OtherGround Forums Amazon credit card for idiot's, 28% apr!

14 days ago
1/1/01
Posts: 59752

This new Amazon card could open the door to a huge segment of U.S. buyers. According to a 2018 FICO survey, more than 11% of the population has a credit score below 550. About 4% of the population has a “bad credit score,” which according to FICO Score is between 300 and 499. Meanwhile according to a 2017 survey by the FDIC, 25% of U.S. households are either unbanked or underbanked.

The program prompts users with financial literacy tools and tips to learn about building credit. For example, it might include a tutorial on why someone should pay a minimum, Quindlen said. Borrowers can eventually “graduate” to an unsecured Amazon credit card once they’ve demonstrated they can pay back the loans.

Mitigating risk

Reaching further down the credit curve comes with risks. Quindlen said they’re mitigating that by issuing what are known as “secured” credit cards. People can deposit $500, for example, and have a $500 credit limit. The interest rate, or APR, for the starter card is 28.24%.

“It’s putting credit in the hands of people in a responsible way,” he said. Stamford, Connecticut-based Synchrony Bank, which is a subsidiary of Synchrony Financial, also issues co-branded credit cards with Lowe’s, Sam’s Club, PayPal, Banana Republic and other companies.

The new card application sits directly next to the other Amazon cards. If a customer doesn’t get approved for an Amazon credit card, they’ll be prompted for this new offering and asked if they want to apply to “Amazon Credit Builder” instead. They can eventually “graduate” to another Amazon store card, once they’ve built credit history, according to Quindlen.

14 days ago
6/3/03
Posts: 100678

“The interest rate, or APR, for the starter card is 28.24%.”

HOLY SHIT!

14 days ago
5/24/17
Posts: 2462

That's low here, lots of Apr here in the UK goes into the thousands. Payday loans are usually charged at a 1000% Apr lol

 

14 days ago
1/1/01
Posts: 59753

Payday loans would make loan sharks blush.  I got to get into that business.

 

Pretty soon Bezos will have millions of serfs to do whatever he wants.

14 days ago
10/8/18
Posts: 169

Yikes lol. Anyone who signs up for that is a dipshit. 

14 days ago
12/17/06
Posts: 74419

Western Sky Financial has loan option for you, grey hair white man!

Edited: 14 days ago
11/9/10
Posts: 67378
Nitecrawler -

“The interest rate, or APR, for the starter card is 28.24%.”

HOLY SHIT!

That's actually not that crazy compared to almost any store credit card. At 28.24% APR it's 2.3% per month. If you carry a ballance on a card like that its on you.

14 days ago
12/2/05
Posts: 13885
Nitecrawler -

“The interest rate, or APR, for the starter card is 28.24%.”

HOLY SHIT!

And it’s even more rediculous when you consider it’s secured.  Raping people risk free!   And I bet there’s a hefty application fee and annual charge too!

14 days ago
7/7/10
Posts: 17932
VinegarStrokes -
Nitecrawler -

“The interest rate, or APR, for the starter card is 28.24%.”

HOLY SHIT!

That's actually not that crazy compared to almost any store credit card. At 28.24% APR it's 2.3% per month. If you carry a ballance on a card like that its on you.

Yea most those stores have crazy rates, they are great for discounts but they make it back and more on all the people that don’t pay it on time,

14 days ago
11/9/10
Posts: 67380
Stea1th -
VinegarStrokes -
Nitecrawler -

“The interest rate, or APR, for the starter card is 28.24%.”

HOLY SHIT!

That's actually not that crazy compared to almost any store credit card. At 28.24% APR it's 2.3% per month. If you carry a ballance on a card like that its on you.

Yea most those stores have crazy rates, they are great for discounts but they make it back and more on all the people that don’t pay it on time,

Almost any reward card carries a pretty high rate like that.

14 days ago
4/11/10
Posts: 18523

Amazon this morning announced the launch of Amazon Credit Builder, a new secured credit card offered in partnership with Synchrony Bank. As the name implies, the card is aimed at those who are looking to build their credit history — either to recover from bad credit or to establish new credit. Like other credit products Amazon has launched, the card’s big perk is cash back on Amazon .com purchases — in this case, 5% back on purchases if the cardholder is a Prime member.

The Credit Builder card also has no annual fee, offers special financing on purchases, and includes protection from unauthorized charges. As a secured card, Amazon Credit Builder requires that cardholders submit a refundable security deposit in order to get a line of credit from the bank. This funding isn’t available for purchases made with the card, but rather serves as a way to establish a credit limit.

The deposit can range from $100 to $1,000, says Amazon, and is submitted either by electronic transfer (ACH transfer on Amazon) or via mail.

To pay off purchases, the card is unique in that it allows customers to either choose to make 12 months of equal payments or 6/12/24-month 0% periods for select purchases.

