What Is the Chime Credit Builder Card?
If you’ve come across any Chime Credit Builder card review, you’ll know it’s a Visa secured credit card.
It functions similarly to a standard credit card in a sense it can be used to cover everyday expenses, for example, to purchase gas, food, and household items. To our delight, unlike with a standard credit card, there aren’t any yearly interest charges, fees, or credit checks with the Credit Builder.
According to Chime, using this card can boost your credit score by 30 points on average in just four months, and we all know how important having a decent credit score is for your finances. Statistics tell us that the average FICO score in 2020 was 710. If we take into consideration that the average credit score of a home buyer in the US is 731, that means there are still many consumers who could significantly benefit from building or enhancing their credit scores.
How to Get the Chime Credit Builder Card
The application process has several stages. They’re all fairly straightforward.
- Create a Chime spending account.
To get your Chime Credit Builder Card, you must first open a Chime checking account, known as a spending account. To do that, just visit chime.com, fill in your personal information, and finish the enrollment process.
- Make a qualifying direct deposit.
To qualify, you must have made $200 or more in qualifying direct deposits to your Chime spending account in the previous year.
If you read the fine print, you’ll see that this direct deposit must come from an employer via ACH and that personal transactions via Venmo, PayPal, or any peer-to-peer digital wallet aren’t eligible.
- Apply for the card.
You’ll be ready to apply for this credit card once you have an open Chime spending account and a qualifying direct deposit. The application doesn’t require a credit check.
- Set a spending limit by depositing money.
After you’ve been approved, you’ll be able to set your card’s spending limit by depositing funds into a safe account. This is basically how all secured credit cards work: You’re borrowing your own money to demonstrate you can repay it at the end of the billing cycle.
How to Use Chime Credit Builder Card
Once you receive your Chime Credit Builder card, you can use it to make purchases up to the amount in your spending account. It functions similarly to a debit card as you can only spend the funds you already have. The big difference, however, is that the Chime Credit Builder helps you boost your credit score.
You can transfer money to your Credit Builder card from your spending account whenever you wish to use it, and you may make purchases practically everywhere Visa is accepted.
Unlike a standard secured card, which keeps your security deposit hostage until the account is closed, your Chime deposit can be used to pay your balance at the end of the month.
Now let’s move on to finer details. For example, what distinguishes the Chime Credit Builder card from the competition.
We’ll go through the card’s essential features in this part to help you see the big picture and make an informed decision.
- No annual interest
- No annual fees
- If you use the card for 40 purchases of at least $1 in 60 days, you’ll get a free premium Chime Credit Builder metal card with a metallic emerald-green finish and raised varnish branding.
- No minimum deposit amount is necessary, and your credit limit is the same as the deposit amount.
- Reports to the three credit bureaus (Equifax, TransUnion, Experian).
- You can settle your monthly balance with your Credit Builder deposit.
- No credit check will be performed when you apply for the card, so you don’t have to worry about damaging your score.
- With the Chime mobile app, you can keep track of your daily transactions, account balances, and savings from anywhere.
- Pay Friends is a feature on the mobile banking app that enables you to send money to friends immediately.
- If you pay your bill using your initial deposit, your Chime Credit Builder card limit of $200 will be reduced.
- During the first 365 days from your Chime credit card application date, your Chime spending account must receive at least one direct deposit of $200.
- Contrary to other secured credit cards, which keep your security deposit and ask you to pay your monthly balance using other resources, you can choose to have the Chime account make automatic monthly payments.
We can assure you this card is one of the best on the market because it comes with no fees attached. There aren’t any annual fees, interest charges, or even late fees like with other secured cards.
Activity Reported to Credit Bureaus
Chime sends information about your use of this card to the following credit bureaus:
You’ll be happy to learn that Chime will notify the credit agencies about your:
- Credit relationship duration. You appear more creditworthy if you continuously and effectively do business with Chime (or other lenders). As a result, your credit score is likely to improve.
- On-time payments. A long history of timely payments is a significant element that accounts for 35% of your FICO score.
What Chime doesn’t report will also help you. Namely, it won’t send any information regarding your credit utilization ratio. It’s a measurement of how much of the credit you have at your disposal you’re currently using. It’s best if your utilization ratio is as low as possible. Chime, however, lets you spend as much as you like up to the amount you’ve deposited without any negative impact on your score.
