If you’re looking to build a credit history, there are a vast amount of credit card options available, but this number dwindles when searching for a credit card with minimal risk, no annual fees, interest rates, or debt involved, making the Chime Credit Builder Visa® Card a highly popular choice among those looking for a safe and effective option.
Let's run through 13 of the most commonly asked questions relating to the Chime Credit Builder Card to gain a deeper understanding of its purpose.
What Is the Chime Credit Builder Card?
The Chime Credit Builder Card is a product offered by Chime, a financial technology company that provides access to a variety of banking services. Chime partners with The Bancorp Bank and Stride Bank, both of which are Members FDIC, to bring their customers a unique and convenient way to build credit responsibly.
This secured credit card is designed to help individuals improve their credit scores by demonstrating responsible financial behavior. Unlike traditional credit cards, the Chime Credit Builder Card does not require a credit check or minimum security deposit to apply. Users simply preload funds from their Chime Spending Account onto the card, which then acts as both a security deposit and spending limit.
As users make purchases with the Chime Credit Builder Card, the preloaded funds are automatically used to pay off any outstanding balances. This approach ensures that cardholders stay on track with on-time payments and avoid carrying a balance that could accumulate interest. By making consistent, timely payments and maintaining low credit utilization, Chime Credit Builder Card users can gradually improve their credit scores over time.
In summary, the Chime Credit Builder Card is an innovative financial tool offered by the financial technology company, Chime, in partnership with The Bancorp Bank and Stride Bank. It aims to help individuals build their credit scores responsibly by combining the features of a secured credit card with the convenience and benefits of a Chime Spending Account.
How Does the Chime Credit Builder Card Work?
The Chime Credit Builder Card is designed to help individuals build their credit by providing them with a secured credit card that reports to the major credit bureaus. In this section, we'll discuss how the card works and how it can help you improve your credit score.
Secured Credit Card
The Chime Credit Builder Card is a secured credit card, meaning you need to deposit a certain amount of money into a secured account to serve as collateral. This deposit determines your credit limit, but there is no minimum security deposit required. The money you transfer from your Chime account will establish your credit limit on the card. It's important to note that unlike some other secured credit cards, the Chime Credit Builder Card has an annual fee of $0.
Building Credit
One of the main benefits of the Chime Credit Builder Card is its ability to help you build your credit. On-time payment is a crucial aspect of building a good credit score, and Chime's Safer Credit Building feature helps ensure that you make on-time payments. At the end of each month, Chime will use the funds in your secured account to automatically pay off your monthly charges, reporting the monthly balance paid in full to the major credit bureaus, such as TransUnion, Equifax, and Experian.
As your credit history grows, so does the impact of on-time payments on your credit score. The Chime Credit Builder Card can be an effective tool for establishing and maintaining positive credit history, as it regularly reports your credit card activities to the credit bureaus, allowing them to update your credit score based on these reported activities.
By consistently making on-time payments and only using a small percentage of your available credit, the Chime Credit Builder Card can be a beneficial tool in building and improving your credit score over time.
How Do You Get the Chime Credit Builder Card?
To obtain the Chime Credit Builder Card, you must first fulfill certain requirements, particularly in relation to direct deposits. The primary condition involves receiving a single qualifying direct deposit of $200 or more to your Chime Checking Account from an eligible source, such as your employer.
No Credit Check
One of the advantages of the Chime Credit Builder Card is that there is no credit check when applying for the card. This means that your credit score will not be negatively impacted by a hard inquiry during the application process, making it an attractive option for those looking to build or improve their credit.
Security Deposit
Unlike traditional secured credit cards, the Chime Credit Builder Card does not require a minimum security deposit. Instead, you will use money from your connected Chime Spending Account to add funds to your Credit Builder Card as collateral. This feature simplifies the process and makes it more accessible for those looking to establish a credit history with a secured credit card.
Chime Spending Account
The Chime Spending Account is a feature-rich checking account provided by Chime. It allows users to efficiently manage their finances, including transferring funds easily and accessing quick direct deposits.
