hero image

Amazon, in partnership with Synchrony Bank, has announced the launch of the newest secured credit card has been designed to attract consumers who are after improving their credit score. The card comes with a unique structure and with some significant caveats.

New Amazon Credit Builder rewards consumers with cash back

The Amazon Credit Builder card is expected to be functioning as a secured credit card, but it will nonetheless have similar benefits as the Amazon Store Card. When getting the card just with all secured cards, consumers will be required to make a security deposit to Synchrony Bank that is refundable, but the amount is not available to make purchases but its rather a way of establishing credit limit. Consumers will be able to establish credit lines from as little as $100 up to $1000.

The card is a closed loop card like most retail cards, but the Amazon Credit Builder card can be used to make Amazon purchases only. The advantage of the card is the cash back consumers will get on purchases on Amazon.com, which is 5% cash back on purchases for Prime cardholders.

The card does not have an annual fee although consumers will be required to pay the yearly membership fee of $119 for Amazon Prime for them to be eligible for the cashback reward. After making a deposit, the cardholder will be given a $40 gift card.

Consumers will be able to track credit improvement

The other advantage of the card is the ability to track credit improvement for cardholders over time as they make purchases on Amazon. On time payments will be reported to Equifax, TransUnion, and Experian, and the holder will be able to view their VantageScore credit score.

The Amazon Credit Builder is specifically designed for consumers who are new to credit and those with bad credit. Customer using the Credit Builder card will qualify for an upgrade to the Amazon Store Card within seven months if their score is excellent and their initial deposit. The offering of the credit card by Amazon to unbanked and under-banked is a way of expanding their business portfolio.