Brand Specific
11 min read

Finding the Best Amazon Credit Card in the UK: A Comprehensive Guide

Michael Chen · Credit Card Specialist

Shopping on Amazon has become a staple of modern life, and for many UK consumers, finding the best Amazon credit card is a key strategy for maximising rewards and savings. But navigating the world of credit cards can be confusing. With numerous providers, varying interest rates, and a maze of rewards programmes, how do you choose the right one for your needs? This comprehensive guide will walk you through everything you need to know to find the best Amazon credit card in the UK for 2023 and beyond, equipping you with the knowledge to make an informed decision.

Why Consider an Amazon Credit Card?

Before diving into specific cards, it’s important to understand the advantages of choosing a credit card specifically designed for Amazon shoppers. There's a reason these cards are popular:

  • Rewards and Cashback: The primary draw is often the opportunity to earn rewards, usually in the form of points or cashback, directly linked to your Amazon purchases. This can significantly offset the cost of your spending if used strategically.
  • Introductory Offers: Many Amazon credit cards come with attractive introductory offers, such as bonus points or cashback after meeting a certain spending threshold. These can be incredibly beneficial for new cardholders.
  • Convenience: Having a dedicated card can streamline your Amazon purchases and allows for easier tracking of spending related to this specific platform.
  • Potential for Savings: Over time, the rewards and cashback you accumulate can lead to substantial savings on your Amazon shopping.
  • Financial Management: If used responsibly, a credit card can be a valuable tool for managing your finances, and a card specifically tied to your Amazon shopping habits can help track this particular spending area.

What Makes a Credit Card the "Best" for Amazon?

The "best" Amazon credit card is subjective and depends heavily on your individual spending habits and financial priorities. However, there are several key factors to consider when evaluating different cards:

Cashback/Rewards Rate

The core feature of any rewards credit card is the rate at which you earn rewards. Consider:

  • Standard Earning Rate: What percentage of your Amazon spending will be returned as points or cashback?
  • Bonus Categories: Are there any categories beyond Amazon purchases that offer elevated rewards? This might include groceries, travel, or entertainment.
  • Redemption Options: How easy is it to redeem your accumulated rewards? Can you convert them into Amazon vouchers, statement credits, or other options?

Annual Fees

Many premium rewards cards come with annual fees. These fees can offset the benefits if you are not a high-frequency shopper. It's vital to calculate if the rewards justify the cost of the annual fee. Low annual fees can sometimes indicate lower reward returns, but might be perfect for light users.

Interest Rates (APR)

The Annual Percentage Rate (APR) is the interest rate you'll be charged if you don't pay your full balance each month. If you are carrying a balance, a high APR can quickly erode any benefit from rewards. Look for cards with lower APRs if you know you will not pay the balance in full every month.

Introductory Offers and Bonuses

Evaluate the introductory offers carefully. These bonuses can be enticing, but make sure you can realistically meet the spending requirements to unlock them. Think about this:

  • Sign-up Bonuses: What is the value of any sign-up bonus, and how much do you need to spend to qualify?
  • 0% Intro APR Period: Some cards offer an introductory period of 0% APR on purchases or balance transfers. This can be valuable for managing existing debt, however, check the duration, fees, and the standard APR that applies afterwards.

Other Perks

Beyond rewards, other features can enhance the value of your credit card:

  • Travel Insurance: Some cards include complimentary travel insurance.
  • Purchase Protection: This provides cover against damage or theft of purchased items.
  • Zero Liability: Protection against fraudulent purchases.
  • Foreign Transaction Fees: If you frequently purchase on foreign Amazon sites, these fees can add up.

Major UK Providers of Amazon Credit Cards

While there isn't a single, "official" Amazon-branded credit card directly issued in the UK, several financial institutions offer cards that are particularly advantageous for Amazon shoppers. Here are a few examples:

The Barclaycard Reward Credit Card

  • Features: Often cited as a strong contender for the best Amazon credit card, it offers a competitive cashback rate on everyday spending. Sometimes with higher cashback tiers on certain spending categories, including online purchases, this aligns well for Amazon users.
  • Key Benefit: The primary advantage of this card is that it is not tied solely to Amazon, meaning any spending earns cashback which can then be used on Amazon or anywhere else you like. * Points Redemption: Can be redeemed as credit into the card account.
  • Note: Review the current cashback rate and any introductory offers that are in place.

The American Express Preferred Rewards Gold Card

* **Features:** Known for its generous rewards program and travel benefits, AMEX Gold also provides reward points which can be converted into various rewards, including Amazon gift cards, sometimes with a transfer bonus.
* **Key Benefit:** The key draw is the ability to earn rewards across all spending and having a flexible points system, however, AMEX isn’t accepted everywhere, so this must be weighed against other card options.
 *  **Points Redemption:** Can be redeemed against travel or shopping, including Amazon.
* **Note:** Annual fee usually applies, so consider this cost against the reward rate to be used.

The Santander All in One Credit Card

*   **Features:** Offers a competitive cashback rate on purchases, and also allows balance transfers with introductory rates.
*   **Key Benefit:** A robust all rounder, for day to day purchases it can provide consistent cashback, which can be put towards Amazon spending.
 *   **Points Redemption:** Can be redeemed as cashback in the form of account credit.
*   **Note:**  Offers and APR can fluctuate, so check details before applying.

