The Chase Amazon card does have an annual fee of $119, which is the cost of an Amazon Prime membership. This fee allows cardholders to access the benefits of Amazon Prime, such as free two-day shipping, streaming of movies and TV shows, and access to exclusive deals and discounts on Amazon.
While the annual fee may seem high, it is important to consider the value of the benefits that come with the Amazon Prime membership. For frequent Amazon shoppers who take advantage of the free shipping and streaming services, the annual fee can be well worth the cost.
In addition to the annual fee, it is important to note that the Chase Amazon card also has a variable APR (Annual Percentage Rate) ranging from 15.74% to 23.74% based on your credit score. This means that the interest rate you are charged on any outstanding balance on the card can vary, with higher rates for those with lower credit scores.
One of the main perks of the Chase Amazon card is the ability to earn rewards points. These points can be redeemed for Amazon credit during check-out, which can help offset the cost of purchases made on the site. Additionally, points can also be redeemed for cash back or gift cards through Chase.
It is worth noting that the Chase Amazon card does offer a sign-up bonus of a $70 Amazon gift card, which can be a nice incentive for new cardholders. This bonus can help to offset the cost of the annual fee for the first year.
In terms of redeeming points, the process is relatively straightforward. During the check-out process on Amazon, cardholders have the option to apply their rewards points towards their purchase, effectively reducing the total cost. Alternatively, cardholders can choose to redeem their points for cash back or gift cards through Chase.
The Chase Amazon card can be a valuable tool for frequent Amazon shoppers who are already Amazon Prime members. The combination of the annual fee and rewards points system can help to offset the cost of the membership and provide additional savings on purchases made on Amazon. However, it is important to carefully consider your spending habits and credit score before applying for the card to ensure that the benefits outweigh the costs.