An Amazon credit card makes sense if you spend at least $500 a year on Amazon and can pay your full balance every month
Amazon offers two credit cards through Chase: the Amazon Prime Rewards Visa Signature Card (for Prime members) and the Amazon Rewards Visa Card (for non-members). Both give you cash back on Amazon purchases — 5% for Prime members, 3% for non-members — and smaller rewards on other purchases. The real question is whether the rewards you earn outweigh the interest you'll pay if you carry a balance, and whether you'll actually use the card enough to make it worthwhile.
If you pay off your statement balance in full every month, the card costs you nothing and the rewards are pure gain. If you carry a balance, the interest rate (currently around 20% APR, though this varies) will quickly erase any reward value. A $1,000 balance you pay off over six months will cost you roughly $60 in interest — far more than the $30 to $50 in rewards you might earn on that same spending.
Key Takeaways
- The Amazon Prime Rewards card gives 5% cash back on Amazon purchases, but only if you're a Prime member; the regular Amazon card gives 3% and has no membership requirement.
- Both cards charge roughly 20% APR, so carrying a balance erases the reward value within a few months of interest charges.
- You need to spend at least $500 to $1,000 annually on Amazon for the rewards to meaningfully offset the card's annual fee (if any) or the opportunity cost of using it instead of another card.
- The card's real value comes from paying your full balance monthly and using it only for purchases you were already planning to make.
How the rewards structure actually works
The Amazon Prime Rewards card earns 5% cash back on Amazon.com and Whole Foods purchases, 2% at gas stations and restaurants, and 1% everywhere else. The regular Amazon Rewards card earns 3% on Amazon purchases and 1% elsewhere. Both rewards are issued as Amazon.com statement credits — you don't get cash deposited to a bank account. That means the reward is only useful if you shop on Amazon; if you don't, the cash back has no value to you.
The Prime card requires an active Prime membership (which costs $139 per year or $14.99 monthly). If you're already paying for Prime for shipping and video, the card adds no extra cost. If you'd sign up for Prime just to get the card's 5% rate, you're spending $139 to earn rewards, which means you need to spend roughly $2,800 on Amazon annually just to break even on that membership fee alone.
Neither card currently charges an annual fee beyond the Prime membership requirement. That's different from many premium travel cards, which charge $95 or more per year. But the lack of a fee doesn't mean the card is free — it just means Chase isn't charging you directly.
When the 5% reward doesn't actually save you money
The most common mistake is assuming that earning 5% back means you're saving 5%. You're only saving money if you would have made that purchase anyway. If the card encourages you to buy things on Amazon you wouldn't otherwise buy, you're spending more, not less — even with the reward.
The second mistake is carrying a balance. At 20% APR, you pay roughly $1.67 per month in interest on every $100 you owe. On a $1,000 balance, that's $16.70 monthly. Over six months, you'll pay about $60 in interest. To earn $60 in rewards, you'd need to spend $1,200 on Amazon at the 5% rate. If you're carrying a balance, you're almost certainly paying more in interest than you're earning in rewards.
The third mistake is comparing the Amazon card to a card you already have. If you have a 2% cash back card that works everywhere, the Amazon card only beats it on Amazon purchases (where it earns 5% instead of 2%). On everything else, you're earning less. If you're not disciplined about using the right card for each purchase, you'll end up using the Amazon card everywhere and losing money on non-Amazon spending.
The math: Does the card pay for itself?
| Annual Amazon Spending | Annual Rewards (Prime Card, 5%) | Break-Even Point |
|---|---|---|
| $500 | $25 | Below Prime membership cost |
| $1,000 | $50 | Below Prime membership cost |
| $2,000 | $100 | Below Prime membership cost |
| $2,800 | $140 | Covers Prime membership ($139/year) |
| $5,000 | $250 | Covers Prime + extra value |
If you're already a Prime member, the card costs you nothing extra, so any reward is a gain. If you're not a Prime member, you need to spend at least $2,800 on Amazon per year for the 5% reward to cover the $139 annual membership fee. That's about $233 per month.
