Opening a Amazon Classic Mastercard credit card for the £20 reward

TightMike

I'm wondering whether it would be worth opening an Amazon Classic Mastercard credit card just for the £20 reward? I don't need the card so I wouldn't use it at all. Are there any drawbacks to this?

[Deleted User]

Just weigh up whether the impact on your credit file is worth £20.

TightMike

Deleted_User wrote: »

Just weigh up whether the impact on your credit file is worth £20.

Yeah that's what I was wondering? Would there be any impact?

[Deleted User]

Yes. A new search, account and available credit will appear on your files.

Candyapple

Not to mention that it is owned by NewDay who own a lot of the subprime credit card market:

We provide credit and store cards for these retail partners: Debenhams, House of Fraser, Laura Ashley, Topshop, Topman, Burton, Wallis, Miss Selfridge, Evans, Dorothy Perkins, Outfit, Harvey Nichols amongst others. Our consumer brands include Aqua, Marbles and Opus branded range of credit cards.

So you'd potentially have a new card with a low limit of say £200 on your history. Assuming you applied for another card in the future, this could be taken into account when the new lender does their internal scoring as being a subprime card, causing possible decline.

msallen

Candyapple wrote: »

Not to mention that it is owned by NewDay who own a lot of the subprime credit card market:

So you'd potentially have a new card with a low limit of say £200 on your history. Assuming you applied for another card in the future, this could be taken into account when the new lender does their internal scoring as being a subprime card, causing possible decline.

I opened this account a few weeks ago and while it is my lowest limit by a long way, its not as bad as £200. Mine is £1500.

A4445

Candyapple wrote: »

Not to mention that it is owned by NewDay who own a lot of the subprime credit card market:



So you'd potentially have a new card with a low limit of say £200 on your history. Assuming you applied for another card in the future, this could be taken into account when the new lender does their internal scoring as being a subprime card, causing possible decline.

The minimum limit according to the summery info is £500.

[Deleted User]

A4445 wrote: »

The minimum limit according to the summery info is £500.

Where does it say that?

A4445

https://applynow.newdaycards.com/pdfs/SummaryBoxClassic.pdf

Samsung_Note2

Sorry thought some keyboard expert was saying the other day that the amount is seen by other creditors but not the issuer.~?

Candyapple

Samsung_Note2 wrote: »

Sorry thought some keyboard expert was saying the other day that the amount is seen by other creditors but not the issuer.~?

Nobody said otherwise. Logic would dictate that only a subprime lender would give such a paltry credit limit, thus I'm pretty sure whatever algorithm the lender would use to calculate their score would already know that and take that into consideration.

Just thought of another reason against it - your average account history length will be dragged down massively by this new account.