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Amazon Launches Two New Credit Cards for Those with Bad or No Credit
Amazon has partnered with Synchrony Bank to launch a new credit card. It’s aimed at people with no credit or bad credit. The card is easier to get that the current Amazon cards and gives you the possibility of 5% cash back on most Amazon purchases. This is not a card for everybody, but it’s an option to keep in mind if you don’t have many options to pick from.
Amazon Credit Builder
There are actually two versions of the new Amazon card, which is being issued in conjunction with Synchrony Bank: the Amazon Store Card Credit Builder and the Amazon Prime Store Card Credit Builder.
This are secured credit cards designed for people who are looking to build or rebuild their credit and is backed by a refundable security deposit made when the account is opened. The deposit is equal to the credit limit.
There’s also a small signup bonus. You get a $10 Amazon.com Gift Card upon account opening. The bonus is $40 for the Primes version.
The Amazon Credit Builder functions and looks like the Amazon Store Card. The exception is that the credit line on the Amazon Credit Builder card will equal the amount of the refundable security deposit that you must maintain with Synchrony Bank.
As an Amazon Credit Builder cardholder, you will enjoy the same benefits as you would on the Amazon Store Card. That’s promotional financing for cardholders without an eligible Prime membership, and promotional financing or 5% back every day for cardholders with an eligible Prime membership. The card is mostly only valid for Amazon.com and some places that support Pay with Amazon functionality.
This card is not for most readers. Amazon is basically trying to extend its reach to more customers. It is trying to attract those who do not currently have credit cards and are unable to shop at Amazon. These new cards with pop up as an option for those who are turned down for the unsecured versions also.
Amazon says that you will be able to be upgraded to an unsecured version as soon as 7 months. That’s assuming on time payments through that period.
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.