Amazon Visa, Should I sign up?

[Pokem]

Soooo, I kinda wanna sign up for the Amazon Visa card for the free $50. Thing is, idk anything about credit cards. I've never had one, so I'm just wondering if it's safe to sign up for this and not use it again? Will I be charged for some sort of monthly or inactivity fee? Just wanna know cuz if it'll get me in trouble then I'll not sign up LOL

 

[Saiyan Lusitano]

Always remember to read the miniscule details so you're fully aware what you're signing up for.

So, here's what I consider the important bits of the Amazon Visa:

Annual Fee - None
Balance Transfer Fee - Either $5 or 5% of the amount of each transfer, whichever is greater.
APR - 14.99% to 22.99%‡, based on your creditworthiness. These APRs will vary with the market based on the Prime Rate.
Cash Advance - Either $10 or 5% of the amount of each transfer, whichever is greater.
Late Payments - Up to $15 if the balance is less than $100; up to $27 if the balance is $100 to less than $250; up to $37 if the balance is $250 or more

Additionally, you need to keep in mind that this may and can possibly affect your Credit Score.

 

[FAST6191]

Personally I try never to use credit, however I live in a place where credit scores mostly only matter if you want to use credit and possibly work in finance (don't know the current specifics there as there is very little danger that I will ever be bored enough to work in that). If you are in the US as your flag implies then that can change.
There are plenty of people that do take advantage of such offers though, whether it be opening a bank account or taking out a card and cancelling it or whatever wants to be done. I should also mention that even if the offers cost then they may be better than paying outright.

Again do read the small print as many will have ways to make it harder, such as minimum spends/usages, delays until rewards/gifts/whatever are given and so on and so forth. This appears to be on approval though, and as mentioned there is no annual fee. Also they appear to charge interest from the transaction date which is odd.

To elaborate a bit further on the having one may change your score it will happen in two primary ways
1) If you don't stop the card then it will show as you having a line of credit already open and thus be less viable for other types of credit you might actually want (car loan or something).
2) If you are denied the card for whatever reason this can be reflected in your credit file, and may impact getting credit at a later date (it is why all those predatory loan companies have the phrase denied credit in).

It gets more complex as different lenders look for different things, or if you prefer not all lenders want people that never used credit but have a reasonable salary.

Also on "not use it again" then you can cancel a credit card rather than just cutting it up or something. Doing so in addition to the above will see you eventually be able to be a new customer again, and get another 50 dollar card if you wanted. I am not sure as to the timeframe they use for that and different companies can radically different things.

 

[vb_encryption_vb]

Chances are the $50 comes as a credit statement. Cancelling a credit card can negatively affect your credit score. I'm going to assume you don't have a job as your questioning the whole $50 dollar thing. I'd move along before you damage your credit. It's harder to fix down the road than it is to keep it in good standing.

 

[zoogie]

I have this card and I've never had an issue with it and the cash back is nice.

 

[the_randomizer]

Credit cards are fine as long as you pay them back in full, don't make the same mistake I made.

 

[viral777]

are you under age or something? you need to apply for a credit card and be accepted. They just don't give you 50 bucks after you sign up. Too many credit cards is doesn't look good on anybody. IMHO 2 credit cards is the most anybody should have.

 

[Pokem]

woah, i made a mistake in original post.
i said i had a credit card.
i never touched a credit card before let alone have one.

 

[linuxares]

I would recommend never to use a credit card. But since you're american and credit seem to be the most important thing in your economy I would actually ask someone (your parents?) more about it.

There is even a subreddit called /r/personalfinance that is quite good with these kind of questions.

 

[Deleted User]

"Credit Score"
This type of stuff only in 'Murica?

Also I wouldn't sign up for those, they have $50 just to blur your vision then you have to pay x2 the amount.

 

[FAST6191]

On "they don't just give you" then
https://www.amazon.com/Amazon-Rewards-Visa-Signature-Card/dp/B007URFTYI

Additional Information/Frequently Asked Questions for Current Cardholders

Welcome Gift Card: If you applied for the Amazon Rewards Visa Signature Card and were approved, an Amazon.com Gift Card will be automatically loaded into your Amazon.com account. The welcome Amazon.com Gift Card is only awarded to new cardmembers and at the time of card approval. View Your Gift Card Balance

There are many of these sorts of offers that come with a sting but this appears to be one those that are not, at least not beyond having a credit card.

"Credit Score"
This type of stuff only in 'Murica?

Also I wouldn't sign up for those, they have $50 just to blur your vision then you have to pay x2 the amount.

