Does Applying For an Amazon Card Hurt Your Credit?
Does applying for an amazon card hurt your credit?
While it’s true that applying for a credit card can negatively impact your credit score, it’s a minor issue. The impact is short-lived, and your score should bounce back within a few months of responsible credit use.
There are several types of Amazon store cards that can help you save money on your purchases while also helping to build your credit. However, before you apply for an Amazon store card, it’s important to know your credit history and credit score to find the right match.
If you have a low credit score and want to rebuild your credit, it’s a good idea to start by getting a secured credit card with a lower starting credit line. This way, you can demonstrate that you have good payment habits and show that you’re working to rebuild your credit.
Synchrony Bank’s Amazon Secured Card is a great option for people with limited or no credit, as it only requires a small deposit (ranging from $100 to $1,000, in $50 increments) that doubles as your credit limit. After 12 months of responsible use, you may be able to convert to an Amazon store card or Amazon Rewards Visa with a higher credit line.
The Amazon Prime Rewards Visa is another popular choice among Prime members. It offers 5% cash back on all Amazon and Whole Foods Market purchases with eligible Prime membership. It also offers 2% back on qualifying purchases at restaurants, gas stations and drugstores.
You’ll need an active Prime membership to make eligible purchases with this card, so it’s best to join if you can afford the monthly fee. It also comes with helpful shopping benefits, like free shipping and returns.
Some Amazon cards are more lucrative than others, so you should compare the different options before making a decision. In general, the best Amazon cards are those that offer a strong rewards program and an easy-to-use credit card.
If you don’t have an active Prime membership, but would like to earn rewards on your Amazon purchases, the Standard Amazon Rewards Visa is a good choice. It offers 1% cash back on all other eligible purchases, as well as an unlimited 5% back at Amazon and Whole Foods Market, and a variable 3% bonus cash back on qualifying restaurant, gas station and drugstore purchases.
As with any other credit card, the best way to get the most out of your Amazon credit card is to make sure you pay your balance in full each month and never go over your limit. This way, you’ll avoid paying interest and won’t be tempted to make big purchases.
There are also a few other helpful Amazon credit cards, including the Prime Instant Credit Card, which can be used to pay for your next purchase. This card also offers a special financing period that charges no interest on eligible purchases for six, 12, or 24 months.
The Amazon Prime Visa Signature Card is also a good choice for Prime members who want to earn more cash back on their purchases. It offers a high 5% cash back on all Amazon and WholeFoods Market purchases with eligible Prime membership. This cash back is accrued as points, with one point equal to $0.01 cash back.