 

Also a part of the product is the ability for cardholders to track their credit improvement over time as they use the card to make purchases on Amazon.com.

The cardholders receive access to their own personal TransUnion CreditView Dashboard, where they can view their VantageScore credit score for free, use a simulator to understand how different activities will impact that score, get fraud alerts and access credit education to help them further improve their credit score.

Other financial education provided by Synchrony is also available.

Amazon says that Credit Builder customers may become eligible for an upgrade to the Amazon Store Card after as little as seven months after opening the Credit Builder account, at which time their initial security deposit would be refunded.

Typically, secured credit cards are offered to people looking to improve their credit — but it’s unusual for a retailer to provide their own secured card. For Amazon, however, offering credit to the under-banked or unbanked is another way of expanding its business to a broader market.

Like many online retailers today, Amazon believes that shopping online shouldn’t be a privilege only for the middle class and up. After all, e-commerce sites may often have better deals than brick-and-mortar stores, and the convenience of shopping online can help customers save both gas money and time — the latter a particular issue for those working multiple jobs to make ends meet.

To cater to the under-banked and low-credit customers, Amazon already offers a low-cost version of Amazon Prime for those on government assistance programs in the U.S., including Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), Women, Infants, and Children Nutrition Program (WIC) and, as of last year, Medicaid.

More recently, it and other retailers like Walmart began participating in a USDA trial focused on allowing SNAP recipients to shop for groceries online.

While Amazon’s new card may make sense for those on a path to building better credit, it may be better for those who are looking to upgrade to the Amazon Store Card in the future, rather than simply repair their poor credit history.

The card, consumers should note, carries a high APR of 28.24% — higher than the average median APR for retail cards (25.64%).

“This is a solid option for people who are new to credit or rebuilding their credit after prior missteps, but there are some risks to be aware of,” notes Ted Rossman, industry analyst for CreditCards.com.

“It’s always important to pay your credit card bills in full, and that’s especially true with this card. The interest rate is very high — 28.24% — and if you fail to pay a 0% promotional offer in full by the time the term expires, you’ll be charged retroactive interest on the average daily balance going back all the way to the original purchase date,” he says.

However, Rossman concludes that when the card is used properly, the card could be useful in improving credit while receiving the cash-back perk.

Customers can visit the Amazon Credit Builder page to sign up for the card.

14 days ago
4/11/10
Posts: 18524

Better article. https://techcrunch.com/2019/06/10/amazons-new-rewards-card-targets-those-with-bad-credit/

14 days ago
4/13/12
Posts: 26489

28.75% on a secured credit card?  Thats usury. 

14 days ago
10/15/13
Posts: 29454
EFM -

28.75% on a secured credit card?  Thats usury. 

Thats usury what, ya chinaman?

14 days ago
1/1/01
Posts: 95943
EasyTapper - 
Nitecrawler -

“The interest rate, or APR, for the starter card is 28.24%.”

HOLY SHIT!

And it’s even more rediculous when you consider it’s secured.  Raping people risk free!   And I bet there’s a hefty application fee and annual charge too!


That just sounds illegal. 

14 days ago
12/17/06
Posts: 74427

89.68% lol

62k to pay off a 10k loan

14 days ago
8/6/11
Posts: 1247
Altofsky -

89.68% lol

62k to pay off a 10k loan

Holee fuk. That's a problem creator, not a problem solver.

14 days ago
4/20/08
Posts: 21928
Altofsky -

89.68% lol

62k to pay off a 10k loan

My credit was so bad like 13 years ago that they TURNED ME DOWN lol. 

14 days ago
1/1/01
Posts: 75994
Altofsky -

89.68% lol

62k to pay off a 10k loan

Jesus Christ!! This shouldn't be legal.

14 days ago
1/1/01
Posts: 75995

I have a bad feeling I'm gonna be in a spot where I have to pay a minimum one of these days. But I currently pay my card in full every single time. Fuuuuuuck paying interest.

14 days ago
5/9/06
Posts: 28929

Who's going to pay for it when all of the accounts go bad  and the account holders don't give a poop, becuase their credit already sucks?

14 days ago
6/30/14
Posts: 32025
Morgz - 

Who's going to pay for it when all of the accounts go bad  and the account holders don't give a poop, becuase their credit already sucks?


it is a secured card
13 days ago
11/25/09
Posts: 4452
Altofsky -

89.68% lol

62k to pay off a 10k loan

Lol hey! I used to be a loan agent for them. Made bank for like 2.5 years. Over 100k both years.

13 days ago
12/6/14
Posts: 535

My Amazon card that gives me 5% back is 28% apr... The key is so pay it down to just above 1% the card max value before interest hits. If you leave any kind of large amount on cards like that you're ignorant, anv idiot, or both.

13 days ago
1/19/12
Posts: 30811

High twenties is the standard rate for a co-branded retailer issued card. Sears, et al, had the same rates.