How Does Chime Credit Builder Work

How Does Chime Credit Builder Work

If you have bad credit you might have a difficult time getting approved for credit cards, loans, a home mortgage or an apartment. There are ways you can fix your credit without having to spend hundreds of dollars on deposits or extra fees. The Chime Credit Builder Card can help you increase your credit score by up to 30 points.

What Is Chime?

Chime Credit Builder Card

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products however our opinions are our own.

Chime is a financial technology company that offers easy online banking that is helpful and free. The banking products they offer including the Chime Credit Builder Card, have no monthly fees, no overdraft fees, minimum balances or other consumers fees. They have partnered with regional banks so their members have lower-cost options for every day Americans.

Related: What Are The Best Credit Cards For Bad Credit

Is Chime A Real Bank?

Chime is not a bank, but it is a technology company that offers banking services such as their Chime Spending Account and their Chime Credit Builder Visa Credit Card.

Chime offers banking services provided by The Bancorp Bank or Stride Bank; N.A members FDIC. Chime’s bank accounts is insured for $250,000.

What Is Bad Credit?

Bad credit has become synonymous with debt problems in recent years because of how common it’s becoming. People who have poor scores typically live paycheck to paycheck without much savings due their inability to get loans from banks, which leads them into high interest payday loans and other predatory debt traps.

Related: Fix Your Credit With A Credit Repair Course

Credit Repair Blueprint Course

Is Chime Credit Builder A Secured Credit Card?

Yes, the Chime Builder Card is a secured credit card, meaning that it does require you to have a deposit to your credit account. This deposit will become your credit card balance. Unlike most secured credit cards, Chime Credit Builder is paired with a Chime Spending Account so the only money you need to add is to your Chime Spending Account and every time you use your Credit Builder Card it will take the money you deposited from your Spending Account. With other secured credit cards the security deposits are unavailable to you until you close your account, but with the Credit Builder Account you can use your deposit to pay for monthly charges.

What Is a Chime Spending Account?

Best Student Checking Accounts

A Chime Spending Account is similar to a traditional banking account but is an online bank account that has no monthly fees, foreign transaction fees, no minimum balance and no overdraft fees. You have access to over 60,000 fee free ATMs at locations you already shop at such as CVS, 7-Eleven and Walgreens.

Another benefit of the Chime Spending Account is that Chime will spot you up to $200 on debit card purchases with no overdraft fees when you sign up with SpotMe. Instead of charging your overdraft fees like other banks do, Chime’s SpotMe allows you to overdraft up to $200 with no fees as long as you monthly qualifying direct deposits of $200 or more. This bank account is a great option if you have struggled with overdraft fees in the past or have a bad experience ChexSystems and are having a hard time opening up a bank account because of those overdraft fees.

With the Chime Spending Account you also get a Visa debit card that you can use anywhere Visa cards are accepting, set money aside with their automatic savings feature, and you can get paid up to 2 days earlier if you setup direct deposit.

Chime’s Spending Account has made our list of the Best Checking Accounts For Bad Credit, the Best Banks who don’t use ChexSystems, The Best Free Checking Accounts, and The Best Student Checking Accounts making it a great banking options for many reasons.

Related: 13 Best Banks Who Don’t Use ChexSystems

How Does Chime Credit Builder Work?

Bad credit applicants are approved for a Chime card if they have direct deposits of $200 or more within the past 365 days. After you setup your Chime account use your Credit Builder card on everyday purchases like gas and groceries and pay your bill on-time every month. Each on-time payment is reported to the credit bureaus which will increase your credit score as on-time payments makes up 35% of your FICO credit score.

If you think you will have trouble making payments on-time every month, turn on Safer Credit Building in your account which will automatically pay your balance on-time every month.

Benefits Of The Chime Credit Builder Card:

-Can increase your credit score by an average of 30 points

-There is no annual fee or interest

-No credit check needed to apply

-No minimum security deposit required

-No maintenance fees

-Use Safer Credit Building to automatically pay your balance on time, every month.

What Do I Need To Apply For Chime Credit Builder?

You will only need to apply for the Chime Credit Builder is a Chime Spending Account and $200 or more in qualifying direct deposits within in the past 365 days. If you don’t already have a Chime Spending Account you can apply for one in less than two minutes. No credit check is required.

To Apply For A Chime Spending Account you will need to apply online through the Chime website or through their app. You will need to:

  • Be 18 years old or older
  • U.S. Citizen with a valid Social Security Number
  • Valid home address

Related: Free Checking Account No Credit No Deposit

How Do I Create A Chime Account?

In order to create a Chime account to have access to the Chime Spending Account and Chime Credit Builder Credit Card you will need to follow these few simple steps:

  1. Apply online at the Chime website.
  2. Enter email and click Get Started
  3. Fill in your personal information which takes only 2 minutes to complete.
  4. Once your enrollment process is complete and you have been approved Chime will send you the Visa Debit Card in the mail to the address you provided. It takes 5-10 business days to receive your card.
  5. Download the mobile app to access your account and mobile banking.

How Does The Chime Credit Builder Help My Credit Score?

Chimes Credit Builder Card is designed to help you stay on top of the key factors that can impact your credit score. The two main impacts of a FICO score is on-time payment history (35%) and Increase the length of your credit history over time. The longer you keep your Chime Credit Builder Account open the better your credit length score will be. Chime also reports monthly to all three major credit bureaus TransUnion, Experian, and Equifax.

