By Adam Jusko, ProudMoney.com, firstname.lastname@example.org
Amazon and Synchrony Bank are rolling out a secured credit card that is sort of a “child” of the Amazon Store Card, meaning you’ll only be offered it if you’re turned down for the standard Store Card. Called the Amazon Store Card Credit Builder, it is a secured credit card that requires a security deposit, but it’s a card that could help you “graduate” to an unsecured credit card in as little as 7 months. (Check out the video review above and subscribe to our YouTube channel!)
What It Offers
First off, the Amazon Store Card Credit Builder is a secured credit card, meaning you must put down a security deposit to get it. Once you do, you’ll get a credit line equal to the amount of your deposit. This deposit is refundable, meaning it will be given back to you if you no longer want the card or are upgraded to an unsecured credit card, provided that you aren’t behind on your card payments.
Specifically, the terms of the card include:
- No annual fee
- Interest rate of 28.24%
- Reports to all 3 major credit bureaus
- 5% off Amazon purchases IF you are an Amazon Prime customer
- Bonus $10 put into your account upon approval
Potential for Fast “Graduation”
One of the features that might make this card attractive is the fact that you may be able to “graduate” from the secured Credit Builder card to the unsecured Store Card fairly quickly. You card may be considered for graduation in as little as 7 months if you’ve made all of your first 7 months payments on time. This is a fairly quick graduation timeframe.
Bottom Line: Is This a Good Card?
The Amazon Store Card Credit Builder is not a card we’d recommend in most cases, though there may be exceptions.
On the upside, it allows Amazon Prime customers with lower credit scores to get a credit card that gives them a 5% rebate. It also gives potential cardholders the opportunity to take advantage of Amazon’s 0% financing offers. And, of course, it can help build credit while also promising a potentially fast path to “graduation” to an unsecured card.
On the downside, the card can only be used at Amazon. Most people who would consider putting down a deposit to get a secured credit card would much rather have that card be widely accepted, such as a Mastercard or Visa card. This one ties you to a single retailer — even if you graduate to the unsecured Amazon Store Card, you’ll still have a card that is only accepted at Amazon, and a card with a very high interest rate.