Top Reasons to Get the Prime Store Card Over the Prime Visa

Amazon Prime credit cards come in two types: the Prime Visa, which is accepted wherever Visa is, and the Prime Store Card, available for use on Amazon purchases only. Both cards earn 5% cash rewards on all Amazon purchases when you have an active Prime membership, come with sign-up bonuses for new cardholders, and offer 0% APR special financing for select purchases.

Now, in general, the Prime Visa is the stronger credit card. The card is more versatile and earns 2% cash rewards at restaurants, gas stations, and on local transit and commuting (including ride-hailing). But for some cardholders, the Prime Store Card will be the better option. If you're not sure, here are two scenarios in which I'd recommend the Prime Store Card over the Prime Visa.

1. You're rebuilding your credit

Store credit cards tend to have more lenient credit requirements than regular credit cards do. This is partly because the card can't be used everywhere and partly because your spending limits will likely be lower. Either way, store credit cards present slightly less risk to the card issuer, thus opening the door to applicants of all credit scores.

If you're not able to get accepted for a regular credit card, store cards could be the answer. Although store credit cards aren't accepted everywhere, your payment activities will still be reported to three major credit bureaus. This could help you rebuild your credit score without resorting to other, more expensive means, like credit builder loans. It could also mean graduating to a better credit card, like the Prime Visa, when your credit has improved.

Keep in mind, however, that store credit cards have higher APRs. For example, the Prime Store Card has a regular APR of 29.99%, whereas the Prime Visa has an APR between 20.49% - 29.24% Variable. One potential way to avoid this interest rate is to set up special 0% financing. Doing so will mean you won't earn 5% cash rewards on the purchase (bummer), but the money you save by taking the financing option could outweigh any rewards you might have earned.

2. You want to limit your spending

Like other store cards, the Prime Store Card will have a lower credit limit than the Prime Visa. On top of that, it's limited to making Amazon purchases. If you're trying to follow a strict budget, the Prime Store Card might be worth getting for these extra guardrails built into it.

But this is Amazon we're talking about -- you know, the place where you can buy basically anything. Your credit limit may not be as high as a regular credit card, but you'll still need to exercise some discipline to avoid racking up credit card debt. While the built-in restrictions could help you keep your spending in check, Amazon's vast selection could still tempt you to overspend.

That said, if you're careful with your Amazon spending, the Prime Store Card could be a useful tool. Its lower credit requirements could help you get a credit card to build or rebuild your credit. And you can earn 5% back on your Amazon purchases, which you can use toward future orders. Its perks aren't as robust as the Prime Visa's, but it can help you work toward getting approved for that credit card, one Amazon purchase at a time.