Amazon Credit Builder, Two New Credit Cards for People with Bad or No credit

Amazon and Synchrony Bank have launched 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. Amazon Credit Builder as it’s called, is not a card for everybody, but it’s an option to keep in mind if you don’t have many to pick from.

Amazon Credit Builder

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 if you don’t have Prime, or $40 if you get the Prime version of the credit card.

Application Page

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.

How it Works

Here’s how this secured credit cards from Amazon work:

  1. You set the credit line
  2. Submit a deposit from $100 to as much as $1,000, which will be your credit limit. You can send deposit by electronic transfer or by mail.
  3. Use your card at Amazon.com. It can take 7 – 14 days from the date your deposit is received for the card to activate. Once your card is active, your new credit card will be immediately ready to use on Amazon.com
  4. Make at least your minimum payment on time each month. Pro tip: set up automated payment or email alerts and never miss a payment.

Payments are reported to 3 major credit bureaus every month which may help improve your credit. Synchrony Bank will review your account starting in as little as 7 months. That could make you eligible for an upgrade to an unsecured card. If and when you’re upgraded, your security deposit will be returned.

Guru’s Wrap-up

This is not a card that will get most points and miles hobbyists excited. It is aimed at those who are looking for their first cards, or those who have bad credit and are unable to get many traditional credit cards. 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.

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