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Amazon Secured Card Review: A Path to Building Credit with Prime Benefits
What Is the Amazon Secured Card?
The Amazon Secured Card is a credit-building tool designed for individuals looking to establish or rebuild their credit history. As a secured credit card, it requires a security deposit that serves as collateral and typically determines your credit limit. This card is particularly appealing to Amazon shoppers, as it offers some of the benefits associated with Amazon's credit products while providing a more accessible entry point for those with limited or damaged credit.
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Amazon Secured Card Pros & Cons
Pros:
- No annual fee
- Reports to all three major credit bureaus
- Opportunity to earn Amazon rewards (for Prime members)
- Potential for credit limit increases
- Path to upgrade to an unsecured Amazon Store Card
Cons:
- Requires a security deposit
- High APR
- Limited use outside of Amazon and select retailers
- Best rewards reserved for Prime members
Who Is the Amazon Secured Card For?
The Amazon Secured Card is ideal for:
- Credit builders: Individuals with little to no credit history looking to establish a positive credit record.
- Credit rebuilders: Those with past credit issues aiming to improve their credit scores.
- Frequent Amazon shoppers: Customers who regularly make purchases on Amazon and want to earn rewards while building credit.
- Prime members: Amazon Prime subscribers can maximize the card's benefits, including cashback rewards on Amazon purchases.
Comparing the Amazon Secured Card With Other Credit Cards
When considering the Amazon Secured Card, it's helpful to compare it with other popular options in the credit builder card category:
Chime Credit Builder Secured Visa® Credit Card:
- Annual fee: $0
- Security deposit: Flexible, based on the amount transferred to Credit Builder account
- Key features: No credit check to apply, reports to all three major credit bureaus
- Standout feature: No minimum security deposit required
Capital One Quicksilver Secured Cash Rewards Credit Card (rate & fees):
- Annual fee: $0
- Security deposit: Minimum $200, which becomes your credit limit
- Key features: 1.5% cash back on all purchases, automatic credit line reviews
- Standout feature: Earn rewards while building credit
Current Build Visa® Credit Card:
- Annual fee: $0
- Security deposit: Flexible, based on the amount transferred to Build account
- Key features: No credit check required, reports to all three major credit bureaus
- Standout feature: Linked to Current banking app for easy fund transfers
Each card offers unique benefits tailored to different spending habits and preferences. Consider your personal financial goals when choosing the best card for you.
Key Takeaways:
- Amazon Secured Card excels in establishing or rebuilding the credit history of individuals
- Chime Credit Builder offers flexibility with no minimum deposit
- Capital One Quicksilver Secured provides cash back rewards
- Current Build integrates with banking app for convenient use
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Consider Using Kudos
While exploring credit card options like the Amazon Secured Card, it's worth considering tools that can help you maximize your credit card benefits. Kudos is a free AI-powered browser extension designed to help you get the most out of your credit cards when shopping online.
Kudos can be particularly useful when using cards like the Amazon Secured Card by:
- Providing personalized credit card recommendations for each purchase, ensuring you always use the best card for maximum rewards.
- Integrating with over 15,000 stores, including Amazon, to help you earn rewards across a wide range of retailers.
- Offering opportunities to multiply your rewards up to 5X during special "Flash Boost" events.
- Helping you discover new credit cards that align with your spending habits as your credit improves.
If you're looking to get more out of your credit cards, Kudos is the best free shopping app to use when you shop online. And, they're currently offering $20 back after your first eligible purchase — just sign-up for free with code "GET20" and make a purchase at a Boost merchant.
Our Expert Takeaway
The Amazon Secured Card offers a solid option for those looking to build or rebuild credit, especially if they're frequent Amazon shoppers or Prime members. Its lack of annual fee and potential for rewards make it stand out in the secured card market. However, its high APR and limited use outside of Amazon may be drawbacks for some users.
For those considering this card, it's crucial to use it responsibly by making on-time payments and keeping balances low. As your credit improves, you may become eligible for an upgrade to an unsecured Amazon Store Card or other credit products with more favorable terms.
Remember, while building credit is important, it's equally vital to manage your personal finances wisely. Tools like Kudos can help you maximize your card benefits, but always ensure that credit card use aligns with your overall financial goals and budget.
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Amazon Secured Card FAQ
How does the Amazon Secured Card help build credit?
The Amazon Secured Card reports your account activity to all three major credit bureaus (Experian, Equifax, and TransUnion). By making timely payments and managing your credit responsibly, you can build a positive credit history.
What is the minimum security deposit for the Amazon Secured Card?
The minimum security deposit for the Amazon Secured Card typically starts at $100, but this may vary. Your deposit amount usually determines your credit limit.
Can I get my security deposit back?
Yes, your security deposit is refundable. You may receive it back if you close your account in good standing or upgrade to an unsecured Amazon Store Card.
What are the rewards for the Amazon Secured Card?
Prime members can earn 2% back on Amazon.com purchases. Non-Prime members do not earn rewards with this card.
Is there an annual fee for the Amazon Secured Card?
No, the Amazon Secured Card does not charge an annual fee.
What credit score do I need for the Amazon Secured Card?
As a secured credit card, the Amazon Secured Card is generally accessible to those with poor or limited credit. However, approval is not guaranteed and depends on various factors in your credit profile.
Can I use the Amazon Secured Card anywhere?
While primarily designed for use on Amazon.com, the card can also be used at select Amazon-partnered retailers. However, its use is more limited compared to traditional credit cards.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
