Apple Card vs. Amazon Prime Rewards Visa: Which one is better for you?

Choosing the right credit card can be a challenge, especially for those looking to rebuild their finances or access credit for the first time. For many, a good credit card is not just about convenience but also about getting the best possible benefits without accumulating unnecessary debt. Two popular options on the market today are the Amazon Prime Rewards Visa and the Apple Card. Both offer unique advantages, but they cater to different spending habits and financial needs. Understanding their fees, cashback rewards, approval requirements, and other benefits can help determine which one is the better choice for you.

The Amazon Prime Rewards Visa, issued by Chase, is designed for frequent Amazon shoppers. It offers significant cashback on purchases at Amazon and Whole Foods, making it attractive for those who regularly shop on the platform. On the other hand, the Apple Card, issued by Goldman Sachs, is built around Apple Pay, providing higher cashback rewards for digital transactions and interest-free financing for Apple products. While both cards are marketed as convenient and rewarding, they differ in how they fit into the everyday lives of consumers, particularly those in lower-income brackets who are managing debt and seeking financial stability.

Annual Fees and Interest Rates

Neither the Apple Card nor the Amazon Prime Rewards Visa charges an annual fee, but there are key differences in how they handle interest rates and penalties. The Amazon Visa has a variable APR based on creditworthiness, typically ranging from 19.49% to 27.49%. The Apple Card, on the other hand, also has a variable APR, usually between 15.99% and 26.99%, depending on credit score. A major selling point of the Apple Card is its lack of fees, meaning no late fees, no foreign transaction fees, and no penalty APR. In contrast, the Amazon Visa does have late payment fees, making it less forgiving for those who occasionally miss a due date.

Cashback and Rewards Program

The Amazon Prime Rewards Visa provides 5% cashback on Amazon and Whole Foods purchases, 2% cashback at restaurants, gas stations, and drugstores, and 1% on all other transactions. This structure is ideal for those who do most of their shopping through Amazon and want to maximize rewards on daily essentials. However, the 5% cashback is only available to Amazon Prime members, which costs $139 per year. Without Prime, the cashback drops to 3% on Amazon and Whole Foods, making the card slightly less attractive.

The Apple Card, on the other hand, takes a different approach to cashback. It offers 3% cashback on Apple purchases and at select merchants like Uber, Walgreens, and Nike, 2% cashback on Apple Pay transactions, and 1% cashback on all other purchases. One major downside is that the 2% cashback is only available when using Apple Pay, meaning physical card transactions earn just 1%. For those who shop mostly in cash-only locations or at stores that do not accept Apple Pay, the lower cashback rate might be a dealbreaker.

Approval Process and Credit Score Requirements

The Amazon Prime Rewards Visa generally requires a good to excellent credit score (typically 670 or higher). However, those with fair credit may qualify for the Amazon Prime Store Card, which has fewer benefits but still offers cashback on Amazon purchases. The Apple Card is often praised for its more flexible approval process, sometimes accepting applicants with credit scores in the mid-600s. Apple also offers a pre-approval check with no impact on credit score, allowing users to see their potential credit limit and interest rate before officially applying.

Other Benefits and Features

The Amazon Prime Rewards Visa includes travel benefits such as no foreign transaction fees, purchase protection, and extended warranties. It also offers various fraud protection features, making it a strong choice for international travelers and frequent online shoppers. The Apple Card, while not as feature-rich in terms of travel perks, offers a unique budgeting tool through the Wallet app, allowing users to track spending in real time. Additionally, the Apple Card promotes financial transparency by displaying exactly how much interest will accrue based on payment amounts, a feature particularly useful for those trying to manage debt more effectively.

Downsides and Potential Drawbacks

The Amazon Prime Rewards Visa is heavily tied to Amazon purchases, meaning those who do not shop frequently on the platform may not maximize its benefits. The requirement of an Amazon Prime membership for the full 5% cashback is also a disadvantage for budget-conscious users who do not want to pay the yearly fee. On the other hand, the Apple Card’s reliance on Apple Pay limits its utility, particularly for those who prefer using a physical card or shop at stores that do not accept digital payments. Additionally, the Apple Card does not allow balance transfers, making it less useful for those looking to consolidate existing debt.

Comparative

Choosing the right credit card requires understanding its fees, rewards, and overall benefits. The table below provides a side-by-side comparison of the Apple Card and the Amazon Prime Rewards Visa, highlighting key factors such as cashback rates, approval requirements, and additional perks. This overview helps determine which card aligns best with different financial needs and spending habits.

Which One Is Better for You?

Choosing between these two credit cards ultimately depends on individual spending habits. The Amazon Prime Rewards Visa is ideal for frequent Amazon shoppers who are already Prime members and want to maximize cashback on online purchases. It also benefits those who spend a lot at gas stations and restaurants. Meanwhile, the Apple Card is better suited for Apple users who frequently pay with Apple Pay and want a no-fee credit card with transparent interest rates and spending insights.

For those in lower-income brackets who are managing debt, neither card is a perfect solution. While both offer valuable cashback, they also encourage spending within specific ecosystems—Amazon for one and Apple for the other. If building or improving credit is the main goal, other secured credit cards or credit-building products might be a better option. However, if used responsibly, both the Apple Card and the Amazon Prime Rewards Visa can be effective tools for making purchases while earning rewards, provided the user understands their limitations and potential costs.

To explore more details about each of these credit cards, we recommend visiting their official websites. Click the buttons below to access the Apple Card and Amazon Prime Rewards Visa pages, where you’ll find comprehensive information on benefits, fees, and application requirements.