The Amazon Credit Card, issued by Chase Bank, is a popular credit card option for frequent Amazon shoppers. With its cashback rewards and other benefits, it’s no wonder that many people choose to use this card for their Amazon purchases. In this blog post, we will take a closer look at the Amazon Credit Card, including its benefits, drawbacks, and how it compares to other credit cards.

Benefits of the Amazon Credit Card

One of the main benefits of the Amazon Credit Card is its cashback rewards program. Cardholders can earn up to 5% cashback on Amazon purchases, as well as 2% cashback at gas stations, restaurants, and drugstores, and 1% cashback on all other purchases. This can add up to significant savings for frequent Amazon shoppers, as well as those who frequently dine out or purchase gasoline.

Another benefit of the Amazon Credit Card is its $50 Amazon gift card that is given to new cardholders upon approval. This can be a great way to start building up rewards quickly, especially for those who make regular Amazon purchases. In addition, the card has no annual fee, which can be a relief for those who are looking for a credit card without additional costs.

The Amazon Credit Card also offers special financing options for certain purchases made on Amazon. For example, cardholders can choose to finance larger purchases over 12 months with no interest. This can be a helpful option for those who are looking to make a larger purchase, but want to avoid paying interest fees over time.

Drawbacks of the Amazon Credit Card

One of the main drawbacks of the Amazon Credit Card is its high interest rate. The card’s APR can range from 14.24% to 22.24% depending on the cardholder’s creditworthiness. This can be a significant cost for those who carry a balance on their card, and can outweigh the benefits of the cashback rewards program.

Another drawback of the Amazon Credit Card is that the cashback rewards can only be used towards purchases made on Amazon. While this may not be a problem for frequent Amazon shoppers, it may not be as useful for those who do not make regular purchases on the site. In addition, the rewards can only be redeemed in increments of $1, which can be limiting for those who have a small balance of rewards.

Finally, the Amazon Credit Card does not offer any additional travel benefits, such as travel insurance or rental car insurance. This may be a drawback for those who frequently travel and are looking for a credit card that offers additional perks and benefits.

Comparison to Other Credit Cards

When compared to other credit cards, the Amazon Credit Card offers competitive rewards for Amazon purchases, but may not be as beneficial for other types of purchases. For example, the Chase Freedom Unlimited card offers 1.5% cashback on all purchases, with no limit on the amount of rewards that can be earned. This can be a better option for those who make a variety of purchases, rather than just Amazon purchases.

Another option is the Discover it Cash Back card, which offers 5% cashback on rotating categories, as well as 1% cashback on all other purchases. While the rewards may not be as consistent as the Amazon Credit Card, they can be more versatile and offer more opportunities to earn cashback on a variety of purchases.

Finally, the Citi Double Cash card offers 2% cashback on all purchases, with no limit on the amount of rewards that can be earned. This can be a good option for those who want a straightforward cashback rewards program without having to worry about rotating categories or spending limits.

Conclusion

Overall, the Amazon Credit Card can be a great option for frequent Amazon shoppers who want to earn cashback rewards on their purchases.