5 Things to Know About The Amazon Secured Card
5 Things to Know About the Amazon Secured Card
A store’s credit card is easy to locate. Amazon Secured Card is a secured retail credit card that can assist you in rebuilding your credit.
It’s more versatile than a regular shop credit card since you can purchase anything at an internet mega-retailer.
Amazon Secured Card: 5 Things to Know
1. It Can Be Used Only At Amazon
The Amazon Secured Card is a closed-loop card that can only be used on Amazon.com or at Amazon retail locations.
Some retailers provide “open-loop” cards, which may be used everywhere Visa or Mastercard is accepted.
2. Fees Are Reasonable …
The Amazon Secured Card has no annual charge, like other shop cards. The Amazon Secured Card has a set 10% APR, unlike many retail credit cards with high interest rates.
When developing credit, pay your credit card balance in full every month. If you must carry a debt, a 10% APR isn’t outrageous.
Late fees are $5, cheaper than many other cards. (But late payments might hurt credit ratings.)
3. But A Deposit Is Required
To establish credit with the Amazon Secured Card, a security deposit is required.
The minimum deposit is $100. If your credit limit is $500, you may deposit any amount between $100 and $500 (in $50 increments).
Read: What Is Credit One Bank Credit Card Reviews Rules & Opinions?
A $500 deposit equals a $500 credit limit. The deposit is kept until you close your account or switch to a card that isn’t secured.
4. There’s A Path To An Unsecured Version
If you use the card responsibly for a year (paying on time and in full), you may be able to convert it to an unsecured version. If you convert, you’ll receive your security deposit back after paying off the card.
The converted Amazon Store Card is a closed-loop card that can only be used at Amazon. It provides customized financing, pay-over-time alternatives, and no yearly cost.
5. Only Amazon Prime Members Earn Rewards
Amazon Secured Card holders only receive benefits. A yearly Prime membership costs $139 or $69 for students.
Prime members get 2% back on Amazon purchases. When eligible, you’ll get 5% back if you convert to an unsecured Amazon Store Card.
This secured credit card may help Amazon Prime members improve their credit while earning benefits. Secured credit cards seldom offer incentives.