Get 60% discount
with ANNUAL-2021 coupon code!
Offer ends soon.
IO Scout - 10+ tools for Amazon sellers at a special price.
Credit scores are important. They can determine whether you get a loan or credit card application approved, so if you have a bad score, it can feel impossible to raise it. After all, raising your credit score can be done by making loan and credit card payments on time. But if your low score is keeping you from having a loan or credit card, how are you supposed to improve your credit score?
Amazon is now offering a new program that can help you build your credit history with minimal risk. The secured credit card, Amazon Credit Builder, is designed to help people with poor credit improve their scores. IO Scout will help you to get answers on all your questions.
Amazon and Synchrony Bank bring you the secured Amazon Store Credit Builder Card, which has a low credit limit, like most credit cards meant to build user credit. The card has a 28% APR, which is also typical for a credit-building card. There is no annual fee, and you can even receive a $10 Amazon gift card after making a deposit on your card.
The Amazon Credit Builder Card is a secured card. This means that once your application for the card has been approved, you must make a refundable security deposit equal to the card limit to use the card. That way, you don't spend money you don't have. This minimizes the risk of your credit score dropping any further.
The deposit acts as collateral, which Amazon will take if you are unable to make the minimum monthly payments on your card. This is how Amazon ensures they won’t lose money by allowing you to use the card. It’s also how you establish a line of credit.
Your line of credit is the maximum amount of money you can borrow when using a credit card. If you max out your line of credit, you’ll need to pay off the card before you can use it again. However much money you deposit will be the limit on your Credit Builder Card.
The deposit is refundable only if you close your account with all your payments made in full. If you have remaining payments on your card when you close it, Amazon will take what you owe out of the deposit.
Paying your Amazon Credit Builder bills works just like any other credit card: you make monthly payments on your account of anywhere from the minimum payment to the full balance of the card.
There are a few differences to note between the Amazon Credit Builder and other credit cards.
Determining whether a Credit Builder Card is right for you is based on your individual needs and circumstances. Consider the pros and cons before applying for any credit card to avoid making a mistake that could negatively impact your credit score.
Getting an Amazon credit card is relatively simple. You just need to follow the application instructions. If you are looking for an unsecured Amazon Store credit card, you will have a difficult time getting approved with no credit history or a bad credit score.
However, the Credit Builder Card is meant for people with low or no credit, so it should not be difficult to get approval and start building your credit.
There are several benefits of being a Credit Builder card owner. Aside from the biggest benefit, the ability to build your credit, these include:
There are multiple financing options available for certain Amazon products when you use the Credit Builder card. These are good for larger purchases that you’d like to pay for in increments, rather than all at once.
Note: purchases made with these financing options do not qualify for the 5% cashback reward for Prime members.
Yes. The Amazon Credit Builder Card and secured credit cards like it are specifically intended to build and improve credit for people who need it.
There is no direct application for the Amazon Credit Builder. Instead, you will need to apply for a regular, unsecured Amazon Store credit card, which has a minimum credit score requirement of 640. If your score is lower than that or you have no credit history, you will automatically be considered for the Credit Builder Card by Synchrony Bank.
If you are approved for a Credit Builder Card, you will have 60 days to make the security deposit on your account. Deposits must be a minimum of $100.
You can cancel your card any time by contacting Amazon and closing your Credit Builder account. Once the account is closed, you can apply for a refund of your security deposit.
Remember that Amazon will take any unpaid balance on your credit card out of your deposit, though. If you want the full deposit back, wait until your card has a $0 balance before closing the account.
Yes. A regular Amazon Store credit card has a minimum credit score requirement that all applicants must meet to get approved. If you have a poor credit score, you will likely not be approved for this type of unsecured card. But the secured Credit Builder Card is meant to help people who have bad credit, so it's possible to be approved for this card with a bad credit score.
An unsecured Amazon Store credit card requires cardholders to have a credit score of 640 or higher. If you have a credit score lower than that, you will only qualify for the Amazon Credit Builder Card.