Last updated on July 31st, 2020
Credit cards are convenient and can improve your financial standing, but what happens if you have bad credit or no credit history? Amazon’s Credit Builder Store Card is the first of its kind for the retailing giant. But does the Amazon Card build credit? Does it make sense for you? Read on to find out – especially if you want to build or rebuild your credit while receiving 5% back or special financing offers:
Story at a Glance:
- Amazon Secured Card a secured version of their Amazon Store Card
- Prime membership upgrades the card to an Amazon Prime Secured card
- The secured card is available to those who do not qualify for the regular, unsecured Amazon/Amazon Prime Store Card
- Initial deposit to receive the Amazon Prime Store Credit Builder Card is between $100 and $1,000
- Amazon Credit Builder Card members can be upgraded to an unsecured Store card with as few as 7 on-time payments
Amazon Secured Credit Card Offers Perks to Those with Poor Credit
It seems that every online retailer has its own impressive range of credit card options designed to meet the needs of their customers. Internet giant Amazon is no different. Amazon, like other retailers, already provides an impressive selection of cards to target nearly every sector, including cash back credit cards, travel rewards cards, student credit cards, and even business cards. The company is now launching its newest product – a secured credit card. Known as the Amazon Prime Store Card Credit Builder card, it is especially designed for those with either bad or no credit. Today we’ll take a first look at this unique new offering from Amazon, giving you the basics of what the card is, what it offers, and whether it is the right choice for you.
How Do Secured Credit Cards Work?
Secured credit cards offer those with either no credit history or those with a poor credit history, the chance to take positive steps in building up their credit score. These cards are known as “secured” because they require an initial deposit to open the credit line. In the case of the Amazon Prime Store Card Credit Builder card, the initial refundable security deposit must be between $100 and $1,000. This initial deposit is also the amount of credit available to the cardholder. So, if, for instance, a user places a $250 security deposit, their credit limit is also $250. As any industry expert will tell you, for those looking to repair or build their credit score, a secured credit card is an excellent option. For those who are ready and willing to keep their credit balances low and regularly make their monthly payments on time, a secured card can not only improve their credit but also help them move on to a standard credit card in the future. Since issuers regularly report to the big three credit bureaus – Equifax, Experian, and TransUnion – being on top of all payments can have a dramatic effect on a person’s credit standing. Credit, when used responsibly, is a good thing.
Is the Amazon Prime Store Card Credit Builder Credit Card Worth It?
The Amazon Prime Store Card Credit Builder card is an Amazon Prime secured card, sure, but it differs from other secured cards in various unique ways. First, it offers cardholders some benefits – something many secured cards do not do. The card gives users 5% back on all purchases at Amazon.com. It also allows for deferred interest payments in installments and special financing options on select big-ticket purchases. These equal pay financing benefits run for up to 24 months. The card also offers those who sign up a $10 Amazon gift card – another nice treat. Second, the card differs from other secured cards in that applicants cannot apply for it directly. Instead, they must apply for the unsecured Amazon.com Store Card. Those who fail to qualify for the traditional store card are then under consideration for the secured card. Third, the card differs in that it offers a much quicker route into a typical, unsecured store credit card than other comparable options. Cardholders who meet specific requirements can upgrade to the Amazon.com Store Card in as little as 7 months, based on the following criteria:
- They make 7 consecutive on-time payments on the Prime Store Card Credit Builder card and make all other payments on time.Their credit has no recent bankruptcies, foreclosures, repossessions, or delinquent accounts.Their credit score meets the internal credit criteria of Synchrony Bank – the card issuer.
Fourth, the card has no annual fee – something relatively uncommon among secured credit cards. Finally, the very idea of an Amazon secured credit card is, in and of itself, something new. While there have been many similar cards targeted towards those with poor or no credit in the past, this is the first time that a retailer has launched such a product. So far, the Prime Store Card Credit Builder card sounds like a no-brainer for those looking to improve their credit standing, right? Well, there are also reasons you should think twice about applying for this card. The biggest drawback to the Prime Store Card Credit Builder card is that it can only be used at Amazon.com. If you are a big spender at Amazon that shouldn’t be a problem, but if you aren’t, this likely isn’t the card for you.
So, Is the Prime Store Card Credit Builder Card Right for You?
If you are someone looking to improve their credit score, is the Prime Store Card Credit Builder card the right choice? For those finding it difficult to adopt a good way to rebuild their credit quickly, the answer may be yes. Despite the drawbacks of the card – namely the higher-than-average APR and the inability to use the card anywhere other than Amazon.com, the chance to possibly upgrade to a traditional store card after as little as 7 months is an attractive feature that is sure to entice applicants. Additionally, for those who prefer the limitations the card brings in terms of where to shop, it may be a safe tool for steadily rebuilding credit. Finally, the ability to earn 5% back on Amazon purchases is a nice feature not found in many other secured cards. If you are looking for more information on the Amazon Prime Store Card Credit Builder card, including fees and rates, check back soon for BestCards.com’s official review. In the meantime, feel free to check out some of our other helpful reviews on secured credit cards and credit cards for poor credit. All our reviews are entirely impartial and designed to help you find the perfect card to suit your needs.