Credit scores exist everywhere, though getting them all to properly speak to each other is a bigger trick.
Has a nice overview


It is getting better slowly but in the US they started using them for everything from checking people applying for jobs (and not just people in finance that will be handling money so you don't want to be giving compulsive gamblers and seriously debt laden people the post, I don't know if it got to the point where people applying for service jobs but they were using them for fairly low skilled ones at points), people going to rent houses, people buying houses in so called gated communities and the list goes on.
For my money the worst part of it all are "credit builder loans"
https://www.nerdwallet.com/blog/finance/what-is-credit-builder-loan/
The general idea is you sort out a "loan", pay in money to a savings account every month and then when it is all paid off you gain access to the money, if you miss a payment it counts as missing a credit payment and you may not get back what you paid in, and it has real interest involved which you don't get back either. I then see people encouraged to do these so as to build credit if they have none at all, like say you are 19, got a job which pays well enough, no credit in your history and then they encourage these sorts of people to take those out.

 

[Quantumcat]

If you can avoid ever having a credit card, do so. $50 isn't worth the hassle of working out how to cancel it and prevent any charges. I've seen people whose lives have gone down the toilet because they treated their credit card like free money and bought more than they could afford. You should only ever get a credit card if you really need it and have researched thoroughly to get the best deal. I got my first one when I got my first full time job, and I needed to be able to get to work more reliably than the bus, and I needed it to buy my first motorcycle. But I worked out my how much I could pay back per week and which bank would give me the best deal on terms of interest rate and monthly fees so I would have to pay the least possible overall. You may find you need one to buy a car (if you find a rate cheaper than a car loan) or for holidays because you get a good deal on international purchases. But don't get one just for fun. There's a reason they are giving away $50, and it's because it's a crap deal for you and they are likely to make much more out of you. At least research thoroughly first.

 

[vb_encryption_vb]

If you can avoid ever having a credit card, do so. $50 isn't worth the hassle of working out how to cancel it and prevent any charges. I've seen people whose lives have gone down the toilet because they treated their credit card like free money and bought more than they could afford. You should only ever get a credit card if you really need it and have researched thoroughly to get the best deal. I got my first one when I got my first full time job, and I needed to be able to get to work more reliably than the bus, and I needed it to buy my first motorcycle. But I worked out my how much I could pay back per week and which bank would give me the best deal on terms of interest rate and monthly fees so I would have to pay the least possible overall. You may find you need one to buy a car (if you find a rate cheaper than a car loan) or for holidays because you get a good deal on international purchases. But don't get one just for fun. There's a reason they are giving away $50, and it's because it's a crap deal for you and they are likely to make much more out of you. At least research thoroughly first.

So you took a credit card out for a motorcycle loan? Maybe they do things differently in Australia, but in America, that's just a bank loan.

Someone else also mentioned never get a CC, how do you expect to build your credit if you don't have one? As long as you carry a low balance and pay it off in full every month, interest will be avoided.

I have 5 CC and this is how I work them and pay them off in full every month.

BOA card - never use, has no benefit, it's there if I'm in al jam.

BOA Cash back - grocery shopping, fuel, etc. I get cashback on every purchase.

AMEX - Household bills, power, water, gas, car payment etc all goes to this card, I get points which I turn in for gift cards.

Home Depot - great to have if you need a major appliance, if I spend $300 or more, I have 6 months interest free to pay it off.

Synergy ( i think it's called ) - My bed, came as a CC for the account, can use it in limited places.

I pay my bill in full every month other than the no interest cards for xxx amount of time.

My credit is outstanding, never require a cosigner and can purchase just about whatever I want.

Bottom line, Credit is simple, don't abuse it and you will be fine. Anyone telling you otherwise, abused it and caused their own financial issues.

 

[Saiyan Lusitano]

Personally I try never to use credit, however I live in a place where credit scores mostly only matter if you want to use credit and possibly work in finance (don't know the current specifics there as there is very little danger that I will ever be bored enough to work in that). If you are in the US as your flag implies then that can change.
There are plenty of people that do take advantage of such offers though, whether it be opening a bank account or taking out a card and cancelling it or whatever wants to be done. I should also mention that even if the offers cost then they may be better than paying outright.

Again do read the small print as many will have ways to make it harder, such as minimum spends/usages, delays until rewards/gifts/whatever are given and so on and so forth. This appears to be on approval though, and as mentioned there is no annual fee. Also they appear to charge interest from the transaction date which is odd.

To elaborate a bit further on the having one may change your score it will happen in two primary ways
1) If you don't stop the card then it will show as you having a line of credit already open and thus be less viable for other types of credit you might actually want (car loan or something).
2) If you are denied the card for whatever reason this can be reflected in your credit file, and may impact getting credit at a later date (it is why all those predatory loan companies have the phrase denied credit in).

It gets more complex as different lenders look for different things, or if you prefer not all lenders want people that never used credit but have a reasonable salary.

Also on "not use it again" then you can cancel a credit card rather than just cutting it up or something. Doing so in addition to the above will see you eventually be able to be a new customer again, and get another 50 dollar card if you wanted. I am not sure as to the timeframe they use for that and different companies can radically different things.

