If you shop on Amazon, you might be thinking about applying for an Amazon credit card, such as the Amazon Prime Rewards VISA Signature Card, the Amazon Rewards VISA Signature Card, or the Amazon Prime Store Card. Knowing the requirements and how your credit profile stacks up will help you decide if you should apply. [1].
A credit score, however, isnât the only criteria you need to meet. Like any other credit card company, the bank that gives you your Amazon card looks at other things when deciding whether to give you a card, like your income and other parts of your credit report.
If youâre approved, your APR depends on many factors, such as the type of card youâre applying for and factors lenders consider from your application. To make sure you can afford an Amazon credit card, you should first look at your own finances. [2].
In this article, we detail what credit score you need for an Amazon card, the approval process, what to do if youâre denied and how the process impacts your credit.
Applying for a new credit card generally requires a hard inquiry on your credit report, which can cause a small temporary drop in your credit score So when you apply for an Amazon credit card like the Amazon Prime Rewards Visa or the Amazon Rewards Visa, you may be wondering – will this hurt my credit score?
The short answer is yes applying for an Amazon credit card will likely cause a minor ding to your credit score. But there are a few key things to understand about how credit inquiries affect your score as well as some tips for minimizing the impact.
How Credit Inquiries Affect Your Credit Score
When you apply for any type of credit – a credit card loan, mortgage, etc – the lender will check your credit report to evaluate your application. This results in a “hard inquiry” being recorded on your credit report. Too many hard inquiries in a short period of time can signal to lenders that you are desperation for credit and pose a higher risk.
However, not all hard inquiries are created equal in terms of their impact on your credit score. Here are a few key things to know:
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Shopping for the same type of credit – If you have multiple inquiries while rate shopping for the same type of credit (i.e. shopping for the best credit card offer), credit scoring models will count these as only one inquiry. So applying for mutiple Amazon cards in a short timeframe will not multiply the negative impact.
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Only 10% of your FICO score comes from new credit—the new credit factor, which includes inquiries, only makes up 10% of your overall FICO credit score. The payment history (35% of the score) and credit use (30%) are much more important factors.
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There are inquiries on your credit report for two years. Inquiries may cause a small drop in your scores, but they stop having an effect on your scores after one year. They are taken off your credit report for good after 24 months.
So a new credit card inquiry causes only a minor, temporary score drop of less than 5-10 points for most people. Within 6-12 months, any negative impact will disappear as long as you continue practicing good credit habits.
Amazon Credit Card Credit Score Requirements
The two main consumer Amazon credit cards are the Amazon Prime Rewards Visa and the Amazon Rewards Visa. Here are the typical credit score requirements for approval:
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For the Amazon Prime Rewards Visa, you need a credit score of at least 670, which is good to excellent. It gives 5% cash back on Amazon and Whole Foods purchases (with Prime), which makes it the best app for people who shop on Amazon a lot.
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Amazon Rewards Visa – You can get approved for this card with a fair credit score (around 620) or higher. It offers 3% back at Amazon with no Prime membership needed.
Your chances of getting a credit card are better if you have a high credit score. But approval decisions are also based on things like income, debt, and credit history.
Before applying, check your credit score for free to ensure you meet the minimum score thresholds. Improving your credit score ahead of time will boost your approval odds.
Minimizing the Credit Score Impact of a New Amazon Card
If you want to apply for an Amazon credit card but are worried about the credit inquiry, there are a few things you can do to minimize the potential score damage:
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Avoid other credit applications – It’s best not to apply for multiple credit cards in a short period of time. Each inquiry can compound the negative impact. Space out applications by 3-6 months.
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Ask for a credit limit increase on current cards – This avoids a hard inquiry, and increasing your overall available credit can offset score drops from new accounts.
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Pay down card balances before applying – High utilization on current cards hurts your score the most. Paying down balances before applying will maximize your starting score.
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Continue good credit habits – After getting the new card, keep utilization low, make payments on time, and don’t apply for more new credit right away. This will help your score rebound quickly.
While a small temporary drop is likely, taking these steps can minimize the impact so your score stays strong.
The Benefits of Amazon Credit Cards Outweigh the Small Credit Score Drop
A minor temporary score decrease is a small price to pay for the many perks and rewards you get with an Amazon credit card. Benefits of the Prime Rewards Visa and Rewards Visa include:
- Generous cash back on Amazon and Whole Foods purchases
- Ability to earn and redeem rewards points quickly
- No annual fee
- No foreign transaction fees
- 0% APR financing offers on Amazon purchases (Rewards Visa only)
Plus, the initial small score drop when you apply will resolve itself within 6-12 months as long as you practice good credit card habits. If you frequently shop on Amazon, the value of the rewards you earn can easily offset any temporary credit score decrease.
Maintaining a Strong Credit Score Long-Term
While applying for a new Amazon credit card may cause a minor short-term score drop, you can take steps to keep your score strong long-term:
- Make payments on all credit accounts on time every month
- Keep credit utilization below 30% on each card and overall
- Periodically review your credit reports and dispute any errors
- Limit new credit card applications to 1-2 per year
- Build a long and diverse credit history over time
Checking your credit score frequently enables you to monitor the impact of credit applications and catch any sudden drops. But the effects are usually minor and temporary. With responsible credit card usage, your score will rebound and continue improving.
