Is an Amazon Credit Card Worth It?

An Amazon credit card can be a valuable addition to your wallet if you're an avid Amazon shopper. Considering that the average Prime member spends around $2,000 annually on Amazon, having a 5% cash back card can lead to substantial savings. If you're also a Whole Foods shopper, you get 5% there too.

Amazon credit cards are like Prime Day deals — they provide great value if you're getting something that you actually need. To help you find the right card for your needs, we'll explore six Amazon credit cards and discuss how each one can help you maximize rewards and finance your purchases.

If you're an Amazon Prime member and frequently shop on Amazon or at Whole Foods, consider adding an Amazon credit card to your wallet. Cards like the Prime Visa and Amazon Store Credit Card offer up to 5% cash back on your Amazon purchases, which can lead to significant savings over time.

For non-Prime members, Amazon credit cards still offer competitive rewards for no annual fee, making them a good choice for regular Amazon shoppers. The added benefits of special financing options can also help manage larger purchases without incurring interest.

However, if you don’t shop on Amazon often, you might not fully benefit from these cards' rewards and perks. In such cases, a general cash back card might serve you better, providing more flexibility in earning and redeeming rewards.

Choosing the right Amazon credit card can significantly boost your savings and rewards. For many of these cards, your willingness to be a Prime member is a major consideration, which typically costs $139 per year. Here are the key features of each to help you find the best fit.

The Prime Visa is an excellent choice for Amazon Prime members who frequently shop on Amazon and at Whole Foods, offering 5% back on these purchases. If you spend at least $2,800 annually from these stores, the cash back you earn from these two vendors alone can offset the cost of your Prime membership. The card also provides 2% back at restaurants, gas stations and local transit. All other purchases get 1%.

The Amazon Visa is a great option for those who shop regularly on Amazon but don’t want to commit to a Prime membership. It offers 3% cash back on Amazon and Whole Foods purchases, 2% at restaurants, gas stations and local transit and 1% back on other purchases. This card provides high cash back on common spending categories without a Prime subscription. However, its rewards rate is lower than the Prime Visa.

The Amazon Store Credit Card is tailored for shoppers who make large purchases on Amazon and want to pay over time without interest. It lets you take advantage of various special financing options, including 0% APR or deferred interest on your purchases. This card doesn’t require a Prime membership, but you can earn 5% cash back on Amazon purchases if you’re a Prime member. However, it’s a closed-loop card, meaning you can only use it on Amazon, limiting its versatility.

The Amazon Secured Card is another closed-loop card that requires a security deposit. It’s accessible to consumers with lower credit scores and doesn’t require a Prime membership. Still, Prime members earn 2% back on Amazon purchases. Because you can only use this card on Amazon, it’s not the best option if you’re building or rebuilding your credit.

The Amazon Business Prime American Express Card is great for small-business owners who are Amazon Prime members. It offers 5% back on U.S. purchases at Amazon Business, AWS, Amazon and Whole Foods for up to $120,000 annually. If you’re able to hit this cap, you can earn up to $6,000 in cash back per year. Alternatively, you can get 90-day financing on your purchases instead of receiving cash back. If your business has significant Amazon expenses, the cash back you earn can offset your Prime membership and add up over time.

The Amazon Business American Express Card is suitable for business owners who don’t have a Prime membership. It offers 3% back on U.S. purchases at Amazon Business, AWS, Amazon and Whole Foods, up to $120,000 annually, or the option of 60-day financing. This card provides good cash back for business purchases on Amazon without a Prime subscription. However, the 2% difference in cash back from its Business Prime version can amount to up to $2,400 in lost rewards.

Understanding the benefits and drawbacks of Amazon credit cards can help you decide if they’re right for your spending habits and financial goals. Here’s a breakdown of the key advantages and disadvantages.

You can use the Prime Visa, Amazon Visa, Amazon Business Prime American Express Card and Amazon Business American Express Card anywhere Visa or American Express is accepted. This means you can use these cards for purchases at millions of locations worldwide, from grocery stores to online retailers.

Meanwhile, you can only use the Amazon Store Credit Card and Amazon Secured Card for purchases on Amazon and at Amazon-owned businesses. These cards are ideal for those who primarily shop on Amazon and want to take advantage of special financing options. However, their usage is limited to the Amazon ecosystem, which may not be suitable for those who need a card for broader spending needs.

Deciding whether to get an Amazon card depends on your shopping habits and financial goals. If you're a frequent Amazon shopper, especially if you’re a Prime member, the cash back can be substantial. Earning 5% back on Amazon and Whole Foods purchases can quickly add up, even if you factor in the cost of a Prime membership. For non-Prime members, the Amazon Visa still offers good cash back without the commitment of a Prime subscription or an annual fee.

However, just be mindful that the Amazon Store Credit Card and Amazon Secured Card are closed-loop cards, so you can only use them on Amazon purchases.

Ultimately, your decision should depend on how often you shop at Amazon and whether you can maximize the card's rewards and benefits.

You may have a few questions if you're considering an Amazon credit card. Here are some answers to common inquiries to help you determine if an Amazon card is the right choice for you.