An Amazon credit card makes sense only if you spend enough on Amazon to offset the annual fee, or if you shop there regularly and want the rewards
Amazon offers two credit cards: the Amazon Prime Rewards Visa Signature Card (with a $139 annual fee) and the Amazon Prime Store Card (no annual fee, but rewards only on Amazon purchases). The Prime Rewards card gives you 5% back on Amazon and Whole Foods purchases if you are a Prime member, 2% at restaurants and gas stations, and 1% everywhere else. The Store Card gives 5% back on Amazon purchases but cannot be used anywhere else. Neither card is worth carrying if you do not spend enough to earn back the annual fee in rewards, or if you rarely shop on Amazon.
The real question is whether the rewards you earn exceed what you would pay in fees, and whether the card's restrictions fit how you actually spend money. This article walks through the math, the account mechanics, and what happens if you close the card later.
Key Takeaways
- The Amazon Prime Rewards card charges $139 per year and requires an active Prime membership; you need to spend roughly $2,800 annually on Amazon alone to break even on the fee.
- The Amazon Prime Store Card has no annual fee but only works on Amazon.com and Whole Foods purchases, making it useful only if you shop there regularly.
- Both cards report to the three major credit bureaus and affect your credit score through hard inquiries, credit utilization, and payment history.
- Closing an Amazon credit card does not immediately erase it from your credit report; the account stays visible for up to ten years, which can affect your credit mix and average account age.
- Amazon credit cards have no foreign transaction fees, but rewards do not apply to third-party seller purchases on Amazon unless you use the Store Card.
The Math: When the Annual Fee Pays for Itself
The Amazon Prime Rewards card costs $139 per year. To break even, you need to earn $139 in rewards. At 5% back on Amazon purchases, that means spending $2,800 per year on Amazon alone—about $233 per month. If you also earn 2% at gas stations and restaurants, the break-even point drops, but only slightly. Most households do not spend that much on Amazon every month.
The Amazon Prime Store Card has no annual fee, so there is no break-even calculation. You earn 5% back on every Amazon purchase you make. However, the card only works on Amazon.com and Whole Foods, so it is useful only if those are places you shop regularly. If you use it once or twice a year, the card is not worth the space in your wallet.
To decide, add up what you spent on Amazon in the last twelve months. If it is less than $2,800, the Prime Rewards card will cost you money. If it is more, the card may be worth it—but only if you also use the 2% and 1% categories enough to offset the fee further.
How the Application and Account Setup Work
Applying for either Amazon credit card triggers a hard inquiry on your credit report. This lowers your credit score by a few points temporarily, usually for three to six months. The inquiry stays on your report for two years but stops affecting your score after about six months. If you are planning to apply for a mortgage or car loan soon, wait until after that application is complete.
Once approved, the card issuer (Chase, for the Prime Rewards card; Synchrony, for the Store Card) opens an account in your name and reports it to Equifax, Experian, and TransUnion. Your credit utilization—the percentage of your credit limit you are using—affects your score. If you max out the card, your score drops. If you keep the balance below 30% of your limit, the impact is minimal.
You can manage the account online through the card issuer's website or app. Statements arrive monthly, and you can set up automatic payments to avoid missing a due date. Missing a payment triggers a late fee (usually $25 to $35 for the first offense) and reports the missed payment to the credit bureaus, which damages your score for seven years.
Rewards, Restrictions, and What You Actually Earn
The Amazon Prime Rewards card earns 5% back on Amazon.com and Whole Foods purchases only if you have an active Prime membership. Without Prime, you earn 1% on Amazon purchases. The 2% category covers restaurants, gas stations, and transit (including taxis and rideshare). The 1% category covers everything else. Rewards post to your account as Amazon.com credit, which you can use to buy anything on the site.
The Amazon Prime Store Card earns 5% back on Amazon.com purchases and Whole Foods purchases, but only if you are a Prime member. Without Prime, you earn 3% back. The card cannot be used anywhere else, so there are no other reward categories. Rewards also post as Amazon.com credit.
Neither card earns rewards on purchases from third-party sellers on Amazon unless the purchase is processed through Amazon Payments. If you buy from a seller who handles payment directly, the purchase does not earn rewards. This is a common source of confusion and lost rewards.
Interest, Fees, and What Happens If You Carry a Balance
Both Amazon credit cards charge variable interest rates, meaning the rate changes based on market conditions. As of early 2024, rates typically range from 18% to 27% APR, depending on your creditworthiness. If you carry a balance from month to month, interest accrues daily on the unpaid amount. A $1,000 balance at 22% APR costs about $18.33 per month in interest alone.