For the regular Amazon card (3% back, no Prime requirement), you break even much faster — you just need to earn enough to justify the opportunity cost of using it instead of a 2% card everywhere. On Amazon purchases, you gain 1% over a standard 2% card. You'd need to spend roughly $5,000 annually on Amazon to earn $50 in extra rewards, which is modest but still requires consistent use.
What to do if you don't spend much on Amazon
If you spend less than $500 per year on Amazon, the card probably isn't worth the mental overhead of managing another account. You'd earn less than $25 in annual rewards, which is negligible. A simpler approach is to use whatever card you already have and not worry about optimizing for Amazon specifically.
If you spend $500 to $1,500 on Amazon annually and you're already a Prime member, the card makes sense — you're earning $25 to $75 per year with no extra cost. That's not life-changing money, but it's real value for something you're already doing.
If you spend more than $2,000 on Amazon per year, the card becomes genuinely worthwhile, especially if you can pay the balance in full monthly. At $5,000 in annual Amazon spending, you're earning $250 per year, which is meaningful enough to justify the card's existence in your wallet.
How to use the card without hurting your credit
The biggest risk with any credit card is the temptation to carry a balance. To protect yourself, treat the Amazon card like a debit card: only charge what you can pay off in full when the statement arrives. Set up automatic payments to your full balance if you tend to forget, or check your balance weekly to stay aware of what you owe.
Using the card also affects your credit utilization ratio — the percentage of your available credit you're using at any given time. If you have a $5,000 limit and carry a $2,500 balance, your utilization is 50%, which can lower your credit score. Keeping your balance below 10% of your limit is ideal. Again, the simplest way to do this is to pay off the card in full monthly.
Opening a new credit card also triggers a hard inquiry on your credit report, which temporarily lowers your score by a few points. If you're planning to explore for a mortgage or car loan in the next few months, opening a new card might not be the right timing. If you're not planning any major borrowing, the temporary dip is usually worth it if you'll use the card regularly.
Better alternatives if the Amazon card doesn't fit your situation
If you don't spend enough on Amazon to justify the card, a flat 2% cash back card (like the Citi Double Cash or Capital One Quicksilver) works everywhere and requires no membership. You'll earn less on Amazon but more on everything else, and you'll have one less card to manage.
If you spend heavily on groceries or gas but not Amazon, a card that rewards those categories (like the Chase Freedom Unlimited or American Express Blue Cash) will likely earn you more. If you travel frequently, a travel rewards card might make more sense than a shopping-focused card.
If you're not confident you can pay off a credit card balance monthly, skip the Amazon card entirely. The interest you'll pay will erase any reward value, and you'll end up worse off than if you'd just paid with cash or a debit card.
Frequently Asked Questions
Can I use the Amazon card outside of Amazon?
Yes. You earn 2% cash back at gas stations and restaurants, and 1% everywhere else. But those rates are lower than what you'd earn with a general 2% cash back card, so the Amazon card only makes sense if most of your spending is on Amazon itself.
What happens to my rewards if I close the card?
Your rewards stay in your Amazon account as a balance. You can use them on future purchases even after you close the card. There's no important date to spend them, so you won't lose the money.
Does the Amazon card hurt my credit score?
Opening the card causes a small temporary dip (usually 5 to 10 points) from the hard inquiry. Over time, the card can help your score by lowering your overall credit utilization and adding to your credit history length. The net effect is usually positive if you pay on time and don't carry a balance.
Can I get the Prime card if I'm not a Prime member?
No. You must have an active Prime membership to hold the Prime Rewards card. If you don't want to pay for Prime, you can explore for the regular Amazon Rewards card instead, which earns 3% on Amazon purchases.
What's the difference between the Prime card and the regular Amazon card?
The Prime card earns 5% on Amazon purchases; the regular card earns 3%. The Prime card requires a $139 annual Prime membership. If you're already paying for Prime, the Prime card is better. If you're not, the regular card is cheaper and still gives you rewards on Amazon.