The Amazon Store Card is a lending product designed for consumers who do most of their online shopping at Amazon.com. Although you don’t need a Prime membership to be approved, you won’t receive the maximum rewards associated with this card if you don’t have one.
Synchrony Bank issues the Amazon Store Card. It comes with no annual fee and plenty of perks, including promotional financing on purchases of $150 or more.
If you want to be approved for this account, you’ll need to have a credit score that fits into the range the issuer wants to see for new members. This guide takes you through that information and how to achieve your desired results.
Credit Score Needed for Amazon Store Card
The minimum credit score requirement to be approved for the Amazon Store Card is 640. Higher scores increase approval odds, while lower ones are typically excluded. Synchrony Bank reviews the individual’s credit history, income, and debts when deciding to grant or deny the application.
The Amazon Store Card uses the same FICO score rating as other lenders when deciding to grant a credit card application.
Two-thirds of American consumers have a FICO score that rates as good or better. If you want the Amazon Store Card, the 640 minimum is found in the “Fair” category.
The overall range for credit scores using the FICO model for determining creditworthiness is 300 to 850. Here’s a closer look at the breakdown.
- Poor Credit: 300 to 579 credit score.
- Fair Credit: 580 to 669 credit score.
- Good Credit: 670 to 739 credit score.
- Very Good Credit: 740 to 799 credit score.
- Excellent Credit: 800 to 850 credit score.
Your credit scores are calculated using a series of programs called “scoring models.” This software performs statistical analysis of your information, including the content of your credit report, to create a risk factor rating in the 300 to 850 range.
Credit reports contain a history of your borrowing and repayment behavior from three national credit bureaus: TransUnion, Equifax, and Experian. It is possible for errors to be on these reports, so you’ll want to review them at least once per year to ensure their accuracy.
You can request a free credit report for each bureau once every 12 months.
The scoring models look for data patterns in your credit reports while analyzing the information for negative behavior. Numerous hard credit inquiries, having too much debt, or collection accounts can drive your score down significantly.
Foreclosure, bankruptcy, and similar financial events can lower your score by 160 points or more for up to seven years.
Is It Possible for My Credit Score to Be Too High?
Credit card lenders look at various risk factors when reviewing someone’s application for a new account. Will that person pay their bills on time? Are they going to pay off the amount each month so that no interest accrues?
The Amazon Store Card is an excellent product for those with fair or moderate credit scores. It’s a high-value rewards card in a closed-loop system that lets you rebuild your profile with appropriate use.
If someone has a 720 credit score or higher, it might be better to apply for the Signature Rewards Visa instead of the Amazon Store Card. The rewards are similar, but you’ll have more spending power because it isn’t a closed-loop account.
For those with a lower credit score, the Amazon Secured Card is an option that can help you build your profile with positive behaviors until you can qualify for an unsecured account.
People with high credit scores are sometimes turned down for moderate-level account lines because the lender doesn’t think there will be chances to make money. Denials also occur in this situation if several hard inquiries have happened within the past three to six months.
What Is a Hard Inquiry on My Credit Score?
Hard pulls occur whenever you apply for a new credit line. It could be a loan, a mortgage, or a credit card.
When a hard inquiry occurs, it means that the potential creditor requested to look at your credit file. This information lets the reviewer know how much risk you potentially pose as a borrower.
Although one hard inquiry doesn’t typically impact your score negatively, several of them in a short time can cause several points to be shaved from the total.
What are creditors looking for when they initiate a hard pull?
- Your payment history lets them know if you miss payments frequently or tend to pay your obligations when they are due.
- The total debt you owe is listed on the report, along with the amount you’re approved to borrow across all balances.
- If you have applied to open several credit cards at once since that can be viewed as a sign of financial desperation.
A soft inquiry is a little different because you’re checking your credit when companies want to prequalify you for an offer. You haven’t submitted a full application in this circumstance, so your credit score isn’t impacted.
Several factors contribute to your credit score, so hard inquiries have a negative impact in short-term circumstances. If you’re applying for a mortgage or a car loan, these are typically unavoidable. You’re generally not penalized for several inquiries for one loan type if they’re made within a specific time.
Hard inquiries stay on your credit report for two years, but they typically impact your scores for only a few months. They account for 10% of your overall score.
What If My Credit Card Application Is Not Approved?
If you’re denied approval for an Amazon Store Card, the outcome doesn’t affect your credit except for the hard inquiry. That means you don’t need to worry about a significant drop in your score.
It only takes a few minutes to learn if you’ve been approved or denied for the new credit card, but it can take up to a couple of weeks to understand why the application wasn’t granted. Lenders in the United States are required to tell you why applications are rejected with an adverse action letter.
