ATLANTA, Ga. - Amazon recently launched an interesting new credit card. It targets those with no credit or looking to repair your credit.
The card is called Amazon Credit Builder. The online retailer wants to offer you credit. But let's be clear: It's designed to get you to shop there and not somewhere else. But how can you use it to your benefit? Let me show you.
First you apply online through the Amazon website. This is a secured credit card which means you will need to put down a security deposit. That deposit is equal to your credit limit. If you pay your bill on time, you will get that money back and a good report to the credit agencies. If not, it goes toward paying your bill and the bad news goes to the credit reporting agencies, as well.
Here are three things about this card that are appealing. There are two options: one for Prime members and one for regular members. If you do the Prime Credit Builder choice, there is a five percent cash back offer. For both there is no annual fee.
But a reminder that the Prime membership is $119 a year, $12.99 monthly. And, you still have to be a responsible card owner to get the benefits.
If you pay your bill on time for seven months, you can move out of this credit builder card to a regular amazon store credit card.