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.
Want to know how does chime credit card builder work? Well, we have written a detailed guide on credit card builder chime to give deeper information and understanding about the chime credit builder card.
So let’s get started.
What Is Chime Credit Builder Card?
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Chime credit 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 everyday 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 are 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 to their inability to get loans from banks, which leads them into high-interest payday loans and other predatory debt traps.
If You want to boost your credit score Credit Saint can help you with this challenging process.
Related: Fix Your Credit With A Credit Repair 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?
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 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 as other banks do, Chime’s SpotMe allows you to overdraft up to $200 with no fees as long as you monthly qualify for 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 with 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 set up 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 option for many reasons.
Related: Best Banks Who Don’t Use ChexSystems
How Does Chime Credit Builder Work?
There are four steps to showcase how chime credit builder works:
- Bad credit applicants are approved for a chime card within 365 days
- After setting up an account, use it for daily purchases like gas and groceries
- Each payment is reported to credit bureaus
- Lastly, it will increase your credit score and makes up 35% of your FICO credit score
Here’s a detailed answer on how it works?
- Bad credit applicants are approved for a Chime card if they have direct deposits of $200 or more within the past 365 days.
2. After you set up your Chime account use your Credit Builder card on everyday purchases like gas and groceries and pay your bill on time every month.
3. Each on-time payment is reported to the credit bureaus which will increase your credit score as on-time payments make up 35% of your FICO credit score.
4. 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.
What are the Benefits Of The Chime Credit Card?
There are six major benefits of the chime builder credit card:
1. There is no annual fee or interest
2. No credit check needed to apply
3. No minimum security deposit is required
4. No maintenance fees
5. Use Safer Credit Building to automatically pay your balance on time, every month
6. Can increase your credit score by an average of 30 points
What Do I Need To Apply For Chime Credit Card?
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 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:
- Apply online at the Chime website.
- Enter email and click Get Started
- Fill in your personal information which takes only 2 minutes to complete.
- 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.
- Download the mobile app to access your account and mobile banking.
Chime Credit Builder Pros & Cons
Pros
- ✅ No Annual Fees
- ✅ No Monthly Maintenance Fees
- ✅ No Minimum Security Deposit
- ✅ No Interest On Purchases
- ✅ No Credit Check Required
- ✅ Mostly Everyone Is Eligible For This Program
- ✅ Reports On-Time Payments To All Three Major Credit Bureaus
- ✅ Doesn’t Report Credit Utilization To Credit Bureaus
- ✅ Average Credit Score Increase Of 30 Points
Cons
- ❌ Credit Limit Is Limited To Deposit
- ❌ Must Open A Chime Spending Account Before You Are Eligible To Apply For The Chime Credit Builder Card
- ❌ Doesn’t have any rewards points or sign up bonuses
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 are on-time payment history (35%) and the Increased 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
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How Much Can My Credit Score Improve With Chime Credit Builder?
On average, using this Chime Credit Builder can increase your credit score by 30 points. Your credit score will increase as long as you make payments on time.
However, it is important to note that credit is different for everyone and different factors can impact your credit score. For instance, if someone who has collections, a bankruptcy or very high debt your credit score may not increase as much as others until you get these negative items cleared from your credit report.
As long as you make on-time payments and keep your tradeline accounts open for long periods of time your credit score should increase quickly.
What Is The Chime Credit Builder Card Limit?
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 Credit Builder?
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 is 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 3 am-11 pm 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 a 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 are 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 set up 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
FAQ
There are four steps to showcase how does chime credit builder work:
1. Bad credit applicants are approved for a chime card within 365 days
2. After setting up an account, use it for daily purchases like gas and groceries
3. Each payment is reported to credit bureaus
4. Lastly, it will increase your credit score and makes up 35% of your FICO credit score
Yes, you can use a chime credit builder card to carry out cash at any ATM but you won’t pay any interest or money to ATM.
Yes, chime works with Zelle which means that you can use it to send money to your Chime account.
Yes, the chime credit is a secure credit card that works like a regular card. With the help of this card, you can purchase groceries, gas, and household goods. The best thing about this card is it does not have any annual interest charges.
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Is chime credit builder totally 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.
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