Amazon Prime credit card quandary

[Sojourner]

I know many here are Amazon Prime members and some have the Prime credit card that gives 5% back on AMZN purchases. Recently I've been thinking about applying for this card to get the $70 bonus gift card and the 5% ongoing rewards. But... I'm not sure.

If I had to guess, I'd say that my DGF and I spend roughly $2,000 a year on items purchased through Amazon. So, if we started using the Prime CC instead of our Citi DoubleCash CC that gives 2% cash back, we'd be netting an extra $60/year. That strikes me as possibly being in the "too little to even bother with" category. I could pretty easily make that much every single month by selling put options on, for example, an ETF I wouldn't mind picking up at a 10-15% discount. But, OTOH, $60/year would cover fully half the cost of being a Prime member... and getting Prime for $60/year seems like a great deal.

Not sure exactly what I'm asking for here, but I'd be interested in any thoughts, feedback, or opinions. Generally speaking, how do you determine whether a new CC is worth applying for, using, and keeping in your active CC lineup? Is there a lower threshold for sign-up bonus or ongoing cash back (or points, rewards, etc.) below which you wouldn't bother getting the card?

 

[Rianne]

I found CitiCard gives more points than the Amazon Chase card. I still use the Chase card so Jeff Bezos doesn’t get mad at me. OMG kidding. We have a AAA card too. Seems Citi beats them all. I can’t keep track of the %’s per grocery/gas but restaurants/travel/hotel points are pretty useless these days.

 

[audreyh1]

I enjoy our Amazon Prime store card and we spend a lot at Amazon, so that 5% rewards adds up to quite a bit each year. We have it applied as a credit each month.

 

[rodi]

I also have the amazon prime store card (not the visa card)... the 5% is awesome and painless. Since it's only used for amazon, it isn't a hassle at all.

 

[Aerides]

I have it. I shop on amazon enough that 5% is a no brainer. It also works at whole foods. I have it setup as the default card in my amazon account. Pain free, cost free, why not is the question.

 

[cathy63]

We have the Chase visa card. We originally got it to use on Amazon and to have as a second card for traveling internationally since there's no foreign transaction fee and previously we only had one of those. After we got it, our Costco visa also went to no foreign transaction fee, so now the Amazon card stays home and is only used at Amazon.

It's really pretty painless. The number is stored at Amazon. The card sits in a drawer and is setup to auto-pay from a checking account, so other than looking at transaction amounts when they download to Quicken, I don't pay much attention to it. We don't spend that much on it, but we do like Amazon Prime's various benefits, so the card just pays back a part of that annual fee.

One tiny issue with the Amazon card is that it's metal and there are some kiosks, especially in parking lots, that don't like the extra thickness.

 

[Dave J]

I also have the Amazon Prime(Chase) 5% card. At various times, Amazon has an extra % off with this card. Canon Camera and lens and Samsung phones have had some good extra discounts of 5,10 even 20% in the way of rewards(same as cash) . They have had others, but I never took advantage of any of them yet. This card also had a 4 month or so special of 5% on Utilities, Insurance, Fuel ect. I prepaid Electric, Sewer and water, Garbage, Car , Homeowners and Umbrella. Got 6 months worth of Shell gas cards. Netted quite a reward over my 2% card.

 

[Sojourner]

Pain free, cost free, why not is the question.

Yeah... "why not" is certainly a good question. Hoping this thread helps me figure out the answer.

I have it. I shop on amazon enough that 5% is a no brainer.

How much are you spending at Amazon such that 5% is a "no brainer"? For me, that would have to be more than $3,300 a year, so that I'd be getting at least $100 in cash back over what I'd otherwise get with my standard 2% cash back card.

 

[audreyh1]

Yeah... "why not" is certainly a good question. Hoping this thread helps me figure out the answer.



How much are you spending at Amazon such that 5% is a "no brainer"? For me, that would have to be more than $3,300 a year, so that I'd be getting at least $100 in cash back over what I'd otherwise get with my standard 2% cash back card.

You only have to sign up once, yet get rewards every year. There is no annual fee. Why are you comparing with a 2% card and looking at one year? Are you including the annual Amazon Prime fee in your calculations? The Prime fee is to cover free fast shipping, prime video, a few other perks - it's not a credit card annual fee.

If Amazon Prime isn't useful to you otherwise, well then maybe the store card isn't for you.

But many of us already had the Amazon Prime membership, and had the Amazon VISA from Chase (no annual fee) with 3% for Amazon Prime members, and switched to the Amazon Store card when they offered a cash reward of 5% for Prime members. It was a no brainer because the card itself has no annual fee.

Considering you've probably spent more effort thinking about it and posting and discussing your quandary here than it takes to sign up for the card, I'm not sure what your "is it worth bothering" level is.

 

[rk911]

... That strikes me as possibly being in the "too little to even bother with" category...

i think that sums it up quite nicely.

 

[Dean56]

I got myself the Amazon Prime Visa card 2 months ago and received a $100 gift card.
The 5% cash back on purchases is great.

 

[Accidental Retiree]

I just received an email from Navy Federal CU, saying that they’d rebate the Prime membership, new or renewal, if paid for by September 2021 with their Flagship Visa.

 

[Sunset]

I use my BOA credit card and get 5.25% back in cash at all online purchases.

 

[tb001]

I use my BOA credit card and get 5.25% back in cash at all online purchases.

Wow, that’s pretty good. Will look into that!

