Chime Credit Builder Card
A Noteworthy Alternative

The Chime Credit Builder card is a secured Visa® Credit Card with a twist, that can assist you in establishing a credit history or improving bad credit.

Chime Credit Builder Card

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One way that it differs from other secured cards is that it has no minimum security deposit requirement and allows you to change your credit limit at will.

Additionally, there is no credit check, and perhaps more surprisingly, it does not charge interest.

It is similar to a reloadable prepaid debit card in some ways, except that it reports your activity to the major credit bureaus. Read on to find out more.

How Does the Chime Credit Builder Card Work?

Signing Up

First, you need to open an account with Chime in order to take part in the credit building procedure prescribed by the program.

A minimum deposit must be made by aspiring cardholders. You must receive one qualifying direct deposit to your Chime Checking Account totaling $200 or more before you can apply for the Chime Credit Builder card.

A single qualifying direct deposit from sources such as employer payroll, gig economy payer or benefits ACH deposit is required. To verify the validity of your deposit, you can contact Chime customer service (Phone: 1-844-244-6363; Chime mobile app; email: support@chime.com).

With your qualifying direct deposit, you can then apply for a secured account and receive your Chime Credit Builder card after confirmation of the deposit.

Using The Card

The money is considered your security deposit and is held as collateral in a secured account. You can spend up to the amount of the deposit and at the end of each month, the money is used to pay off your charges.

Your money is assigned to your credit Card by moving it from your Chime Spending Account to your Credit Builder secured account. This can be done using the Chime app. Essentially, what you are doing each month is setting aside money in advance to pay your credit card bill.

As a side note, this differs from other cards’ one-time security deposit in that they usually set one as your credit limit put in place by the bank, which is then taken into account in your credit utilization ratio.

Lastly, for access to cash, you can use your Chime ATM card to make free withdrawals and you can move money back into your Chime Spending Account via the Chime app.

Chime Credit Builder Card Pros and Cons

Pros:

  • For approval, Chime doesn't perform credit checks.

  • Chime does not charge any annual, foreign, or maintenance fees, like most other credit builder cards.

  • Chime also doesn't accrue any interest fees, which is another distinction from most credit cards. This could be an advantage for people looking for a break from high interest rates.

  • There is no minimum credit score requirement.

  • There is no set credit limit. The money available to use is up to you and how much you deposit into the account. Money can also be added to the account at any time.

  • 24/7 customer support with a live human being

  • Over 60,000 fee-free ATM locations including retail stores like 7-Eleven, Target, Circle K, CVS, Walgreens and any Visa Plus Alliance ATM and Allpoint (there is a fee if you use out-of-network ATMs)

  • Chime reports to all three major credit bureaus, but doesn't report your credit utilization ratio. This is beneficial for those who tend to exceed 30% usage of their available credit – which negatively impacts credit scores.

  • Fee-free overdraft protection. Chime’s SpotMe feature covers you initially for $20 overdraft and later up to $200 protection.

Cons:

  • Rewards and welcome bonuses offered by other credit cards won't be available to cardholders.

  • Chime does not provide advantages like cash back, points, or promotional cash deposits.

  • Here again, Chime reports to all three credit bureaus; So, make sure your payments are on time. Missed payments will negatively impact your credit score and credit building progress.

  • There is no road to unsecured credit card upgrade. You’ll have to do that by improving your credit profile and credit score.

10 Key Features of the Chime Credit Builder Card

1.  Credit Building

The primary purpose of the Chime Credit Builder Card is to assist users in establishing or enhancing their credit profiles. It is particularly useful for those who have limited or no credit history.

2.  Secured Card

The Chime Credit Builder Card operates as a secured credit card. This means that users are required to make an upfront security deposit, and the amount deposited becomes their credit limit. The minimum deposit is $200, and the maximum limit is currently $10,000.

3.  No Credit Check

One of the advantages of the Chime Credit Builder Card is that it does not require a credit check during the application process. This makes it accessible to individuals with poor or no credit history.

4.  Credit Reporting

Chime reports the cardholder's payment activity to major credit bureaus, such as TransUnion, Experian, and Equifax. Timely payments can help establish a positive credit history, while late or missed payments may have a negative impact.

5.  Automatic Repayment

Chime's Credit Builder Card includes an automatic repayment feature. Each month, the cardholder's outstanding balance is paid from their linked Chime Spending Account. This ensures that payments are made on time and helps users circumvent the whole system of late fees or penalties.

6.  No Annual Fee

The Chime Credit Builder Card does not charge an annual fee, making it a cost-effective option for building credit.

7.  No Interest

The Chime Credit Builder Card is set up to not accrue interest because it does not operate with the same principles as the usual credit cards.

8.  No Overdraft Fees

Chime will spot you up to $200 on debit card purchases and cash withdrawals with no overdraft fees and will apply your next deposit to your negative balance.

9.  Credit Score Increase

An Experian credit bureau study found a credit score increase of up to 30 points on average within an 8-month period. (You can also add another 8 to 13 points to your FICO score by joining Experian Boost).

10.  Federal Financial Regulations

Chime is safe and FDIC insured up to $250,000, making it a secure financial institution like any other established bank in the U.S.

Why Are People Switching to the Chime Credit Builder Card?

No-monthly-fees is one of the attractive features people like about Chime. Overdraft protection (up to $200) is also an enticing feature to many customers. Additionally, with employer direct deposit in place, Chime can make funds available to users up to two days early.

Also, money kept in Chime as savings earns customers about 2% interest, which nowadays is considered a high-yield deposit account - in comparison, other credit cards charge you high interest.

Chime also enables customers to send payments from their account while doing its primary function of helping to build or rebuild credit profiles.

Earn Money With Chime

You can earn money by becoming a Chime customer and inviting friends to try the Chime Credit Builder card.

As you can see, it offers many other features than just credit building.

To invite friends:

  • Log into your account or the Chime mobile app.
  • Click on Settings (top left corner), and click on Invite Friends.
  • To send an invite, pick names from your contacts; feel free to customize a message; and click on Send.

Another way is to use the "Invite Friends" screen, go to the top-right corner and click on Share.

Using social media, you can copy-paste your invite link and share it on Instagram, TikTok, YouTube, Facebook, etc.

Chime offers a referral bonus with your referral link when your contacts receive their single qualifying direct deposit of $200 or more. Your contact has 45 days to enroll and complete a single direct deposit of $200 or more from the time they open their new account. Upon completion, you and your contact will receive $100 each.

As mentioned above, a qualifying direct deposit has to come from a payroll provider, gig instant payout, or government benefits.

Chime Affiliate Program

Running a blog, a website, a newsletter, social media accounts? Make it a lucrative side gig with Chime by becoming an affiliate.

The Chime affiliate program offers up to 20% monthly commissions for referring new clients. It’s a two-tier commission system.

Refer new clients to Chime and receive 10% of the monthly recurring revenue from that sale for 18 months. Make sure to let your client know that if they in turn refer Chime to a new customer, both of you will each receive 10% of that new sale for 18 months.

Passive income anyone?

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