$250 Instant Cash: Why Amazon Is Paying You to Sign Up (For Now)

Amazon is offering Prime members a $250 gift card simply for getting approved for its credit card. The bonus appears immediately—no waiting, no hefty spending requirements over months like typical offers. Nothing. This promotion is valid until 8 December 2025, coinciding with the busy holiday shopping season.

New cardholders can combine the bonus with 10% cashback on select brands, including Dyson and Ring. It sounds like free money, and technically, it is.

Why Is Amazon Offering Such a Large Bonus?

This isn't a typical retail credit card promotion. The $250 bonus is significantly higher than Amazon's standard Prime Visa offers, which have hovered between $100 and $150 for years—making this offer 2.5 times larger.

The company is also increasing cashback on premium brands, offering delivery bonuses, and waiving spending requirements—a cocktail of incentives that suggests Amazon is eager to lock in new customers. This comes amid record household debt levels in the US, which hit $18.59 trillion in the third quarter of 2024.

Some analysts believe Amazon is trying to entrench customers into its payments ecosystem before economic uncertainties in 2026 prompt a slowdown.

The Hidden Cost: High APR Risks

The Prime Visa has a variable APR ranging from 18.99% to 27.74%, depending on creditworthiness. While that may sound abstract, the maths tell a different story.

Ted Rossman, senior industry analyst at Bankrate, highlights troubling patterns in American credit card usage. According to Bankrate's 2025 Credit Card Debt Report, 46% of cardholders carry a balance month to month—meaning nearly half never pay off their debt in full.

Bankrate calculated that the average balance of $6,371 would take 217 months to pay off with minimum payments, costing $9,254 in total interest—more than double the initial debt.

Applying this to Amazon's $250 bonus reveals the risk. Carrying just a $1,000 balance at the maximum 27.74% rate would generate around $277 in annual interest, erasing the bonus within roughly 11 months. What seems like free money can quickly turn into expensive debt.

The Psychological Toll and Debt Trap

The impact isn't just financial. Bankrate's survey found that 23% of cardholders with debt 'don't think they'll ever pay it off.' Retail credit cards, including co-branded ones like Amazon's, averaged an interest rate of 30.14% in 2025, according to Bankrate's Retail Cards Study.

Who Should Consider Taking the Offer

If you pay off your balance in full each month, the $250 bonus is risk-free. The bonus is credited immediately upon approval, with no spending required to unlock it.

Many cardholders report that cancelling Prime later converts the card to the standard Amazon Visa, which has no annual fee, while maintaining the bonus. However, those with existing balances should avoid adding new credit lines during periods of high spending. The temptation to spend more on Amazon—where that $250 bonus feels like house money—is the trap.

The offer is valid until 8 December. Historically, similar promotions reappear during Prime Day in July, usually offering lower bonuses around $150.

A Bonus for Loyal Shoppers—If Managed Carefully

For loyal Amazon shoppers who can resist carrying balances, the $250 effectively subsidises Christmas spending—provided the card remains a 'sock drawer' card after the bonus posts, never accruing interest.

While the generous sign-up bonus is tempting, it's essential to understand the risks. The high APR can quickly turn this 'free' money into costly debt if not managed carefully. Be disciplined, pay in full, and avoid impulse spending—then the bonus can truly be a holiday gift.