Direct Deposit
One of the most convenient features of the Chime Spending Account is the quick and easy direct deposit system. Users can easily set up a qualifying direct deposit by providing their employer with Chime's routing and account numbers. Chime often makes funds available early, up to two days before the scheduled deposit, which can be a real benefit to account holders who rely on their paycheck's timely arrival.
Check and ACH Transfers
Chime Spending Accounts also support check and ACH transfers. Account holders can seamlessly transfer funds between their Chime accounts or to other banks by initiating an ACH transfer or by writing a paper check. To initiate an ACH transfer, users simply need to log in to their Chime app, navigate to the “Move Money” screen, and follow the provided instructions.
Additionally, the Chime Spending Account offers peace of mind with features like no monthly maintenance fees and strong account security measures.
Chime Credit Builder Card Features
One of the essential aspects of choosing a credit card is understanding its features, including fees, interest rates, and credit limits. In this section, we are delving into the Chime Credit Builder Card's vital elements to help you make an informed decision.
Fees
The Chime Credit Builder Card prioritizes affordability for its users. Among its attractive features is the absence of an annual fee, providing cardholders with an economical option to build credit. In addition to no annual fee, the card also eliminates other fees commonly associated with credit cards, such as late fees and foreign transaction fees.
Interest Rates
An exciting aspect of the Chime Credit Builder Card is that it does not charge interest. Instead of a traditional interest-based system, cardholders deposit the money they spend onto the card before making purchases. This unique approach prevents accruing debt and helps users avoid the pitfalls of high interest rates commonly associated with credit cards.
Credit Limit
The Chime Credit Builder Card offers a flexible credit limit based upon the amount of money a user deposits onto their card. This approach allows cardholders to have control over their spending limits and reduces the risk of overspending and overdrafts. Not having a minimum security deposit requirement adds to the card's adaptability, making it suitable for a wider range of users.
Using the Card
The Chime Credit Builder Card is a secured credit card designed to help you build your credit score while making everyday purchases. In this section, we will discuss how to use the card effectively through the Chime app, during everyday purchases, and when accessing ATMs and PINs.
Chime App
To make the most of your Chime Credit Builder Card, it's important to utilize the Chime app. The app allows you to transfer funds from your Spending Account to your Credit Builder account, enabling you to control your credit limit. Simply navigate to the “Move Money” option on the home screen, tap on “Transfer Funds,” and follow the instructions to complete the transfer. The Chime app also offers transaction notifications and real-time alerts, keeping you informed about your spending and card activity.
Everyday Purchases
Using the Chime Credit Builder Card for everyday purchases is one of the most effective ways to build your credit. Since the card is a Visa, it is accepted at a wide range of merchants, making it easy and convenient to use. By making regular, on-time payments, you can increase your credit score by an average of 30 points. Moreover, because the card is a secured credit card, you know exactly how much money you have left to spend on any given day, which helps in avoiding outstanding balances and debt.
ATMs and PINs
When needing to access cash or check your balance, your Chime Credit Builder Card can be used at ATMs. However, keep in mind that fees may apply when using out-of-network ATMs. Upon receiving your card, be sure to set up a secure and memorable personal identification number (PIN) for transactions and ATM use. Protecting your PIN and regularly updating it contributes to the overall security of your account and prevents unauthorized access.
Effect on Credit Score
The Chime Credit Builder Card can have a positive impact on your credit score if used responsibly. In this section, we'll discuss the factors that can influence your credit score and how the Chime Credit Builder Card affects each of these aspects.
Credit Utilization
Credit utilization refers to the percentage of your available credit that you're using. A lower credit utilization rate is better for your credit score. The Chime Credit Builder Card can help with this aspect since it allows you to set your own credit limit based on your direct deposits, and Chime doesn't report a credit limit to the credit bureaus. This means that your credit utilization will appear as low, which can positively affect your credit score.
On-Time Payments
On-time payments are crucial for building and maintaining a good credit score. Late payments can have a negative impact on your credit score. With the Chime Credit Builder Card, you're required to pay your balance in full every month, thereby helping you to establish a habit of making on-time payments. Chime reports your account activity to all three credit bureaus, so your on-time payments will help to build a positive credit history.
