Chip Lupo, Credit Card Writer
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The catch with Amazon credit cards is that you need an Amazon Prime membership to get the best rewards. The Amazon.com Credit Card gives cardholders who don't belong to Prime lower rewards rates, and you won't earn any ongoing rewards from the Amazon.com Store Card without Prime.
There's also a hard credit pull when you apply for an Amazon credit card, deferred interest offers to watch out for, and other potential costs associated with using the card. Overall, though, the rewards and benefits of Amazon credit cards far outweigh the potential drawbacks.
What to Watch Out for With Amazon Credit Cards
- Prime membership needed for best value. With the Amazon.com Credit Card, cardholders who have an Amazon Prime membership earn more rewards than those without one. With the Amazon.com Store Card, cardholders only earn rewards if they have Prime.
- Hard credit pull. When you apply, your credit score will likely drop by 5-10 points. You can easily recover from this with a few months of responsible credit use.
- Interest. If you carry a balance between months with the Amazon.com Credit Card, you will have to pay interest at an APR of 18.74% - 26.74% (V). For the Amazon.com Store Card, the APR is 29.99% (V).
- Fees. On the Amazon.com Credit Card, there is a balance transfer fee, a cash advance fee and a late fee. The Amazon.com Store Card does not allow balance transfers or cash advances, but there is a late fee.
- Limited store card acceptance. One catch unique to the Amazon.com Store Card is that it can only be used at Amazon and select merchants that accept Amazon Pay.
- Deferred interest on store card. The Amazon.com Store Card offers an introductory APR of 0% for 6 - 24 months on purchases. However, the card uses deferred interest, so if you don't pay your balance in full by the time the introductory period expires, you owe all the interest you would have accrued during that time at the regular APR.
Amazon.com Credit Card
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