The letter typically arrives between seven to ten business days after the lender officially rejects the application.
Although a lender’s reasons are unique, here are some of the most common issues that prevent someone from obtaining an Amazon Store Card or another account.
- Credit Score Is Too Low. Each credit card lender uses a recommended score range for their different products. If yours isn’t high enough to fit within that predetermined level, a denial often occurs.
- Income Is Too Low. You’re often required to report your income and debt obligations as part of the credit card application. If your debt-to-income ratio is too low, you’ll usually receive a denial. Imagine that you get $5,000 per month for income, but your housing and utility obligations are $4,200. With only $800 in discretionary spending, you’d be seen as a risky customer.
- Negative Credit History. If you have collection accounts, lots of missed payments, or judgments on your credit report, you’re more likely to receive a denial than someone without those items. Although these can’t be erased, you can temper their influence by making more on-time payments whenever possible.
- Applied For Too Much. When people apply for lots of new credit opportunities at once, they’re often seen as a potential credit risk. Try to wait at least three months between applications when you need a new loan or credit card.
- Application Restrictions. Credit card lenders set specific restrictions to prevent churning and misuse. These items are listed in the terms and conditions or requirements, but it tends to be in the fine print.
If you get repeated denials for a new credit card account, you’ll want to read the adverse notices that come in the mail. There should be a common theme found in them, including these topics and others.
A great option to consider in these circumstances is the Amazon Secured Card. Although you’ll need to pay a deposit to get a credit line, you’ll have a way to increase your on-time payment count while showing responsible use.
Another choice would be to become an authorized user on a relative’s or partner’s credit card. You can get a slight boost from their credit history to improve your chances on the next application.
What Is the Best Way to Raise My Credit Score?
If your credit score is under 600, the odds of receiving approval for the Amazon Store Card are not high. There could be ways to bring up that figure quickly. Depending on what is causing it to be low, your score could see a boost of 100 points or more with the following strategies.
| Tip for Raising Credit Score | Why This Credit Score Tip Works |
| Ask for Higher Limits | When your credit limit rises while your balance remains the same, your utilization rates improve. Once the changes are reported to the credit bureaus, you’ll see a boost to your scores. |
| Be an Authorized User | Friends or relatives with a high-limit credit card account can boost your scores significantly by adding you as an authorized user. The account holder doesn’t need to let you use the card or provide the account number to see improvements. |
| Pay Your Bills | If you miss a payment by 30 days or more, call the creditor. Pay the amount due in its entirety, then ask if they’ll consider not reporting it as missing. There’s no guarantee that they will, but getting the account marked as current always helps. |
| Dispute Errors | One mistake on a credit report can pull down scores significantly. Dispute any errors you find immediately. You can request to check for mistakes, remove unauthorized activity, or eliminate negative information that’s too old to be there now. Credit bureaus have 30 days to investigate and respond. |
| Focus on Collection Accounts | Recent FICO and VantageScore models don’t take paid-off collections into account, but the FICO 8 model does. One of the ways you can settle these debts is to have the agency stop reporting the debt or remove the item in exchange for payment in full. |
| Secured Credit Cards | You must back this credit card with a cash deposit. Once the issuer receives the funds, you can use it like any other line of credit. The on-time payments work to build credit, and most accounts transition to an unsecured line once you’ve made enough of them. |
| Rent and Utility Payments | Rent reporting services can add your monthly payments to your credit reports. Some models don’t include them or your utilities, but it’s worth asking if you have a beneficial payment history. |
Should I Apply for the Amazon Store Card?
The Amazon Store Card provides zero fraud liability, 0% APR financing options, and no annual fee once approved. Prime cardholders earn 5% back at Amazon.com, and several promotional offers are available. Anyone with fair to moderate credit will have options to improve their credit while earning great rewards.
I went through a period of unemployment where I couldn’t find a job for the life of me. After the benefits ran out, there wasn’t any money left to pay the bills. The power company even turned things off on me a couple of times.
My student loans were in forbearance, but I ran out of application opportunities. Those went into default.
I had more than $14,000 in credit card debt that took seven years to drop off my credit report since I couldn’t afford to pay it.
Once I got working again, I began to improve my credit. I paid off some collection accounts, rehabilitated the student loans, and made sure payments were made on time whenever possible.
After two years of working, I got my credit score up to 655. I applied for the Amazon Store Card, got approved, and I’ve been happy with the account.
It’s convenient, especially when I stay on top of payments. I funnel the rewards into new purchases, and it feels like a little bonus. I highly recommend giving the terms and conditions a read to see if this card could fit your needs.
