Amazon’s Secured Card has emerged as a popular credit building option for customers with bad or limited credit. This financial product allows individuals to earn rewards on Amazon purchases while working to improve their credit score by demonstrating responsible credit usage. A secured credit card requires a security deposit, which acts as collateral and often determines the borrower’s credit limit on the card.
One key benefit of the Amazon Secured Card is the opportunity to transition to an unsecured card over time with responsible use. The card offers a competitive no-annual-fee structure, which is an attractive feature for those looking to minimize costs while building credit. With a minimum security deposit of $100, the Amazon Secured Card is accessible to a wide range of individuals looking to establish or improve their credit history.
In addition to credit-building benefits, the Amazon Secured Card allows users to earn cashback rewards on eligible Amazon purchases. By opting for this secured credit card, consumers can enjoy the advantages of online shopping discounts while making strides towards their financial goals and a more favorable credit standing.
What Is an Amazon Secured Credit Card?
Secured Card vs. Unsecured Card
The Amazon Secured Credit Card is a financial product designed for those who want to build or rebuild their credit. Compared to an unsecured card, a secured card requires a refundable security deposit when opening an account. The deposit serves as collateral and usually determines your credit limit. Responsible use of the Amazon Secured Card and timely payments can help build your credit history, as it is reported to the three major credit bureaus.
In contrast, unsecured cards do not require a security deposit and typically offer higher credit limits, but they also demand good credit scores. Users without a solid credit history may struggle to be approved for unsecured cards.
Amazon Secured Card Issuers: Chase, Synchrony, and Discover
Amazon has partnered with several financial institutions to issue their credit cards. While Chase is known for issuing the Amazon Rewards Visa Signature Card, Synchrony Bank is responsible for the Amazon Secured Card. Synchrony Bank reviews your account after 12 months, determining if you are eligible for an upgrade to an unsecured card. Discover also offers secured credit cards, though they do not explicitly issue an Amazon-branded card.
The Amazon Secured Card has no annual fee and allows cardholders to use it at Amazon.com and Amazon physical stores. The credit limit ranges from $100 to $1,000, based on your security deposit. By consistently using the Amazon Secured Card and making timely payments, cardholders can demonstrate responsible credit management, potentially paving the way to an unsecured card and improved credit score.
Key Features and Benefits
Rewards Structure and Rate
The Amazon Prime Secured Card offers bonus rewards for Amazon Prime members, allowing you to earn 2 percent back on eligible Amazon purchases. As a closed-loop card, it can only be used at Amazon.com or Amazon physical stores. The card’s points do not expire, but you will need a Prime membership to earn rewards.
Security Deposit and Credit Limit
To obtain the Amazon Prime Secured Card, you will be required to make a security deposit of at least $100. The deposit determines your credit limit, but the maximum credit limit for this card is relatively low compared to other secured cards. It’s important to note that responsible use of the card could potentially allow you to graduate to an unsecured Amazon store card.
APR and Interest Rates
For the Amazon Prime Secured Card, APR and interest rates were not found in the provided information. However, it is important to mention that the card offers Equal Pay financing plans that do not use deferred interest, making payments manageable for cardholders.
Fees and Charges
The Amazon Prime Secured Card has no annual fee, making it an attractive option for those looking to build credit without incurring additional costs. Other specific fees and charges were not found in the provided information.
Pros and Cons of Amazon Secured Credit Cards
Advantages for Amazon Prime Members
Amazon Secured Credit Card offers some advantages specifically tailored for Amazon Prime members. Being a Prime member, you can enjoy bonus rewards on your Amazon and Whole Foods purchases. The more you spend as a Prime member, the more rewards you’ll accumulate. Additionally, there is no annual fee associated with the card, which can be beneficial for budget-conscious consumers.
Card Upgrades and Credit-Building Potential
Amazon Secured Credit Card is designed for individuals with bad credit or limited credit history, providing an opportunity to build or improve credit scores. By using the card responsibly and making timely payments, cardholders can potentially graduate to an unsecured card. This upgrade allows you to enjoy the benefits of an unsecured card without having to go through a separate application process.
