We’ll look at what Amazon credit card approval odds are like in this article to help you improve your Amazon credit card approval odds.
Amazon credit card approval odds may deviate from the conventional wisdom that “better credit equals a better chance of approval.”
You can have a credit score of over 800, a mortgage with no other debt, a good income, and a low debt-to-income ratio and still be turned down for an Amazon credit card.
Even if you are an Amazon Prime member who regularly purchases items from Amazon.
There’s probably a sweet spot for approval to ensure profit; ‘too low’ is credit risk, while ‘too high’ is a ‘no revolving balance’ risk.
Continue reading to learn how to increase your chances of getting an Amazon credit card approval.
WHAT DOES IT MEAN TO HAVE A CREDIT SCORE?
Before we get into how to improve your Amazon credit card approval chances, let’s first define credit score for those who don’t already know.
Your credit history and creditworthiness are represented numerically. It’s also known as the FICO Score, which is the most common type of score.
Nonetheless, it’s important to remember that there are thousands of credit scores, and many lenders create and use their own proprietary credit scores.
The higher your credit score, the better. Paying your bills on time can help you improve your credit score. When your credit score is high, getting a loan is much easier.
REQUIREMENT FOR AMAZON CREDIT CARD CREDIT SCORE
Because an Amazon credit card requires a credit score of 700 or higher, having a credit score of over 700 increases your chances of being approved.
People with good credit or better have a better chance of being approved for the Amazon Credit Card.
While your credit score is important, there are many other factors that will influence your chances of being approved for the Amazon Credit Card.
Your income, existing debt load, number of open accounts, recent credit inquiries, employment status, and housing status are all important factors to consider.
In some cases, you may be able to get approved with a slightly lower credit score if you excel in other areas.
However, it’s best to wait until you meet the Amazon.com Credit Card’s credit score requirement before applying. On WalletHub, you can check your credit score for free.
If you already have the store card, you may have better odds, but you should have at least 700.
NO CREDIT HISTORY AMAZON STORE CARD
With no credit history, getting an Amazon Store Card will be difficult, which is why you should learn how to improve your Amazon credit card approval odds.
According to Amazon’s website, you’ll need the following credit scores to have a good chance of getting approved: Excellent (720+), Good (680), and Fair (680) are the three levels of excellence (640).
When you have no credit history, it doesn’t mean you have a credit score of 0, but it does mean your score is extremely low.
If you want a better chance of getting an Amazon credit card, you’ll need to work hard on your credit score.
It means you haven’t developed a habit of borrowing money and repaying it on time. One of the most important factors that issuers consider before extending credit to a borrower is payment history.
You won’t be able to get an unsecured line of credit with favourable terms and benefits unless you have at least fair credit.
The Amazon Store Card performs as expected. The card can only be used for Amazon.com purchases.
You’ll be charged interest at a rate of 27.74 percent APR if you don’t pay your credit card bill in full.
To obtain an Amazon Store Card, you must devise a strategy for establishing credit and developing a strong credit profile.
You can apply for a secured credit card. To secure your credit limit, cards like the Capital One card require a minimum initial deposit of $200.
You may be eligible for a credit limit increase, a refund of your security deposit, or a switch to an unsecured credit card after several months of on-time payments.
You can also use someone else’s credit card as an authorised user. This allows you to establish credit based on the credit history of the primary cardholder. If you choose to become an authorised user, be cautious.
Should the primary cardholder’s credit score plummet, any negative activity will appear on your credit report as well.
You may be eligible for the Amazon Rewards Signature Visa card once your credit history has improved.
It’s a co-branded store card that can be used for things other than Amazon purchases. To qualify, you’ll need a good credit score of at least 680.
Just resist the urge to apply for too many credit cards in a short period of time, especially if you’re just getting started with credit.
Multiple inquiries on your credit report will lower your credit score by a few points and put a halt to your efforts to build good credit.
WHAT EFFECT DOES THE AMAZON STORE CARD HAVE ON YOUR CREDIT SCORE?
The Amazon Store Card does have an impact on your credit score, but how much depends on how you use it.
Your credit score should rise if you pay on time and keep your credit utilisation low, and it will fall if you don’t.
Furthermore, applying for the card has a minor negative impact on your credit, and closing the card can have a similar impact. As a result, your chances of getting an Amazon credit card may be reduced.
You can use WalletHub’s free credit score simulator to see how the Amazon Store Card might affect your credit score in particular.
The Impact of the Amazon Store Card on Your Credit Score:
• Application: Whether you are approved or denied, applying for the card will lower your score by 5-10 points. After a few months of responsible use, this is easy to recover from.
• Payments: The card’s issuer, Synchrony Bank, will report your payment status to the credit bureaus once a month.
Late payments will lower your credit score, whereas timely payments will raise it. The best situation is to pay in full every month and not carry a balance.
• Credit Utilization: Using more than 30% of your credit limit can affect your credit score negatively.
It’s best to use between 1% and 10%, but even 0% will help your score. Synchrony Bank will send a monthly credit utilisation report to the credit bureaus.
• Cancelling the Account: Cancelling your card can affect your credit score, but how much depends on how long you’ve had the account open and how much credit you have available.
If you close older accounts with larger credit lines, it will hurt your credit score more, which may reduce your chances of being approved for an Amazon credit card.
In conclusion, the only way the Amazon Store Card affects your credit score that is beyond your control is the initial hard pull during the application process.
Following that, your score will be determined by how responsibly you use the account.
HOW TO IMMEDIATELY IMPROVE YOUR CREDIT SCORE
As previously mentioned, improving your credit score can help you get approved for an Amazon credit card.
Paying down balances, disputing inaccurate information on your credit report, making more frequent payments, and reducing credit utilisation are the fastest ways to improve your credit score.
Here’s how to raise your credit score and increase your chances of getting an Amazon credit card quickly:
Pay down your debts: If you aren’t eligible for a credit limit increase, concentrate on paying down your current debt.
Paying off a large amount of debt at once will improve your credit utilisation ratio and score.
If you are unable to make a large payment at once, try to pay more than the minimum monthly payment.
If you have multiple debts, start by paying off the one with the highest interest rate first to keep interest charges to a minimum.
• Pay your credit cards more frequently: Credit utilisation is calculated using the statement balance on each of your credit cards.
Making payments before the end of each billing period will reduce these balances, lowering your credit utilisation and improving your credit score.
Then, to avoid interest charges and credit-score damage, pay off the remaining balance by the due date.
• Become an authorised user: If you’re just starting out or have a lot of negative marks on your credit report, becoming an authorised user on someone else’s credit card is a good way to start building your credit.
Simply ensure that the primary account holder is trustworthy and pays their bills on time.
• Add new payments to your credit report: There are new services that can help you add positive information to your credit report, such as on-time utility payments, rent payments, and positive bank balances.
Not all of these programmes apply to all credit bureaus, and some are fee-based, but they can help you improve your credit score in a matter of months.
• Increase your credit limit: If your spending stays the same, a higher credit limit can lower your credit utilisation ratio.
The only drawback is that requesting a credit limit increase usually triggers a hard credit inquiry, which may temporarily lower your credit score.
However, if you are given a credit limit increase without asking for it, or if you have a few months before you need the best credit score possible, a higher limit may be beneficial.