Amazon Prime members have multiple credit card options available to them, from rewards-oriented cards such as the Amazon Store Card and Visa Rewards to those designed to help those with fair or poor credit build their credit history.
With its low security deposit of up to your approved credit limit (maximum $1,000), Synchrony’s secured credit card may be worth considering, although other cards offering zero percent interest should also be explored.
1. Low fixed APR
Amazon Prime Secured Card provides a low, fixed APR on purchases – ideal for individuals new to credit or those struggling with poor scores as it allows them to pay down balances without worrying about rising rates of interest.
However, the Prime Secured Card may not be the optimal solution for those attempting to establish or rebuild their credit, as there are other secure cards with lower fees and better rewards – for instance Discover it Secured Credit Card provides no annual fee while having an APR that’s more than half that of Amazon Prime Store Card.
Keep in mind that the Amazon Prime Secured Card is a closed-loop card, meaning it can only be used at Amazon. While that might not be a concern for everyone, some may prefer carrying multiple credit cards with different perks that they can use at different retailers.
Like other secured credit cards, the Amazon Prime Secured Card requires an initial security deposit ranging from $100 up to the maximum limit of $1,000 depending on how much credit is approved for. That deposit can be reclaimed once 12 payments are made on time with no late or missed payments and good credit habits maintained, such as not opening new accounts. You’ll then have your deposit back as long as 12 payments are on time each month and no new accounts opened – within 12 months you could convert your card to an unsecured Amazon Store Card that offers 5% back on purchases while unlocking additional Prime benefits!
2. No annual fee
Amazon Prime Secured Cards offer many advantages over store credit cards in that there is no annual fee charged, making them particularly appealing to frequent card users. However, note that being a secured credit card requires an initial security deposit to serve as your credit limit; the exact amount can depend on what amount is approved but must not go beyond $1,000.
While secured cards often offer this feature, it bears mention. A secured card offers many people an effective low-risk means of building or rebuilding credit by reporting payment history and activity to major credit bureaus. As long as payments are timely made and total revolving debt falls below 30 percent of your available limit, your account should become increasingly positive over time.
The Amazon Prime Secured Card also comes equipped with several benefits designed to help build credit, such as earning rewards and free two-day shipping on purchases. However, it’s essential that this card be evaluated against other secured credit cards which offer better features and rewards rates in terms of building credit and rewards rates.
Discover it Secured Credit Card offers higher rewards rates than Amazon Prime Secured Card without an annual fee, and can even be upgraded into an unsecured Discover card after 12 months of responsible use. It should also be noted that Amazon Prime Secured card is limited in use only to Amazon purchases whereas other secured cards, like Capital One Quicksilver Secured Credit Card and Capital One Platinum Secured Credit Card allow purchases at merchants accepting Mastercard as payment methods.
3. 5% cash back
The Amazon Prime Secured Card stands out from other secured cards with its ability to earn rewards: its 2% back on Amazon purchases (in addition to other benefits like Amazon Prime membership) makes it an attractive choice for shoppers seeking more from their shopping while building credit. But there may be better credit-building cards out there with greater rewards or lower fees that might offer more advantages for building credit.
Secured credit cards offer consumers an accessible entryway into mainstream credit, helping to build positive credit histories that will be easier to manage in the future. When building credit it is best to prioritize paying off debt each month and keeping revolving balances at minimum.
If you can’t pay off a balance in full, Amazon Prime Secured Card offers a reasonable 10-percent fixed APR; far lower than the average retail credit card interest rate of 13.24 percent. Furthermore, promotional 0 percent APR offers can help you purchase what you need while paying off the balance before its offer ends.
This card requires a security deposit of up to $1,000 (which can be reduced in $50 increments), with no annual fee attached. However, it should be noted that your credit limit won’t appear until after making your first payment and may delay credit-building efforts. Furthermore, there’s no sign-up bonus or rewards rates included like with other secured and closed loop store cards; nor ancillary fees such as penalty APR for late payments or similar penalties that other store cards typically feature.
4. No foreign transaction fee
This card does not charge a foreign transaction fee, making it ideal for shoppers who frequently shop abroad. Other credit cards may add a percentage charge when purchases or withdrawals from ATMs abroad take place.
This card stands out from its retail counterparts in that it does not charge a penalty APR; unlike many retail cards that may charge steep penalties on late payments or carry an outstanding balance for extended periods, making this card ideal for Amazon shoppers or international travelers who require international access.
At Amazon Prime Secured Card, unlike some store credit cards that require an upfront security deposit equal to your credit limit, a $100 minimum deposit (or up to $500 maximum) is all that’s needed for approval. Although initially only used at Amazon and affiliated businesses, with graduation to a full unsecured Amazon Store Card possible after meeting certain requirements such as making monthly payments on time and paying off balance in full; when this occurs your security deposit will be returned back.
Amazon Prime Secured Card can be an excellent way to build or rebuild credit with an Amazon-exclusive card; however, before putting down a security deposit with them it would be wiser to consider other credit building cards with wider acceptance, better rewards rates and shorter card upgrade review periods before choosing this option. Several options exist such as the Discover it Secured and Bank of America Unlimited Cash Rewards Secured cards which both feature no annual fee with an introductory 0% APR on purchases as well as access to free FICO scores with every monthly statement statement.
5. Free two-day shipping
Amazon Credit Card can offer shoppers who shop frequently and are comfortable carrying balances the flexibility of free two-day shipping for select purchases, payment in full or installments and various account management tools online.
Like most secured cards, the Amazon Prime Secured Card features a credit limit that depends on how much collateral is deposited with them – this amount ranges from $100 to $1,000 and you can add funds in $50 increments. In addition, this card typically reports your activity back to major credit bureaus so that over time it helps build positive credit histories.
Responsible account management — which means paying your bill on time and in full — could make you eligible to upgrade to an unsecured card after one year. Simply call or visit the card issuer and inquire. Should this transition go well, your security deposit will be returned.
Amazon Prime Secured Card can be an effective tool for people needing to build credit but who don’t qualify for the best unsecured offerings, but may not be suitable if you want to earn rewards or spend outside Amazon. In that instance, consider either a general-purpose card such as Synchrony Bank’s Amazon Store Card Credit Builder which gives 2% cash back (plus rotating rewards in various categories), can be upgraded after six months with responsible use, doesn’t charge an annual fee, foreign transaction fee penalty APR fee, penalty APR fee nor first late payment penalty fee – making this card an excellent option!