Chime Credit Builder Secured Visa® Credit Card: Review
Is the Chime credit card worth it?
The Chime Credit Builder Card may be worth it for people looking to build or rebuild their credit without having to pay an annual fee or interest rates. It doesn’t earn rewards, but its unique credit-building structure makes it safer to build credit. Additionally, since your limit is entirely set by you, you have the potential to access a high credit line if you have enough money in your account.
On the other hand, Chime may not be worth it for people looking to pay off a large purchase over time, since balances can’t be carried from one month to the next — they have to be paid in full.
▶︎ See our picks: Best credit cards for building credit
Chime Credit Builder Secured Visa®: Highlights
- The Chime credit card has no annual fee or interest.
- Chime doesn’t earn any rewards.
- To use the Chime Credit Builder Card, you need to move money from your Chime Checking Account to your Credit Builder account. The amount transferred is how much you can spend.
- No credit check is required to apply for Chime, and payments are reported to the 3 credit bureaus.
▶︎ See our picks: Best credit cards with no credit check
Who is the Chime Credit Builder Card best for?
This credit builder works best for three types of users.
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Those who lack credit management experience. It may be a good fit if you have no experience managing credit and need a beginner’s credit card to build up your credit profile before you apply for an unsecured credit card, an auto loan or a personal loan. Like other secured credit cards, this credit builder gives you a chance to prove that you’re a responsible user, which may help you increase your credit score.
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Individuals who have made a few financial errors. This credit builder is also ideal if you’ve made a few financial mistakes, such as missing credit card payments or going over your limit. Although it takes time to recover from these mistakes, opening a credit builder account and managing it responsibly may make banks more willing to approve you for an unsecured card or a loan.
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People who are wary of a high credit limit without mandatory full monthly payments. Finally, this credit builder is ideal for people who are hesitant to have a high credit limit with no requirement to pay the balance in full every month. A credit builder account from Chime gives you a chance to build good habits, which may help you feel more comfortable managing an unsecured card in the future. You can only spend as much as you deposit, so there’s no risk of going over your credit limit. The Chime Credit Builder Secured Visa also comes with autopay and the Safer Credit Building feature, giving you extra peace of mind.
▶︎ See our picks: Best credit cards for young adults or the best credit cards for teens
How does the Chime Credit Builder work?
To use the Chime Credit Builder Card, all you have to do is open a Chime checking account and receive at least one qualifying direct deposit of $200 or more from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT).
Once you meet this requirement, you need to fund your Credit Builder Account. You can do this by transferring money from your Chime Checking Account to your Credit Builder Card (this can be done in the app). The amount you transfer becomes your initial spending limit. For example, if you transfer $2,000, you can spend up to $2,000 on your card.
You can also move money back to your Chime Checking Account if you need cash or you can use your Chime ATM card to withdraw money.
Chime Credit Builder Secured Visa® Credit Card: Rewards
Unlike other credit builder cards, the Chime Credit Builder doesn’t come with a rewards program.
You won’t earn cash back or accumulate points when you use your Chime-branded secured credit card. This makes the Chime Credit Builder a little less attractive than other card options. If you’re set on earning cash, gift cards or other perks, another card may be a better fit.
Chime Credit Builder Secured Visa® Credit Card: Benefits
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No credit check. Chime doesn’t do a hard credit check, so applying for the Chime Credit Builder Secured Visa® does not affect your credit.
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No minimum security deposit or interest. No minimum security deposit makes it easier to start building your credit, and no interest on purchases ensures that your balance doesn’t increase exponentially.
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Flexible credit limit. You can add money to your account at any time, giving you a flexible limit. For example, you can open the account with $1,000 and then add $2,500 later, increasing your total limit to $3,500.
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No late fees. If you miss a payment, you won’t be subject to any late fees, but your card will be disabled until you can make that payment. If your payment is more than a month late, that will be reported to the 3 credit bureaus and may affect your credit score.
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User-friendly mobile app. With the mobile app, you can deposit checks, contact a live support agent, view live transaction alerts and more.
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Visa benefits. As a Visa-branded card, you get all the benefits of using the Visa network. Millions of merchants accept Visa, ensuring you can live your life without worrying about how you’ll pay for your purchases.
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Reports payments and account status to major credit bureaus. If you make on-time payments and manage your other accounts wisely, opening this credit builder may help you increase your credit score.
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Autopay option. You don’t have to worry about forgetting your due date, thus making it easier to build a history of on-time payments.
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FDIC-insured financial institution. The money in your Chime checking account is protected by the Federal Deposit Insurance Corporation (FDIC) in the very unlikely event of a bank failure.