The Prime Rewards card charges a $139 annual fee, billed on your statement once per year. Some cardholders receive a statement credit or bonus after meeting spending thresholds, but this is not may provide and varies by promotion. The Store Card has no annual fee. Both cards charge late fees ($25 to $35 for the first late payment, up to $39 for subsequent ones within six months) and foreign transaction fees do not apply.
If you plan to carry a balance, the rewards you earn will not offset the interest you pay. A 5% reward on a $2,800 annual Amazon spend is $140. Interest on a $2,800 balance at 22% APR is about $616 per year. The card only makes financial sense if you pay the full balance every month.
How Closing the Card Affects Your Credit
Closing an Amazon credit card does not immediately remove it from your credit report. The account stays visible for up to ten years, even after it is closed. During that time, it still affects your credit score in two ways: it reduces your total available credit (which raises your utilization ratio on other cards), and it may lower your average account age if the card was one of your oldest accounts.
If you close the card and then apply for a mortgage or car loan within a few months, the lender may see the closed account and lower your score slightly. The impact is usually small—five to ten points—but it can matter if your score is already borderline. If you want to close the card, do it at least six months before applying for major credit.
To close the account, call the card issuer's customer service number (on the back of your card) and ask to close the account. They may offer you a retention bonus or waived annual fee to keep it open. If you decline, the account closes within one to two business days. You can still use the card to make purchases until the issuer confirms the closure, but no new charges will post after the closure date.
Comparing the Two Amazon Cards and Alternatives
The Prime Rewards card is better if you spend money in multiple categories—Amazon, gas, restaurants, and other places. The $139 annual fee is worth it only if you spend enough to earn it back. The Store Card is better if you shop exclusively on Amazon and Whole Foods and want to avoid an annual fee. Neither card is better than a general-purpose rewards card (like the Chase Sapphire Preferred or Capital One Venture X) unless you spend heavily on Amazon.
If you do not have Prime, the Prime Rewards card is not worth it. You earn only 1% on Amazon purchases, which does not offset the $139 annual fee. The Store Card is also less valuable without Prime (3% instead of 5%), but it still has no annual fee, so it costs nothing to carry.
If you shop on Amazon occasionally but not regularly, a general-purpose cash-back card (like the Chase Freedom Unlimited or Citi Double Cash) will earn you more rewards across all your spending. These cards typically earn 1.5% to 2% back on everything, which is better than the 1% Amazon offers outside of its bonus categories.
What Happens to Your Account If You Stop Using It
If you open an Amazon credit card and never use it, the issuer may close the account for inactivity. This usually happens after six to twelve months of no purchases. When the issuer closes an inactive account, it reports the closure to the credit bureaus, which can lower your score slightly (for the same reasons as closing it yourself). To keep the account open, use it at least once every six months, even if it is just a small purchase.
If you have a balance on the card when the issuer closes it, you still owe the balance and must continue making payments. The interest rate does not change, and late fees still apply. The account remains on your credit report for up to ten years.
Frequently Asked Questions
Do I need Prime to get the Amazon credit card?
You do not need Prime to apply for either card, but the rewards are much lower without it. The Prime Rewards card earns 1% on Amazon purchases without Prime (instead of 5%), and the Store Card earns 3% (instead of 5%). If you do not have Prime, the Prime Rewards card is not worth the $139 annual fee.
Can I use the Store Card outside of Amazon?
No. The Amazon Prime Store Card only works on Amazon.com and Whole Foods purchases. It cannot be used at other retailers. If you need a card that works everywhere, the Prime Rewards card is the only Amazon option.
What happens to my rewards if I close the card?
Any rewards you have already earned stay in your Amazon account as credit and do not disappear when you close the card. You can use them to buy anything on Amazon.com at any time. New purchases after the card is closed do not earn rewards.
Does the annual fee get refunded if I close the card early?
No. Once the $139 annual fee is charged to your account, it is not refunded if you close the card within the same year. Some issuers offer a grace period (usually thirty days) to close the card and get the fee reversed, but this is not may provide. Check with the issuer before closing.
How does the Amazon credit card affect my credit score?
Opening the card triggers a hard inquiry, which lowers your score by a few points for three to six months. The new account also lowers your average account age, which can lower your score slightly. Over time, if you pay on time every month, the account helps your score by showing a history of on-time payments and keeping your utilization low.