Monday, 9 December 2019

Amazon Credit Cards Review 2018

Amazon Credit Cards Review 2018
01 Aug
2:33

Hey I'm Adam Jusko from ProudMoneycom and in this video I'm going to review the three Amazon

com credit cards Before I do that I would ask you to please subscribe to our YouTube channel if you have not already and if you have already I thank you for doing so So, there are three Amazon credit cards on the market – two from Chase, one from Synchrony Bank, and we're gonna look at those in order and we'll talk a little bit about what they offer and whether they're good for you or who they are good for The number one is the Amazon Prime Rewards Visa As the name suggests, you have to be an Amazon Prime member in order to get this card, which means you have to have paid for an Amazon Prime membership

For most people that means you're probably going to get the yearly membership which is right in the process as we make this video of changing from its $99 price to its $119 price per year, so that will probably weigh into some people's considerations as to whether they want to be Prime members and whether they then are eligible to get this card This is one of the cards issued by Chase, it is a Visa that can be used anywhere that Visa is accepted You will get five percent in rewards on your Amazon and Whole Foods purchases, you'll get two percent at restaurants, gas stations, and drugstores, one percent anywhere else that you use the card Now those rewards are essentially points that can either be used for Amazon purchases in the future or you can actually redeem those points for cash back if you choose to and have them redeemed into a checking or savings account The points are essentially, like many programs, worth one penny per point — so 10,000 points equals 100 dollars for example

When you are approved for the Amazon Prime Rewards card you will get a $70 gift card put into your Amazoncom account You do not have to make any particular amount of purchases in order to get that, you're just going to get it as soon as you are approved This card is somewhat of a rarity in the fact that although you do have your Amazon Prime membership that you're paying for, there's no further annual fee but this one does have no foreign transaction fees when you use the card outside of the United States, and that is something that a lot of credit cards do not offer when they are more along the no-annual-fee line, and I'll talk a little bit more about that in a second So overall this is obviously a good card for Amazon Prime members, you're going to get 5% back on your Amazon purchases and your Whole Foods purchases, so if you're already paying to be an Amazon Prime member, it is hard to understand why you wouldn't get this card

Now it wouldn't necessarily be your everyday card — the two percent and 1 percent cash back on the other categories are only OK You could find other cards to do better on your other purchases, but in terms of getting that 5 percent back on your Amazon and Whole Foods purchases, that is hard to beat And before I go any further I should say that no matter what card you're looking at whether it's one of these cards or any other rewards card, if you're someone that doesn't pay off your balance every month, then you really should forget about rewards and you should be trying to get the lowest interest credit card Because when you pay interest, you essentially eat away at any rewards that you receive and in many cases you basically negate those rewards, you'll end up paying more That's really true of any credit card, but I'll throw it in here as well

The Number Two Amazon card is the Amazon Rewards Visa which is essentially the same as the Amazon Prime Rewards Visa except it has no annual fee, you don't have to be a Prime member in order to get it The only differences really are that, instead of that 5% on Amazon and Whole Foods purchases, you're only going to get 3% at Amazon and Whole Foods You'll still get that same 2% at restaurants, gas stations, and drug stores, 1 percent on anywhere else you use it Again it's a Visa card so you can use it anywhere The other difference: you will only get a $50 gift card bonus when you're approved for the card, but again you don't have a spend to make up front, you're going to get that card as soon as you are approved

Like the Amazon Prime Visa, this one also has no foreign transaction fees I was sort of talking up that aspect with the Prime Visa but then the argument could be made, "Well, you're paying for the Prime membership in order to get that" But with this card that's actually not true It's a no annual fee card and it has no foreign transaction fees, so for people that don't travel a ton but might go out of the country here and there and don't want to get a new credit card, this is one of the few cards it doesn't have an annual fee that has no foreign transaction fees Most cards are gonna charge you 3% on your purchases that you make if you travel outside of the US

So it's a pretty decent card Again it's good for the, you know, your Amazon purchases but you can do better on the cash back front You can obviously look at our other videos and our "best of" videos to see which are the cards that can beat this on the everyday purchases that you might make Now the 3rd card that Amazon offers is a very different card and this is called the Amazon Store Card, and it's issued by Synchrony Bank It's a card that you can only use at Amazon

com If you're a Prime member, this card does have a reward —it matches that same 5% reward on your Amazoncom purchases, but it doesn't offer any further rewards, partially because you can't use it anywhere else So you get that five percent if you're a Prime member only, though If you are not a Prime member, the Amazon Store Card does not offer any rewards

This is mainly a card for people that want to finance larger purchases of $149 or more Depending on the size of your purchase, you're going to get usually a 0% offer that allows you to pay your purchases back over a six, twelve, or twenty-four month period Now the way that generally works is they say you won't get charged any interest if you pay it back within that period You have to be very careful, because what happens is, if you don't get it completely paid off within the period that you're given — that six month, twelve month, or 24 month period — when you get to the end of that period, if you owe even one dollar, what's going to end up happening is you will then get charged all of the interest from the day of the purchase that you made if you didn't pay it off in time So it's not like it cuts off and, you know, you have five bucks left and you're only going to get charged interest on that five bucks

No, you're going to get charged interest all the way back from the day that you made the purchase, basically because they said "you had to get it done in six months, 12 months, 24, and if you didn't your penalty is that you're going to pay the interest all the way" So that is something that you really have to be careful about I'm actually kind of surprised given, you know, a lot of Amazon's business model and the way they operate that they would use that sort of model, because I always think that's a little sort of a sneaky trick to give somebody that zero percent financing and then charge the interest all the way back from the date of purchase if they don't get it completely paid off So be careful with that one For the most part I would say don't even bother with the Amazon Store Card

If you're a Prime member and you can't get accepted for the Prime Rewards Visa for some reason, maybe this is a card that you would choose but overall I would say that you should avoid this one So that is it Thanks for watching Please go to ProudMoneycom where we do other credit card reviews and personal finance news and all sorts of other fun stuff too

Thanks

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