Amazon Expands Credit Card Line With New Offer For People Looking To Create Or Replenish Credit

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(Amazon Photo)

Amazon launched a new credit card on Monday, targeting people looking to build or rebuild their credit.

New “Amazon Credit Generator”Gives customers who have no credit or bad credit a way to use Amazon’s rewards credit card.

Amazon already offers the Amazon store card and Amazon Prime Store Card for Prime members. The new card is similar: no annual fee; 5% discount on qualifying Amazon purchases for Prime members, but is described as a “secure credit cardBecause it requires a refundable security deposit which becomes the customer’s credit limit.

The deposit you make to fund a “secured credit card” is considered a security because it acts as a security for the creditor. ” Amazon says. “Secured credit is a great way to build or rebuild your credit score. A secured credit card gives you the ability to build a record of on-time payments which can help boost your credit score.

The card can only be used for Amazon purchases or from merchants that offer Amazon Pay. Users can upgrade to a standard Amazon Store card in as little as seven months after opening an Amazon Credit Builder account.

Ted Rossman, industry analyst for CreditCards.com, said it was a solid option for people new to lending or rebuilding credit, but warned that the interest rate of 28.24% is high.

“This is a very unique card, between the secure nature, the 5% cash back offer and the two different flavors of 0% interest (either 12 months of equal payments or periods 0% 6/12/24 months for certain purchases), ”he said in a statement. “If used correctly, this card can help you improve your credit while saving on interest or pocketing cool cash back on items you would (hopefully) buy anyway.”

Amazon is teaming up with publicly traded financial services company Synchrony Bank for the new credit card.

Amazon has rolled out other services for low-income customers, such as discounts for people receiving government benefits. It also offers Amazon Cash, which allows people to use cash to add money to their Amazon account and appeals to those who don’t shop online with a credit card or bank account.

In 2017, Amazon spear a Visa Prime Rewards credit card.

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