Couldn't have said it better. The thing I've noticed with this credit card is that the rates are ridiculously high but as long as the member pays up it all in time there should be no issue whatsoever.

"Credit Score"
This type of stuff only in 'Murica?

Also I wouldn't sign up for those, they have $50 just to blur your vision then you have to pay x2 the amount.

No, not just in US.

There's an article by HuffPo (it's actually good, for once) which focuses on Credit Score worldwide - http://www.huffingtonpost.com/creditcom/how-do-credit-scores-work_b_1723362.html

Two countries that Credit Score is extremely important is in UK and US, for example. UK offers free credit score (ClearScore) accounts now whereas years before it was a paid-only service.

So you took a credit card out for a motorcycle loan? Maybe they do things differently in Australia, but in America, that's just a bank loan.

Someone else also mentioned never get a CC, how do you expect to build your credit if you don't have one? As long as you carry a low balance and pay it off in full every month, interest will be avoided.

I have 5 CC and this is how I work them and pay them off in full every month.

BOA card - never use, has no benefit, it's there if I'm in al jam.

BOA Cash back - grocery shopping, fuel, etc. I get cashback on every purchase.

AMEX - Household bills, power, water, gas, car payment etc all goes to this card, I get points which I turn in for gift cards.

Home Depot - great to have if you need a major appliance, if I spend $300 or more, I have 6 months interest free to pay it off.

Synergy ( i think it's called ) - My bed, came as a CC for the account, can use it in limited places.

I pay my bill in full every month other than the no interest cards for xxx amount of time.

My credit is outstanding, never require a cosigner and can purchase just about whatever I want.

Bottom line, Credit is simple, don't abuse it and you will be fine. Anyone telling you otherwise, abused it and caused their own financial issues.

Shit. You for sure have a ton of credit cards, I have two (American Express + Halifax) to try not to damage my Credit Score.

 

[vb_encryption_vb]

Shit. You for sure have a ton of credit cards, I have two (American Express + Halifax) to try not to damage my Credit Score.

If used properly it won't affect it negatively. ( Balances paid in full ) I've also got a home loan and car loan on my books as well.

Actual line of credit I have is 30k or so between the 5 cards.

 

[Youkai]

I got the Amazon Visa Card here in Germany with 70€ bonus and for me it was well worth it !
First year was completely free and there were no extra charges (guess it depents with the bank amazon is working together with in each country) and for the second year I had to pay 12€ or something like this ... as I canceled the card I only had to pay this once and got ~60€ free that I could use on Amazon.

and my GF and I used another offer by the "Postbank" who gave you 150€ Amazon coupon if you made a free account there ! after some time we got a letter stating that because of the problems they start taking money like most other places as well ... again just canceled without much problem (well we had to write them 3 letters because they allways found something that was not okay -.-V) and both got lots of money for not much work.
Used the Money for stuff for our cats we adopted into our family shortly after.

 

[grossaffe]

You'll be rejected due to lack of credit history. Rewards cards are for those who have good credit scores and a long enough credit history.

 

[Seriel]

Simple answer: No.
Long answer: Read all the many above posts telling you not to.

 

[Saiyan Lusitano]

If used properly it won't affect it negatively. ( Balances paid in full ) I've also got a home loan and car loan on my books as well.

Actual line of credit I have is 30k or so between the 5 cards.

Well, that'd dependable from person to person and country to country.

 

[Quantumcat]

So you took a credit card out for a motorcycle loan? Maybe they do things differently in Australia, but in America, that's just a bank loan.

Someone else also mentioned never get a CC, how do you expect to build your credit if you don't have one? As long as you carry a low balance and pay it off in full every month, interest will be avoided.

I have 5 CC and this is how I work them and pay them off in full every month.

BOA card - never use, has no benefit, it's there if I'm in al jam.

BOA Cash back - grocery shopping, fuel, etc. I get cashback on every purchase.

AMEX - Household bills, power, water, gas, car payment etc all goes to this card, I get points which I turn in for gift cards.

Home Depot - great to have if you need a major appliance, if I spend $300 or more, I have 6 months interest free to pay it off.

Synergy ( i think it's called ) - My bed, came as a CC for the account, can use it in limited places.

I pay my bill in full every month other than the no interest cards for xxx amount of time.

My credit is outstanding, never require a cosigner and can purchase just about whatever I want.

Bottom line, Credit is simple, don't abuse it and you will be fine. Anyone telling you otherwise, abused it and caused their own financial issues.

Do you not pay any monthly fees on those credit cards?? Sounds expensive! I guess credit history isn't as important here as there.

In any case, if it is important to have a credit card to get a credit history, then research the deal first and make sure there's no hidden fees, charges, or "gotchas" (eg. you can't close it in the first year without paying a large cancellation fee and there's a $10 fee per month so you've lost $120 just for signing on the dotted line). Don't get the first one you see. There's loads of different combinations of fees, interest rates and terms and conditions.