The Amazon Credit Card is a good option for anyone with a 700+ credit score who likes to shop online. The card is worth getting because it has a $0 annual fee and rewards users with 3% or 5% back on Amazon purchases (Prime members get the higher rate). 

Those reward rates are nearly 3-5X higher than the market average, according to WalletHub’s database of 1,500+ credit card offers. You just need to avoid interest charges by paying the bill in full every month. If you can do that, the Amazon Credit Card should save you a lot of money.

What I Like About the Amazon Credit Card

$0 annual fee

With no yearly fee to worry about, the Amazon Rewards Card is $25.22 per year cheaper than the average credit card offer, according to WalletHub’s latest Credit Card Landscape Report. Plus, you won’t have to spend a certain amount each year just to earn enough rewards to break even, as would be the case with a card that charges a fee.

You don’t need to be a Prime member to get this card, so you don’t necessarily have to factor that cost into the equation either. In fact, if you do have Amazon Prime, you’ll get the Prime Visa version of the card instead. 
 

It’s worth $50+ right off the bat

Right now, you’ll automatically receive a credit of at least $50 ($150 for Prime members) when you open an Amazon Credit Card account. This promotion is attractive in the sense that you don’t need to spend anything to get it, and you can use the credit for pretty much anything. 

It’s not the biggest cash rewards bonus out there, however, and you need to pay taxes on the amount. Since there’s no spending requirement, the IRS treats the bonus like income.  
 

Get paid for making everyday purchases

The Amazon Card doles out rewards in points, but the earning rates translate to 1% - 5% back, depending on where you’re shopping and whether you’re a Prime member. Normal cardholders get 3% back at Amazon.com, Amazon Fresh and Whole Foods Market, as well as 3% back on Chase Travel purchases, while Prime members get 5% in all of those categories. Prime members get up to 10% back on select Amazon purchases, too.

All cardholders also earn 2% back at restaurants, at gas stations, and on local transit and commuting (including rideshare fares). All other purchases produce 1% back. 

For context, the average rewards card gives you about 1.17% back on all purchases. So, the bonus rewards categories save you a lot more than average. 
 

Enjoy helpful secondary benefits

The Amazon Credit Card’s benefits include travel insurance, lost/delayed baggage protection, and a collision damage waiver for rental cars. These features could come in handy and save you money if you decide to take a trip. The same can also be said of the card’s lack of foreign transaction fees. If you use the Amazon Card abroad, that could save you 3% compared to many other credit cards and more than 8% compared to exchanging hard currency. 

Even if you don’t plan to travel, the Amazon Visa has plenty of helpful perks. For example, you can get extended warranty coverage, insurance for damaged or stolen purchases, and zero liability for unauthorized charges. A lot of other cards have been eliminating some of these benefits in recent years.

What I Don’t Like About the Amazon Credit Card

You’ll need to look elsewhere for financing

The Amazon.com Rewards Visa Card was built for everyday purchases that you can pay off within a single billing cycle, not balances carried from month to month. It sometimes offers a promotional APR of 0% for 6 - 12 months on Amazon purchases, but its regular APR could be higher than the market average for cards that require fair credit for approval, to say nothing of those demanding good or excellent standing. 

So, don’t make the mistake of allowing finance charges to erode your Amazon Visa rewards earnings. Pay your full statement balance by the due date when the regular APR is in effect.
 

Minimum limit is just $500

People who get approved for this Amazon Credit Card are only guaranteed a credit limit of $500 or higher. This isn’t outrageously low, but it’s not particularly high either. 

There’s reason for optimism, though. Your spending limit could ultimately be leaps and bounds above the minimum, depending on your credit history, income and debt. You’ll have to hope that ends up being the case for you.
 

The Visa requires good credit or better

The Amazon Rewards Visa Card requires at least good credit for approval, which means you’ll likely need a 700+ credit score for good approval odds.

The good news for people with lower scores is that you can get the Amazon Store Card with just fair credit (a 640+ credit score). If you’re a Prime member, you’ll earn 5% back on Amazon purchases, but you won’t be able to use the store card at unaffiliated retailers.

You can see which card you’re likely to get approved for by checking your credit score for free here on WalletHub.