Credit Cards

Amazon Credit Card Review: A Look at the Pros and Cons

amazon-rewards-visa-cardAs a retailer with some of the highest online sales in the world for a number of years, it only makes sense that Amazon.com has a credit card with a rewards program that loyal customers may want to consider. Like any credit card, the Amazon.com Chase Rewards Visa has a number of pros and cons that any consumer should review before making a decision if this is the right card for you.

Pros

At the top of the list of positive things about this card is that there is no annual fee and no fee if you go over the allotted credit limit associated with the card. Many of us are so used to relying on a card instead of carrying cash that we use it often, even for small amounts. If a customer makes a mistake and accidentally keeps charging purchases after the credit limit has been maxed out, over-the-limit fees can really add up quickly.

The Amazon.com Rewards Visa also offers a percentage back on every single purchase. The amount will vary depending on where the purchase is made. This amount will vary between: 3% back at Amazon.com, 2% at gas stations (along with restaurants and drug stores), and then 1% everywhere else. What’s unique about these rewards is that you can save them up for a big purchase on Amazon’s website, or use them in smaller amounts to save a few dollars off of an Amazon purchase.

Last, but definitely not least on the positive features of this card is that Amazon.com will deposit $30 into your Amazon.com account once the credit card application is approved. A free credit in the household Amazon account certainly increases the temptation a bit!

Cons

Of course, it’s not guaranteed to be all sunshine and rainbows for every customer who looks at the terms and conditions of this card. Like many other credit cards on the market right now, there’s a laundry list of fees that you may notice on your monthly statement. Depending on your personal credit needs, they may be a deal-breaker.

First of all, there’s no “zero APR on balance transfers” over here on this card. Anything that you transfer to this card from somewhere else is subject to either a fee of $5 or 3% of “each” transfer (whichever is greater). It’s not huge, but it’s not zero either. But – that’s just for the transfer. Once you have the balance on your Amazon.com card, you’re looking at some hefty APR charges to carry it there (again – no 0% grace period). If you decide you need some cash and use the Amazon.com Rewards Visa for a cash advance you will be looking at a $10 or 5% fee (whichever is greater.

Now, take a look at the APR advertised with this card. There are some pretty significant numbers there. First off, the APR on purchases ranges between 14.24%-22.24%. That’s not the best on the market, but it’s not the worst either. Also, the APR on balance transfers, cash advances, penalties, and overdraft amounts will vary between 14.24%-29.99%. All of those details are further spelled out in the fine print that everyone should really look at before making a decision on this card.

The free Amazon.com credit upon approval, unique rewards program, and no annual fee are all great features of the card. Are those positive features enough to offset the higher APR and fees on certain transactions? Depending on how you shop, how you manage your credit, and what features you are looking for in a card, only you can decide if this is the right choice for your personal needs. It’s not the best card on the market, but it’s certainly not the worst.

One Comment

  1. This might sound wrong, but lets say i order the card for the discount of $50 it offers on a purchase and then i decide never to use it again, is there a backfire on that???

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