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Is anyone familiar with the Amazon Prime 5% back c...
# credit
f
Is anyone familiar with the Amazon Prime 5% back card?
m
Yes. I'm a big fan.
p
If possible, I recommend the personal one though chase, not the business one through Amex - certain promotions are only offered through the Chase one
m
I only know about the Chase one.
b
Ya we have the chase one, it's great
f
Thanks
f
5% back on all Amazon Prime purchases? is there a catch?
how did I not know about this?
m
because you aren’t active enough in this slack!
no catch
f
lol so true
m
the catch is that it makes you spend more on amazon
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f
right I guess, but we shop on amazon anyways
like, a lot
m
same. like that credit card is usually are most used one every month haha
p
Since we are all sharing useful information here - when using your 5% rewards, be sure to use it as cashback in your bank account or for statement credit, instead of shopping with your points at Amazon. It’s not a huge amount but you don’t earn points on anything paid with points. So you end up losing 5% of your 5% that way
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m
^ ^ @powerful-butcher-25898 wow thank you!!
another great thing, you can choose to get your packages later and get 6% back a lot. i do this a lot
f
Nice
f
Thanks for all the great feedback. I guess I'll apply!
b
I forget, do you need prime membership? That may be the catch
m
anyone spending this much on amazon has prime lol
b
Fair enough lol
s
@powerful-butcher-25898 where does one set that up? Tbh I'm not sure which setup I'm using
p
In the chase app/site, under rewards
thankyou 1
n
The business one is amex and offers extended warranty protection (last time I checked - haven't checked recently)
I have both
I collect credit cards lol
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c
Target also has a 5% discount credit card btw. It just deducts 5% from the total at the time of the purchase.
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m
Oh that's even better bc no maiser.
c
You shouldn't need to pay maaser on cashback or points. Its a discount, not income. Even the IRS doesn't tax it 🙂
m
It's a known machlokes. I think it's clearly not a discount. IRS is definitely not my Rov either haha.
"If you can only use the points for very specific items you need not give ma’aser. However, if it gives you a broad purchasing power through your credit card it’s considered as a monetary gift and ma’aser must be given. If it can only be used as miles – and the miles are not being exchanged for cash – or to reduce your credit card debt, ma’aser need not be given." https://asktherav.com/2835-do-you-need-to-give-maaser-from-credit-card-points-what-if-it-is-given-as-a-credit-statement-or-to-be-used-for-airline-miles/#:~:text=If%20you%20can,not%20be%20given
p
Hashkafa aside, if you’re not a big spender or need to leverage debt, I would get the target debit card instead of credit. Pretty much the same benefits, but obviously you’re paying upfront
n
I would argue the opposite. If you're confident that you won't fall for the traps of credit cards, use a credit card. In case of fraud, you are much better protected legally, since the burden of proof is on the cc company. Debit cards can be a fraud nightmare, since there is direct access to your cash
p
Generally agree, however each card dings your credit a bit, especially personal cc, so I wouldn’t ever open a store card unless it has substantial benefit. For something like target I’m pretty comfortable with a debit card for my 15 purchases a year
s
Opening a card dings your credit, having a card afaik does not. In fact, having an open credit card with little or no balance impacts your debt to credit ratio very positively
m
Agreed with @steep-dog-55906 and @nutritious-raincoat-28876
Unless you're within 12 months of buying a house, then I might agree with @powerful-butcher-25898
p
True, but there are shorter term implications such as ability to sign up for other cards. I’m not losing 100,000 points because I chose to sign up for a target card to get 50 bucks back a year
Although if you’re not too aggressive about the Credit Card applications, it’s not really relevant
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n
I wouldn’t ever open a store card unless it has substantial benefit.
Agreed. But then the alternative is to use a regular credit card, not debit.
For something like target I’m pretty comfortable with a debit card for my 15 purchases a year
Runs the same fraud risk. I never use a debit card except for ATMs, and even that I'm careful with. Truth be told, I should have a separate account for ATM access and transfer funds in before withdrawing, but I haven't gone completely paranoid yet...
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p
The risk is minimal if not tied to transactions. The inherent risk of debit card is losing the physical card, in which case someone can swipe as if it’s a credit card, but without the fraud protection. This does not apply when linking a debit card to your target account, as pin is required for every purchase
n
What if someone gets the numbers and makes online purchases? Happens with my cc about every 5 years or so. Hopefully less since I've started using google wallet with virtual numbers
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