While using the Amazon Secured Card, you can also monitor your credit-building progress with free access to your FICO score. This can be an excellent motivator to maintain responsible financial habits and stay informed about your current credit standing.
Potential Drawbacks
Despite the benefits, there are some potential drawbacks to the Amazon Secured Card. The main issue is the required security deposit, which can range from $100 to a higher amount depending on your creditworthiness. This can be a financial burden for some individuals, especially those on a tight budget.
Moreover, while the card is targeted at those with bad or limited credit history, it may not be easy for everyone to qualify. Some applicants may be denied the secured card and instead offered the unsecured version, but this may not align with their credit-building goals. Lastly, the Amazon Secured Card’s rewards and benefits are tailored for Amazon users, so it may not be ideal if you don’t frequently shop on the platform.
Comparing Amazon Secured Cards to Other Credit Card Options
Amazon’s Credit Card Lineup
Amazon offers a range of credit cards to cater to the diverse needs of its customers. Two popular options are the Amazon Prime Rewards Visa Signature Card and the Amazon Rewards Visa Signature Card. Both these cards are ideal for frequent Amazon shoppers and offer impressive rewards and benefits.
The Amazon Prime Rewards Visa Signature Card provides 5% cashback on Amazon and Whole Foods purchases, 2% at restaurants, gas stations, and drugstores, and 1% on other purchases. However, this card requires an annual Prime membership, which costs $139.
The Amazon Rewards Visa Signature Card offers a slightly lower cashback rate of 3% on Amazon and Whole Foods purchases, with the same 2% and 1% cashback rates for other categories. There is no annual fee for this card.
The Amazon Secured Card is designed for people with bad or limited credit histories. It requires a minimum security deposit of $100 and has no annual fee. However, its usage is restricted only to Amazon stores and websites, unlike the Visa Signature cards.
Alternatives from Other Card Issuers
Several other card issuers offer credit cards that can compete with Amazon’s lineup, including American Express, Mastercard, and Bank of America. Some prominent alternatives are:
- American Express Blue Cash Everyday Card: This card offers a 3% cashback rate on U.S. supermarkets (up to $6,000 per year, then 1%), 2% at U.S. gas stations and select U.S. department stores, and 1% on other eligible purchases. There is no annual fee.
- Bank of America Cash Rewards Credit Card: With this card, you can earn 3% cashback on the category of your choice, 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), and 1% on other purchases. There’s no annual fee, and it also offers a $200 online cash rewards bonus after spending $1,000 in the first 90 days.
- Citi Double Cash Card: This Mastercard offers an effective 2% cashback on all purchases, with 1% earned when you make a purchase and another 1% earned as you pay for those purchases. There is no annual fee.
When considering a credit card, it’s important to assess your spending habits, credit score, and preferences to determine the best choice for you. While the Amazon Secured Card may be ideal for those with limited or bad credit, there are plenty of other options available to suit various needs and preferences.
How to Apply for an Amazon Secured Credit Card
Credit Requirements and Eligibility
The Amazon Secured Card and Amazon Prime Secured Card are designed for people who are looking to build or rebuild their credit. A security deposit is required when opening an account, which will serve as collateral for the credit card. Applicants with limited or no credit history, as well as those with damaged credit scores, can be considered for this card.
It is important to note that your credit history will be reported to the three major credit bureaus (Experian, TransUnion, and Equifax) when using this card, helping you build or rebuild your credit over time with responsible use.
Application Process
To apply for the Amazon Secured Credit Card, visit amazon.com/securedcard and follow the prompts to complete the application process. You will be required to provide personal information such as your name, social security number, date of birth, address, and annual income. Additionally, you must submit a refundable security deposit ranging from $100 to $1,000 based on your creditworthiness.
Once the application has been submitted and approved, you will receive your Amazon Secured Credit Card, which can be used for purchases on Amazon.com and other eligible retailers. You may also be eligible for promotional financing offers for qualifying Amazon purchases.
