 12 months
- No APR for 12 months on balance transfers
- Freeze option if your card is lost or stolen or simply misplaced
- Free FICO scores with your statement
- Chase Freedom – this is a card that is very similar to the Amazon credit card in that it does earn more rewards for certain purchases plus cash back on every day purchases. But unlike the Amazon credit card, this card offers a chance to transfer balances and not pay interest for 15 months, and it also comes with a cash bonus to all new cardholders who spend a minimum amount in a certain timeframe.
- 5% cash back on rotating categories quarterly up to $1500
- 1% cash back on all purchases
- No annual fee
- No APR for 15 month
- No APR for 15 months on balance transfers
- $100 cash bonus for all new cardholders willing to spend $500 in three months time
- Blue Cash Preferred from American Express – this is a card that is similar to the Amazon credit card in that it offers some of the same benefits, but on a broader scale for those who are not frequent Amazon shoppers. If you do not shop often at Amazon, this might be a better option for you.
- 6% cash back on up to $6000 worth of supermarket purchases each year
- 3% cash back on all gas purchases and select department store purchases
- $150 cash back for new cardholders that spend at least $1000 in three months
- No APR for 15 months
- No APR on balance transfers for 15 months
These cards are a great option for anyone who wants a credit card with the same premise as the Amazon credit card without the inability to maximize points because you do not shop much with Amazon. However, if you are a frequent Amazon shopper, consider the Amazon credit card. If you are not a frequent Amazon shopper, we ask that you spend a few moments asking yourself whether or not joining Amazon Prime and Mom might save you more money and allow you to earn more points with an Amazon credit card, too.