The Amazon card works best if you shop there regularly and can pay the full balance each month
The Amazon credit card — issued by Chase — offers 5% cash back on Amazon purchases and Whole Foods spending, 2% at gas stations and restaurants, and 1% everywhere else. Whether it makes sense depends entirely on your habits and how you handle debt. If you carry a balance month to month, the interest charges will wipe out any cash back you earn. If you rarely shop at Amazon or Whole Foods, the higher rewards on those categories won't offset the card's annual fee or the better cash back you could get elsewhere.
The card comes in two versions: the Amazon Prime Rewards Visa Signature Card (requires Prime membership, no annual fee) and the Amazon Prime Rewards Visa Infinite Card (requires Prime membership, $39 annual fee, higher rewards on Prime purchases). Both charge interest on unpaid balances, and both require you to be approved by Chase's underwriting process, which looks at your credit score, income, and payment history.
Key Takeaways
- The card pays 5% cash back on Amazon and Whole Foods only if you have an active Prime membership and pay your full balance each month.
- If you carry a balance, the interest rate (which varies but typically runs 18% to 25% APR) will cost far more than any cash back reward.
- The no-annual-fee version makes sense only if you spend at least $500 per year at Amazon or Whole Foods; otherwise the 1% cash back on other purchases is worse than competing cards.
- Chase will deny you if your credit score is too low, you have too much existing debt, or your income is too recent or unstable.
- You can compare the card's rewards against flat-rate cash back cards (which pay the same percentage on all purchases) to see which fits your actual spending pattern.
When the 5% Amazon reward actually saves you money
The 5% cash back on Amazon purchases only applies if you have an active Prime membership. If you let your Prime subscription lapse, you lose the higher reward tier and drop to 1% cash back on Amazon purchases — the same as you'd earn on a basic cash back card. This means the card's value depends on maintaining a $139 annual Prime membership (or $14.99 monthly) on top of any annual fee the card itself charges.
To break even on the no-annual-fee version, you need to spend enough at Amazon and Whole Foods that the extra 4% cash back (compared to a 1% flat-rate card) covers the cost of Prime membership. That works out to roughly $3,500 per year in combined Amazon and Whole Foods spending. If you spend less than that, a different card — one that pays 2% cash back on all purchases, for instance — will put more money in your pocket.
The math changes if you already pay for Prime for the shipping and video benefits. In that case, the card's 5% reward is genuinely extra, and you should compare it against other cards you could use instead. A card that pays 2% cash back on all purchases would give you $70 per year on $3,500 in spending; the Amazon card would give you $175 on the same $3,500 if it's all at Amazon or Whole Foods. The difference is real, but only if you actually spend that much there.
How interest charges erase cash back rewards
The Amazon card charges interest on any balance you don't pay in full by the due date. The APR (annual percentage rate) varies based on your credit score and history, but typically ranges from 18% to 25%. If you carry a $1,000 balance for one month at 22% APR, you'll pay roughly $18 in interest. The 5% cash back on a $1,000 Amazon purchase is $50 — but only if you never carry that balance forward.
This is the single biggest mistake cardholders make: they focus on the reward and ignore the cost of debt. If you plan to pay off the card in full each month, the rewards are genuine profit. If you plan to carry a balance, the interest will cost you far more than the cash back is worth. Before you apply, be honest about whether you can pay the full statement balance every month. If the answer is no, this card — or any rewards card — will cost you money.
How Chase decides whether to approve you
Chase uses a formal underwriting process to decide whether to issue the card. They pull your credit report from one or more of the three major bureaus (Equifax, Experian, TransUnion), review your credit score, check your income, and look at how much debt you already carry. They also verify that you have an active Prime membership, since that's required for the card.
A credit score below 670 makes approval unlikely, though not impossible. Chase also looks at your debt-to-income ratio — the total of your monthly debt payments divided by your gross monthly income. If that ratio is too high (typically above 40%), they may deny you even with a decent credit score. Recent changes to your income, a recent move, or a recent bankruptcy can also trigger a denial.
If Chase denies you, they'll send a letter explaining the reason and telling you how to dispute it if you believe the information is wrong. You can request a free copy of your credit report from each bureau at annualcreditreport.com to check for errors. If you find mistakes, you can file a dispute with the bureau directly.
Comparing the Amazon card to other rewards cards
The Amazon card's value depends on your spending pattern. If you spend heavily at Amazon and Whole Foods, the 5% reward is hard to beat. But if your spending is spread across groceries, gas, restaurants, and online shopping at different retailers, a different card might pay more.
| Card Type | Amazon/Whole Foods | Gas & Restaurants | Everything Else | Annual Fee |
|---|---|---|---|---|
| Amazon Prime Rewards (no fee) | 5% | 2% | 1% | $0 |
| Amazon Prime Rewards Infinite | 5% | 2% | 1% | $39 |
| Flat-rate 2% card | 2% | 2% | 2% | $0 |
| Flat-rate 1.5% card | 1.5% | 1.5% | 1.5% | $0 |
If you spend $2,000 per year at Amazon, $1,000 at gas stations, $1,500 at restaurants, and $3,500 everywhere else (total $8,000), the Amazon card would earn you $265 in cash back. A flat-rate 2% card would earn you $160. The Amazon card wins by $105 — but only if you pay no interest and maintain your Prime membership.
If your spending is more evenly distributed and you don't shop at Amazon much, a flat-rate card will outperform the Amazon card. The best choice depends on your actual spending, not on the card's marketing.
What happens if you stop using the card
If you open the Amazon card and then don't use it for several months, Chase may close the account. Card issuers close inactive accounts to reduce their risk, though they typically give you a warning first. If your account closes, it stays on your credit report for up to seven years, which can slightly lower your credit score.
To keep the account active, use it at least once every few months — even a small purchase counts. You don't need to carry a balance; a single transaction per quarter is usually enough to keep Chase from closing it.
Frequently Asked Questions
Do I need Prime membership to get the 5% reward?
Yes. The 5% cash back on Amazon and Whole Foods purchases only works if you have an active Prime membership. If your Prime subscription ends, your cash back on Amazon purchases drops to 1%. You can check your Prime status in your Amazon account settings.
What's the difference between the no-fee and $39 annual fee versions?
The Infinite version offers slightly higher rewards on Prime purchases and some additional perks like travel insurance. For most people, the no-fee version is better unless you spend more than $1,000 per year on Prime-specific benefits. Do the math on your own spending before paying the fee.
Can I use this card if my credit score is below 670?
It's unlikely but not impossible. Chase typically approves people with scores of 670 and above. If your score is lower, you can still apply, but expect a denial. If denied, request your free credit report and look for errors you can dispute.
What if I can't pay the full balance each month?
Don't use this card. The interest charges will cost far more than any cash back reward. A rewards card only makes financial sense if you pay the full balance every month. If you carry a balance, use a card with no annual fee and no rewards, or focus on paying down your debt first.
How long does it take to get approved or denied?
Chase usually gives you an answer within minutes of applying online. If they need more information, they'll contact you by phone or email. If you're approved, the card typically arrives within 7 to 10 business days.