There are two Amazon Prime credit cards: the Prime Visa, which can be used anywhere Visa is accepted, and the Prime Store Card, which can be used only for purchases on Amazon. Both cards offer 5% rewards on all purchases on Amazon if you have an active Prime membership, a sign-up bonus for new cardholders, and special 0% APR financing on select purchases.
In general, the Prime Visa is the stronger credit card. The card is more versatile, offering 2% rewards at restaurants, gas stations, and transportation and commuting (including ride-sharing services). However, the Prime Store Card is the better option for some cardholders. If you’re not sure, here are two scenarios in which we recommend the Prime Store card over the Prime Visa:
1. Rebuild your credit score
Store credit cards usually have lower credit requirements than regular credit cards. This is in part because the cards aren’t accepted everywhere and they’re likely to have lower credit limits. Either way, store credit cards pose a slightly lower risk to card issuers, opening the door to applicants with any credit score.
If you can’t get a regular credit card, a rewards card could be the solution. Store credit cards aren’t accepted everywhere, but your payment activity is reported to the three major credit bureaus. This can help you rebuild your credit without having to turn to other, more expensive resources like credit-building loans. It also means that once your credit score improves, you can upgrade to a better credit card like Prime Visa.
Keep in mind, though, that store credit cards have higher APRs. For example, the Prime Store Card has a regular APR of 29.99%, while the Prime Visa has a variable APR of 20.49% to 29.24%. One possible way to get around this interest rate is to set up a special 0% loan. This means you won’t get a 5% bonus on your purchase (sorry), but the amount you can save with financing options could potentially outweigh the bonus you received.
2. If you want to limit your spending
Like other store cards, the Prime Store card has a lower spending limit than the Prime Visa. It’s also exclusive to Amazon purchases. If you want to stick to a strict budget, it might be worth it to get the Prime Store card with these extra safeguards built in.
But they are talking about Amazon here. You know, the place where you can buy practically anything. While the credit limit may not be as high as a regular credit card, you still need to be somewhat disciplined to avoid credit card debt. Built-in limits help you control your spending, but Amazon’s vast selection can still tempt you to overspend.
If you’re careful about how you spend on Amazon, the Prime Store Card can be a useful tool. With lower credit requirements, you may be able to get a credit card that helps you build or rebuild your credit. Plus, you can earn 5ck on your Amazon purchases to use toward future orders. The rewards aren’t as extensive as Prime Visa, but they can help you get approved for this credit card every time you shop on Amazon.