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Amazon launches a credit card for the ‘underbanked’ with bad credit

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Moderator

Amazon launches a credit card for the ‘underbanked’ with bad credit

  • Synchrony Financial and Amazon are partnering on a credit card for Prime members 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 card once they’ve established credit.
  • “It’s putting credit in the hands of people in a responsible way,” says Synchrony executive vice president and CEO of the bank’s retail card operation Tom Quindlen.

https://www.cnbc.com/2019/06/10/amazon-launches-a-credit-card-for-the-underbanked-with-bad-credit.ht...

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 1 of 29
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New Contributor

Re: Amazon launches a credit card for the ‘underbanked’ with bad credit

Yeah just read this... should be a great addition for those that want to share in the rewards program who have "challenged" credit

 

"The card has the same perks, like 5% cash back on purchases"



6/19 FICO 8 TU 724 EX 712 EQ 690

FICO 9 EX 739
Message 2 of 29
Moderator Emeritus

Re: Amazon launches a credit card for the ‘underbanked’ with bad credit

Seems like a well-designed secured product.

I am not a huge fan of Synchrony but that’s around their idiosyncratic reporting... but I don’t know if they have ever underwritten a secured card previously.

I do wonder who the lender of record is for the deposit.

End of the day more access to credit to more people I am always in favor of even when this is clearly to Amazon’s benefit too

ETA: if I ever care about testing some stuff in the future $100 buck secured card even I might do, though to be clear I already carry the Chase version heh.



        
Message 3 of 29
Moderator

Re: Amazon launches a credit card for the ‘underbanked’ with bad credit


@Revelate wrote:

I do wonder who the lender of record is for the deposit.


I suspect its Synchrony as they are the registered bank. Amazon isnt AFAIK

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 4 of 29
Highlighted
Valued Contributor

Re: Amazon launches a credit card for the ‘underbanked’ with bad credit

I guess there are two ways to think of it.

They are trying to get credit into the hands of people who cannot normally get Credit. Which is odd considering all the recent the articles about people being in such deep CC debt. So they're trying to further the debt problem/crisis, or they're hoping it could help those rebuilding.

 

 

 

Message 5 of 29
Frequent Contributor

Amazons New Credit Card

This might intrest some, looking for secured card through Amazon

 

https://www.marketwatch.com/story/amazons-new-credit-card-targets-people-with-bad-credit-2019-06-10

 

https://www.amazon.com/dp/B07NC276CJ






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Message 6 of 29
Frequent Contributor

Re: Amazons New Credit Card

Message 7 of 29
Valued Contributor

AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

https://www.foxbusiness.com/politics/aoc-bernie-sanders-amazon-prime-credit-card

 

"Can you believe it? Amazon is issuing credit cards with 28% interest rates to "help" people with bad credit. This kind of greed makes the poor even poorer and @AOC and I intend to outlaw it." - Bernie Sanders

As most on this forum will likely agree, the interest rate does not matter to most people trying to build (or rebuild) credit. This APR coincides with the risk of the borrower who is likely to have a credit file requiring a secured product.

 

If rates were capped at 15% as these politicans are proposing, products like this would simply cease to exist and it would become far harder and more expensive to build one's credit file.


TU FICO 8: 767 (5/19) — Ex FICO 8: 764 (5/19) — Opinions are my own and not the views of my employer
Message 8 of 29
Valued Contributor

Re: AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

It is a free market.

Some cap is good but lower ceilings mean less approvals.

Plain and simple.

People with great credit don't need another card.

As usual, government makes little sence and does so as inefficiently as possible.

Rebuild started in 2014  -  $100k total unsecured credit in 2017  -  $250k+ total unsecured credit in 2019.

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Message 9 of 29
Valued Contributor

Re: AOC, Bernie Sanders skewer Amazon Prime's new credit card: We 'intend to outlaw it'

Hey Bernie and AOC.....the interest rate does not matter if it is always PIF. Rebuilders were thrilled with the opportunity to get back in the game, and your efforts will possibly just result in pulling back from issuing these cards.


TU fico08=836 06/20/19
EX fico08=823 06/11/19
EQ fico08=820 06/11/19
EX fico09=824 06/11/19
EQ fico bankcard08=841 06/11/19
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Message 10 of 29