Chime Credit Builder Secured Visa® Credit Card: The fine print
Fees
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Annual fee: $0 (no annual fee)
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Foreign transaction fee: $0 (no foreign transaction fees)
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Late payment fee: None, but if you miss a payment, your card will be disabled until you make that payment.
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Expedited card replacement: $20 fee for expedited service if you lose your card and need a replacement quickly
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Out-of-network ATM transactions: $2.50 for each transaction made at an ATM that isn’t in Chime’s network. This fee applies to all cash withdrawals, and may it also apply to balance inquiries and other transactions.
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Other services: Chime reserves the right to charge fees for additional services.
Interest rates
None! Chime doesn’t charge any interest rates since your balance must be paid in full every month.
Credit limit
The credit limit on your Chime Credit Builder Card is set by you, the cardholder. The amount of money you put into your Chime account is the amount you can spend.
Chime Credit Builder Secured Visa® Credit Card: Drawbacks
Doesn’t earn rewards
While some secured credit cards earn rewards on purchases, the Chime Credit Builder Card doesn’t. This could be a possible advantage for some users, as the lure of earning rewards can make some people spend more money. While you’re focusing on building your credit, it may be a good thing to not have the temptation. However, if you’re confident you can manage the dangers of a traditional credit card, it may be worthwhile to get a card that earns cash back on your purchases.
Requires a direct deposit
In order to open your Chime account, you need to set up a Chime Checking Account and receive a minimum $200 qualifying direct deposit. Chime defines qualifying direct deposits as “a deposit of $200 or more by Automated Clearing House (“ACH”) that comes from your employer, payroll provider, gig economy payer, or benefits payer OR a deposit by Original Credit Transaction (OCT) from your gig economy payer.”
Some secured cards, like the OpenSky® Secured Visa® Credit Card, don’t even require a bank account to open, so this technicality may be a blocker for some individuals.
May be too safe
One of the primary draws of the Chime credit card is that its unique structure makes it safer to build credit. This could have the potential to backfire though, as users won’t have the experience of managing a traditional credit card account. If someone goes from Chime to a regular credit card, this could lead to overspending and ultimately tanking their credit score.
How the Chime credit card compares
Chime Credit Builder Secured Visa® vs. Capital One Quicksilver Secured Cash Rewards Credit Card
Both the Chime Secured Visa and the Capital One Quicksilver Secured Card are intended for individuals who have bad or limited credit. Neither card has an annual fee, and both require a deposit of some sort to open.
The Quicksilver Secured, however, is subject to accruing interest on carried balances and has multiple other fees, like late fees, that Chime doesn’t have. A huge benefit Quicksilver Secured has over Chime is that it earns rewards— 1.5% cash back on everything. Chime is a bit safer, but if you’re looking for rewards, the Quicksilver Secured Card is one of our favorite options.
Chime Credit Builder Secured Visa® vs. OpenSky® Plus Secured Visa® Credit Card
Chime and OpenSky are two of the easiest cards to qualify for. Neither requires a credit check and neither has an annual fee. OpenSky Plus does have an interest rate associated with it, so carrying a balance can be risky and expensive. However, similarly to the Quicksilver Secured Card, OpenSky Plus allows the opportunity to earn rewards on purchases. OpenSky also doesn’t require a bank account to open; you can fund your deposit and pay your bills with money orders.
Should you get the Chime Credit Builder Card?
If you have a low credit score or a limited credit history and are looking to build your credit responsibly, the Chime Credit Builder Card may be a good option. It doesn’t require a credit check so it’s easy to qualify for and has a flexible credit limit since it works similarly to a debit card.
You also may want to apply for Chime if you’re prone to spending more than you actually have. This card requires individuals to add money to their account before they can spend anything, and you can only spend up to the amount you’ve added.
How do I apply for a Chime Credit Card?
You can apply for the Chime Credit Card online at your convenience.
Opening a secured Visa with Chime requires just four steps:
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Open a Chime checking account. Be prepared to provide proof of identity, such as a driver’s license, state-issued ID card or passport.
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Set up a qualifying direct deposit. This needs to be a minimum $200 deposit by Automated Clearing House (“ACH”) that comes from your employer, payroll provider, gig economy payer, or benefits payer OR a deposit by Original Credit Transaction (OCT) from your gig economy payer.
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Fill out the application and submit it. Chime doesn’t do hard credit checks, so applying does not affect your credit history.
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Transfer funds from your checking account to your secured Visa. You may deposit up to $10,000 on your Chime credit card.
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