Amazon is joining with Synchrony Financial to offer you a brand new credit card for Amazon Prime members that have bad credit.
As reported Monday (June 10), the card, called “Amazon Credit Builder” enables users to develop their credit profiles through using a secured card, and the firms also will grant budgeting resources. Upon establishing credit, those users can obtain other Amazon cards, which may be bank cards. The credit card option will give members the same benefits found on the Amazon Store card, such as 5 percent back for purchases on Amazon.com and no yearly fee, even though customers will still need to pay Amazon’s annual subscription fee of $119.
The Credit Builder card itself has no annual fee, and it offers specific funding on purchases, also includes security from unauthorized charges. As a secured card, Amazon Credit Builder requires that cardholders submit a non-refundable security deposit to get a line of credit in the lender.
People who are accepted for the Amazon Credit Builder will have to make a security deposit in 60 days to get a “welcome gift card.” The deposit will be reimbursed if someone closes their accounts or updates to the Amazon Store card. People that are approved but decide to opt out won’t have their credit record influenced by their decision.
The move comes as 11 percent of those U.S. population includes a credit rating under 550, as determined by a FICO survey. Moreover, as much as 3% of the populace has a credit rating of between 300 to 499, believed a lousy score.
However, Rossman concludes that when the card is used correctly, the card could be useful in improving credit when receiving the cash back perk.
Customers can pay a visit to the Amazon Credit Builder webpage to register for your card.