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).

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.