Chime Credit Builder Card Review
You don't need to have a minimum security deposit, there is no credit check and no interest. You can use the card to increase your credit limit. However, you cannot spend more than you have saved.
Here are some quick facts
Chime, a financial technology firm, is not a bank. Services provided by The Bancorp Bank and Stride Bank N.A., including a debit card. Members FDIC. Stride Bank N.A. issues this card. There is no credit check, no annual fee or interest, and no minimum deposit. No stress! You can use your secure Credit Builder card wherever VISA is accepted.
Pros & Cons
The pros
There is no annual charge. No credit checks are needed. The credit limit can be adjusted
Cons
You must open a Chime Account.
The Chime Credit Builder Visa(r), Credit Card serves the same purpose that traditional secured credit cards. It helps you to build a credit history, even if your credit score is not good.
Stride Bank's $0-annual fee card has no minimum security deposit and allows you to adjust your credit limit. It doesn't require a credit check and, perhaps more importantly, you don't have to pay interest. Instead, you can set aside money in advance for your credit card bills. It is similar to a reloadable debit card but reports your activities to credit bureaus.
You can use these unique features to help your credit journey. However, you will need to be open to opening an account at Chime. The card's security features could make it difficult to handle other types of credit later. There is no way to upgrade your card from a rewards-earning, traditional, unsecured card when you are ready.
The Chime Credit Builder Visa (r) Credit Card has the following key features
Type of card: Secured
Yearly fee $0.
Minimum security deposit not required How much money you are able to spend on the card depends on how much money you transfer from your Chime Spending account to your Credit Builder Secured Account.
Bonus: None.
Rewards: None
APR: N/A.
Foreign transaction fee: None.
Additional perks
Apply without a credit check
All payments are sent to the main credit bureaus.
The Chime Credit Builder Visa (r) Credit Card: How it works
You must have a Chime Credit Builder Visa(r), Credit Card opening account that has received at least $200 in a direct deposit within the last 365 days.
You can "assign", a non-recurring security deposit, to your card. This involves moving the funds from your Chime Spending account to your Credit Builder secured bank -- something you can do via the Chime App. If you require cash access, you can transfer money to your Chime Spending account via the Chime App. You can also withdraw funds using your Chime ATM card.
The Chime Credit Builder Credit Card has many benefits
Credit check not required
Many credit cards, even those that are secured, will ask for your credit history when you apply. This helps card issuers evaluate your creditworthiness. These hard pulls may temporarily affect your credit score, even if the card is approved. You may encounter problems if your credit history isn't perfect. The Chime Credit Builder Visa(r), Credit Card doesn't check credit before you apply. This means it is a great fit for people with bad credit or no credit.
Credit limit adjustment
You can only spend the money that you transfer from your Chime Spending account to your Credit Builder secured bank. Either you can transfer money immediately after you receive your pay or manually. Transfers of money take only a few minutes and are almost instant. The Chime Credit Builder Visa(r), Credit Card can be used to purchase anywhere Visa is accepted. You may need to be able to increase your credit limit by using other secured credit cards.
No interest charges
Because you can't spend more than you have in your Credit Builder secured credit account, the Chime Credit Builder Visa(r), Credit Card doesn't charge interest. It's similar to a prepaid debit card with reloadable funds. You can't go into credit card debt using this card. Secured credit cards with high-interest rates can be used to acquire expensive debt while you build credit.
Credit score won't be affected by maxing out your card
Credit bureaus don't report credit usage, so it's not necessary to keep track of how much you spend. Buth with a pre-paid debit card, payment history, and other factors, will be reported. It is therefore important to make timely payments. Your card may be suspended if you fail to make a payment. You can also report a payment that is over 30 days late to the credit bureaus. It might affect your credit score.
Automatic payments are made easy by Autopay.
Safer Credit Building is an alternative to the autopay feature available on traditional credit cards and can help prevent accidental payments from being missed.
The total amount you spend on the credit card is placed in your Credit Builder secured bank account. The on-hold money will be used automatically to pay your bill once it is paid. You won't have to pay late or not enough money to cover your entire bill.
Here are some quick facts
Chime, a financial technology firm, is not a bank. Services provided by The Bancorp Bank and Stride Bank N.A., including a debit card. Members FDIC. Stride Bank N.A. issues this card. There is no credit check, no annual fee or interest, and no minimum deposit. No stress! You can use your secure Credit Builder card wherever VISA is accepted.
Pros & Cons
The pros
There is no annual charge. No credit checks are needed. The credit limit can be adjusted
Cons
You must open a Chime Account.
The Chime Credit Builder Visa(r), Credit Card serves the same purpose that traditional secured credit cards. It helps you to build a credit history, even if your credit score is not good.
Stride Bank's $0-annual fee card has no minimum security deposit and allows you to adjust your credit limit. It doesn't require a credit check and, perhaps more importantly, you don't have to pay interest. Instead, you can set aside money in advance for your credit card bills. It is similar to a reloadable debit card but reports your activities to credit bureaus.
You can use these unique features to help your credit journey. However, you will need to be open to opening an account at Chime. The card's security features could make it difficult to handle other types of credit later. There is no way to upgrade your card from a rewards-earning, traditional, unsecured card when you are ready.
The Chime Credit Builder Visa (r) Credit Card has the following key features
Type of card: Secured
Yearly fee $0.
Minimum security deposit not required How much money you are able to spend on the card depends on how much money you transfer from your Chime Spending account to your Credit Builder Secured Account.
