Does the Amazon Store Card Affect Your Credit Score? (2024)

FAQs

Does the Amazon Store Card Affect Your Credit Score? ›

Yes, the Amazon Store Card will do a hard pull, also known as a hard inquiry, which may cause your credit score to temporarily go down a few points. You will need a credit score of at least 640 to get it, which is on par with what most store cards require.

In addition, when applying for a store credit card, the issuer may run a hard inquiry on your credit report, which can temporarily drop your score a few points.

Amazon will report your balance and payment information to the major consumer credit bureaus (Experian, TransUnion and Equifax). And with responsible use, the card will add to your positive credit information and you could see your credit score climb.

Typically, you can qualify for Synchrony's Amazon store cards with a fair credit score (580 to 669). On the other hand, you'll likely need at least a good credit score (670 to 739) to qualify for one of the Amazon Visa cards from Chase.

While the exact impact may vary from case to case, generally speaking, you can expect your score to drop by about five points each time you apply for a new credit card.

Choose carefully: Applying for a retail credit card generates a hard inquiry on your credit report, which can have a negative effect on your credit score. If you only apply for one store credit card, this hit will be temporary.

Evelyn Boros, Credit Cards Moderator

Yes, the Amazon.com Store Card does affect your credit score, but the exact impact depends on how you use the card. If you make payments on time and keep your credit utilization low, your score should increase, but it will decrease if you don't.

Yes, the Amazon Store Card will do a hard pull, also known as a hard inquiry, which may cause your credit score to temporarily go down a few points. You will need a credit score of at least 640 to get it, which is on par with what most store cards require.

Building Credit with Amazon Secured Card

Synchrony Bank will report your account activity to the major credit bureaus. Building a history of on-time payments can help build your credit. As a cardholder, you have several tools at hand to help you learn to build your credit through responsible usage.

Is a Amazon Store Card a credit card? ›

The Amazon.com Store Card is an actual credit card, too, but it can only be used for purchases at Amazon.com and its affiliates.

Once accepted, you get 5% back on every purchase you make with Amazon. You can use that reward to offset the balance of your bill or toward new purchases. You also get a $60 Amazon gift card after your application is approved. The Amazon Prime Store Card has financing options for orders of more than $149.

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

The rates on a store credit card tend to be much higher than those associated with traditional credit cards. If you aren't careful, you could end up paying a lot of interest. Con #2: They can harm your credit score.

Apart from Amazon.com and Amazon-branded physical stores, the Amazon Store Card and Amazon Secured Cards opened before January 1, 2021, may be used for purchases from merchant sites that accept payments using Amazon Pay. Items that currently may not be purchased with an Amazon Store Card include: Rentals.

You applied for a new credit card

Card issuers pull your credit report when you apply for a new credit card because they want to see how much of a risk you pose before lending you a line of credit. This credit check is called a hard inquiry, or “hard pull,” and temporarily lowers your credit score a few points.

If your credit score dropped 100 points or more, it could be due to a late payment, collection account, tax lien or other reasons. While this big drop is alarming and significant, you can recover with time, responsible credit use, on-time payments and by speaking with any creditors or collection agencies.

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

Are store cards easier to get than credit card? ›

Retail credit cards are generally easier credit cards to get and may come with points, coupons or other perks from the retailer. The tradeoff is that these cards usually have higher APRs and lower credit limits than many unsecured credit cards offered by major credit card companies.

What Happens If You Never Use a Store Credit Card? If you open but never use a store credit card, nothing will most likely happen. However, the issuer could close your card due to inactivity.

The Amazon.com Credit Card credit score requirement is 700 or better. That means people with at least good credit have a shot at getting approved for this card.

You can expect to use your Amazon credit card anywhere that takes Visa. This means you can use it anywhere in the U.S., and in over 150 countries worldwide. Unlike store cards that are tied to use at a specific retailer, a Visa card connected to Amazon is a regular credit card in many ways.

So, applying for credit sparingly can minimize credit damage. In general, having six or more hard inquiries is seen as too many. Having this many hard inquiries can significantly impact your score and make lenders more likely to deny you, even if your score is otherwise sufficient.