Credit Mix
Having a variety of credit types can positively impact your credit score. This is referred to as credit mix. The Chime Credit Builder Card is a secured credit card, which can add diversity to your credit profile, especially if you only have loans or other types of credit. By using the Chime Credit Builder Card responsibly along with other types of credit, you can improve your credit mix and potentially boost your credit score.
Remember, building a strong credit profile takes time and responsible financial behavior. Utilizing the Chime Credit Builder Card and focusing on credit factors such as utilization, on-time payments, and credit mix can help you work towards a higher credit score.
Additional Services
In addition to the Chime Credit Builder Card, Chime offers other banking services designed to meet a variety of financial needs. This section outlines several of these additional services, including Move My Pay, Cash Advance, Loans, and Hard Inquiry.
Move My Pay
Chime's Move My Pay feature allows users to easily transfer their direct deposit from one account to another, making it simple to switch between bank accounts. With this feature, users can set up direct deposit with Chime and access their paychecks up to two days earlier than with traditional banks. To use Move My Pay, users can simply sign in to their Chime account, navigate to the provided direct deposit form, and share the completed form with their employer.
Cash Advance
Chime allows members in good standing to access a Cash Advance, which provides a short-term loan to cover unexpected expenses. Chime's cash advance service is fee-free, with no interest charges or hidden fees. Users can select a repayment plan that fits their needs and conveniently repay the advance directly from their Chime Spending account.
Loans
Chime is more than just a credit card provider; it also offers various loan options to its customers. Chime users can apply for personal loans, which can be helpful for financing large purchases, consolidating debt or making a significant investment. The process for applying for a loan with Chime is secure and straightforward, allowing users to get the financial assistance they need quickly and efficiently.
Hard Inquiry
When applying for certain banking products, such as credit cards or loans, a hard inquiry may be required. A hard inquiry, also known as a hard credit pull, is when a financial institution requests a full copy of a user's credit report to assess creditworthiness before approving a loan or credit card application. Unlike some other financial institutions, Chime does not perform a hard inquiry when users apply for the Credit Builder Card, making it an attractive option for those looking to build credit without negatively impacting their credit score.
Limitations and Considerations
Spending Limit
The Chime Credit Builder Card has a spending limit based on the funds you preload from your Chime Spending Account. This acts as a security deposit and determines your available credit. It ensures you spend only what you can afford, helping you avoid debt and manage your finances more effectively.
Add Money and Refunds
To add money to your Chime Credit Builder Card, transfer funds from your Chime checking account. Funds added become your available credit, giving you flexibility to adjust your spending limit based on your financial situation.
If you receive a refund on a purchase made with your Chime Credit Builder Card, the refunded amount will be credited back to your Chime Spending Account. This process helps maintain accurate records of your spending limit and balances between your accounts.
Increase of 30 Points
Using the Chime Credit Builder Card responsibly can lead to an increase in your credit score. While individual results may vary, some users have reported an average credit score increase of 30 points. This can be achieved by making on-time payments each month and ensuring that you manage your card's spending limit well.
Remember, the Chime Credit Builder Card was designed to provide Chime members with a safer and more controlled way to build credit. By understanding its limitations and considering the factors discussed in this section, you can make informed decisions about its usage to achieve your personal credit goals.
How to Cancel Your Chime Credit Builder Card
Cancelling your Chime Credit Builder Card can be a simple and straightforward process. Follow the steps below to close your account:
- Contact Chime Member Services either by calling them at 1-844-244-6363, chatting with an agent through the Chime app, or sending them an email at support@chime.com.
- Provide your Chime Credit Builder Card account information to the customer service representative, such as your Chime account number and card details.
- Request the representative to permanently close your Credit Builder Card account. Ensure that you mention the reason for closing the account; for example, if you want to switch to another credit card or you no longer need it.
- Ask the representative to provide a confirmation of your account closure. This can be in the form of an email, account statement, or any other documentation that verifies your account has been closed at your request.
After completing the cancellation process, it is a good practice to monitor your credit report to ensure that the account closure is correctly reflected on your credit report.
