E-commerce giant Amazon has collaborated with Synchrony Financial to roll out a credit card for shoppers with low credit scores.
Dubbed Amazon Credit Builder, the new credit card is exclusively launched for Amazon Prime members. Prime is Amazon’s premium membership programme, which carries a $12.99 per month fee or a $119 annual membership charge.
5% cashback for Amazon Prime members
Customers can deposit between $100 and $1,000 into a Synchrony Bank account, which will serve their credit limit.
The no annual fee Amazon credit card can only be used only on the company’s website.
Similar to the Synchrony’s existing Amazon Store card, Amazon Credit Builder programme will offer Amazon Prime members 5% cash back on purchases.
The programme will also offer customers tips on building credit.
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Customers having an Amazon account for six months or more will be eligible to upgrade to the Amazon Store Card.
Synchrony executive vice president and CEO Tom Quindlen was quoted by CNBC as saying: “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.”
The application process of this credit card is same as other Amazon cards. However, the new credit card comes with a higher interest rate or annual percentage rate (APR) of 28.24%.