Amazon.com is known for low prices and immense selection, and its new Amazon.com Store Card gives consumers yet another reason to shop there often — 5% back and 0% financing on big purchases.
The company launched the card in early 2015 without fanfare, offering its most loyal shoppers big rewards. Let’s take a look at what the new card offers and how it stacks up against other Amazon-friendly credit cards.
Amazon.com Store Card: Get 5% back and special financing
If you shop at Amazon often, you’ll probably get some great value out of the Amazon.com Store Card. Issued by Synchrony Bank, the card offers unlimited 5% back on Amazon purchases or special financing, depending on the price:
- Earn 5% back on Amazon purchases under $149
- Choose between 5% back or six months of 0% financing on Amazon purchases of $149 or more
- Choose between 5% back or 12 months of 0% financing on Amazon purchases of $599 or more
- Receive 24-month 0% financing on select items sold by Amazon
- Receive a 12-month equal pay offer during eligible promotions: 0% financing until paid in full with 12 equal monthly payments
- 25.99% purchase APR
- No annual fee
Nerd note: The card’s special 0% financing deals operate with deferred interest, meaning that if you don’t pay the balance in full before the promotional period is over, you will be charged the interest you would have incurred from the purchase date.
So what’s the catch? The Amazon Store Card is available only to Prime subscribers. Prime costs $99 a year and includes several benefits, including free 2-day shipping on eligible items, Prime Instant Video, Prime Music and a Kindle lending library. To make up for the Prime subscription cost, you would need to spend $1,980 on the card each year.
Another thing to consider: As a store card, it can be used only at Amazon. So although it’s hard to beat unlimited 5% back and 0% financing on large purchases, there are some other options for Amazon shoppers.
Looking for other credit cards that offer 5% back? Check out NerdWallet’s Best Cash-Back Credit Cards.
Amazon.com Store Card vs. alternatives
Amazon Credit Card
If you’re interested in a credit card you can use anywhere, look no further than Amazon itself. The Amazon Credit Card offers 3% back on Amazon purchases, 2% back at gas stations, restaurants and drugstores, and 1% back on everything else.
Although you won’t earn as much on Amazon purchases, the Amazon Credit Card doesn’t require you to be a Prime member, and you can use it anywhere. The card also comes with a sign-up bonus: As of September 2015, you’ll get a $30 Amazon gift card upon approval for the card — or a $70 gift card if you’re already a Prime member. The Amazon Credit Card’s annual fee is $0.
Sallie Mae MasterCard
If you’re not sure the Amazon Credit Card’s terms are enough to forgo the Amazon.com Store Card’s 5% rewards rate, check out the Sallie Mae MasterCard. You’ll earn 5% cash back on the first $250 spent per month on gas and groceries each and the first $750 spent per month on eligible book purchases, and 1% on all other purchases. Since Amazon is generally coded as a bookstore for credit card transactions, you’ll likely earn as much from the Sallie Mae MasterCard as you would from the Amazon.com Store Card, assuming you don’t spend more than $750 a month on the site. The card’s annual fee is $0.
The advantage the Amazon.com Store Card has over the Sallie Mae MasterCard is the special financing options. Most 0% APR cards offer special financing for only a certain period of time. The Amazon.com Store Card offers it again and again, making it a big saving opportunity.
Should you get the Amazon.com Store Card?
The Amazon.com Store Card is a must-have for Amazon Prime members, especially if you regularly buy big-ticket items and want to take advantage of the special financing. The unlimited 5% rewards rate is also hard to beat. But if you aren’t interested in the special financing and you want a card that can be used anywhere, the Sallie Mae MasterCard is a great alternative.
Ben Luthi is a staff writer at NerdWallet, a personal finance website. Email: bluthi@nerdwallet.com. Twitter: @benluthi.
Image via iStock.
from NerdWallet Credit Card Blog
http://www.nerdwallet.com/blog/credit-cards/amazon-store-card/
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