Build your credit history while you save with LOQBOX
- Save from £20 to £200 a month
- Build and improve your credit history
- Once you’ve finished unlock your savings
Finder rating: ★★★★★
In a nutshell:
Minimum credit limit
Up to 56 days
Interest-free each billing period
|Balance transfer fee||5%|
|Purchases||0% for 3 months reverting to 29.95%|
|Purchases interest-free period||Up to 56 days|
|Min credit limit||£500|
|Max credit limit||Not specified|
|Incentive||Be upgraded to the Amazon Platinum Mastercard if you make at least one transaction a month, make repayments on time and stay within credit limit in the first 12 months..|
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
For Amazon devotees (and who doesn’t that include?) with lower credit scores, this “credit builder” is a straightforward option with a couple of interesting hooks.
What sets it apart from similar cards is its “Instant credit” feature, which means that you don’t have to wait for the physical card to land on your doormat – you can get spending straightaway (albeit only on Amazon). It’s a facility that should probably be seen as a bonus though – and not as the main reason for getting the card.
Credit builder credit cards are typically easier to get approved for, but come with higher interest rates. That means that they’re better used as a “stepping stone” to credit products with better rates. In other words, you should use a credit builder card responsibly, and then, as soon as you’re eligible, apply for a better card.
While some card issuers hope that you’ll forget to switch to a cheaper product, Amazon will automatically upgrade you to its Platinum Mastercard after a year, provided you use the Classic card responsibly (but regularly). That means using your card at least once a month, making repayments on time, and staying within your credit limit.
You should also aim to clear your balance in full each month if possible. Do that, and you’ll be able to take advantage of up to 56 interest-free days each billing cycle (if you don’t clear your balance each month, interest is charged from the day you make a purchase).
Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
You can make manual repayments through NewDay Ltd's app, by logging in to your online banking or over the phone . Alternatively you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and damaging your credit score – making it harder and more expensive to borrow money in the future – and getting hit with a penalty fee (£12) as a result.
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
|Minimum amount||Fixed amount||Fixed percentage||Full amount|
If you’ve compared cards and want to apply, completing the secure online application form takes about 15 minutes. Before you apply, check that you meet the eligibility requirements and have the information and documents you’ll need to make the process as straightforward as possible.
If NewDay Ltd is able to offer you this deal, the offer will specify a personalised credit limit based on NewDay Ltd's assessment of your situation. The minimum limit offered on this card is £500 and NewDay Ltd does not specify a maximum. Once you've had the card for a while and shown NewDay Ltd that you're reliable, you may wish to apply for a credit limit increase.
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (withdrawing cash at an ATM, getting cashback at the till, spending at a casino, buying currency, etc.) often incur steep fees and/or higher rates of interest.
The cash advance fee on the Amazon Classic Mastercard is 3% (min. £3). For example, if you withdraw £50, you'll incur a fee of £3.00. Withdraw £250, and you'll incur a fee of £7.50.
The interest rate on this part of your balance will be 39.94%, which is 34% more than the standard purchases rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
Non-sterling transactions are subject to a 2.75% charge. For example, if you spend 200 euros (£172.28), it'll cost you around £4.74.
Each month you must pay at least 1% of your balance at that point or £5.00 – whichever of the two figures is greater. So if you had, say, £450.00 outstanding, you'd pay £5.00, and if you had £2,000.00 outstanding, you'd pay £20.00.
Paying only the minimum required amount each month is generally not advisable as it tends to be a very expensive way to borrow money which can lead to persistent debt.
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