5 Facts to know about Amazon Secured Card
A store’s credit card is easy to find. Amazon Secured Card is a secured retail credit card that can assist you in rebuilding your credit.
It’s more flexible than a regular store credit card because you can buy anything at an internet mega-retailer.
Amazon Secured Card: 5 Things to Know
1. Only Amazon Accepts Amazon Secured Card.
The Amazon Secured Card is a closed-loop card that can only be used at Amazon.com or Amazon retail locations.
Some retailers offer “open-loop” cards, which can be used anywhere Visa or Mastercard is accepted.
2. Fees are affordable
The Amazon Secured Card has no annual fee, like most store cards. The Amazon Secured Card has a fixed APR of 10%, which is much lower than the high rates on many retail credit cards.
When developing credit, pay your credit card balance in full every month. If you must carry a balance, 10% APR isn’t outrageous.
Late fees are $5, lower than many other cards. (But late payments might hurt credit scores.)
3. But, a deposit needed
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 can deposit any amount between $100 and $500 (in $50 increments).
A $500 deposit equals a $500 credit limit. The deposit is held until you close your account or upgrade to an unsecured card.
4. It has 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 get 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 offers special financing, pay-over-time options, and no annual fee.
Only Amazon Secured Card holders are eligible for benefits. A yearly Prime membership costs $139, or $69 for students.
Prime members get 2% back on Amazon purchases. You’ll get 5% back when you convert to an unsecured Amazon Store Card.
Members of Amazon Prime can use this secured credit card to improve their credit while getting perks. Secured credit cards rarely give rewards.