Amazon has introduced a new credit card for its Prime members that gives cardholders a lucrative reward.
The Amazon Prime Store Card gives Amazon Prime members 5% cash back on all Amazon purchases, not just purchases made on Prime. The 5% rewards come in the form of an automatic statement credit. For a limited time, newly approved cardholders will receive a $10 credit on their Amazon.com account.
The card was quietly introduced in March. Since it is a store card, it only works for Amazon purchases.
The card does not have an annual fee. It also offers six months of special financing on purchases of $149 or more, and 12 months on purchases of at least $599.
The huge drawback to the card is its interest rate. The card has a 25.99% variable APR, and the minimum interest charge is $1.50. So if you carry a balance on the card from one month to the next, you will pay a very steep financial penalty.
Amazon has made a significant push to increase the number of Amazon Prime members during the past year, and this card appears to fall in line with that strategy. Amazon Prime membership costs $99 annually and gives members free two-day shipping, Kindle rentals and streaming video.
The new Amazon Prime Store Card appears to compete directly with Target’s REDcard which gives cardholders 5% back on purchases at Target.
The new Amazon card is issued by Synchrony Bank.
LowCards.com simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for 15 years.
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