Bonus: None.
Rewards: None
APR: N/A.
Foreign transaction fee: None.
Additional perks
Apply without a credit check
All payments are sent to the main credit bureaus.
The Chime Credit Builder Visa (r) Credit Card: How it works
You must have a Chime Credit Builder Visa(r), Credit Card opening account that has received at least $200 in a direct deposit within the last 365 days.
You can "assign", a non-recurring security deposit, to your card. This involves moving the funds from your Chime Spending account to your Credit Builder secured bank -- something you can do via the Chime App. If you require cash access, you can transfer money to your Chime Spending account via the Chime App. You can also withdraw funds using your Chime ATM card.
The Chime Credit Builder Credit Card has many benefits
Credit check not required
Many credit cards, even those that are secured, will ask for your credit history when you apply. This helps card issuers evaluate your creditworthiness. These hard pulls may temporarily affect your credit score, even if the card is approved. You may encounter problems if your credit history isn't perfect. The Chime Credit Builder Visa(r), Credit Card doesn't check credit before you apply. This means it is a great fit for people with bad credit or no credit.
Credit limit adjustment
You can only spend the money that you transfer from your Chime Spending account to your Credit Builder secured bank. Either you can transfer money immediately after you receive your pay or manually. Transfers of money take only a few minutes and are almost instant. The Chime Credit Builder Visa(r), Credit Card can be used to purchase anywhere Visa is accepted. You may need to be able to increase your credit limit by using other secured credit cards.
No interest charges
Because you can't spend more than you have in your Credit Builder secured credit account, the Chime Credit Builder Visa(r), Credit Card doesn't charge interest. It's similar to a prepaid debit card with reloadable funds. You can't go into credit card debt using this card. Secured credit cards with high-interest rates can be used to acquire expensive debt while you build credit.
Credit score won't be affected by maxing out your card
Credit bureaus don't report credit usage, so it's not necessary to keep track of how much you spend. Buth with a pre-paid debit card, payment history, and other factors, will be reported. It is therefore important to make timely payments. Your card may be suspended if you fail to make a payment. You can also report a payment that is over 30 days late to the credit bureaus. It might affect your credit score.
Automatic payments are made easy by Autopay.
Safer Credit Building is an alternative to the autopay feature available on traditional credit cards and can help prevent accidental payments from being missed.
The total amount you spend on the credit card is placed in your Credit Builder secured bank account. The on-hold money will be used automatically to pay your bill once it is paid. You won't have to pay late or not enough money to cover your entire bill.
Alternatives and drawbacks'
Direct deposit and a Chime spending account are required
Although the link between the Chime Credit Builder Visa (r) Credit Card and Chime Spending Account facilitates card users' unique experience, opening an account or getting a direct deposit can prove difficult for many. While many secured credit cards require you to have a bank account for security deposits, the OpenSky Secured Visa (r) Credit Card is an alternative. The security deposit can be funded with either a check or a debit card. You also have the option to fund it with money orders or Western Union.
You will not get Sign-up bonuses and rewards
It is rare that a secured credit card offered rewards. The Chime Credit Builder, Credit Card doesn't follow that trend. It does not offer any type of reward program.
Rewards are not the primary priority when building credit. They are nice, though. The Discover it(r), Secured Credit Card ($0-annual fee) earns 2% cashback at gas stations, restaurants, and on purchases up to $1,000 each quarter. A bonus offer is available to new cardholders. Discover explains it this way: "INTRO OFFER - Unlimited Cashback Match – Only from Discover. All the cashback that you have earned in the first year will be automatically matched by Discover a dollar for every dollar match.
There is no upgrade route
Although the Chime Credit Builder Visa(r), Credit Card may help to strengthen your credit score, once you have that, you can move on to a higher-tier card. This card is no longer recommended. You will need to create a new account with a different issuer if you are ready to get a credit card offering rewards or other benefits.
This doesn't allow you to practice managing traditional cards.
It's easy to keep a budget and make timely payments with the Chime Credit Builder Visa(r). Credit Card While this is great news for credit scores, it will make your next credit card very different.
The training wheels start to move quickly once you use an unsecured card that charges interest and has fees. You can spend as much as you want, but make a minimum payment and take on more debt. A revolving credit card allows you to use your credit limit to limit spending. Late payments can result in a penalty, higher interest rates, and big credit score drops.
Although the Chime Credit Builder Visa(r), Credit Card can help build your credit, it is important to familiarize yourself first with their workings before applying for another credit card.
Do you need the Chime Credit Building Credit Card?
The Chime Credit Builder Credit Card is the best option if you are primarily interested in building credit. While some starter credit cards provide cash-back incentives, others require security deposits and charge interest. The Chime Credit Builder Visa(r), Credit Card will provide you with the following protections:
Questions frequently asked
How much is the limit of the Chime credit Builder card?
No security deposit is needed. The credit limit can be set by moving funds from the Chime Spending account to the Credit Builder secured account. All money moved is eligible for spending.
Is it possible to get a Chime card with no direct deposit?
No.
What is the best way to add money to my Chime Credit Builder Card?
Yes. Yes. You can add cash to your account by moving funds from your Chime spending account to your Chime Credit Builder secured bank account. When you make purchases with your Chime Credit Builder Visa Credit Card, the money that you have moved is available for spending.
What can I do to withdraw my Chime Credit Builder Card?
Yes. Yes. You can transfer money from your Chime Credit Builder secure account to your Chime spending account. To withdraw cash, you can use your card at any ATM.
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