To find out where your credit stands access your free credit report once a year and use credit score apps to monitor your score monthly.

Related: Credit Karma vs. FICO Score

What Is The Credit Limit For The Chime Credit Builder?

There is no set credit limit with the Chime Credit Builder Card. You can move any amount of money you want into your Credit Builder Card from your Spending Account. With traditional credit cards, having a high percentage of your available credit limit could negatively impact your credit score, Chime Credit Builder does not report credit utilization to the credit bureaus. You choose how much you want to add to your card.

Related: How To Increase Credit Limit

Why Did I Get Denied For Chime?

In order to be approved for Chime, they will use a third party to confirm your personal information and verify your identity. If they cannot verify this information they might deny your account. This doesn’t have a reflection on your eligibility and doesn’t affect your credit score, as Chime doesn’t do a credit check when you apply.

To increase your chances of getting your Chime account approved make sure all your personal information is correct and make sure your personal credit frozen as this could impact the third party provider from verifying your identity.

How Do I Contact Chime?

Chime’s customer service representatives are available 24/7 and you can contact them through the app or by email at support@chime.com.

You will also be able to call customer service Monday-Sunday 3am-11pm CST at 844-244-6363.

Can I Have 2 Chime Accounts?

Chime does not allow you to have 2 accounts, joint accounts or secondary cards at this time. Because so many people share bank account with their spouse and dependents it is something they will be working on for the future.

You can however send money to anyone instantly or pay anyone who doesn’t have a Chime account for free. No extra apps needed and it is safe and secure. You will just need to provide them with information such as your phone number or email.

Can You Zelle To A Chime Account?

Yes, people can send money to your Chime account using Zelle. The payment transfer may not be quick as Chime isn’t natively integrated with Zelle through their platform but it can be done.

You will need to connect your Chime account with Zelle through the Zelle app. However, sometimes you might receive an error message saying your debit card isn’t supported and if that happens you may not be able to use Zelle.

If you do use Zelle with your Chime account you have a transfer limit of $500 weekly. There is no daily limit as long as you only transfer $500 for the week.

How Can I Add Money To My Chime Account?

There are several ways you can add money to your Chime Spending Account:

  • Direct Deposit with a qualifying employer (Most reliable way)
  • Bank Transfer From An External Bank Account – You can link your Chime Account with an external bank account through the Chime app under Move Money and enter your other bank’s login credentials. Bank accounts you can link are Bank of America, Capital One 360, Chase, Citi, Fidelity, Navy Federal & Charles Schwab, PNC Bank, SunTrust, TD Bank, and Wells Fargo.
  • Mobile Check Deposit – Chime will determine if you are eligible for Mobile Check Deposit. They will check to see if you have received at least one direct deposit of $1 or more since June 1, 2021 from an employer, Gig economy payer via ACH transfer or government benefits.
  • Cash Deposit At Retail Locations – You can deposit cash into to your Chime Spending Account at over 90,000 retail locations such as (Walmart, Speedway, Dollar General, CVS, Rite Aid, Circle K, Sheetz Incorp, Cumberland Farms, Walgreens and 7-Eleven). Just ask the cashier to deposit to your Chime account. You can make up to 3 deposits every 24 hours and you can deposit a maximum of $1,000 every 24 hours and up to $10,000 every month.

Can I Withdraw Money From My Chime Credit Builder Card?

Yes, you can use the Chime Credit Builder card at an ATM to withdraw cash. The maximum amount your can withdraw is $500 every 24 hours. You will need to setup a PIN with the Chime app before you go to the ATM to withdraw any money.

Is There An Alternative To The Chime Credit Builder Card?

Yes, the alternative to the Chime Credit Builder Card is the Self Credit Builder Visa Credit Card. The Self Visa Credit Card is similar to the Chime Credit Builder Card as they offer a Credit Builder Account when you add your deposit into your Account and that money will be used for your Credit Card. There is no credit check required to open an account but the Self Credit Card does have a credit limit. If you stay in good standing they will increase your credit limit. Before you can apply for the Self Credit Card you do need to have a Self Credit Builder Loan which is designed to help someone with bad credit quickly increase their credit score.

Related: Self Review: How To Build Credit With A Credit Builder Loan

Is The Chime Credit Builder Worth It?

Yes, the Chime Credit Builder card is worth getting for anyone with bad or no credit. You can use the card anywhere Visa is accepted and there are no fees. You will need to make a Chime Deposit when you open your account but that money will be applied towards your credit limit as well as help increase your credit score.

Do you have bad credit, no credit, or want to learn how to become a credit expert?

Signup for the #1 DIY Credit Repair Course

The Credit Repair Course includes:

  • How to find your credit report and your ACTUAL Credit Score
  • A breakdown of how your credit score is calculated
  • How to increase your credit score in each category
  • The best tools to increase your credit score fast
  • How to dispute negative items from your credit report
  • Credit dispute letter templates and when to send them
  • The best credit cards for your credit score
  • How to use credit cards to leverage your money and business
  • How to use credit cards to get free travel, bonuses and rewards

Learn how to fix your credit for life by enrolling in The Credit Repair Blueprint today!

Credit Repair Course - The Credit Repair Blueprint