Amazon has found a new way to attract shoppers to its site – it has partnered with financial firm Synchrony to offer a credit card to those trying to establish or rebuild their credit.
The Amazon Credit Builder offers a private label credit card with no annual fee. Cardholders are required to maintain a refundable security deposit with Synchrony Bank to secure the full amount of their credit line on the Amazon Credit Builder card.
Cardholders who are Prime members also receive 5% back on purchases at Amazon.com.
Amazon Credit Builder also provides customers with access to free credit tools and tips. Continued and responsible use of the card can help customers build or rebuild their credit history, Amazon explains. In other words, buy from our site and you’ll be rewarded in more ways than one.
Announcement follows:
Amazon and Synchrony today announced the launch of Amazon Credit Builder for customers who are looking to build or rebuild their credit responsibly. This first-of-its-kind secured private label card has no annual fee, offers eligible Prime members 5% back on purchases at Amazon.com, and offers all cardholders equal pay installments and special financing options on eligible purchases.
Amazon Credit Builder cardholders enjoy the same benefits as the Amazon Store Card, but are required to maintain a refundable security deposit with Synchrony Bank to secure the full amount of their credit line on the Amazon Credit Builder card.
Designed for customers looking to build or rebuild their credit, the card enables those on a controlled budget to make purchases on Amazon.com up to their credit limit. Additionally, Amazon Credit Builder provides customers with access to free credit tools and tips. Continued and responsible use of the card can help customers build or rebuild their credit history.
Amazon Credit Builder customers may be eligible for an upgrade to the Amazon Store Card starting in as little as 7 months after an account is opened, and Amazon Credit Builder card deposits will be refunded upon upgrade to the Amazon Store Card.
To sign up, customers can visit the Amazon Credit Builder page and click “Apply Now”. If a customer is approved for the Amazon Credit Builder, they simply make a security deposit (via ACH transfer on Amazon, or with a check or money order) to finalize opening the account.
The last thing that people needing to rebuild their credit, etc. need is a credit card directly linked to a store. Many of those with poor credit or need to rebuild their credit got that way from overspending using, you guessed it, credit cards!