How to Use AWS Credits: A Complete Guide to Maximizing AWS Free Tier and Promotional Credits

Amazon Web Services (AWS) is a powerhouse in cloud computing, offering scalable infrastructure and services to businesses, developers, and hobbyists alike. However, the platform’s pricing can overwhelm those new to AWS. Fortunately, AWS provides several ways to reduce or eliminate your cloud costs, particularly through AWS credits and the AWS Free Tier.

In this comprehensive guide, you’ll learn how to use AWS credits, access AWS without a credit card, and leverage AWS promotional credit effectively.

What Are AWS Credits?

AWS credits are coupons or prepaid balances that can be applied to your AWS account to offset costs. They are commonly distributed through:

• AWS Activate (for startups)
• AWS Educate (for students and educators)
• AWS events and conferences
• Promotions and partnerships
• Third-party cloud credit resellers (though not officially endorsed by AWS)

How to Use AWS Credits

If you’ve received AWS credits, you may wonder how to apply them and manage your Billing effectively. Here’s a step-by-step guide:

1. Redeem Your AWS Credit Code

If you have an AWS promotional credit code, follow these steps:

• Log into your AWS Console.
• Navigate to Billing and Cost Management.
• Click on Credits in the left-hand menu.
• Select Redeem a Code.
• Enter your AWS credit code and click Redeem.

Once applied, your credit balance will appear in your billing dashboard.

💡 Tip: Ensure you’re logged in to the correct AWS account before redeeming the code, as credits are non-transferable.

How to Use AWS Credits for Billing

Once credits are applied, they automatically offset your eligible AWS service charges. You don’t need to take any action to use them for Billing—they will be deducted before any charges hit your linked payment method.

Tracking Your Credit Usage

To monitor how your credits are being used:

• Go to the Billing Dashboard.
• Click on Bills to see monthly usage.
• Under each service, you’ll see the credits applied to those specific charges.

Not all AWS services are eligible for credit use. Always read the terms and conditions attached to your promotional credits. Some credits are limited to certain services or regions.

How to Use AWS Promotional Credit

Promotional credits from AWS can come with various restrictions, including:

• Expiry dates (usually 12 months)
• Service-specific usage (e.g., EC2, S3, Lambda)
• Region limitations

To make the most of your AWS promotional credit, follow these tips:

1. Use Cost-Efficient Services

Focus on free-tier eligible or low-cost services like:

• Amazon EC2 t2.micro or t3.micro instances
• Amazon S3 storage with low access frequency
• AWS Lambda (serverless functions)

2. Set Budget Alerts

AWS Budgets allows you to create custom alerts so you don’t exceed your credits. Set it up in:

Billing → Budgets → Create budget

3. Monitor Expiry Dates

Credits typically expire after 12 months. You can view expiration dates under:

Billing → Credits → View Details

How to Use AWS Free Tier Without Credit Card

Many developers and students wonder: “Can I use AWS without a credit card?” While AWS typically requires a credit card for identity verification, some workarounds exist.

1. Join AWS Educate (for Students and Educators)

AWS Educate allows verified students and educators to access cloud resources without a credit card. After joining, you receive a Classroom environment or promotional credits, which don’t require card billing.

Visit: https://aws.amazon.com/educate/

🔐 Bonus: Students often receive $100 or more in AWS credits.

2. Use AWS Academy or Sponsored Accounts

If you’re part of a university, boot camp, or coding school, you might gain access through an AWS Academy program or a sponsored classroom. These accounts come pre-loaded with credits and don’t require personal billing information.

3. Sign Up With Virtual or Prepaid Cards

Virtual credit cards or prepaid debit cards work with AWS in some regions. This isn’t always guaranteed, but many users have success with services like:

• Privacy.com (US only)
• Wise (formerly TransferWise)
• Payoneer

⚠️ Warning: AWS may reject these if fraud detection flags them.

How to Use AWS Without a Credit Card

Beyond the educational options mentioned above, here are other ways to use AWS without a credit card:

1. AWS Activate for Startups

If you’re part of an accelerator, incubator, or startup program, you may be eligible for AWS Activate, which provides up to $100,000 in credits. This often includes a dedicated account manager and support.

Even though a credit card might be needed initially, Activate credits can significantly offset costs, so you never get charged.

Apply here: https://aws.amazon.com/activate/

2. Use Alternative Cloud Providers With AWS-Compatible APIs

If avoiding a credit card is essential, you can explore free cloud platforms or AWS-compatible clouds such as:

• Oracle Cloud Free Tier (includes VMs and databases)
• Google Cloud Free Tier (offers similar services with a $300 credit)
• LocalStack or MinIO (emulated AWS APIs for local development)

Buy AWS Credits: Is It Possible?

You might wonder whether you can buy AWS credits directly or from third parties.

1. Buying from AWS (Indirectly)

AWS does not sell credits directly to individual users, but you can prepay your AWS usage through the Enterprise Discount Program or Savings Plans. This works like buying credit but usually requires extensive usage and a long-term commitment.

2. Buying from Resellers or Marketplaces

Some developers resell AWS credits, mainly if obtained through events or educational programs. However, this violates AWS’s Terms of Service and may result in account suspension.

❌ Avoid third-party sellers. These are often scams or black-market sales.

3. AWS Marketplace Offers

Occasionally, partners on the AWS Marketplace offer bundled services with included credits. This is legitimate but typically limited in scope.

How to Avoid Charges on AWS Free Tier

Even with the Free Tier or credits, it’s easy to incur charges accidentally. Follow these best practices:

1. Use the Billing Dashboard Regularly

Check your usage weekly to avoid surprise charges. Look for non-free-tier usage, like data transfer or additional storage.

2. Set Up Budget and Alerts

Use AWS Budgets to notify you when you’re close to the Free Tier limit.

3. Shut Down Unused Resources

Delete EC2 instances, RDS databases, and unused volumes when not used.

FAQs: AWS Credits and Free Usage

Q: Do AWS credits apply to all services?

No. Some credits are restricted. Always check your credit terms. Most promotional credits cover services like EC2, S3, Lambda, and RDS.

Q: Can I use AWS without verifying my identity with a credit card?

Only through special programs like AWS Educate or Academy. Most standard accounts require a credit card or an accepted debit card.

Q: Can I stack multiple AWS credits?

AWS will apply credits based on their expiration date and usage conditions in the order AWS determines. You cannot choose the order.

Q: Do AWS credits expire?

Yes. Most expire 12 months after issuance. Check the expiration in your Billing → Credits section.

Conclusion

AWS offers a compelling platform, but managing costs is essential—especially for new developers, students, and startups. By understanding how to use AWS credits, redeem AWS promotional credit, and access the Free Tier without a credit card, you can take full advantage of AWS’s offerings without breaking the bank.

Whether applying a credit code, using AWS Educate, or tracking your usage carefully, there are many ways to keep your AWS journey budget-friendly.