Amazon Prime Secured Card Review: Build Credit While Earning 2% Back on Amazon
Amazon Secure Card
Introducing the Amazon Prime Secure Card
The Amazon Prime Secured Card works similarly to other secured credit cards in that you need to put down a cash deposit as collateral. However, this card is also available for a wider range of credit profiles, including people with low credit scores or no credit history.
Users can earn 2% when they shop on Amazon.com, and free credit monitoring tools make it easier to see your credit progress over time. This secure Amazon Prime card works best for people with bad credit or no credit, as well as those who frequently shop for food or supplies on Amazon.
What are the advantages and disadvantages?
- Amazon Prime membership required, which requires an annual fee of $119 on its own.
- You must deposit money to build credit and earn rewards with this card.
- Credit limits can be as low as $100 and the maximum you can be approved for is $1,000.
- No welcome offer.
- If you upgrade your card to a store card after 12 months, you will pay a high variable APR of 25.99% on recurring balances.
A closer look at the current card offering
- Reward rate: Earn 2% back on your Amazon purchases with an eligible Amazon Prime membership
- Welcome offer: N / A
- Annual subscription: $0
- Introductory purchase APR: N / A
- Intro Balance Transfer APR: N / A
- Regular APR: 10.00% fixed APR
Current welcome offer
The Amazon Prime Secured Card does not offer any welcome bonuses, although this is quite common among secured credit cards.
Cardholders who choose to accumulate credit with the Amazon Prime Secured Card also receive a 2% discount on their purchases provided they are an Amazon Prime member. This rewards rate is very good for Amazon spend, especially since it applies to grocery delivery purchases made through Amazon Fresh.
However, it is important to note that the Amazon Prime Secured Card can only be used for qualifying Amazon purchases. For example, you can’t use it at grocery stores, gas stations, or restaurants like you can with other secure credit cards.
how do you earn
Sign up to earn 2% rewards on qualifying Amazon.com purchases, which can include Amazon purchases and grocery delivery through Amazon Fresh. This rate is very good for qualifying purchases, especially since the Amazon Prime Secured Card does not charge any annual fee to keep this card in your wallet.
How to redeem
Once you’re ready to cash out the rewards you’ve earned, you can redeem them directly for purchases on Amazon.com. You can also redeem your rewards points as a one-time statement credit, or you can set up your account to automatically redeem your available rewards balance for a statement credit at the end of each billing cycle.
The card issuer, Synchrony Bank, notes that your account must be in good standing to be eligible to redeem rewards.
How much are the rewards worth?
Rewards earned with this card are offered as cash back, with $1 reward equaling one reward point. To put it into perspective, earning 2% with this card translates to $2 in rewards for every $100 spent.
Other Cardholder Benefits
The Amazon Prime Secured Card does not offer many benefits, but this is common among secured credit cards. Since this card is primarily for building credit with the secondary benefit of earning rewards, most of its benefits revolve around these two features.
Credit creation tools and features
This secured card is easy to get approved, which is a major plus if you need to build credit but can’t be approved for an unsecured card. Other credit-building features are available through a TransUnion CreditView™ dashboard, which allows you to track your credit score and progress in real time.
Upgrade your card after 12 months
Also note that you may be eligible to upgrade to an Amazon Store Card after using the Amazon Prime Secured Card responsibly for 12 months. Essentially, this means keeping debt at a reasonable level and always paying your bill on time.
If you upgrade to an Amazon Store Card, you’ll get your entire security deposit back.
Rates and Fees
The Amazon Prime Secured Card comes with no annual fee, which is a major plus. Meanwhile, the fixed 10% APR is considerably lower than the average credit card APR, which is currently just over 16%.
Also, be aware that the Amazon Prime Secured Card charges a late fee of just $5, which is considerably lower than the fees charged by other cards.
How the Amazon Prime Secured Card Compares to Other Secured Credit Cards
Before signing up for the Amazon Prime Secured Card for the purpose of building credit, you should check out other secured credit cards and what they have to offer. The following options also allow you to build credit and earn rewards with no annual fee.
Amazon Prime Secured Card vs Discover it® Secured Credit Card
Because the Discover it® Secured Credit Card is a Discover credit card, you can use it almost anywhere you shop in person or online. You’ll also earn cash back on everything you buy, and Discover will even double any rewards you earn after the first year.
There are also no annual fees. However, it should be noted that you need a security deposit of at least $200 with this card. This is double the minimum deposit for the Amazon Prime Secured Card.
Amazon Prime Secured Card vs. Bank of America® Unlimited Cash Rewards Secured Credit Card
First, you should know that the Bank of America® Unlimited Cash Rewards Secured Credit Card is a Visa credit card that can be used almost anywhere in the world. You also earn 1.5% cash back on all purchases with no annual fee required, and your credit limit can reach $4,900 with an equal security deposit.
However, a minimum security deposit of $300 is required to get this card, which can make it a tricky option if you need to build credit but cash is tight right now.
Best cards to pair with this card
If you decide to link the Amazon Prime Secured Card to another card, you may be able to earn rewards on non-Amazon purchases and add even more depth to your credit history. We can suggest other secured cards on the market today that earn rewards, including the Discover it® Secured Credit Card and the Bank of America® Unlimited Cash Rewards Secured Credit Card that we describe above.
Remember that you will need to make separate security deposits for each secured card you apply for, which could be a costly hurdle given that the two cards mentioned have higher minimum security deposit requirements.
Bankrate’s opinion: is the Amazon Prime secure card worth it?
If you want to build credit with a credit card and you’re already an Amazon Prime member, the Amazon Prime Secured Card might be the right card for you. The fact that you can only use it for purchases on Amazon can be a plus or a minus depending on your needs. For example, you may feel limited by this fact and end up wishing you had a secure card that is a Visa, Mastercard or Discover card instead. On the other hand, you might feel like an Amazon-only card allows you to build credit slowly and deliberately without the added temptation to spend.
Take our advice: Compare the Amazon Prime Secured Card to other secured credit cards you might be interested in, then decide which features appeal to you the most. If you’re a big Amazon shopper anyway, the Amazon Prime Secured Card might be just what the doctor ordered.