What the Amazon Secured Credit Card is and who it's for
The Amazon Secured Credit Card is a secured card issued by Amazon and Capital One that requires you to put down a cash deposit, which becomes your credit limit. You use it like any other credit card — swipe it, pay the bill monthly — but the deposit sits in a separate account as collateral. The card is designed for people building or rebuilding credit from scratch, or those returning to credit after years away.
The main reason to choose this card over other secured options is the rewards structure: you earn 2% cash back on Amazon purchases and gas station purchases, and 1% on everything else. Most secured cards earn no rewards at all, or only 1% flat. If you shop on Amazon regularly or fill up at the pump, those categories matter to your actual cash return.
You do not need an existing credit history or a high income to open this card. Capital One will look at your bank account and income, but the deposit is what protects them, not your credit score. That said, the deposit amount becomes your credit limit, so if you deposit $500, your limit is $500.
Key Takeaways
- Your cash deposit becomes your credit limit and collateral, so a $500 deposit gives you a $500 limit with $500 held by the bank.
- You earn 2% cash back on Amazon and gas purchases, 1% on everything else — better rewards than most other secured cards offer.
- Capital One reports your payment history to all three credit bureaus, which is how the card builds your credit score over time.
- After 6 to 12 months of on-time payments, you may be able to move to an unsecured card and recover your deposit, though timing varies by account.
- The annual fee is $39, which is higher than some competitors but typical for secured cards with rewards.
How much the deposit costs and what happens to it
You choose your deposit amount when you open the card, and it can range from $500 to $2,500. The deposit is not a fee — it is your own money held in a separate savings account. You do not lose it; Capital One straightforward holds it as security in case you stop paying your bill.
While your deposit is held, you cannot withdraw it or use it for anything else. You also do not earn interest on it, even though it sits in a bank account. This is the trade-off for getting a card without a credit history: your money is locked up, but you get to build credit while you use it.
If you make all your payments on time and eventually move to an unsecured card (Capital One's Venture or Quicksilver, for example), your deposit is returned to you in full. Some cardholders see this happen after 6 months; others wait 12 to 18 months. Capital One does not publish a specific timeline — it depends on your payment history and account activity.
Annual fee, interest rates, and other costs
The card charges a $39 annual fee, which appears on your first bill. This is higher than some secured cards (a few charge $0), but lower than premium unsecured cards. You pay it whether you use the card or not.
The interest rate (APR) for purchases starts at 19.99% to 24.99%, depending on what Capital One approves you for. This is higher than most unsecured cards, but typical for secured cards. If you carry a balance month to month, you will pay interest on that balance. The best strategy is to pay your full statement balance each month so interest never applies.
There is no foreign transaction fee, which is useful if you travel or buy from international websites. Late fees run $25 to $35 depending on how late you are, and returned payment fees are $39 if a check or ACH transfer bounces.
How the rewards actually work
You earn cash back automatically on every purchase — there is no category to set up or bonus to unlock. The 2% rate applies to Amazon.com purchases and gas station purchases (including convenience stores that sell gas). The 1% rate applies to everything else: groceries, restaurants, utilities, subscriptions, and so on.
Cash back posts to your account monthly and appears as a statement credit. You can use it to pay down your balance, or you can request it as a deposit to your bank account. There is no minimum to redeem, and there is no cap on how much you can earn.
The rewards are modest compared to premium unsecured cards, but they are real money back. If you spend $1,000 per month on Amazon and $200 on gas, you earn $24 in cash back that month — $20 from Amazon and $4 from gas. Over a year, that is $288, which nearly covers the $39 annual fee.
How this card reports to credit bureaus and builds your score
Capital One reports your account activity to Equifax, Experian, and TransUnion — all three major credit bureaus. This means every on-time payment you make shows up on your credit report and helps your score climb. Late payments also report, so this card can hurt your score if you miss a due date.
The biggest factor in your score is payment history — whether you pay on time, every time. The second is credit utilization — how much of your limit you use each month. If your limit is $500 and you charge $100 per month, your utilization is 20%, which is good. If you charge $400, your utilization is 80%, which can drag your score down even if you pay on time.
The best approach is to use the card for small, regular purchases (groceries, gas, a subscription) and pay the full balance each month. This shows lenders you can manage credit responsibly without carrying debt, and it keeps your utilization low.
When you might move to an unsecured card
After 6 to 18 months of on-time payments, Capital One may automatically upgrade your account to an unsecured card. When this happens, your deposit is returned to you, and your credit limit may increase. You keep the same card number and account, so your credit history stays intact.
You do not have to wait for Capital One to upgrade you. You can also request a product change to an unsecured Capital One card (like the Venture or Quicksilver) after a few months of good payment history. Capital One will review your account and decide whether to approve the switch.
The timing depends on your individual account. Some people see an upgrade offer after 6 months; others wait longer. Consistent on-time payments and low utilization make an upgrade more likely. If you miss a payment or let your utilization spike, the timeline stretches.
How this card compares to other secured options
The main advantage of the Amazon card is the rewards: 2% on Amazon and gas is better than most secured cards, which offer 1% flat or no rewards at all. If you do not shop on Amazon or buy gas regularly, the rewards advantage disappears.
The $39 annual fee is standard for secured cards with rewards, but higher than some no-reward secured cards. The interest rate (19.99% to 24.99%) is typical for the category. Capital One's reporting to all three bureaus is standard practice.
If you want a secured card with no annual fee, you will find options from other issuers, but they usually offer no rewards. If you want higher rewards, you will need to move to an unsecured card, which requires an existing credit history. The Amazon card sits in the middle: modest rewards, modest fee, and a clear path to unsecured credit if you pay on time.
Frequently Asked Questions
Can I use my deposit as my credit limit, or do I have to deposit extra money?
Your deposit is your credit limit. If you deposit $500, you get a $500 limit. You do not deposit extra money on top of that. The $500 stays in a separate account and is not available to you while the card is active.
What happens if I miss a payment?
A late payment reports to all three credit bureaus and damages your credit score. You will also pay a late fee ($25 to $35). If you miss a payment by 30 days or more, Capital One may close your account and keep your deposit to cover the debt. This is rare if you catch up quickly, but it is the risk you take.
Do I have to use Amazon to benefit from this card?
No. You earn 1% cash back on all non-Amazon, non-gas purchases, so you can use it for groceries, restaurants, utilities, and anything else. The 2% categories are a bonus if you shop there, not a requirement. The card works fine if you never buy from Amazon.
How long does it take to get the card after I open the account?
Capital One typically mails the physical card within 7 to 10 business days of approval. You can use a temporary card number for online purchases right away, but you will need the physical card to use it in stores.
Can I increase my credit limit without depositing more money?
No. Your limit is tied to your deposit. If you want a higher limit, you have to deposit more money into the collateral account. Alternatively, after you upgrade to an unsecured card, Capital One may increase your limit without requiring a deposit.