If you're considering applying for a credit card, you're likely weighing your options between a Prime Visa and a store card. A Prime Visa is a type of credit card issued by a bank, offering a range of benefits and rewards.
Store cards, on the other hand, are issued by individual retailers and can only be used for purchases at that specific store. You can earn rewards points or discounts on purchases made with a store card, but the benefits are generally limited to that one retailer.
The interest rates on store cards can be higher than those on Prime Visas, making it essential to carefully review the terms and conditions before applying. In contrast, Prime Visas often have more flexible payment options and lower interest rates.
Take a look at this: Applying for Store Credit Cards
Key Differences
The Amazon Prime Visa and Store Card differ mainly in their rewards and usage. The Amazon Prime Visa is an open-loop card, meaning you can use it at more than just Amazon.
You can only use the Amazon Prime Store Card on Amazon-related purchases. This limits its versatility compared to the Visa.
The Amazon Prime Visa earns 5% back on Amazon and Chase Travel purchases, which is higher than the 3% earned by the Amazon Visa in these areas. However, the Amazon Visa has no annual fee and no membership requirement.
To break even with the cost of the $139 annual Prime membership, you'd need to spend $2,780 a year in one or more of the Prime Card's 5% categories. This calculation can help you decide which card is a better fit for your spending habits.
For more insights, see: Visa Credit Cards for No Credit
Rewards and Benefits
The Amazon Prime Visa offers a 5% rewards rate on Amazon.com, Amazon Fresh, Whole Foods Market, and Chase Travel℠ purchases with an eligible Prime membership. This rate is tied with the Amazon Prime Store Card, but the Visa card offers more redemption options.
You can earn 2% back on gas stations, restaurants, and local transit and commuting, including rideshare, with the Prime Visa. This makes it a great option for those who frequently use these services.
On a similar theme: Libor Rate vs Prime Rate
The Amazon Prime Visa also offers 1% back on all other purchases, giving you a consistent rewards rate across the board.
The Amazon Prime Store Card, on the other hand, offers zero fraud liability and promotional financing offers, including a 0% APR and special financing over a period of six, 12 or 24 months.
Here's a comparison of the two cards' rewards rates, based on a moderate Amazon shopper with well-rounded spending habits:
The Prime Visa rewards points have a redemption value of 100 points being worth $1, giving you a more substantial points balance on your account.
Requirements and Eligibility
To qualify for the Prime Visa, you'll typically need a good credit score, but the exact requirements aren't specified.
The Amazon Store Card, on the other hand, might be more accessible to those with credit challenges, as it can be approved with a fair credit score (580 to 669).
Recommended Credit Score
Qualifying for some credit cards might be easier than you think, even with fair credit. You can qualify for Synchrony's Amazon Store Card with a credit score between 580 to 669.
A fair credit score is a great starting point for building credit, and it's not as low as you might think.
Consider reading: Visa Cards for Fair Credit
Ineligible Visa Applicants
If you rarely shop with Amazon, you're better off with a card that earns high rewards in the areas where you spend the most. You're likely to find greater value in a card that earns high rewards on grocery shopping in general, freeing you up to shop at other food stores, like Whole Foods.
Shopping habits are a key factor in determining eligibility for the Prime Visa. If you don't shop with Amazon, you're not likely to get much value from this card.
Even if you spend a lot on Whole Foods shopping without any Amazon orders, you're still likely to find greater value in a card that earns high rewards on grocery shopping in general.
Worth a look: Grocery Credit Cards
Earning and Redemption
The Amazon Prime Visa and Store Card are both great options for earning rewards, but they have some key differences. The card that earns the most will depend on your spending habits, but the Amazon Prime Visa offers more flexible redemption options.
You can earn rewards on a wide range of purchases with the Amazon Prime Visa, including restaurants, gas stations, and local transit. The card earns 5% back on Amazon.com, Amazon Fresh, Whole Foods Market, and Chase Travel℠ purchases, 2% back at gas stations, restaurants, and local transit, and 1% back on all other purchases.
Here's a breakdown of the rewards earnings for a moderate Amazon shopper with well-rounded spending habits:
The Prime Visa rewards points have a redemption value of 100 points being worth $1, making the redemption process relatively simple. You can also use your rewards points to redeem a one-time statement credit, automatic statement credit at the end of each billing cycle, or on eligible Amazon.com purchases with the closed-loop Amazon Prime Store Card.
Membership
Amazon Prime is a full-fledged membership program that offers subscribers a variety of additional services, privileges, and media content for an annual or monthly fee.
Obtaining an Amazon Store Credit Card does not automatically give you a Prime subscription, but if you become a Prime member after applying for the card, it will be upgraded immediately.
The Amazon Prime Store Card is a great choice for those who frequently shop online on this e-commerce platform.
If you're a Prime member and have a good to excellent credit score, you may also qualify for a Prime Visa Card, which offers better terms, larger welcome bonus, and higher rewards rates on Amazon purchases.
Exploring Alternatives
If you're not sold on the Amazon Store Card, there are other options worth considering.
The Prime Visa has no annual fee and requires a Prime membership, earning 5% back at Amazon, Whole Foods and Chase Travel℠; 2% back at gas stations, restaurants and local commuting; and 1% on all other purchases.
Intriguing read: Cash Back Card vs Travel Card
If you want more rewards beyond Amazon, the Prime Visa is a solid choice.
The Blue Cash Everyday Card from American Express has no annual fee and earns 3% cash back on U.S. online retail purchases, with a cap of $6,000 annually.
For online shopping rewards, the Blue Cash Everyday Card is a great alternative.
The Citi Double Cash Card has no annual fee and earns 2% cash back on all eligible purchases, with no caps or restrictions.
If you want the simplicity of earning 2% back on everything, the Citi Double Cash Card is a straightforward option.
Here's a quick comparison of these alternatives:
Decision and Considerations
The decision between the Prime Visa and the Store Card comes down to how you plan to use it. If you want a card to finance purchases only on Amazon, the Prime Store Card or Amazon.com Store Card might be the way to go.
You can use these cards to finance purchases on Amazon, but that's it. If you want a card that can be used anywhere, consider your Amazon Prime membership status.
If you're an Amazon Prime member, the Amazon Prime Visa is a smart choice. It earns high rewards, especially if Amazon spending is a big part of your budget.
You can easily upgrade your Amazon Rewards Visa Signature Card to the higher 5% back rate if you become an Amazon Prime member. Just log into your account, click on Manage Payment Options, and follow the prompts.
Frequently Asked Questions
Can I use my Amazon Prime card as a regular credit card?
Yes, you can use your Amazon Prime card as a regular credit card, accepted anywhere Visa is accepted. It's a general use credit card with no annual fee, offering rewards on everyday purchases.
Does the Prime store card build credit?
The Amazon Prime Secured Card reports to all three credit bureaus, helping to build your credit score over time. Upgrading to the Store Card after 12 months of responsible use can also boost your credit score.
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