Is Amazon a Good Credit Card: Why Most People Waste Their Rewards

You're standing at the digital checkout, looking at a cart full of household basics and maybe a "treat yourself" gadget you definitely don't need. A little box pops up: "Get $150 off instantly." It's tempting. It's almost aggressive.

But is amazon a good credit card once that initial sugar rush of a gift card wears off?

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The short answer is yes, but only if you’re already a Prime loyalist. If you aren’t, or if you have a habit of carrying a balance, this card can actually be a financial trap. It’s a polarizing piece of plastic (well, metal, actually). Some people swear it's the best thing in their wallet, while others get burned by the high interest rates that kick in the second you miss a full payment.

The Two-Card Confusion

Most people think there is just "the Amazon card." There aren't. There are actually two main ones issued for personal use, and getting them confused is your first mistake.

First, there is the Prime Visa, issued by Chase. This is the heavy hitter. It’s a "real" credit card you can use at a gas station in the middle of nowhere or a bistro in Paris. It’s made of metal, feels fancy, and offers the famous 5% back.

Then there is the Amazon Store Card, issued by Synchrony Bank. This one is a "closed-loop" card. That’s bank-speak for "you can only use this on Amazon.com and at retailers that accept Amazon Pay." It often has lower credit score requirements, making it the "starter" version for people rebuilding their credit.

Why the Prime Visa Might Be Your Best Move

If you’re already paying for Prime, the Prime Visa is essentially a "no-brainer" for one reason: it has no annual fee beyond the membership you’re already paying for.

Honestly, the rewards are hard to beat for a $0-fee card. You get:

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• 5% back at Amazon.com, Amazon Fresh, and Whole Foods.
• 5% back on travel booked through the Chase Travel portal.
• 2% back at restaurants and gas stations.
• 2% back on local transit and commuting (including Uber and Lyft).
• 1% back on everything else.

Compare that to a standard "good" cash-back card like the Citi Double Cash, which gives you 2% on everything. If you spend $500 a month on Amazon and Whole Foods, that’s $300 a year in rewards just from those categories. That pays for your Prime membership and then some.

The "Interest Trap" Nobody Mentions

Here is the catch. And it’s a big one.

The APR on these cards is usually north of 18%, and for many users, it hits closer to 27.49%. If you carry even a $1,000 balance from one month to the next, the interest you pay will completely wipe out every single cent of cash back you earned.

You’re basically trading 5% rewards for 27% debt. That’s bad math.

There’s also something called "trailing interest." I've seen people get furious about this on Reddit. If you don't pay your entire statement balance by the due date, you lose your grace period. This means you start accruing interest on new purchases the very day you make them. It takes two full billing cycles of paying in full to get that grace period back.

Is Amazon a Good Credit Card if You Shop Elsewhere?

If you spend most of your money at Target, Walmart, or local boutiques, this card is actually kind of mediocre.

Why? Because the 1% "everything else" category is the bare minimum. You can find plenty of cards that offer 1.5% or 2% on every single purchase.

Also, the rewards are "stuck" in the Amazon ecosystem if you aren't careful. While the Chase version lets you redeem for a statement credit or travel, most people just click "Use points" at the Amazon checkout.

Pro Tip: Never use your points directly at the Amazon checkout. When you use points to buy an item, you don't earn the 5% back on that purchase. If you pay with the card (earning 5%) and then use your points as a statement credit to "pay yourself back," you’re essentially double-dipping. It's a small optimization, but it adds up.

The Store Card vs. The Visa: A Nuanced Choice

Sometimes the Synchrony Store Card is actually better for one specific reason: Promotional Financing.

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The Chase Visa is all about cash back. The Store Card, however, often gives you a choice at checkout: take the 5% back or take 6 to 24 months of 0% interest financing on larger purchases (usually $150 or more).

If you're buying a $2,000 MacBook and want to spread the cost over a year without paying a dime in interest, the Store Card is the winner. Just keep in mind that if you don't pay it off in full by the end of that promo period, they might hit you with "deferred interest." That means they charge you interest on the original $2,000, not just what's left. It's brutal.

Hidden Perks You’re Probably Ignoring

If you have the Prime Visa, you have a Visa Signature card. That comes with "grown-up" benefits most people don't realize they have:

1. Extended Warranty: It can add an extra year to a manufacturer's warranty.
2. Purchase Protection: If your new phone gets stolen or damaged within 120 days, they might cover it.
3. No Foreign Transaction Fees: This is huge for travelers. Most "basic" cards charge 3% when you spend money outside the US. This one doesn't.
4. Travel Protections: It includes baggage delay insurance and lost luggage reimbursement.

The Verdict: Should You Apply?

The reality is that is amazon a good credit card depends entirely on your discipline.

If you pay your bill in full every month and you’re a Prime member, it is arguably the most powerful "retail" card on the market. The 5% rate is essentially a permanent discount on the world's largest store.

However, if your credit score is below 670, you'll likely be denied for the Chase Visa and pushed toward the Store Card. And if you have a history of credit card debt, the high APR and the constant "Buy Now" temptation of Amazon make this card dangerous.

Actionable Next Steps

1. Check your 5/24 status: Chase (the issuer of the Prime Visa) usually won't approve you if you've opened more than 5 credit cards in the last 24 months.
2. Look at your spending: Check your Amazon "Order History" for the last 12 months. If you spent less than $2,800, a different flat-rate 2% card might actually serve you better.
3. Set up Auto-Pay: If you get the card, immediately set it to "Pay Statement Balance in Full." This card's interest rate is too high to play games with.
4. Check the current bonus: Amazon often raises the sign-up gift card from $100 to $200 around Prime Day or Black Friday. If it's currently low, wait a month.