Applied For An Amazon Credit Card But Got Rejected? What To Do Next
Applied For An Amazon Credit Card But Got Rejected? What To Do Next
by
December 23, 2022
Amazon accounts for nearly 50% of the eCommerce market in the United States. While millions of people have an Amazon account, few seem to know that you can also apply for an Amazon credit card.
No, we’re not talking about the Amazon Store Card from Synchrony Bank. We’re talking about the Amazon Prime Rewards Visa Signature Card from Chase. However, there’s no guarantee of approval.
Are you frustrated because your recent application for an Amazon credit card was declined? You’re not alone. But even if it doesn’t work out the first time, there are still steps you can take to make getting approved easier.
In this quick guide, we’ll explore ways to increase your chances of approval with some tips and advice on how to improve your financial standing before reapplying for a new credit card from Amazon. Whether you have just been rejected recently or it has been some time since your last attempt, don’t give up — let us help guide you through the process.
What Is the Amazon Credit Card?
As mentioned above, there are two main types of cards from Amazon: the Amazon Store Card and the Amazon Rewards Visa Signature Card from Chase (which has a variation for Prime and non-Prime members). Today, we’ll be exploring the features and benefits of the Chase-issued credit card.
Features
The Amazon Rewards Visa Signature Card offers cardholders an abundance of benefits that make it a great choice for any credit card user. Access to Amazon promotional financing offers allows customers to purchase items and spread out the payments over time.
An extended warranty is also included, providing coverage for repair costs or replacements beyond the manufacturer's warranty. Purchase protection is available in case a purchased item gets stolen, lost, or damaged within 90 days of purchase.
Roadside dispatch provides emergency roadside assistance when needed, while car rental insurance covers damage due to collision or theft up to the actual cash value of most rental vehicles. Lastly, no foreign transaction fees are charged while using this card abroad, making traveling simpler and more convenient.
Overall, the Amazon Rewards Visa Signature Card is an exceptional credit card with many advantages that make it the perfect companion for daily use and travel alike.
Rewards
First, it’s important to note that Amazon starts you off with a big reward. You can receive a $150 Amazon gift card upon approval of the card. Then, if you frequently shop at Amazon.com, you’ll continue to enjoy big cashback rewards that include the following:
- 5% cash back on Amazon.com and Whole Foods
- 2% back at restaurants, gas stations, and drugstores
- 1% back on all other purchases
The main difference between this card and the Amazon Store Card is that the Store Card is only usable at Amazon.com.
Fees
Annual fee: There is currently no annual fee for the Amazon Rewards Visa Signature Card. However, if you opt for the Amazon Prime Rewards Visa Signature Card from Chase, you will need to pay the $139 annual Amazon Prime membership.
APR on purchases: 18.74% - 26.74% (V).
Amazon Chase Credit Card Credit Score Requirements
Because the Amazon Chase credit card acts as an open-loop credit card (meaning you can use it at places other than Amazon), you do need a decent credit score to qualify.
Most sources note that you need at least a “good” credit score to get approved for the Amazon credit score. This means you need a score of at least about 670. However, financial experts encourage you to have a score of at least 700 to ensure you have a competitive application.
How to Apply for an Amazon Credit Card
If you're ready to apply for an Amazon credit card, there are two ways to do so. You can submit your application online on the Amazon website, or visit the nearest Chase branch near you. However, keep in mind that it is not possible to apply over the phone.
Once you apply for the card, you can check the status of your application using the Amazon credit card phone number, which is (888) 338-2586. They’ll be able to provide you with information regarding your credit card application.
Why Your Amazon Credit Card Application Was Denied
Receiving a denial after applying for an Amazon credit card from Chase can be disheartening, but understanding the reasons behind this rejection is key to getting approved in the future. The top three reasons why someone may not have been approved for an Amazon credit card are typically one of the following.
Firstly, having a low credit score can be a major reason for denial. A good credit score is usually considered to be above 700, and lower scores make it difficult to get approved. This is because lenders view those with lower scores as risky investments since they are more likely to miss payments or default on the loan.
Additionally, having a high debt-to-income ratio can give lenders pause. This ratio determines how much of your income goes towards paying off debt; if it's too high, then lenders may worry that you don't have enough left over to pay back your new loan.
Lastly, any negative marks on your credit report can also be a factor in determining approval or denial. If there are any negative items like late payments or defaults on the report, then the lender will take this into account when deciding whether or not to approve you for their product.
In conclusion, when applying for an Amazon credit card from Chase, there are multiple factors that can lead to approval or denial. That’s why it’s so important to make sure all these elements are taken care of before attempting another application.
Amazon Credit Card Application Denied: Next Steps
If your Amazon credit card application was denied, take some time to read the denial letter. It could be the starting point for improvement (and card issuers are required to send you a letter detailing the reasons for denial). Then, follow these steps:
- Look at your free credit report: Are there any negative items on it, like late payments or high balances? Then, analyze the finer details of each account to find patterns that are potentially hurting your credit score. Finally, check if there's any erroneous information.
- Focus on problem areas: For instance, if a high credit utilization ratio is what’s bringing your score down, steer clear of charging any more purchases to that card and concentrate on paying off your debt. It may take a while to improve other issues like credit mix, but stay consistent.
- Improve your credit score: This involves avoiding late payments, keeping your credit utilization ratio low, steering clear of unnecessary new accounts, and reducing existing debt.
If you don't have a credit history or have a low credit score, alternative methods such as a secured credit card or credit builder loan could prove helpful. In such situations, we suggest considering a credit builder loan as a viable way to build a credit score from scratch or boost a particularly low score.
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