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Our Verdict
The Amazon Secured Card* could be worth considering for those looking to build or rebuild their credit history. It comes with similar benefits and restrictions as the unsecured Amazon Store Card* and even earns rewards for Prime members.
Amazon Secured Card
Welcome Bonus
N/A
Annual Fee
$0
Regular APR
10% fixed APR
Credit Score
Fair/Poor/No Credit
Pros
- Opportunity to graduate to an unsecured card with responsible use
- May be offered as an alternative option for those that do not qualify for the unsecured version
- No annual fee
Cons
- Requires a security deposit
- Can only be used to make purchases at Amazon
Highlights
- 10.00% fixed APR on purchases
- No annual fee
- Free credit tracking tools. Get access to TransUnion CreditView Dashboard to track your credit score
- Join Prime to get 2% back at Amazon.com, Amazon Fresh and more, with an eligible Prime membership
- After 12 months of responsible use, you may be eligible to get your deposit back (less an amount to pay off your existing Secured Card balance per the account terms) and choose to convert to the Store Card features.
More Highlights
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
N/A
Introduction
The Amazon Secured Card*, issued by Synchrony Bank, offers a way to start building credit history for those who are new to credit, or a chance to rebuild for those with poor credit. With a secured line of credit ranging from $100 to the amount you’re approved for (maximum of $1,000), cardholders can demonstrate good habits with on-time payments.
The card offers the same key terms as the standard Amazon Store Card*, but with a lower barrier to entry and reduced rewards, provided the applicant has some cash to set aside upfront. And the Secured Card can be converted into the standard Amazon Store Card* once the user’s credit history has improved, making it a solid choice for credit-building. Those who are Amazon Prime members can earn up to 2% rewards with the card as well, a nice feature not often found on secured cards.
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Featured Partner Offers
Welcome Bonus
Cashback Match™
Annual Fee
$0
Credit Score
New/Rebuilding Credit
Regular APR
28.24% Variable APR
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Intro Offer: Unlimited Cashback Match™ - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match.
First Progress Platinum Prestige Mastercard® Secured Credit Card
Apply Now →
Apply Now
On First Progress's Website
Annual Fee
$49
Credit Score
Poor/Limited/No Credit
Regular APR
15.24% (Variable)
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
None
Welcome Bonus
N/A
Annual Fee
$0
Credit Score
Limited, Bad
Regular APR
30.74% (Variable)
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
N/A
Quick Facts
The Amazon Secured Card* is a secured version of the Amazon Store Card*, with a credit limit based on the initial deposit.
- Secured credit card; deposit as little as $100 up to $1,000 depending on the credit limit you’re approved for
- Upgradable to standard, unsecured Amazon.com Store Card with 12 months of good payment behavior
- Earn 2% cash back with a subscription to Amazon Prime
Amazon Secured Card Rewards
Earning Rewards
Non-Prime members do not currently earn rewards with this card. Eligible Prime members get 2% back at Amazon.com, Amazon Fresh and more.. Note, however, that if you get an offer for special financing or equal monthly payments on a purchase, you’ll need to choose between rewards or the payment plan.
If you don’t have an eligible Prime membership, you won’t earn rewards with the card. The cost of a Prime membership is $139 per year or $14.99 per month.
Redeeming Rewards
You can redeem your cash back for eligible purchases at Amazon.com or as a statement credit on your account. If you prefer the latter, you can even request that Synchrony Bank automatically credit your account at the end of each billing cycle.
Rewards Potential
To determine the rewards potential of the Amazon Secured Card*, we have to look at what the average American household might spend. Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. The 50th percentile of wage-earning households with fair credit or below bring in $91,162 annually and we base spending on that number.
Forbes Advisor estimates that a household spends $6,758 on total shopping, which results in $135.16 in annual cash back. This assumes you do all of your shopping online, however, which may not be the case for everyone. Your rewards potential may also be limited based on your credit limit, which will be equal to your security deposit.
Other Amazon Secured Card Benefits
The Amazon Secured Card* does report to the major bureaus, helping build or repair a credit profile. And, if you qualify to convert to the unsecured Amazon Store card version, which may be an option after 12 months of responsible credit building, you won’t have to apply for a new card. The card also protects the holder with zero fraud liability in the event of unauthorized use.
Fine Print
Interest Rates
- Regular APR: 10% fixed APR
- Purchase Intro APR: N/A
- Balance Transfer Intro APR: N/A
Fees
- Annual Fee: $0
- Balance Transfer Fee: N/A
- Cash Advance: N/A
- Foreign Purchase Transaction Fee: N/A
How the Amazon Secured Card Stacks Up
Many banks offer secured cards for building or rebuilding credit. A major benefit of these other options is the ability to use the card virtually anywhere, while the Amazon Secured Card* may only be used on Amazon.com or at Amazon physical locations (Amazon Go, Amazon Fresh or Amazon Style stores).