I was going to say why not. We buy a lot through amazon, especially now, and with no annual fee seems like an easy decision. Also have a few other store cards that come with significant discounts. In my mind it’s free money for almost no effort, as long as you set up autopay.

 

[Sunset]

Wow, that’s pretty good. Will look into that!

I was going to say why not. We buy a lot through amazon, especially now, and with no annual fee seems like an easy decision. Also have a few other store cards that come with significant discounts. In my mind it’s free money for almost no effort, as long as you set up autopay.

It's the Cash card, and you have to set online purchases as the 3% choice, then join their preferred rewards. If you have Merrill Lynch brokerage, then that counts to get top tier in the preferred rewards.

The preferred rewards works on a number of their cards, so it also works on my travel cc from them.

 

[tb001]

It's the Cash card, and you have to set online purchases as the 3% choice, then join their preferred rewards. If you have Merrill Lynch brokerage, then that counts to get top tier in the preferred rewards.

The preferred rewards works on a number of their cards, so it also works on my travel cc from them.

That looks like a great deal! They don’t make it easy to decipher total cash back within the tiers, but it looks like the best I’ve seen so far, if a brokerage acct pushes you into the preferred tier. And easier than keeping track of several cards. I wonder if online ordered groceries count towards groceries or online orders?

 

[audreyh1]

It's the Cash card, and you have to set online purchases as the 3% choice, then join their preferred rewards. If you have Merrill Lynch brokerage, then that counts to get top tier in the preferred rewards.

The preferred rewards works on a number of their cards, so it also works on my travel cc from them.

I use the BofA credit card online purchases 3% choice for many online non-Amazon purchases mostly via PayPal.

I haven’t wanted to deal with setting up and maintaining the Merrill Lynch brokerage account, even though it would take only $100K invested to get much higher credit card rewards. In general the BofA cards aren’t used that much. I’m sure that would change around a lot if I had the account, but right now we already have 3% cash on most travel and dining with no foreign transaction fees, 5% on gas, 3% on most online purchases, 5% on Amazon purchases, 6% on grocery stores and 2% on everything else.

 

[audreyh1]

That looks like a great deal! They don’t make it easy to decipher total cash back within the tiers, but it looks like the best I’ve seen so far, if a brokerage acct pushes you into the preferred tier. And easier than keeping track of several cards. I wonder if online ordered groceries count towards groceries or online orders?

Online groceries count as online purchases. I’ve ordered from several online gourmet food suppliers including wine via PayPal using the BofA cash rewards card, and they all come in as online purchase with 3% cash rewards.

If you ordered online from your regular grocery store, I don’t know how that would work. I noticed that one online purchase directly from the online Apple Store did not get the online purchase award, so it may be tricky if there is a large retail presence for the business.

 

[Golden sunsets]

I use my BOA credit card and get 5.25% back in cash at all online purchases.

Ditto. We do that too, but I just changed (temporarily) my 5.25% category from on line to home improvement for a $2700 downpayment on a generator. The limit on that 5.25% is $2500 quarterly, so it might make sense for us to get the Amazon card too as the new quarter which starts 10/1, will start a quarter in which we pay the final balance and thus not accumulate the 5.25 points per dollar for online until 2021. Thinking on it.....

 

[Golden sunsets]

General question on the Amazon card. What credit line amount are they extending to folks?

 

[audreyh1]

General question on the Amazon card. What credit line amount are they extending to folks?

Low. Mine may only be $3000. I rarely go above $1000. Only use it for Amazon purchases.

 

[Aerides]

You only have to sign up once, yet get rewards every year. There is no annual fee. Why are you comparing with a 2% card and looking at one year? Are you including the annual Amazon Prime fee in your calculations? The Prime fee is to cover free fast shipping, prime video, a few other perks - it's not a credit card annual fee.

Exactly. It took me all of 10 mins to apply and setup, DH did the same, there were instant rewards at the time which put something like $170 in gift cards in my account. It tied immediately to my amazon shopping, I set it as default, and it's Chase so I linked it in my bank account to auto pay.

i don't know how much I spend there each year, but I do have a lot of staples via subscribe/save delivered monthly, and use Prime. I shop around, and I'm well aware amazon is often not the best price, but when they are, it's pretty good. I don't go to WF often, but when I do the 5% there is nice too.

The "base" card gave me a lower limit (that's the 3% one) but after you get that approved you go on to step 2 for the Signature card, and that I got 10k for. Meaningless really because I never spend much there in a month.

 

[audreyh1]

The Amazon Store card is issued by Synchrony bank. The Chase Amazon VISA later stepped up their game to also offer 5% off to Amazon Prime members.

 

[Chuckanut]

You only have to sign up once, yet get rewards every year. There is no annual fee. Why are you comparing with a 2% card and looking at one year? Are you including the annual Amazon Prime fee in your calculations? The Prime fee is to cover free fast shipping, prime video, a few other perks - it's not a credit card annual fee.

Good points.

Plus, if one does not sign up for Prime the Amazon CC still gives 3% back, IIRC.

 

[bada bing]

One trick I use to optimize rewards is to use gifts cards. I have a Blue Cash Preferred Amex that pays 6% for grocery store purchases. I buy Amazon, Ebay and gasoline gift cards when anticipating a bigger purchase to net the 6% "grocery" category rewards. I have thought about getting an Amazon card, but I like keeping my credit card count down to 3.