💰 Is Amazon Prime Visa worth it compared to a 2% card?

Spencer Johnson is breaking down whether the Amazon Prime Visa is actually worth adding to your wallet. If you are the right target audience, this card offers a super simple value add to your life. The math comes down to your current cash back setup and whether you already pay for Prime. Use this calculator to see exactly how much more you could earn in your first year and beyond compared to a standard 2% cash back card.

As Spencer Johnson puts it, the first reason that he thinks most most people should consider applying for it is because it has no annual fee with an Amazon Prime subscription.

If you don't already have Prime, you need to subtract the $139 annual cost of the subscription to find your true net cash back. The card only makes financial sense if your extra cash back outpaces this fee.

The core benefit is the generous return on your groceries and online shopping. As Spencer Johnson notes, 5% cash back on Amazon purchases is something that's going to be really hard to beat out there unless you're rotating quarterly category cards.

To maximize value, always take your points as a statement credit through Chase. Whenever you use your Amazon Points through Amazon directly to give you a discount, you're then lowering the amount of 5% cash back you get on that purchase.

To find your true benefit, compare the 5% you earn with this card against the rate you currently get on Amazon purchases. The welcome bonus also adds a nice upfront boost.

As Spencer Johnson points out, the welcome offer is usually a $100 gift card, but it will rise substantially sometimes to even $200 for this gift card throughout the holidays as well as on Prime Day.