Amazon Prime Day is July 16 and 17, and online shoppers are gearing up for presales and deep discounts.
If you plan to stock up on your favorite gear, get an early start to your holiday shopping or snag a couple of big-ticket items, the right credit card will get even more value out of the annual shopping event.
“Optimizing credit card rewards takes some research up front, but pays off enormously,” says Andrew Gosselin, certified public accountant and senior editor at The Calculator Site. “On Prime Day, be sure to use the card that offers the highest rewards rate or benefit for your situation.”
Beyond earning rewards, there may be other reasons for choosing a specific card for your Prime Day hauls — earning a sign-up bonus, taking advantage of a 0% annual percentage rate offer or using cash back to pay at Amazon checkout.1
What to Consider
The best credit card for Amazon Prime Day shopping really depends on your goals. Some things to think about:
— Which card offers the best rewards? Whenever you plan to spend a significant amount, think about how to earn the most rewards on those purchases.
— Will I be able to pay back in full what I spend? If you carry a balance and accrue interest, those discounted items could end up costing more than full price. A card with an introductory 0% annual percentage rate on purchases can ease that concern.
— Do I have rewards or cash back to spend? If you have an available cash back balance, see if your card allows you to use cash back at Amazon checkout. If not, you might be able to redeem for Amazon gift cards.
— Are consumer protections important? Extended warranties, purchase protection and return protection can help reduce the risk of buyer’s remorse.
Based on your answers, we’ve rounded up a few of the best options for your Amazon Prime Day shopping.
[Read: Best Sign-up Bonus Credit Cards.]
8 Best Credit Cards for Amazon Prime Day
Earn Future Amazon Rewards: Prime Visa
“The Amazon Prime Visa is a great card for the majority of people who shop often at Amazon,” says Dave Grossman, founder of Your Best Credit Cards. “As much as I love transferable points, it’s easy to see that earning a simple 5% cash back on Amazon purchases, especially during Prime Day sales, is an easy and practical choice.”
The Prime Visa is geared toward regular Amazon shoppers — you have to be a Prime member — and earns 5% back at Amazon, Whole Foods Market and on Chase Travel. You’ll earn 2% cash back at gas stations, restaurants, on local transit and commuting (including ride-share), and 1% back on all other purchases.
You can then redeem earnings for statement credit on future purchases.
For a limited time, you’ll get a $200 Amazon gift card upon approval. That can give you a strong head start on your Prime Day list.
Honorable Mention: Blue Cash Everyday® Card from American Express
If you don’t shop with Amazon enough to warrant its co-branded card, the Blue Cash Everyday® Card from American Express is another solid cash back card option. The card offers 3% back on online retail purchases, which includes Amazon, but is capped at the first $6,000 you spend per year.
You’ll also get the 3% cash back rate at U.S. supermarkets and U.S. gas stations, on up to $6,000 spent per year in each category; all other purchases earn 1%.
Earn a $200 statement credit when you spend $2,000 within the first six months. Plus, you’ll enjoy 15 months of introductory 0% APR on purchases, giving you ample time to pay off your Prime Day shopping. Existing cardholders who have accumulated a cash back balance may also use it to pay at Amazon checkout, with the same value as a statement credit (See Rates & Fees).
Take Advantage of 0% APR: Wells Fargo Reflect® Card
If you’re planning to spend more on Prime Day than your budget can handle, you may want to consider a new card with a generous 0% purchase APR offer.
The Wells Fargo Reflect® Card offers 0% APR for 21 months from account opening on purchases and qualifying balance transfers. The card offers no additional rewards for spending, but you’ll get up to $600 of cell phone protection against damage or theft (after a $25 deductible) if you use your card to pay your bill each month (See Rates & Fees).
Honorable Mention: Discover it® Cash Back
If you want a nice stretch of 0% APR on purchases, plus ongoing rewards and value, the Discover it® Cash Back offers 15 months from card opening, along with 5% cash back when you activate in rotating quarterly categories (up to a maximum) and 1% back on all other purchases.
Discover also matches all of the cash back you earn in year one, doubling your rewards (See Rates & Fees).
[Read: Best 0% APR Credit Cards.]
Cash in Existing Rewards at Amazon Checkout: Blue Cash Preferred® Card from American Express
It’s also worthwhile to consider cards that allow you to redeem rewards as Amazon credit, says Gosselin. “This allows you to get even more value from your everyday credit card spending by turning it into Amazon credit.”
People who spend a lot on groceries, but also lean on Amazon for hard-to-find items, can get the best of both worlds with the Blue Cash Preferred® Card from American Express. Not only does the 6% cash back at U.S. supermarkets (on up to $6,000 per year) include Whole Foods, but you can redeem your cash back at Amazon checkout.
Importantly, you won’t lose any value by using your hard-earned cash back, since $1 in cash back is worth $1 at Amazon. Some cards that allow you to pay with points or miles have a lower redemption value (See Rates & Fees).
Honorable Mention: Capital One SavorOne Cash Rewards Credit Card
Capital One’s cash back cards — including the Capital One SavorOne Cash Rewards Credit Card — also allow you to apply your earnings at Amazon checkout dollar for dollar.
The SavorOne card has no annual fee and earns 3% cash back on dining, entertainment, popular streaming services and at grocery stores. This makes it a strong all-around card for everyday spending. New cardholders also earn a $200 cash bonus when spending $500 within three months of account opening and will enjoy 0% APR for 15 months on purchases and balance transfers (See Rates & Fees).
Extra Protections on Purchases: Chase Freedom Unlimited®
“When shopping on Amazon Prime Day in particular, I always recommend using a card with price protection, return protection or purchase protection benefits,” says Gosselin. “These benefits can come in handy if you end up finding a better deal later or need to return an item.”
Though Amazon gives you 30 days to return most items, there might be situations where having extra protections is wise. The Chase Freedom Unlimited® covers new purchases for 120 days against damage or theft on up to $500 per claim. You’ll also get an extra year on top of any U.S. manufacturer’s warranty of three years or less.
Cardholders get 5% back on travel purchased through Chase Travel; 3% at restaurants and drugstores; and 1.5% on all other purchases — all for no annual fee. For the first year as a cardholder, you’ll also get an additional 1.5% on all purchases (up to $20,000 spent) and pay 0% APR on purchases and balance transfers for the first 15 months after account opening.
Honorable Mention: The Platinum Card® from American Express
If you’re taking advantage of Prime Day to purchase gifts that you won’t be giving for a couple of months, using a card with return protection might be a good strategy. It gives you longer to request a refund than the retailer’s return window.
For example, The Platinum Card® from American Express offers cardholders return protection for up to 90 days. You may be able to get a refund on the full purchase price, up to $300 per item on (and up to a maximum of $1,000 per calendar year). The card also has an extended warranty and purchase protection in case an item is stolen, accidentally damaged or lost.
The Platinum Card® from American Express is a premium travel card that has a $695 annual fee and offers VIP-level rewards and benefits. New cardholders can earn 80,000 Membership Rewards® Points after spending $8,000 on the card within the first six months. Ongoing rewards include five points per dollar spent on flights booked directly or through American Express Travel and hotels booked via American Express Travel — along with several opportunities for statement credits and tons of perks (See Rates & Fees).
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8 Best Credit Cards for Amazon Prime Day originally appeared on usnews.com
