Tags: amazon | credit | card | underbanked

Amazon Said to Launch Credit Card For 'Underbanked' With Bad Credit

Amazon Said to Launch Credit Card For 'Underbanked' With Bad Credit
(rvlsoft/assetsdelivery.com)

By    |   Monday, 10 June 2019 06:25 PM

Synchrony Financial and Amazon.com Inc. reportedly are partnering on a credit card for those who might not have good enough credit to get one otherwise.

“Amazon Credit Builder” lets users build up credit through a secured card, alongside budgeting tools and tips. It allows people eventually to “graduate” to another Amazon Store card once they’ve established credit, CNBC reported.

“It’s putting credit in the hands of people in a responsible way,” Tom Quindlen, Synchrony executive vice president and CEO of the bank’s retail card operation, told CNBC.

Amazon’s new Credit Builder card requires customers to deposit a minimum of $100, which serves as a credit limit, according to the company’s website. The card has many of the same perks as Synchrony’s existing Amazon card, which offers Amazon Prime users 5% cash back on all purchases made at the e-commerce giant, Bloomberg explained.

Customers with Credit Builder accounts can qualify for upgrade to Synchrony’s unsecured Amazon store card after seven months of usage, according to the website. The new secured card will also come with free credit-score monitoring and access to a complimentary score-simulator tool.

Like many other retail cards, however, the Amazon Credit Build card can only be used for Amazon purchases, making it a “closed-loop” card, MarketWatch reported.

The structure of the new credit offering struck credit-card experts as rather unusual. “I’ve looked at hundreds of retail cards, and I can’t recall ever seeing a secured retail card,” said Ted Rossman, industry analyst with CreditCards.com.

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Personal-Finance
Synchrony Financial and Amazon.com Inc. reportedly are partnering on a credit card for those who might not have good enough credit to get one otherwise.
amazon, credit, card, underbanked
246
2019-25-10
Monday, 10 June 2019 06:25 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved