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

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gdale6
Moderator Emeritus

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...

Message 1 of 30
29 REPLIES 29
Anonymous
Not applicable

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"

Message 2 of 30
Revelate
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 30
gdale6
Moderator Emeritus

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

Message 4 of 30
Anonymous
Not applicable

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 30
chhull00
Frequent Contributor

Amazons New Credit Card

Message 6 of 30
Andypanda
Established Contributor

Re: Amazons New Credit Card

Message 7 of 30
Anonymous
Not applicable

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.

Message 8 of 30
Shooting-For-800
Senior 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 unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



Message 9 of 30
sarge12
Senior 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=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 10 of 30
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