topic Re: Amazon Credit Builder Graduation in Credit Cards

Amazon Credit Builder Graduation

Brian_Earl_Spilner — Wed, 11 Dec 2019 04:19:33 GMT

In case you missed it, for a short period of time Amazon and Synchrony offered a secured version of their store card with a max deposit of $500. After a couple of months, the card was shutdown because people thought Amazon was preying on people with less than perfect credit. Personally, I disagree, but I digress. Because of the very small window, datapoints are lacking, so I decided to share some info I just received from a rep while helping my mother with her account. She was freaking out because while her statement cut showing available credit, the account was showing -$3 available. Being that English is not her first language, I had to speak to the rep.

- when making a payment, the account is credited immediately towards the balance, but the available balance will not be released for 7 days. This is where her problem was. While she had made a payment and got credit for it before statement cut, the available was showing negative. She was afraid that it would affect her card graduating. The rep stated that she was not actually negative and there were no internal derogatory marks. Her history was "flawless".

- the rep stated that she could see the card was scheduled to graduate after the next paymemt. When asked to clarify, she said the cards are scheduled to graduate after the 7th payment. If she's correct, this clears up any question about the blurb on the app about needing to meet Synchrony's credit criteria. Her scores are currently around 600. Once there's confirmation, I will update the thread. My mom wanted to make an additional payment to speed up the process so the rep took the payment over the phone and congratulated her on graduation.

- according to the rep, it will take about 30 days for the process to finish, at which point, a letter and/or email will be sent confirming graduation. A check for the deposit should arrive around that time as well.

- nothing will change with the card other than it showing as unsecured. Her balance and history will transfer over to the new unsecured account and she'll retain the existing card number.

- it's unknown if there will be a CLI that goes with the graduation, or if one can be requested immediately after it graduates. We'll give it a try and update here.

If anyone else has some datapoints to add, please feel free. I know there are a few people here that are wondering what the process will be and I'm sure it would help them. While at it, feel free to discuss whether the card should have been shut down or not and if these types of products would be nice to see more often with other brands.

Re: Amazon Credit Builder Graduation

ChargedUp — Wed, 11 Dec 2019 04:29:41 GMT

Congratulations for your mother on graduated account!

Re: Amazon Credit Builder Graduation

Anonymous — Wed, 11 Dec 2019 05:05:12 GMT

I have the Amazon builder account as well and I’m coming up on my 6th statement here in the next couple days.

I really wish I would’ve loaded more into the account because payments take a very long time to clear. The account balance as you mentioned updates fairly quickly but my available credit doesn’t update for 7-10 days. Every single payment I’ve made since getting the card has taken this long to clear unless I reach out to customer service and have them release the hold. My scores across the board have increased quite a bit since opening the card so I’m really hoping it graduates after my 7th payment like the rep you talked to mentioned. I actually might give them a call and see if they can see a tentative graduation date/time on my account too.

Thank you for the information!

Re: Amazon Credit Builder Graduation

Anonymous — Wed, 11 Dec 2019 18:41:46 GMT

Thanks, because I wanted to know the same thing. I received my card in June and just spoke to a rep. He explained that my graduation will occur after my payment in January so I will update you after next month.

Re: Amazon Credit Builder Graduation

Anonymous — Wed, 11 Dec 2019 18:47:39 GMT

@Brian_Earl_Spilner wrote:
In case you missed it, for a short period of time Amazon and Synchrony offered a secured version of their store card with a max deposit of $500. After a couple of months, the card was shutdown because people thought Amazon was preying on people with less than perfect credit. Personally, I disagree, but I digress.

And how exactly is this different than any other Creditor who offers a secured product?

Not to mention the APR that is assigned to people with lower scores versus those with higher ones, on regular major bankcards.

Have those peope seen what APR cards have these days? Also, you can PIF a secured card just as easy as the regular one.

The things people choose to cry over these days...

Congrats on being able to slip in that window, hopefully it will benefit all those people who did manage to open one.

Re: Amazon Credit Builder Graduation

GoldenloveNY — Wed, 11 Dec 2019 21:16:14 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
In case you missed it, for a short period of time Amazon and Synchrony offered a secured version of their store card with a max deposit of $500. After a couple of months, the card was shutdown because people thought Amazon was preying on people with less than perfect credit. Personally, I disagree, but I digress.
And how exactly is this different than any other Creditor who offers a secured product?
Not to mention the APR that is assigned to people with lower scores versus those with higher ones, on regular major bankcards.
Have those peope seen what APR cards have these days? Also, you can PIF a secured card just as easy as the regular one.

The things people choose to cry over these days...

Congrats on being able to slip in that window, hopefully it will benefit all those people who did manage to open one.