Amazon Secured Card* vs. Citi® Secured Mastercard®*
Like the Amazon Secured Card*, the Citi® Secured Mastercard®* may provide an avenue for building credit. The account requires a minimum $200 security deposit if approved (double that of the Amazon Secured). The maximum security deposit and credit line is $2,500.
The Citi Secured Card also reports to the three major credit bureaus and offers $0 fraud liability for unauthorized use.
Amazon Secured Card* vs. Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card (rates & fees), has a unique feature for a secured card. Those who qualify can open a line of credit starting at $200 with an initial deposit of $49, $99 or $200 refundable minimum security deposit. The card reports to all three credit bureaus as well and offers fraud coverage for unauthorized charges. New accounts will automatically be reviewed for a credit line increase in as little as six months.
The card does not charge foreign transaction fees.
Amazon Secured Card* vs. Discover it® Secured Credit Card
The Discover it® Secured Credit Card is another option that offers fraud protection and reports to the three major credit bureaus. If approved, you can make a $200 to $2,500 refundable security deposit, and automatic credit line reviews to be changed to an unsecured product begin after seven months.
This secured card also offers more flexible use and rewards than the Amazon Secured Card, earning 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases. The card also offers Unlimited Cashback Match™ - Discover will automatically match all the cash back earned at the end of the first year.
Is the Amazon Secured Card for You?
There are several good secured cards that can help build or rebuild credit. The Amazon Secured Card* may be ideal if you primarily shop on Amazon—particularly if you already have an Amazon Prime subscription. On the other hand, one of the cards mentioned above would likely be a better choice if you plan to make purchases outside of the Amazon ecosystem.
*The information for the following card(s) has been collected independently by Forbes Advisor: Amazon Secured Card, Amazon Store Card, Citi® Secured Mastercard®. The card details on this page have not been reviewed or provided by the card issuer.
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I am a seasoned financial expert with a deep understanding of credit cards and their role in building or rebuilding credit. My expertise is grounded in comprehensive knowledge of various credit cards, their terms, and the financial industry as a whole. I've closely followed the developments in the credit card market, staying abreast of the latest offerings and trends.
Now, let's delve into the information provided in the article about the Amazon Secured Card:
Amazon Secured Card Overview:
- Issuer: Synchrony Bank
- Credit Limit: Ranges from $100 to the approved amount, with a maximum of $1,000.
- Annual Fee: $0
- Regular APR: 10% fixed APR
- Credit Score: Targeted at individuals with Fair/Poor/No Credit
Key Features and Benefits:
- Credit Building: Designed for individuals new to credit or those looking to rebuild their credit history.
- Security Deposit: Requires a security deposit, but offers an opportunity to graduate to an unsecured card with responsible use.
- Conversion: Can be converted into the standard Amazon Store Card after 12 months of responsible use.
- Rewards: Prime members can earn up to 2% cash back at Amazon.com, Amazon Fresh, and more.
- Additional Benefit: Provides free credit tracking tools with access to TransUnion CreditView Dashboard.
Rewards Program:
- Earning Rewards: Only eligible Prime members earn rewards (2% back at specified Amazon locations). Non-Prime members do not earn rewards.
- Redeeming Rewards: Cash back can be redeemed for eligible purchases at Amazon.com or as a statement credit on the account.
- Cost of Prime Membership: $139 per year or $14.99 per month.
Other Benefits:
- Credit Reporting: Reports to major credit bureaus to help build or repair credit profiles.
- Zero Fraud Liability: Offers protection with zero fraud liability in case of unauthorized use.
Comparison with Other Secured Cards:
-
Citi® Secured Mastercard®:
- Requires a minimum $200 security deposit, with a maximum of $2,500.
- Reports to the three major credit bureaus.
- Offers $0 fraud liability.
-
Capital One Platinum Secured Credit Card:
- Allows a line of credit starting at $200 with an initial deposit of $49, $99, or $200.
- Reports to all three credit bureaus.
- Offers automatic credit line reviews for potential increases.
-
Discover it® Secured Credit Card:
- Offers more flexible use and rewards, including 2% cash back at gas stations and restaurants.
- Reports to the three major credit bureaus.
- Provides Unlimited Cashback Match™ at the end of the first year.
Conclusion: The Amazon Secured Card is ideal for those who primarily shop on Amazon, especially for existing Prime members. However, if purchases extend beyond the Amazon ecosystem, other secured cards with broader usability may be more suitable. The decision depends on individual spending habits and preferences.
Note: The information provided here is a concise summary, and individuals are encouraged to review the complete terms and conditions before applying for any credit card.
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