Customer Support
In case you have any questions or need assistance during the application process, you can contact Synchrony Bank’s customer service at (866) 634-8379, available 24 hours a day, 7 days a week. Their support team will help you navigate the process and answer any inquiries regarding your Amazon Secured Card application, credit requirements, or eligibility.
Maximizing Your Amazon Secured Card’s Value
High-Value Purchases and Rewards
The Amazon Secured Card offers opportunities to earn rewards through everyday spending. To maximize its value, focus on making high-value purchases at Amazon and their physical stores that are eligible for 2% cashback or even 5% if your card was approved before January 1, 2021. Also, take advantage of the equal monthly payment offers to make larger purchases more manageable.
Credit Utilization and On-Time Payments
Monitor your credit utilization ratio, which is the percentage of your available credit that you’re using. Keep this ratio under 30% to show responsible credit behavior. For example, if your credit limit is $300, try to maintain a balance below $90.
On-time payments are crucial in building and maintaining a good credit score. Set up autopay or calendar reminders to ensure you never miss a payment. Be aware that the card comes with a variable 29.99% APR and late fees of up to $38, so timely bill payments can save you from additional charges.
Balancing Card Usage and Debt Management
To make the most of your Amazon Secured Card, it’s essential to strike a balance between card usage and debt management. While using the card regularly helps in racking up rewards, it’s important not to overextend yourself with purchases you cannot afford. Develop a budget that takes into account both your card’s rewards system and your financial limitations.
By smartly managing your Amazon Secured Card’s rewards, credit utilization, and balancing card usage with debt management, you can optimize the card’s value while improving your credit history.
User Reviews and Opinions
Positive Experiences with Amazon Secured Credit Cards
Many users have reported positive experiences with the Amazon Secured Card. Customers appreciate its no annual fee and the opportunity to build or rebuild their credit with responsible use. The payment activity is reported to major credit bureaus, which helps users establish a credit history. Furthermore, the card can be used at Amazon.com and Amazon physical stores, adding convenience for Amazon shoppers.
A customer review from Richard D. Miner on May 18, 2023, states that he uses the Amazon Secured Card for regular purchases as it is more convenient and economical than directly paying with a debit card.
Potential Issues and Complaints
While there are numerous positive reviews for the Amazon Secured Card, some potential issues and complaints have been reported. Here are a few points to be aware of:
- Customers may be required to deposit a minimum security deposit of $100.
- The Amazon Secured Card is designed primarily for people new to credit or looking to rebuild their credit. Those with established credit might not find this card as beneficial as other credit cards with higher rewards or cash-back offers.
Despite these potential issues, many users find that the Amazon Secured Card is a useful tool in establishing or rebuilding their credit. With responsible use and timely payments, this card could lead to the opportunity to graduate to an unsecured card or be offered as an alternative option for those who do not qualify for the unsecured version.
Frequently Asked Questions
Can you use the card anywhere?
The Amazon Secured Card is a closed-loop card, which means that it can be used only at Amazon.com or Amazon physical stores. It cannot be used at other retail stores or for general purposes.
How to increase credit limit?
To increase the credit limit on your Amazon Secured Card, you can add funds to your security deposit, which will, in turn, raise your credit limit. This can be done by contacting the card issuer and following their instructions on adding additional funds to your deposit.
What is the required deposit?
The required deposit for the Amazon Secured Card may vary based on your specific situation and creditworthiness. The deposit amount serves as collateral and will determine your initial credit limit. More information on the required deposit will be provided during the application process.
How to access card login?
To access your Amazon Secured Card login, you can visit the card issuer’s website, locate the login section, and enter your username and password. This will give you access to your account, allowing you to view your balance, make payments, and manage your card details.
Where is the card accepted?
As mentioned earlier, the Amazon Secured Card is accepted exclusively on Amazon.com and at Amazon’s physical stores. It is not accepted at other retailers or for general purpose transactions.
How to transition to unsecured card?
To transition from the Amazon Secured Card to an unsecured card, responsible use and a history of timely payments are essential. Over time, the card issuer may review your account and offer you the opportunity to graduate to an unsecured card. The specific requirements and timeline may vary, but maintaining good credit habits will increase your chances for an upgrade.
