The new Amazon Credit Builder credit card targets the “underbanked” and gives account holders the same perks as the Amazon Store card…
Amazon and Synchrony Financial Launch Amazon Credit Builder Credit Card for the Underbanked
The credit building card comes with no annual fee, a $40 gift card for signing up, promotional financing, and zero fraud liability. It also offers 5 percent cash back on purchases and other benefits of the popular Amazon Store card.
Applicants must provide a deposit ranging from a minimum of $100 up to $1,000, through ACH or electronic bank transfer.
Tom Quindlen, Synchrony executive vice president and CEO of the bank’s retail card operation, told CNBC in a phone interview:
“There’s always going to be people that we can’t give credit to — this is a large population that we weren’t able to reach. It’s a new segment of the market.”
Consumers should take note, the program has a high interest rate of as much as 28.24 percent, which is higher than the average median APR of retail credit cards, 25.64 percent.