Best For Amazon Financing: It Depends
While both the Amazon store cards from Synchrony Bank and the Amazon Visa cards from Chase come with promotional offers for cardholders, the terms are slightly different.
If youre looking to pay off an Amazon purchase over time and are debating which route to go, you may need to choose between a longer financing period and a lower minimum purchase requirement .
Both cards let you choose between Equal Pay financing which charges no interest if you make your equal monthly installment payments on time and Special Financing which uses a deferred interest model.
While the difference is not dramatic, Synchronys Amazon store cards offer longer financing periods on Equal Pay purchases. With the store cards, you can get six, 12 or 24 months to pay off your minimum purchase of $150, $600 and $800, respectively. The Chase Amazon Visa cards, on the other hand, offer six-, 12- and 18-month financing plans on minimum purchases of $150, $250 and $500, respectively.
Keep in mind, the 25.99% variable APR on Synchronys Amazon store cards is fairly high compared to the average credit card interest rate and could come back to bite you if you opt for Special Financing.
See related: Can you transfer a store card balance to a credit card?
Drawbacks Of The Amazon Card
While Amazon’s new card overall is a good option for consumers, the card still comes with a relatively high APR of 28.24%, Rossman said.;The average median APR for retail cards is 25.64%, according to a CreditCards.com;survey.
Store cards typically charge higher rates in large part because they’re easier to get, Rossman;said.
Both analysts said consumers need to be especially wary of the special financing with deferred interest on purchases that Amazon promotes. If you don’t pay off the purchase before the promotional, no-interest period ends, you will owe back interest since the original purchase.
If you buy something and you don’t pay it off within that six months or 12 or 24 months, then you will likely get a bill for any interest that;would have accrued on that account since the purchase date, Schulz said.
Follow USA TODAY reporter Frances Yue;on Twitter
These Issuers Offer Pre
The only downside to getting pre-approved for a credit card is that you have to do it issuer by issuer. If you dont feel like doing that, you could check for pre-approval with one credit card company and then use the results to estimate your approval odds for cards from other issuers. For example, if you get pre-approved for a card that requires a minimum of good credit for approval, you should have a pretty good chance of getting other cards for people with good credit.
Alternatively, you can , and well give you personalized recommendations for credit cards with high approval odds. These recommendations are based on your credit history and financial goals as well as our analysis of WalletHub application and approval data.
Below, you can learn more about when hard and soft pulls are used for credit cards, including the case of credit limit increases.
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Do I Prequalify For A Credit Card
Most major credit card issuers offer pre-qualification for at least some of their cards. When you apply, the issuer will take other factors into account, including your income. Getting a yes during pre-qualification is a good sign, but theres still a chance it could turn into a no when you actually apply.
Terms And Conditions Of The Amazon Prime Rewards Signature Visa Card
The annual percentage rate on your card will depend on your . Theres no introductory APR. Expect a rate between 14.24% and 22.24%, but it will vary based on the prime rate. Balance transfers have the same APR as purchases instead of the higher one many cards impose.
Cash advances on the Amazon Prime Rewards Signature Visa have an interest rate of 24.99%. You have 21 days after the end of the billing cycle to pay the balance in full to avoid any interest charges. The late payment fee is up to $39,;depending on your card’s balance. Customers will pay $5 or 5% of the balance transfer amount, whichever is greater. Cash advances cost $10 or 5%, whichever is greater.
The card does not have an annual fee attached, but if you want the Amazon Prime Rewards Signature Visa, you will have to pay to be an Amazon Prime member, which costs $119 per year. You must be age 18 or older to apply for the card, and credit limits are based on the applicant’s credit.
|Amazon Prime Rewards Signature Visa|
|21 days after the end of the billing cycle|
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What Are The Benefits Of The Citi Premier Card
The Citi Premier® Card offers several benefits, including the ability to enjoy rewards through the ThankYou® Rewards program:
- 3X Points at Restaurants2
- 3X Points at Gas Stations2
- 3X Points on Air Travel and Hotels2
- 1X Point on All Other Purchases2
- Annual Hotel Savings Benefit2
Additional benefits of this popular travel credit card include no foreign transaction fees on purchases1, as well as easy points transfer to certain airline loyalty programs, including TrueBlue®, Virgin Atlantic Flying Club and Singapore Airlines KrisFlyer.
Here’s How You Can Request A Bank Of America Credit Limit Increase:
- Online: You can apply for a Bank of America credit limit increase by signing in to your online account. You’ll need to enroll in online banking if you haven’t already.
- You can also request a credit limit increase by calling customer service at .
- Frequency: You can request a credit limit increase every six months. But, unless there’s been a change in your financial circumstances, like a pay raise or a debt paid off, you’re unlikely to get one more than once a year.
Yes, a Chase credit limit increase will use a soft pull, but only if Chase offers it, not if you request it. If you ask for a higher spending limit, Chase will do a hard inquiry into your credit history, which will cause a temporary dip in your credit score. Chase basically needs to confirm that someone who asks for more spending power can handle it. But if Chase decides to increase your credit limit automatically, a hard pull won’t be necessary because cardholders must prove themselves by paying their bills on time for several months.
That said, you only need to worry about a hard inquiry if you’re planning to apply for a mortgage, auto loan or new credit card account in the next six months or so. And a higher spending limit can help you make important purchases or reduce your credit utilization and ultimately improve your credit score.
Read Also: Can I Get My Credit Card Debt Forgiven
Amazon Credit Cards: Key Differences
Amazon store cards issued by Synchrony Bank share some key features with the Amazon Visa cards issued by Chase including exclusive Amazon financing offers and a chance at bonus rewards on Amazon purchases. But they are completely separate products geared toward very different consumers. Here are some of the most important differences to keep in mind.
Amazon Rewards Signature Visa Credit Card
The Amazon Rewards Signature Visa card is another alternative if you don’t have a Prime membership but want the convenience and the benefits of an Amazon Visa credit card. The Amazon Rewards Signature Visa is nearly identical in its perks and terms and conditions as the Prime Rewards Visa Signature Card, with one exception, if you are not a Prime member, you will only reap a 3% reward when you shop on Amazon.com and at Whole Foods.
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Should You Get A Preapproved Card From Chase
Getting prequalified for a Chase credit card does have its benefits. You get to gauge if youre likely to be approved for a Chase card without a hard inquiry on your credit report, and you can also use the opportunity to compare the top credit card offers you might be eligible for.
On the downside, its important to remember that preapproval doesnt guarantee youll get the card you want in the end. Youll have to fill out a full application to see if youre approved or not, which could mean youll face a hard inquiry on your credit report without anything to show for it.
Should you get preapproved? If you plan to apply anyway, then you have nothing to lose. Just remember that, when it comes to getting approved for a credit card, you have to commit to filling out a full application before you know for sure.
*The information about Chase Slate Edge has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
What Are The Benefits Of A Citi Prequalification
Youre not guaranteed approval with prequalification, but it does give you a good shot at getting the card youre recommended by the bank.
- Consider recommended cards.Prequalification can help you narrow down a range of credit cards and even see cards you didnt think youd qualify for.
- No obligation to apply.You dont have to take Citi up on the cards youre prequalify for. You can use what you learn to look for similar cards from other banks and providers.
- Doesnt lower your credit score.Citi checks your credit with a soft pull, so you wont lose points from your score with prequalification.
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Check For Offers On Cardmatch
While not currently displaying prequalified offers from Chase, Bankrates CardMatch tool is another great way to predict if you qualify for one of the issuers cards.
At the moment, you wont find any prequalified Chase offers in CardMatch. But the tool will still show cards from major issuers that match your credit profile. When an offer is not preapproved, it means the issuer did not do any sort of review to ensure you meet the criteria for the card. But, CardMatch still uses a soft pull to your credit to ensure it is displaying cards that match your qualifications.
The one major benefit of taking this route is that even if you dont qualify for a Chase card, you might find another offer that is better for you. Plus, when you use CardMatch, there is no impact on your credit score.
Just keep in mind that just because you see an offer in CardMatch doesnt guarantee youll be approved.