As previously mentioned in this Chime Credit Builder card review, the deposit amount determines your credit limit, which varies from month to month.
Because this credit card has no fixed credit limit, you’ll never be in danger of having a high credit utilization ratio due to a large outstanding balance compared to your credit limit.
Credit utilization is the second most crucial element affecting your credit score, accounting for up to 30% of it. So, this eliminates one more aspect that might potentially harm your credit score.
Chime implements industry-standard security protocols like two-factor authentication and fingerprint recognition. Additionally, if you misplace your card or it gets stolen, you can disable it via the app to prevent others from using it.
Credit Score Improvement
Our Chime Credit Builder card review has found that Chime members have improved their credit scores by an average of 30 points, and 95% of members with no credit history have been able to obtain a credit score for the first time.
“Move My Way” Feature
This function allows you to have any amount from your paycheck sent directly to your Chime Credit Builder account. Of course, you can always use the Chime mobile app to change this amount and to move money from one account to another.
Chime’s customer care team is available via email or phone Monday through Friday from 6 a.m. to 10 p.m. CT and Saturday and Sunday from 7 a.m. to 9 p.m. CT.
Statistics inform us that customers satisfied with customer service are three times more likely to recommend a brand. So, it can be concluded that it is Chime Credit Builder card reviews that keep bringing in new clients.
If you’ve had trouble getting a credit card because you don’t have a credit history or have bad credit, the Chime Credit Builder Card is a viable solution. It comes with numerous benefits, like a credit limit that’s entirely within your control, zero interest, and no fees.
On the downside, it doesn’t offer rewards or a welcome bonus, and you won’t be able to use it to borrow money, just spend the money you have while building your credit score.
Pros & Cons
- No annual fees
- No annual interest charges
- It doesn’t require a credit check
- No minimum security deposit requirement
- Safe way to build credit
- Reports to the three credit bureaus
- Credit limit can’t be larger than your deposit
- It doesn’t offer a welcome bonus or rewards
Can you use the Chime Credit Builder card at an ATM?
You can withdraw cash from any ATM with your Credit Builder card, and you won’t be charged interest or fees when using an in-network ATM. You get a cash advance when using your credit card to withdraw cash from an ATM.
Can you overdraft your Chime Credit Builder card?
No, a Chime Credit Builder card overdraft isn’t possible because Chime doesn’t currently offer this service.
How long does it take for the Chime Credit Builder to report?
Chime sends credit bureau reports at the start of each month, but credit bureaus can take a few weeks to review reports. Therefore, you may not notice changes until later in the month.
Does Chime hurt your credit?
No, it doesn’t. Using a large percentage of your available credit limit on a traditional credit card might harm your credit score. However, since Chime does not record credit utilization ratio, you won’t have to worry about that.
Why did the Chime Credit Builder lower my credit score?
You may see a brief drop in your credit score after opening your Credit Builder account since your average credit history length decreases every time you open a new account that will be reported to credit bureaus.
Is the Chime Credit Builder going to do a hard inquiry?
There isn’t any credit check that needs to be authorized. Chime’s stated purpose is to provide everyone with the chance to develop a solid credit history in an unpredictable market. As a result, there is also no minimum credit score requirement.
What is the Chime Credit Builder card?
The Chime Credit Builder secured Visa credit card is a low-cost way to establish a credit history. You won’t be charged any fees, and you won’t be charged annual interest with this card.
However, you must have a Chime spending account so that you can apply for the card, and if you use your security deposit to pay your monthly statement, you’ll have to pay the money back to get the same credit limit.
How does the Chime Credit Builder card work?
This is a secured credit card. The sum of money you deposit into the Credit Builder protected account determines how much you are able to spend using the card. Other secured credit cards often refer to this amount as the security deposit.
Like other secured credit cards, the Credit Builder reports to the major credit bureaus to help you build your credit over time.
Is the Chime Credit Builder Card a credit card?
Yes, it is. Its official name is the Chime Credit Builder Visa® Credit Card, and it’s a secured credit card without any annual fees and interest rates that can help you build or improve your credit score.
Can you withdraw cash from the Chime Credit Builder card?
This card can be used to withdraw cash from any ATM. Before you do so, you must first set a PIN from within the Chime app.
However, while writing this Chime Credit Builder card review, we found out that you can only withdraw up to $500 per 24 hours or your available spend amount.