Are you looking for a credit card that not only helps you make purchases but also helps you save some bucks? Then, Chime Credit Card might be the perfect option for you. For those who haven’t heard of it, Chime is an online bank that has been making waves in the financial industry with its customer-friendly policies and services.
Chime credit card is an exception, offering features that make it stand out. It’s a credit card that’s packed with benefits and convenience. Here is all you need to know about this card.
What is a Chime Credit Card?
Chime is not your typical bank; it’s a technology company that offers various financial services, including checking, savings, and credit accounts. And their Secured Chime Credit Card is a fantastic way to build a healthy credit history.
With the Secured Chime Credit Builder Visa® Credit Card, cardholders make a deposit to set a credit limit and can use it for everyday purchases. The best part is that Chime has no interest, fees, or credit checks. That means you can start building your credit without breaking the bank. Plus, it’s issued by Stride Bank, N.A., a member of the FDIC, so you can rest easy knowing that your money is safe.
While the Chime Credit Card is secured, it puts a new spin on the traditional secure card by offering excellent value and low risk. And it can be used anywhere Visa credit cards are accepted, making it a convenient option for all purchases. More so, opening an account with Chime is easy and hassle-free.
How the Chime Credit Card Works
To get started with this unique credit card, you must open a Chime Spending Account and have at least $200 in direct deposits made within the past 365 days. Once you have met this requirement, you can apply for the Chime Credit Builder Visa® Credit Card.
Unlike traditional secured credit cards that require a one-time security deposit to set your credit limit, the Chime Credit Card works differently. You can “assign” money to your Credit Builder secured account by moving it from your Chime Spending Account through the Chime app. This means you can control your spending limit and build your credit without tying up a large sum of money in a security deposit.
If you need access to cash, you can move money back into your Chime Spending Account through the app. Plus, you can use your Chime ATM card to withdraw cash as needed.
What Makes Chime Credit Card Unique
No Credit Check Required
One of the most significant benefits of the Chime Credit Card is that it doesn’t require a credit check for approval. This means that you can still be eligible for the card even with a low credit score. Chime’s mission is to make financial peace of mind attainable for anyone, and that’s precisely what they’re doing by offering this opportunity.
Building Credit History
Chime Credit Card reports your account activity to all three credit bureaus. So, if you’re looking to build your credit, this card could be an excellent way to establish on-time payment behavior and lengthen your credit history. Remember that late payments can still negatively affect your credit score, so making timely payments is essential.
Not Your Typical Secured Credit Card
Unlike other secured credit cards that require a minimum deposit of a few hundred dollars to open an account, Chime Credit Card is different. Cardholders don’t have to make a minimum security deposit to open an account.
They can transfer money into their secured account at any time, and each transfer becomes part of the spending limit for the month. This makes it easier for cardholders to budget and track how much they spend.
No Maintenance Fees or Hidden Interest
Another significant advantage of the Chime Credit Card is that it doesn’t charge maintenance fees. Plus, unlike most credit cards, Chime doesn’t charge any interest on purchases. This means you can save a lot of interest fees and get a break from paying high-interest rates.
Easy to Meet Minimum Deposit Requirement
Before applying for the Credit Builder card, you must receive a qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy, or benefits payer by Automated Clearing House (ACH) deposit or Original Credit Transaction (OCT).
Bank-to-bank ACH deposits, Pay Anyone transfers, verification or trial deposits from financial institutions, and mobile check deposits don’t qualify. Also, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and peer-to-peer payments using apps like Venmo and Cash App don’t qualify as eligible direct deposits.
No Report On Credit Utilization
Using your Chime Credit Card to its max won’t affect your credit score. Unlike other credit cards that report your credit utilization to credit bureaus, Chime doesn’t. But that doesn’t mean you can skip out on making on-time payments.
Chime still reports your payment history and other factors to credit bureaus, so paying your bill on time is crucial every month. If you miss a payment, your card will be disabled until you pay the balance. And if you let your payment go more than 30 days past due, this will be reported to credit bureaus and could negatively impact your credit scores.
Autopay Feature
If you forget to make payments on time, you can rely on this card to help you say goodbye to those worries. With its autopay feature, you can rest easy knowing that your bills will always be paid on time.
Its Safer Credit Building feature takes the autopay option to a new level. When you use your card to purchase, the total amount is held in your Credit Builder secured account. This money is then automatically used to pay your bill when it’s due.
Drawbacks of the Chime Credit Card
Must-Have Chime Spending Account
To obtain the Chime Credit Builder Visa Credit Card, you must first open a Chime Spending Account. This account should have at least $200 in direct deposits within the last year. If you don’t already have a Chime account, you must create one before you can apply for the card. Opening a Chime Spending Account is straightforward and can be done online.
Can’t Upgrade to a Regular Credit Card
Unfortunately, you cannot upgrade to a regular credit card with Chime. If you want to upgrade to a traditional credit card with a higher credit limit or better rewards, you must look for another provider. However, using the Chime Credit Builder Visa Credit Card is an excellent way to build or rebuild credit, especially if you have no credit or poor credit.
No Rewards Offered
If you want rewards such as cash back, airline points, or other rewards, there may be better options than the Chime Credit Card. While the card offers several features to help build credit, it does not provide any rewards for spending. You can look into other secured or traditional credit cards that offer bonuses if you prefer to earn rewards for your spending.
Fees for Overseas Use
If you plan to use the Chime Credit Card overseas, you should know that you will incur fees for currency conversion and other charges. These fees can add up, so using the card only when necessary is best. If you plan to travel abroad frequently, consider getting a credit card that does not charge foreign transaction fees.
Limited Customer Support Options
If you prefer face-to-face customer support, there may be a better fit than the Chime Credit Builder Visa Credit Card. Customer support is available by phone and online via the Chime app only. However, the Chime app is user-friendly and easy to use, and the support team is available 24/7 to assist you with any questions or concerns.
Conclusion
The Chime Credit Card is an excellent option for anyone looking to build their credit history without needing a security deposit. With no annual fees, autopay features, or credit utilization reported to credit bureaus, it’s a convenient and affordable way to start your credit journey. Although it’s not the right fit if you want rewards or prefer physical customer support, the card’s benefits outweigh the cons.
