This Itechguide explains Amazon Credit Builder.
What is Amazon Credit Builder?
Amazon Credit Builder is a secured store credit card that helps people rebuild their damaged credit score.
Unlike a normal Amazon store credit card, an Amazon secured store credit card requires a refundable security deposit when opening the account. Your security deposit is the limit of available credit line on the store credit card.
In essence, you are spending your own money. However, because you are spending it via a credit card, it may help rebuild your credit score over time. To learn how this works and what you need to do to potentially rebuild your credit score with this card, see the next section.
How it Works
Here is a summary of how this secured store card works and help you rebuild your damaged credit score:
- Apply for an Amazon Credit Builder account and wait to be approved
- If approved, make your refundable security deposit within 60 days – to begin the process of making the deposit, visit Amazon.com/creditbuilder. You can make electronic transfer or send check or money order to Synchrony Bank.
- Spend money from the Amazon Credit Builder store credit card. It is extremely important to spend responsibly. If you want to rebuild your credit score, you cannot spend to the max limit of your credit. Spend a reasonable amount every month.
- Finally, and this is the most important step to rebuild your credit score with this card, make sure to repay at least the minimum amount required every month. After making the payment, contact the issuing bank, Synchrony Bank to confirm that they received your repayment.
- Every month, the issuing bank, Synchrony Bank will report your on-time repayments to the major credit bureaus. This will start rebuilding your reputation as a credit worthy borrower. If you continue making consistent, on-time repayments, over time (considering all other factors that affect credit scores/history), you credit score should get better.
Features & Benefits
To further understand this service from Amazon, this section explains the major features and benefits:
Opportunity to Start Rebuilding Your Credit
If you have ever had a bad credit history, attempting to rebuild it is almost a nightmare. The reason is that you need a credit card to prove your credit worthiness – which is what builds your credit score.
However, because you already have a terrible credit score, you cannot be approved for a new credit card. The reason for this is that before credit issues can approve you for a credit card, they will run a credit check with major credit bureaus. Unfortunately, because of your existing bad credit history, you cannot be approved for new credit lines. It then becomes impossible for you to try to rebuild your credit reputation!
Amazon Credit Builder secured store credit card breaks this cyclic loop for you. Even though you are required to make a security deposit (obviously, because of your lack of credit worthiness), Amazon (via the issuing bank), issues you an actual credit card. Spending credit and making on-time repayments is one way to rebuild your bad credit history!
5% Cash Back on Eligible Prime Membership
Amazon secured credit card is similar to the normal Amazon Store Card and Amazon Prime Store Card (unsecured cards). The only difference is that with the secured credit card (credit builder card), you are required to make a refundable security deposit.
However, the issued card has the same benefits as the normal Amazon store credit cards. One of such benefit is that you get 5% back every day – an eligible Prime membership is required. You may also enjoy some promotional financing without eligible Prime membership.
Security Deposit Refund and Upgrade to Unsecured Card
Another beauty of the Amazon Credit Builder store credit card is that you will receive your full security deposit if you close your credit builder account. However, to receive your deposit, you must have repaid any outstanding balance on your credit card.
Moreover, you may upgrade your secured store credit card (credit builder account) to an unsecured (normal Amazon store credit card). If your upgrade request is approved, Synchrony Bank (the card issuing bank) will issue an unsecured Amazon Store Card to you and refund your security deposit.
Conclusion
I hope this Itechgude successfully explained Amazon Credit Builder? I also hope that you found it helpful. If you found it helpful, kindly vote Yes to the “Was this post Helpful” question below.
Alternatively, you could ask a question, leave a comment or provide feedback with the “Leave a Comment” form found towards the end of this page.
Finally, for more Amazon tech Itechguides, visit our Amazon Explained page. You may also find our Work from Home page very helpful.
