Amazon Credit Card. Does it have a negative impact on your credit history.

explorerm

Hello 
Thinking to apply for the Amazon Credit Card (for the £40 gift voucher). 
Probably won't use it much or at all, as I have a number of other credit cards. 
Just a bit worried as to why people are negative about this card?
Does this card have a negative effect on your credit history ? More so than any other card? If so why is that? 
Thank you 

emmajones1976

People are probably negative because they will have their tin foil hats on and think its just another way for Amazon to intrude into their lives. 

MalMonroe

It's no better than any other credit card, it's issued by Newday because amazon is a broker not a lender and if you apply for it you'll have a hard search on your credit report. 

The only negative effect on your credit report would be if you failed to make payments on it, I guess. And of course you can only spend the £40 at amazon. If you have a number of other credit cards, your application could be declined, too.

anotheruser

But in theory, there's no harm in applying and if successful waiting for the £40 voucher then just cancelling the card after a few months.  Don't spend on it.  Then even if the limit is very low - £500 for example, you may get accepted.

CRISPIANNE3

explorerm said:

Hello 
Thinking to apply for the Amazon Credit Card (for the £40 gift voucher). 
Probably won't use it much or at all, as I have a number of other credit cards. 
Just a bit worried as to why people are negative about this card?
Does this card have a negative effect on your credit history ? More so than any other card? If so why is that? 
Thank you 

I applied only for the £40.00 voucher. I then used the card for about a week and paid off the card completely. I did not want a sub prime credit card lender on my credit file. The interesting thing is my credit score with Experian dropped by 75 points. 

emmajones1976

CRISPIANNE3 said:

explorerm said:

Hello 
Thinking to apply for the Amazon Credit Card (for the £40 gift voucher). 
Probably won't use it much or at all, as I have a number of other credit cards. 
Just a bit worried as to why people are negative about this card?
Does this card have a negative effect on your credit history ? More so than any other card? If so why is that? 
Thank you 

I applied only for the £40.00 voucher. I then used the card for about a week and paid off the card completely. I did not want a sub prime credit card lender on my credit file. The interesting thing is my credit score with Experian dropped by 75 points. 

You know the score is just for entertainment purposes and is meaningless, yes?

Sandtree

emmajones1976 said:

CRISPIANNE3 said:

explorerm said:

Hello 
Thinking to apply for the Amazon Credit Card (for the £40 gift voucher). 
Probably won't use it much or at all, as I have a number of other credit cards. 
Just a bit worried as to why people are negative about this card?
Does this card have a negative effect on your credit history ? More so than any other card? If so why is that? 
Thank you 

I applied only for the £40.00 voucher. I then used the card for about a week and paid off the card completely. I did not want a sub prime credit card lender on my credit file. The interesting thing is my credit score with Experian dropped by 75 points. 

You know the score is just for entertainment purposes and is meaningless, yes?

Its not for entertainment purposes... its to get you to handover your data to companies so that they can sell recommend you products in exchange for commission. 

The monthly update just ensures you keep coming back to see the ads

The funniest one was the ads a while back, cant remember if it was Experian or Equifax, where they said if you hand over more data they'll bump your score instantly. 

That said, one insurer did used to use the score in its rating engine with the intention of it being a crude proxy for financial distress and so a potential fraud indicator resulting in higher premiums. Was talk of also using it in the elasticity calcs if the score was high but dont know if that happened as left the department before it was decided.

CRISPIANNE3

emmajones1976 said:

CRISPIANNE3 said:

explorerm said:

Hello 
Thinking to apply for the Amazon Credit Card (for the £40 gift voucher). 
Probably won't use it much or at all, as I have a number of other credit cards. 
Just a bit worried as to why people are negative about this card?
Does this card have a negative effect on your credit history ? More so than any other card? If so why is that? 
Thank you 

I applied only for the £40.00 voucher. I then used the card for about a week and paid off the card completely. I did not want a sub prime credit card lender on my credit file. The interesting thing is my credit score with Experian dropped by 75 points. 

You know the score is just for entertainment purposes and is meaningless, yes?

That goes without saying of course!

richardadc

CRISPIANNE3 said:

explorerm said:

Hello 
Thinking to apply for the Amazon Credit Card (for the £40 gift voucher). 
Probably won't use it much or at all, as I have a number of other credit cards. 
Just a bit worried as to why people are negative about this card?
Does this card have a negative effect on your credit history ? More so than any other card? If so why is that? 
Thank you 

I applied only for the £40.00 voucher. I then used the card for about a week and paid off the card completely. I did not want a sub prime credit card lender on my credit file. The interesting thing is my credit score with Experian dropped by 75 points. 

No one searching your credit file is informed of who the lender is. They only get told what type of account it is e.g. credit card. 

phillw

Sandtree said:
Its not for entertainment purposes... its to get you to handover your data to companies so that they can sell recommend you products in exchange for commission. 

Not exactly, whatever you do they are handed your data.

Alex9384

Can I expect some decent credit limit from NewDay?
All my cards have limits ranging from £5k to £10k, so if the Amazon card comes with lousy £1500 limit, I don't want it. It will only look like a subprime card on my files.