Chime Credit Builder Card

If you researched secured cards then Chime Credit Builder Visa® Card is quite the oddity. It doesn’t require a security deposit, so how does it approve people with poor credit scores? You’ll find out soon as long as you keep reading. 

This is a credit building card, which means an option for people who have poor credit scores or no credit history at all to get started. It is also recommended if you’re a student who didn’t get the opportunity to construct your history through financial services, such as loans, yet. 

That is the reason you might notice higher interest rates for Chime Credit Card. It also has a low starting limit that you can work your way around with a bit of time and proper payments, as you’ll soon understand. 

How does Chime Credit Card work? 

For starters, Chime Credit Builder is a kind of secured credit card that focuses on credit history building. So its main public is getting people to make timely payments on its platform while reporting to the USA’s main reporting bureaus. 

Chime is a new fintech that has been working with the American public for a few years and presents itself as an alternative to traditional banks. As you might know, other companies and banks also offer secured credit cards for the same public, but not quite in the way that Chime does. 

Just be aware that when we talk about Chime and its services we aren’t mentioning a bank. It’s a financial technology company that offers a few services, such as credit cards and payment platforms, to individuals and companies. 

Once you sign up to it you’ll also get a Chime Payment Account, that you’ll use alongside your credit card. This doesn’t make your conventional bank account unnecessary and we strongly recommend you keep both active. 

Is this a secured credit card?

Yes and no, Chime Credit Builder is a secured card in name and its objective is the same. But there is a huge difference from most of the other options available in the market since it doesn’t require a security deposit. 

Traditionally, you’d have to make a deposit that would then be converted into your credit limit. Some people actually look for these types of credit cards, since it allows for a higher limit from the start. A few options even have adjustable limits that help users to keep their finances under better control. 

It’s possible to work that way with Chime Credit Builder, since you’ll have to make deposits to your Chime account. Your deposit equals your limit, so if you’d like to get a higher amount it’s ok. You’ll just have to understand the rules and limitations for this card. 

Chime Credit Card is a charge card

You can call Chime Credit Builder a charge card. Once you get an approval you’ll have to set up a Chime regular account and make a deposit. This is your credit limit for the month and, as you make purchases, the fintech will set aside money from the account. It won’t necessarily be used up, but it decreases your limit until you reach $0 balance. 

Once payment day comes you have a couple of options: either make a payment in full from any bank account or use your funds to pay up. In the first option the balance on your account is restored and once again becomes your limit. In the second case you’ll have to make a new deposit or keep a lower balance in the future, the choice is up to you. 

There is a catch here: if you fail to pay your bill by 5.p.m. of the next day, your deposit will be used as payment. And without any funds on your account it ends up blocked. Be aware that this makes it impossible to hold a balance on this credit card. 

That’s one of the reasons this is such a great credit card. Your adequate payments will be on report to the bureaus, while being late will incur no punishment at all to your credit score or history. 

Main benefits for Chime Credit Builder

Chime Credit Builder’s main perk is the fact that you don’t need a security deposit or a credit history to begin. But there are a few more perks you might want to know about before settling for this specific credit card, including: 

• $0 annual fee;
• No credit check on application;
• Safe way to build credit (don’t be afraid of being late or missing payments); 
• Autopay option for any bank;
• Reports to all three bureaus;
• No APR (since you can’t hold a balance);
• No minimum deposit, start with as much as you want on your Chime account; 
• $0 interest on all types of purchases; 
• No international fees. 

This is a dream credit card for anyone that doesn’t want to pay any fees. You’ll only have to pay $2.50 for out-of-network ATM withdrawals. Since it’s possible to avoid, in most cases there won’t be any other charges to worry about. 

Cons for Chime Credit Card

The main drawback for Chime Credit Builder is not being able to hold a balance. Proper financial planning is necessary to make sure you’re able to pay in full monthly or risk getting a lower limit on the next period. 

As is the case with many other secured credit card, you won’t have any kind of benefits either. There is no rewards or cashback programs to look forward to since its main objective is simply building a credit history. 

It’s also a necessity to create a Chime account. For some people this is a downside since it requires further attention to your financial life, spending and deposits. 

Will Chime affect your credit score?

Chime Credit Builder will only affect your score positively because it reports to all three agencies, such as: 

• Equifax;
• Experian; 
• TransUnion. 

It should report your data monthly for on time payments (including autopay from your deposit account) and the duration of your relationship. Anyone that doesn’t have a credit history will be able to see a significant increase on their score over the first few months with the credit card. There’s also no need to worry about your utilization ratio. Your limit is adjustable and it won’t get a report to the bureaus, making this a great way to increase scores fast with no danger if you miss a payment by accident.

APRs, fees and main benefits

Chime Credit Card calls a lot of attention because it reports your info to all three reporting bureaus. At the same time, it won’t report missed payments since your deposit is always there to make sure you won’t be late. There’s also no utilization ratio reports because of your adjustable credit limit. Some other perks are: 

• $0 annual fee;
• No credit check on application;
• Safe way to build credit (don’t be afraid of being late or missing payments); 
• Autopay option for any bank;
• Reports to all three bureaus;
• No APR (since you can’t hold a balance);
• No minimum deposit, start with as much as you want on your Chime account; 
• $0 interest on all types of purchases; 
• No international fees. 

You can apply easily for this credit card through their own website. 

How to Request

To apply for the Chime Credit Builder Visa® Card, follow these steps:

1. Open a Chime Account:
   • Visit the Chime Website: Go to Chime’s official website.
   • Sign Up: Click on “Get Started” or “Sign Up” and provide your personal information to create a Chime account. This includes your name, email address, and Social Security number.
   • Verify Your Identity: You may need to verify your identity by providing additional documentation or linking an existing bank account.
2. Apply for the Chime Credit Builder Card:
   • Log In: After setting up your Chime account, log in to your Chime account via the website or the mobile app.
   • Navigate to Credit Builder: Find the section for the Chime Credit Builder Visa® Card. This might be listed under “Credit Cards” or “Credit Builder” in the app or website menu.
   • Complete the Application: Follow the prompts to apply for the card. You’ll need to provide details such as your financial information and the amount you plan to deposit into your Chime account.
3. Make Your Deposit:
   • Deposit Funds: Transfer the amount you wish to use as your credit limit into your Chime account. The amount you deposit will serve as your credit limit for the card.
4. Receive and Activate Your Card:
   • Wait for Approval: Chime will review your application and, if approved, send you the card.
   • Activate Your Card: Follow the instructions provided with your card to activate it. This typically involves logging into your Chime account and confirming the card details.
5. Start Using the Card:
   • Make Purchases: Use your Chime Credit Builder Visa® Card for purchases. Ensure you have enough funds in your Chime account to cover the amount of your purchases.
   • Make Payments: Either pay off your balance from a different bank account or use the funds from your Chime account to cover your purchases.

Additional Tips

• Maintain Your Chime Account: Keep your Chime account active and funded to ensure smooth operation of your credit card.
• Monitor Your Credit: Regularly check your credit reports to track your progress and see how the card is affecting your credit score.

If you encounter any issues during the application process or have specific questions, Chime’s customer support can assist you through their help center or support channels.

Conclusion

history who are looking to build or improve their credit. Its unique approach of not requiring a security deposit and offering flexible payment options makes it a valuable option for those who prefer to avoid traditional credit card fees. However, the necessity to maintain a Chime account and the lack of rewards are considerations to keep in mind.

If you’re interested in building your credit without the upfront cost of a security deposit, the Chime Credit Builder Visa® Card is worth considering. Just be sure to manage your finances carefully and make timely payments to maximize the benefits.