The Amazon Credit Card – Is It A Good Deal?
Is it worth it?
I will be frank, I started this blog to share my frugal Amazon tips because I was up to my ears in college debt. I am apprehensive about credit cards because I don’t have great financial habits. I use a service called Ready For Zero to track my debt amounts and I pay off more than the minimum each month and watch my credit score like a hawk.
Amazon pushes their credit card all the time, how often have you guys seen advertisements like this on Amazon.com for their credit card?
If you have been on Amazon for a small piece of time they will offer you $40 in free credit for trying out their credit card. A couple months ago I was shocked to discover that in the place of that $40 credit was actually an offer for $70 credit! I am guessing they up the credit amount for people who have been customers for Amazon for quite some time.
Well, I couldn’t refuse, I ordered the card. Right away after the application had finished processing Amazon informed me that they had added my new card as the default form of payment.
The attraction to the Amazon gift card is not only the free Amazon Credit you get for having one, but that you get 3% back on all your Amazon purchases. Which is awesome if you put that discount on top of all the coupons, subscribe & save, price mistakes, deal of the day and upcoming lightning deals. Also, occasionally there are great promotions like this one (currently expired).
Here’s the bad: The APR is 22%. To put that in perspective my Wells Fargo Credit Card is APR 15%. If you leave a balance on this card for more than the grace period you will incur hefty charges on your balance. If you are good at paying your balance off quickly you during the grace period you will avoid these charges. To help me pay these quickly Ready For Zero actually yells at me if I have a balance on this card.
Why this card may not be for you: If you have bad credit, you plan to spend more than what’s in your checking account or you are bad at remembering to pay things then do not get this card. You can get lower rate credit cards from other banks. Also if you plan to buy a house or a car or something that a mortage or a loan depends on your credit score, don’t take the chance. I can’t say for sure what this will do for your credit when you apply for the card.
Why this card may be for you: The winter gift-giving holidays are coming and with that some AMAZING deals. If you are financially responsible then why not get an extra 3% off all those toys and luxury products? Over time, timely payments on the credit card will increase your credit score. (I currently have $71 worth of points to spend on Amazon too!)
I don’t make any kind of compensation on the Amazon Credit Card, in case you were wondering. I just wanted to present to you my Amazon Credit Card experience and show you that depending on how financially responsible you are, it might not be a bad thing to have in your wallet.
I got $70 free credit for getting the Amazon Credit Card, see how much Amazon is offering you here.
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