Comprehensive Chime‌ ‌Credit‌ ‌Builder‌ ‌Card‌ ‌Review‌

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. 

Key Features

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.

Fees

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:

• Equifax
• TransUnion
• Experian

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.

Controlled Limits

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.

Security Features

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.

Customer Experience

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.

Final Verdict

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.