Amazon targets unbanked with 'Credit Builder' card

Amazon has teamed up with Synchrony Financial to launch a secured credit card targeted at Americans with no credit history or bad credit.

The Amazon Credit Builder has many of the same features as other Amazon cards, with no annual fee and five per cent cash back on purchases for Prime members.

However, cardholders have to make a refundable security deposit of between $100 and $1000. This deposit then determines the credit limit.

Approved cardholders then use the card on Amazon, make payments and build up their credit before, if they choose to, upgrading to an unsecured card.

Cardholders also have access to a credit education page and can track their score through access to a dashboard and simulator from TransUnion.

The card could bring millions of people into Amazon's orbit. According to a Fico survey, 11% of Americans has a credit score below 550.