Amazon has partnered with Synchrony Bank to create the Amazon Store Credit Builder Card.
This credit card can be used for improving one’s credit rating. Consumers who can’t get a credit card can get this one with Amazon.
The card is secured to minimize risks, so you have to deposit an amount equal to the credit limit. The low credit limit is typical for most secured/credit-building cards. The 28% APR is also a characteristic of credit-building cards.
What’s Ahead:
Amazon Store Credit Builder Card key features
- No annual fee
- Helps build your credit
- A $10 Amazon gift card after you open an account and make a deposit
- Financing options, including a no-interest option and an “Equal Pay” option
The Amazon Store Credit Builder Card – a closer look
Similar to other Amazon cards
The Amazon Store Credit Builder Card offers similar benefits to the Amazon store card, however, there are a few significant differences you need to know. This is not an ordinary store card and is a Credit Builder Card.
Since this is a subprime financial product, the 28% interest rate is higher than average cards. The cardholder must make an upfront deposit equal to the credit limit. You should, therefore, use this card to become eligible for better Amazon cards.
These strict limits can work in your favor if you have a bad credit rating, including developing responsible borrowing habits. Also, timely payments can help you to make a positive impression on lenders.
Also, building a strong credit history with an improved score will increase others’ confidence in your ability to pay back loans. You can prove your creditworthiness by using this card wisely, and lenders may increase your credit limit (or even provide you with access to more rewarding cards).
Lower credit limit
The Amazon Store Credit Builder Card offers similar benefits to the regular Amazon Store Card, however, there are a few significant differences you need to know.
The credit limit is much smaller. Since this is a subprime financial product, the 28% interest rate is higher than average cards.
A deposit is required
The cardholder must make an upfront deposit equal to the credit limit. You should, therefore, use this card to become eligible for better Amazon cards. Although similar, its benefits are scaled-down as compared to the unsecured store card.
These strict limits can work in your favor if you have a bad credit rating because you could develop more responsible borrowing habits. Also, timely payments can help you to make a positive impression on lenders.
You can prove your creditworthiness by using this card wisely, and lenders may increase your credit limit (or even provide you with access to more rewarding cards).
Requirements for an Amazon account
You must have an Amazon account (not a Prime membership) to be eligible for the Store Card Credit Builder.
In this respect, the Credit Builder store card matches the standard Amazon store card, which also requires an Amazon account.
Financing options with the Amazon Store Credit Builder Card
The following finance options are available:
Special Financing Option
No interest is charged if you pay in full within the stipulated time frame. Depending on your purchase amount, this timeframe can be six, twelve, or 24 months.
Remember that this is deferred interest and not a 0% APR offer. If you fail to pay within the designated time frame, you’ll be charged the full interest accrued.
This financing option applies only to qualifying items. With this finance option, you’ll not be eligible for the 5% rewards rate.
Equal Pay Option
This option extends equal monthly installments, which must be paid back within a fixed timeframe. Depending upon your purchases, the time frame can be six, twelve, or 24 months. If you pay within the fixed timeframe, no interest will be charged.
This financing option applies only to qualifying items. You’ll not be eligible for the 5% rewards rate with this finance option.
Upgrading to the Amazon Prime Rewards Credit Builder Card
If you decide to get an Amazon Prime membership, you’ll gain access to the Amazon Prime Rewards Credit Builder Card, which offers 5% cash back on all Amazon purchases.
Amazon Store Credit Builder Card rates and fees
Interest rate
With the higher 28% interest rate, you must be extra careful about paying on time. Interest may accrue rapidly with later payments.
Apply for this card only if you are sure that you’ll pay on time. Failure to do so can be counterproductive and can worsen your credit score instead of improving it.
Annual fee
The annual fee is $0.
Security deposit
The upfront security deposit is equal to the credit limit. The minimum and maximum amounts are $100 and $1,000, respectively.
The upper limit of $1,000 is more generous than many other Credit Builders, which often allow just $500 maximum credit limit or less. New cardholders are also offered a gift card worth $10.
Amazon Store Credit Builder Card rewards & benefits
Rewards
Rewards are available only on the Amazon Prime Store Card Credit Builder. There are no rewards for the ordinary Amazon Store Credit Builder, which doesn’t require a membership.
Mobile support
‘My Synchrony’ app is available on both Android and iOS. This app provides an intuitive and easy to use interface.
It has all the functionality offered by the website. You can monitor and manage your account on the go with this app.
Security features
Synchrony Bank manages the Amazon Credit Builder accounts. It deploys a suite of cutting-edge security programs to safeguard customer data.
- You can submit your data with peace of mind knowing that Synchrony provides 256-bit SSL encryption. They also employ a dedicated staff of security experts to safeguard customer information.
- Automated monitoring tools will send you an alert message via text or email if there is unusual activity on your account.
- When you communicate with the staff, critical information will be requested to ensure safe transactions.
- You can also contact the bank immediately at 1-866-834-3205 if you suspect fraud or unauthorized use.
Customer support
Synchrony Bank offers 24/7 customer support via an online form, live chat, and phone.
You can fill out the online form to highlight your concern or query. The well-organized FAQ page provides quick answers to common questions.
You can contact the number provided on the back of your card for phone support.
Who should apply for the Amazon Store Credit Builder Card?
This card is suitable if you:
- Have a poor credit score or no credit history
- Prefer to purchase from Amazon
- Want access to regular Amazon cards
- Intend to borrow responsibly to build a good score and payment history
This card is not meant for you if you do not meet the criteria. You definitely need to be serious about building good credit habits and paying back on time.
This card has a high-interest rate so you’ll also have to make a deposit equal to the credit limit since this is a secured card.
This card is a stepping stone towards better Amazon rewards cards.
Pros and cons
Pros
- Can build a good credit history and score
- Better cards may be approved with timely payments
Cons
- Cannot be used anywhere beyond Amazon and some approved merchants
- High interest rate of 28%
- Low credit limit
- Upfront security deposit equal to the credit limit
Other secured credit cards worth considering
For all intents and purposes, this is a secured credit card, but it can only be used at Amazon. If this one isn’t for you, I’d recommend checking out two of our favorite secured cards:
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card has a few of the most appealing terms in the industry.
Depending on your credit, you might get a card with a $200 limit for just a $49, $99, or $200 deposit.
The majority of secured cards require anywhere between $300 and $500, so this is a bargain. There’s no annual fee, you’ll get a credit review after only six months, and you can use it pretty much anywhere.
Summary
The Amazon Store Credit Builder Card is worth it for any Amazon enthusiasts who are also building their credit (or have no credit at all).
It offers no fees (but also no rewards) and can help build credit fairly quickly. You may want to consider other secured cards, though if you’re looking for the ultimate low-interest rate.
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