Does an Amazon Credit Card Application Trigger a Hard Credit Pull?

Yes, applying for an Amazon credit card does indeed trigger a hard credit pull on your credit report. This is standard practice for virtually all credit card applications, not just those associated with Amazon. A hard inquiry, also known as a hard pull, is a request to view your credit report that is recorded on your credit history and can slightly impact your credit score. Let’s delve deeper into what this means and what you should consider before applying.

Understanding Credit Pulls: The Basics

Before diving into the specifics of Amazon credit cards, it’s crucial to understand the two main types of credit inquiries: hard inquiries (or hard pulls) and soft inquiries (or soft pulls). The difference is significant.

Hard Inquiries: The Ones That Matter (Slightly)

A hard inquiry occurs when a lender, such as a bank or credit card issuer, checks your credit report as part of a lending decision. This happens when you apply for a new credit card, a loan (mortgage, auto loan, personal loan), or any other form of credit. Hard inquiries are recorded on your credit report and remain there for about two years, though their impact on your credit score typically diminishes over time.

The effect of a single hard inquiry is usually quite small, often resulting in a decrease of only a few points. However, multiple hard inquiries within a short period can raise a red flag to lenders, suggesting that you might be desperately seeking credit or are facing financial difficulties. This can negatively impact your ability to be approved for new credit lines.

Soft Inquiries: The Harmless Peeks

A soft inquiry occurs when you check your own credit report, when a lender checks your credit for pre-approval offers, or when a business checks your credit for employment purposes. Soft inquiries are not recorded in a way that other lenders can see, and they do not affect your credit score. They are simply informational and don’t indicate that you are actively seeking credit.

The Amazon Credit Card Landscape: Which Card Are We Talking About?

Amazon offers several co-branded credit cards, each with its own unique features and benefits. Understanding which card you’re applying for is important because the issuer and therefore the credit bureau they pull from can vary.

• Amazon Prime Rewards Visa Signature Card: Issued by Chase, this card is generally the most popular and offers rewards on Amazon purchases, as well as at restaurants, gas stations, and drugstores.
• Amazon Rewards Visa Signature Card: Also issued by Chase, this card is similar to the Prime version but doesn’t require an Amazon Prime membership.
• Amazon Prime Store Card: Issued by Synchrony Bank, this card can only be used for purchases made directly on Amazon.com.
• Amazon Store Card: Also issued by Synchrony Bank, and similarly to the Prime version, this card doesn’t require Amazon Prime Membership and can only be used for purchases made directly on Amazon.com.

When you apply for one of these cards, the corresponding issuer (Chase or Synchrony Bank) will initiate a hard credit pull to assess your creditworthiness.

Preparing for the Hard Pull: Optimizing Your Chances

Knowing that a hard pull is inevitable, it’s wise to prepare your credit profile beforehand to maximize your chances of approval and minimize the potential negative impact.

• Check Your Credit Report: Before applying, obtain a copy of your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion). Review it carefully for any errors or inaccuracies and dispute them immediately. Correcting errors can significantly improve your credit score. You can obtain a free copy of your credit report annually from AnnualCreditReport.com.
• Pay Down Balances: Aim to reduce your credit card balances as much as possible before applying. A lower credit utilization ratio (the amount of credit you’re using compared to your total available credit) demonstrates responsible credit management and can boost your credit score.
• Avoid Opening Multiple Accounts: Refrain from applying for multiple credit cards or loans in the months leading up to your Amazon credit card application. Multiple hard inquiries in a short period can make you appear riskier to lenders.
• Understand the Requirements: Research the specific credit score requirements for the Amazon credit card you’re interested in. Generally, the Chase-issued cards require a good to excellent credit score (670 or higher), while the Synchrony Bank-issued cards may be more lenient.

The Aftermath: What Happens After the Hard Pull?

After the hard pull is performed, you’ll receive a decision on your application. If approved, you’ll receive your new Amazon credit card and can begin using it. If denied, the denial letter will explain the reasons why you were not approved.

It’s important to remember that even if you are denied, the hard inquiry will remain on your credit report for about two years. Therefore, it’s crucial to carefully consider whether you’re likely to be approved before applying for any credit card.

Amazon Credit Card FAQs: Your Burning Questions Answered

Here are some frequently asked questions to further clarify the nuances of Amazon credit cards and credit pulls:

FAQ 1: Will Checking for Pre-Approval Affect My Credit Score?

No. Checking for pre-approval typically involves a soft credit pull, which does not affect your credit score. This allows you to gauge your chances of approval without risking a negative impact on your credit.

FAQ 2: How Many Hard Inquiries is Too Many?

There’s no magic number, but generally, avoid having more than two or three hard inquiries within a six-month period. Spreading out your applications over time can minimize the impact.

FAQ 3: How Long Does a Hard Inquiry Affect My Credit Score?

A hard inquiry typically affects your credit score for about 12 months, and it remains on your credit report for approximately two years.

FAQ 4: Does Applying for Multiple Amazon Credit Cards at Once Hurt My Credit?

Yes. Applying for multiple Amazon credit cards, or any credit cards, at the same time will result in multiple hard inquiries, which can negatively impact your credit score.

FAQ 5: What Credit Score is Needed for the Amazon Prime Rewards Visa Signature Card?

Generally, you’ll need a good to excellent credit score (670 or higher) to be approved for the Amazon Prime Rewards Visa Signature Card, which is issued by Chase.

FAQ 6: What Credit Score is Needed for the Amazon Store Card?

The Amazon Store Card, issued by Synchrony Bank, may be more accessible to those with fair to good credit (around 620 or higher), but approval is never guaranteed.

FAQ 7: Can I Dispute a Hard Inquiry?

You can only dispute a hard inquiry if it’s fraudulent or inaccurate. For example, if you didn’t authorize the credit check, you can file a dispute with the credit bureau.

FAQ 8: Does Closing an Amazon Credit Card Remove the Hard Inquiry?

No. Closing a credit card account does not remove the hard inquiry associated with the initial application. The hard inquiry will remain on your credit report for the standard two-year period.

FAQ 9: Will Cancelling My Amazon Prime Membership Affect My Amazon Prime Rewards Visa Signature Card?

Yes. If you cancel your Amazon Prime membership, your Amazon Prime Rewards Visa Signature Card will convert to the Amazon Rewards Visa Signature Card, and you will earn slightly fewer rewards on Amazon purchases.

FAQ 10: If I’m Denied, Can I Reapply Immediately?

While you technically can reapply, it’s generally not recommended to reapply immediately after being denied. Address the reasons for denial first and improve your credit profile before trying again.

FAQ 11: Does a Hard Pull Guarantee Approval for the Amazon Credit Card?

No. A hard pull is just one factor that lenders consider. They also evaluate your credit score, income, debt-to-income ratio, and other factors to determine your creditworthiness.

FAQ 12: Can I Negotiate a Better Interest Rate Before the Hard Pull?

No. The hard pull is part of the application process. Interest rates are typically determined based on your creditworthiness after the application is processed and approved. You cannot negotiate the interest rate beforehand.

In conclusion, understanding the impact of hard credit pulls is crucial when applying for an Amazon credit card. By preparing your credit profile and being mindful of your application habits, you can increase your chances of approval and minimize any potential negative effects on your credit score.