The Bottom Line: Don’t Fear the Small Credit Score Drop
It’s understandable to be hesitant about applying for a new credit card if you’ve worked hard to build an excellent credit score. But as long as you practice good credit habits over the long run, the short-term negative impact from a new account inquiry is insignificant.
The small initial drop in score needs to be weighed against the potential rewards and benefits offered by the Amazon Prime Rewards Visa or Amazon Rewards Visa. For frequent Amazon shoppers, the value gained from all the perks usually far outweighs the minor credit score decrease.
As long as you continue making on-time payments, maintaining low balances, and limiting new accounts, your credit will remain strong. So if you’ve been holding off on getting an Amazon card for fear of the credit inquiry, you can put those worries aside and start earning rewards. Just be sure to compare the two cards and apply for the version best suited to your spending habits.
How long does it take to get approved for an Amazon Rewards card?
The Amazon Rewards card is issued through Chase Bank, and approval for an Amazon Rewards credit card can be very fast. Most online applications receive responses in less than 15 seconds, providing instant decisions.[7]
However, your actual response time may vary, depending on your internet connection and the number of applications being processed. If you arenât instantly approved, you can expect to hear back in two to four weeks after applying.[8]
Why was your Amazon Rewards card application denied?
If you applied for an Amazon credit card and your application was denied, there are several possible causes. Lenders look at more than just your credit score. Even if you have a good credit score according to the ranges used by the lender, your application could still be denied for another issue.
Here are some possible factors that can hurt your approval odds:[6]
- Your credit score is too low. If your credit score falls below the range the lender accepts, theyâre unlikely to approve your application.
- You donât meet the credit card application requirements. Credit card applications have more requirements than just having a certain credit score. In addition to having a lower credit score than required, you may be denied if you have insufficient income or arenât old enough to apply.
- You filled out the application incorrectly. Your application may be denied if you mistakenly provided incorrect personal information. If this happens, you can contact the credit issuer with the correct information and ask them to reconsider.
- Youâve applied for credit too often in a short timeframe. Applying multiple times in a short period means youâll likely end up with many hard inquiries on your credit report, which can lower your credit score.
- You froze your credit report. If youâve frozen your credit report, lenders wonât be able to access the information they need to approve your application.
- Your payment history is limited. Having limited credit history makes it less likely that youâll be approved because lenders donât have enough information to know how youâll manage credit.
- You recently filed for bankruptcy. Filing for bankruptcy means you didnât pay your debt as originally agreed, making you seem like a high-risk borrower for a lender to work with.
Does applying for Amazon card hurt credit?
FAQ
Does Amazon rewards affect your credit score?
After you apply for a Chase Amazon Rewards card, the lender checks your credit. This is also called a “hard inquiry.” Hard inquiries, like looking at your own credit report, can lower your credit score. Soft inquiries, on the other hand, don’t have any effect on your score.
Should you apply for an Amazon credit card?
If you shop on Amazon, you might be thinking about applying for an Amazon credit card, such as the Amazon Prime Rewards VISA Signature Card, the Amazon Rewards VISA Signature Card, or the Amazon Prime Store Card. Knowing the requirements and how your credit profile stacks up will help you decide if you should apply.
Do I need a credit score to sign up for Amazon?
If you’re interested in signing up for an Amazon credit card, you’ll need to have this credit score. Shoppers who are looking for more ways to save should consider signing up for the Prime Visa card (see rates and fees).
Can you get Amazon credit card if you have bad credit?
If you have bad credit, you can apply for the Amazon Secured Credit Card. And if you’re a business owner with good, you can get either of the business credit cards. Does the Amazon Credit Card do a soft pull?
Do Amazon credit cards require a hard pull?
The same goes for the Amazon Secured Credit Card, the Amazon Business American Express Card and the Amazon Business Prime American Express Card. This is typical, as almost every credit card on the market will require a hard pull for approval.
Does applying for an Amazon card hurt your credit score?
Yes, applying for an Amazon card does hurt your credit score by a small amount. When you apply for either the Amazon Credit Card or the Amazon Store Card, you must authorize a hard pull of your credit, which will temporarily drop your credit score by 5 to 10 points.
Is it safe to apply for an Amazon Credit Card?
Yes, the Amazon Credit Card is safe. This card is issued by Chase on the Visa network and has standard security features such as $0 fraud liability protection and a 3-digit security code printed on the back. Keep in mind that if your card is ever lost or stolen, you will need to call customer service at (888) 247-4080.
Is applying for an Amazon Credit Card worth it?
What are the benefits of an Amazon credit card? The biggest benefit of an Amazon credit card is the elevated cash back earned by shopping with Amazon, Whole Foods and Amazon Fresh. Prime Members can earn 5% back on these purchases or receive 90-day terms to pay back purchases on the business cards.
Is the Amazon Credit Card a hard inquiry?