This was a case of selective outrage and beating down on Amazon even more because it got so political. Amazon [was being attacked] about their business proposal to open shop in The Bronx, and when Amazon introduced their secured card....well that was just more bullets for them. [snip] Amazon had to save face somehow and they caved on both ends. [snip]

Re: Amazon Credit Builder Graduation

calyx — Wed, 11 Dec 2019 20:09:52 GMT

I always thought the hullaballoo was strongly linked to them targeting the "underbanked" (specifically that word).

I thought it sounds like a good idea, and I hate that they shut it down. I hope they reopen it in the future - it would've been nice for 2018 me.

Thanks for the information @Brian_Earl_Spilner - I always kind of wondered what happened with this card, and I'm glad to hear that cards will graduate after all and I'm looking forward to people's graduation posts.

Re: Amazon Credit Builder Graduation

Remedios — Wed, 11 Dec 2019 20:48:40 GMT

A quick reminder to keep your posts free of politics, TOS and all that.

Re: Amazon Credit Builder Graduation

K-in-Boston — Wed, 11 Dec 2019 21:17:14 GMT

@Remedios wrote:
A quick reminder to keep your posts free of politics, TOS and all that.

This. It's non-negotiable. Thank you.

Re: Amazon Credit Builder Graduation

Brian_Earl_Spilner — Thu, 12 Dec 2019 05:02:27 GMT

@calyx not sure why more banks don't have graduati g secured cards. It would allow them to sign up more people, give them capital to work with in the form of the deposits, and if someone defaults the loss would be somewhat mitigated

Re: Amazon Credit Builder Graduation

calyx — Thu, 12 Dec 2019 13:56:11 GMT

Agreed @Brian_Earl_Spilner

I hope that they'll re-release this card at some point in the future. It's a pretty good deal for those with bad/no credit, particularly if they like to shop amazon.

Re: Amazon Credit Builder Graduation

OmarGB9 — Thu, 12 Dec 2019 14:22:10 GMT

It is a shame because I was looking at this card as a possibility for rebuilding purposes. But the option isn't even there.

Re: Amazon Credit Builder Graduation

tpdtopcop — Thu, 12 Dec 2019 15:22:31 GMT

So one can not get this card anymore?

Re: Amazon Credit Builder Graduation

Brian_Earl_Spilner — Thu, 12 Dec 2019 15:28:10 GMT

@tpdtopcop unfortunately not. It was only available for 2-3 months before being shut down.

Re: Amazon Credit Builder Graduation

Anonymous — Thu, 12 Dec 2019 18:21:31 GMT

Meanwhile Fingerhut has been around for how many years...

Ha, it seems I cannot go anywhere these days without seeing Baby Yoda! lol

Re: Amazon Credit Builder Graduation

Anonymous — Fri, 13 Dec 2019 00:39:47 GMT

I have the card, but have a question. What happens if someone does not graduate after seven months, since the secured credit card is no longer a plausible option? I am just curious.

Re: Amazon Credit Builder Graduation

joltdude — Fri, 13 Dec 2019 04:24:08 GMT

I get why folks were in a bit of a snit but I thought this was a good option esp for folks who do shop on Amazon and are new or rebuilding credit.... I do think it would have opened doors to some folks I know who do not have credit, and use their debit for everything... esp in the lower income brackets... It wasn't what id consider predatory lending... Far cry from other well known bottom feeders... Hope it makes a return appearance....

Re: Amazon Credit Builder Graduation

joltdude — Fri, 13 Dec 2019 04:25:18 GMT

Its likely that they will keep the card going... untill folks are eligible to graduate then transfer them to their normal store card product...

-J

Re: Amazon Credit Builder Graduation

Brian_Earl_Spilner — Fri, 13 Dec 2019 07:20:17 GMT

@joltdude wrote:
I get why folks were in a bit of a snit but I thought this was a good option esp for folks who do shop on Amazon and are new or rebuilding credit.... I do think it would have opened doors to some folks I know who do not have credit, and use their debit for everything... esp in the lower income brackets... It wasn't what id consider predatory lending... Far cry from other well known bottom feeders... Hope it makes a return appearance....

I think it was ridiculous that people were complaining about a closed loop secured card. It's not like it was a GameStop secured card. You can buy everything, including food with it on Amazon. And the fact that it graduates almost puts it completely ahead of most secured cards that require you to open a new unsecured card to grow your relationship with a lender

Re: Amazon Credit Builder Graduation

Brian_Earl_Spilner — Fri, 13 Dec 2019 07:21:32 GMT

@Anonymous while the lender has the right to modify the terms of the card agreement, I'm sure synchrony will honor the original contract and eventually graduate it.