Other Options

  • Consider retailers like Tesco and Sainsbury's which provide points through purchases which can then be redeemed as vouchers – these can sometimes be used on Amazon through third party vendors. However, they are not as direct a method, but provide an extra option if you're already a shopper with those stores.
  • Look out for other credit card providers offering cashback on online purchases, they may be less specific in their advertising towards Amazon, but can still provide excellent options for saving on your Amazon purchases.

Understanding Credit Score and Eligibility

Your credit score is a crucial factor in determining whether you will be approved for a credit card and the APR you'll receive. In the UK, credit scores are typically provided by credit reference agencies such as Experian, Equifax, and TransUnion.

How Credit Scores Affect Your Application

  • Approval: A strong credit score significantly increases your chances of being approved for the card you want.
  • APR: Credit scores have a major impact on the interest rates you are offered. A lower credit score usually translates to a higher APR, increasing your borrowing cost.
  • Credit Limit: A good credit score can lead to a higher credit limit, but don't get drawn into overspending just because a larger amount is available.

Improving Your Credit Score

If your credit score needs improvement, here are a few steps you can take:

  • Pay Bills On Time: This is the most crucial step. Late payments negatively affect your credit score.
  • Reduce Credit Utilization: Aim to use less than 30% of your available credit.
  • Correct Errors: Regularly check your credit reports for errors and dispute them with the relevant credit reference agency.
  • Avoid Multiple Applications: Too many credit applications in a short period can hurt your score.
  • Use Credit Responsibly: Using credit cards for smaller purchases and paying them off in full each month helps build a good credit history.

Eligibility Criteria

Generally, card issuers consider these factors when assessing your application:

  • Age: You must be 18 years or older.
  • Residency: You must be a UK resident.
  • Employment Status: You'll need to demonstrate a stable income, however, many cards are available for people with low or no income but may require collateral/higher deposit/lower spending limit.
  • Credit History: As detailed above, a good credit history is crucial.
  • Existing Debt: The amount of debt you already have may affect your chances of approval and credit limit.

Comparing Providers: A Practical Approach

To choose the best Amazon credit card for you, compare the options head-to-head. Consider:

  • Your Spending Habits: Do you spend heavily on Amazon, or are you a light shopper?
  • Typical Monthly Purchases: Are you buying groceries, electronics, or other household items?
  • Redemption Preferences: Would you prefer to redeem rewards as Amazon vouchers, cashback, or travel points?
  • Tolerance for Annual Fees: Are you willing to pay an annual fee for better rewards?
  • Borrowing Needs: Do you need a card with a low APR, or are you planning to pay the balance in full every month?
  • Other benefits: What other benefits do you require such as travel insurance or purchase protection?

For instance, if you are a frequent Amazon user and make lots of online purchases, and are ok with an annual fee, an American Express could provide high value. Whereas, if you're more of an occasional Amazon shopper, then a Barclaycard or Santander offering cashback on most purchases might be more appealing.

Key UK Statistics (2023-2024)

It's essential to keep in mind current financial data that can help inform your decision. Although direct Amazon credit card data is difficult to obtain, here are some key trends:

  • Credit Card Usage: According to recent reports from UK Finance, credit card spending continues to grow, with online purchases accounting for a significant portion. Consumers are increasingly using credit cards for everyday spending and utilising rewards.
  • Average Credit Card Debt: Data from the Money Charity suggests that while many consumers use cards wisely, average credit card debt remains a concern for many UK residents which means using rewards schemes to mitigate overspending becomes even more important.
  • Inflationary Pressures: With rising inflation in the UK, the need for consumers to maximise their spending becomes crucial and rewards can offset costs incurred through higher prices.
  • Online Retail Growth: The UK online retail market is still rapidly growing. In 2023 online retail accounted for approximately 30% of all retail sales, making it a significant segment. This means for many, shopping through Amazon is becoming a more standard practice and getting the right rewards scheme is valuable.

These figures highlight the need to select credit cards wisely, and ensure that any rewards you earn outweigh the cost of credit.

Maximizing Rewards: Actionable Tips

Once you’ve chosen the best Amazon credit card for your needs, it's vital to use it strategically to maximise your benefits:

  • Pay Balances in Full: Avoid interest charges by paying your balance each month.
  • Use It for All Amazon Purchases: Put all your Amazon purchases on your card to maximize rewards.
  • Track Your Spending: Monitor your rewards and ensure you are meeting any spending requirements for bonuses.
  • Redeem Rewards Promptly: Don't let your rewards accumulate; redeem them when they become available.
  • Combine Rewards: Look out for opportunities to combine credit card rewards with other promotional offers on Amazon for even greater savings.
  • Review Terms and Conditions: Stay updated on any changes to your card’s terms and conditions.
  • Do not Overspend: Using your credit card to accumulate rewards is useful, but don't overspend just for the sake of rewards. Always keep your spending within your means.

Conclusion: Choosing Your Best Amazon Credit Card

Choosing the best Amazon credit card is a personal decision that depends on your unique spending habits, financial situation, and what you value most in a rewards programme. By carefully considering factors like cashback rates, annual fees, interest rates, and other perks, and comparing providers such as Barclaycard, American Express, and Santander, you can confidently choose a credit card that benefits your Amazon shopping habits.

Remember to check your credit score, understand the eligibility criteria, and manage your spending responsibly. By doing so, you can use your credit card as a valuable tool to unlock savings and rewards on your Amazon purchases. Always ensure that the rewards and benefits you receive outweigh the costs of credit, and use your credit card for a benefit, and not a burden. By staying informed and proactive, you can truly get the best from your Amazon shopping.