A store card is a credit card you can only use with one high street chain or group. Like a credit card, you can use a store card to buy things on credit and pay them off at the end of the month or in stages to spread the cost. And just as with a credit card, you'll be charged interest if you don't repay in full.

No, the Amazon.com Store Card doesn't have a daily credit limit. You can, however, set a daily spending limit for your card by signing in to your online banking account. If you reach your set daily limit, the issuer won't allow further charges to your account until the following day.

Yes, you can get approved for an Amazon credit card with bad credit. The Amazon credit card for people with bad credit is the Amazon.com Secured Credit Card, which has a $0 annual fee, reports to the major credit bureaus each month, and does not have a minimum credit score requirement.

The required monthly payments is the purchase price (including tax and shipping) divided equally by the duration of the offer period (i.e. pay $25/month for $150 purchase for 6 months; $150/6 months = $25/month).

Consumers with 800+ credit scores have an average of 8.3 open accounts. High credit score consumers have an average of 8.3 open accounts — similar to the 7.9 we found in 2021.

Is it bad to have a lot of credit cards with zero balance? ›

It is not bad to have a lot of credit cards with zero balance because positive information will appear on your credit reports each month since all of the accounts are current. Having credit cards with zero balance also results in a low credit utilization ratio, which is good for your credit score, too.

There is no universal number of credit cards that is “too many.” Your credit score won't tank once you hit a certain number. In reality, the point of “too many” credit cards is when you're losing money on annual fees or having trouble keeping up with bills — and that varies from person to person.

Unsecured credit cards are a type of credit card that would not require applicants for collateral. This is considered as the one that would carry the most risk because of these reasons: Unsecured credit card include range of fees such as balance-transfer, advance fees, late-payment and over-the-limit fees.

Call your credit card issuer to cancel and confirm that your balance on the account is $0. Mail a certified letter to your card issuer to cancel the account. In this letter, request that written confirmation of your $0 balance and closed account status be mailed to you.

Your payment history is one of the biggest factors that contribute to your credit scores, so missing payments can have a serious impact on your credit. Also, if you miss a payment, you'll typically be charged a late fee. A penalty APR may be applied to your account as well.

For example, they allow you to borrow and spend money and spread the costs over a longer period. The only difference is that while you can use a credit card to shop wherever you want, a store card restricts your spending to that store alone.

Apart from general in-store or online discounts, many store credit cards offer membership perks. Cardholders may be able to return items without a receipt or take advantage of extended returns, attend members-only events, enjoy free shipping, or access financing and installment plan options.

Store Cards Work Like a Credit Card, With One Exception

As you pay down your balance, your available credit increases and can charge additional purchases up to your credit limit. The only difference: While a credit card can be used anywhere, a store card can usually only be used at the specific store.

2. You can only use the cards for Amazon purchases. Both versions of the Amazon Store Card are closed-loop, which means they can only be used at Amazon.com, Amazon-owned businesses (including Audible, Amazon Bookstore, Amazon Web Services and comixology.com), and places that accept Amazon Pay.

The Amazon Credit Card can be used at Walmart. But that applies only if you have the Visa version of the Amazon Credit Card (you can find the Visa logo on its front). And it's not only Walmart, it's pretty much any merchant, anywhere in the world.

Is the Amazon Store Card the same as the Visa? ›

The Amazon store cards can be used only for Amazon purchases, whereas the Amazon Visa cards can be used anywhere Visa cards are accepted. In addition, the Amazon Visa cards have more benefits than the Amazon store cards, including different types of travel insurance and purchase protections.

Store card APRs are generally higher than the interest rates charged by regular credit cards. Whether you're taking advantage of deferred interest offers or facing a high APR from the get-go, carrying a balance month after month is a bad — and expensive — habit that can lead you straight into debt.

Yes, closing credit cards, including a store credit card, can hurt your credit score. This is due to the fact that your score considers a few key factors, including your credit mix, credit utilization ratio and credit age.

How many credit cards is too many or too few? Credit scoring formulas don't punish you for having too many credit accounts, but you can have too few. Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time.