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How to use Amazon to avoid credit card shutdowns

April 30, 2020
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4 min read
Amazon Prime
How to use Amazon to avoid credit card shutdowns
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Editor’s note: This post has been updated with the latest information.

One of the big mistakes in the credit card hobby is having an old credit card account closed for lack of use. This may have a negative impact on your credit score — both from an average age of accounts and a utilization perspective.

Credit card issuers don't want to keep a cardholder around who doesn't spend money on his or her card. Even if you don't use benefits from a card, there's a cost for issuers just to maintain your account, which is why credit card companies may eventually shut down inactive accounts.

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Strategy for "sock-drawered" cards

The easiest way to prevent this is pretty obvious: spend on the credit card. But or cards that you have "sock-drawered" — or stashed somewhere, since you don't have room in your wallet — cycling through all of the unused cards via day-to-day purchases can be a hassle.

Enter Amazon's Reload Your Balance option, through which the e-tailer will let you use a credit card to reload your balance. You can reload any amount above $0.50, and Amazon doesn't care how many cards you use. Case in point: I have 38 cards in my Amazon profile.

Related reading: Ordering from Amazon? You could earn 5x bonus points on your next purchase

About every six months, I review the credit cards that I haven't used recently and load $5 from each one onto my Amazon Gift Card balance:

You could do less than $5, but some issuers won't bother to bill you for smaller purchases. For example, I've had a $0.99 Amazon reload waived by Barclaycard. Not wanting to tempt fate and have these smaller purchases not reset the inactive account clock, I use $5 reloads.

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(While we're on the topic, Amazon Reload Your Balance is also a great way of getting rid of any Visa or American Express gift cards you may have received. Amazon doesn't mind taking prepaid gift cards — whether it's a brand-new one that you got as a gift or the last $2.46 that you have on a card that you just can't figure out how to use.)

You might be wondering what to do with all of this money you're accumulating in your Amazon account. If you're like me, you still want to get good purchase protection and price protection on goods you buy, as well as excellent travel insurance for flights you book. So, you'll still want to use your credit card for most purchases. The best use of these funds is for general household items, either purchased through Amazon or by buying a gift card through Amazon for stores like Bed Bath and Beyond, Whole Foods and others.

For me, since I'm on the road all the time, I usually end up buying Airbnb gift cards on Amazon with my balance. Unfortunately, this means that I miss out on 3x earnings on my Chase Sapphire Reserve, but it's an easy way for me to use up the funds.

Related reading: Should you redeem Amazon Prime Card rewards for travel?

Additional reporting by Chris Dong.

Featured image by Photothek via Getty Images

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Intro offer

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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

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  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.
Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants

American Express® Gold Card

TPG Editor‘s Rating
4 / 5
Go to review

Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
3XEarn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.

  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.

  • Annual Fee

    $325

  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.