Amazon is offering credit cards to bad and new credit customers.
Amazon’s newest credit card is designed to appeal to consumers who are looking to improve their credit score. but it comes with an unusual structure.
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The Amazon Credit Builder card AMZN, +1.06% will function as a secured credit card, but with the same benefits as Amazon’s Store Card. When opening the card, as with any secured card, consumers must make a refundable security deposit with Amazon’s partner on the financial product, Synchrony Bank SYF, -1.36%That deposit will then represent the card’s credit limit. Consumers can establish credit lines ranging from a minimum of $100 to a maximum of $1,000.
Like many other retail cards, however, the Amazon Credit Build card can only be used for Amazon purchases
Here are other features of the card:
• Amazon Prime members who open the card can receive 5% back on purchases at Amazon.com. The account must be in good standing to redeem the rewards.
• The card has no annual fee — though consumers would need to pay the $119 yearly membership fee for Amazon Prime to get the cash-back reward.
• After making the account-opening deposit, card holders will receive a $40 gift card.
• Card holders will have access to 0% APR financing options on large purchases.
•The annual percentage rate for the card currently stands at 28.24% and resets based on the Prime Rate. That’s higher than the average retail card interest, which was 25.64% as of November 2018, according to CreditCards.com.