Who Should Consider The Amazon Prime Rewards Signature Visa Card
If you frequently shop in Whole Food markets and on Amazon.com as a Prime member, this card might make sense given the rebates and rewards. A co-branded card like this provides not only access to rewards but a line of credit, and you have the flexibility of being able to use the card anywhere that takes Visa. If you don’t want to take out a credit card, but you have brand loyalty to Amazon and shop frequently on its website, you might consider an Amazon.com or Amazon Prime Store card.
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Looking For A Credit Card With Poor Credit
If you currently have only limited, poor, or average credit, and are looking for a real;credit card, we currently recommend theMilestone® Gold Mastercard®instead of the Amazon.com Card.
This is because the Milestone® Gold Mastercard® allows you to see if you’re pre-qualified before you apply for the card – so you don’t have to risk having your credit pulled, only to be denied a card.
The Milestone® card is a Mastercard® which means that it can still be used on Amazon and at millions of merchants around the world.And your application will be considered even if you have a prior bankruptcy.
How Can I Earn More Cashback With My Amazon Prime Rewards Visa Card
The Amazon Prime Rewards Visa already comes with a high rewards rate of 5% cashback on Whole Foods and Amazon purchases. You could earn more by taking advantage of exclusive offers available to Prime Rewards cardholders that let you earn another 10 – 25% on Amazon purchases, on top of the 5% rewards.
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Amazon Prime Rewards Visa Pros And Cons
The key to good credit history is being selective about your credit cards and how you use them. Available credit, low card balances, on-time payments and card longevity are some of the factors that affect your credit score most. Canceling a card because it isn’t right for you could negatively impact the average age of your credit card accounts and your overall available credit. Make sure that the Amazon Prime Rewards card will suit your needs for years to come before you apply.;
Consider the following pros and cons:
Be Mindful Of Application Restrictions
In May 2020, The Points Guy reported that American Express had enacted new limits on the number of Amex cards consumers can hold at once. More specifically, customers are capped at four Amex credit cards and 10 Amex charge cards. Further, you can’t be approved for more than one Amex card every five days .
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How To Get Preapproved For An American Express Credit Card
If you’re wondering how to prequalify for an American Express card, you’ll be happy to know the process is fast and easy regardless of the prequalification tool you use. Supplying a few pieces of basic information is all it takes to find out whether you might be eligible for a particular card. And since you’re not submitting a formal application, you won’t have a hard inquiry placed on your credit report, either, saving your credit score from taking a dive of up to 10 points.
Keep in mind that prequalification doesn’t guarantee approval; you’ll still need to apply for a credit card and go through the credit approval process to get a firm yes-or-no answer from Amex.
How To Get Preapproved For A Chase Credit Card
Getting preapproved for one of the best Chase credit cards is a bit more complicated than it used to be, since there is no longer a designated page on the issuers site to check for offers targeted to you. But it is not impossible if you know where to look.
Rest assured, if you do get prequalified for a Chase card, the issuer only performed a soft inquiry on your credit report.;Unlike a hard inquiry, which can impact your credit score and requires your full Social Security number, a soft inquiry only requires very basic personal information.
Keep in mind that a prequalified Chase offer is not a guarantee of approval. This step only ensures youre likely eligible for a Chase credit card based on your income, your credit and other factors.
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Check For Offers On The Amex Site
You can also look for prequalified credit card offers from Amex through its own website. The process is largely similar to that of CardMatch:
Heather Norton, vice president of corporate affairs and communications at American Express, told Bankrate that the majority of the issuer’s personal credit cards extend prequalified offers to “select eligible consumers.” So, if you’re hoping to prequalify for the American Express Platinum card, for example, this could be your chance to find out.
Tip: American Express and other issuers sometimes send prescreened credit card offers via snail mail. To make sure youve opted in to receive them, go to OptOutPrescreen.com, scroll to the bottom of the page and select “Click here to opt-in or opt-out.”
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Other Amazon Financing Options
While Amazon Monthly Payments or an Amazon credit card will likely offer the most flexibility, a number of other flexible payment tools may be a better fit for you. Keep in mind, however, that a few of these methods will require you to pay at least some interest.
Tip: Unfortunately, many shoppers have had trouble using popular installment payment services for Amazon purchases. Quadpay is one notable exception, allowing you to shop on Amazon via the Quadpay app. However, only six-week payment plans are available.