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Chime Credit Builder Secured Visa?: Safer Credit Building

Chime Credit Builder Secured Visa? Credit Card review
KEY TAKEAWAYS
  • The Chime Credit Builder Secured Visa? Credit Card allows you to deposit up to $10,000 and then spend it as you see fit.
  • What we think: The Chime Credit Builder Secured Visa is a good card to build credit without having to worry about racking up credit card debt. Since your credit limit depends on how much money you transfer onto the card, it could be a limiting factor if you don’t have extra funds to start with.
  • This secured Visa card comes with many helpful features, including a user-friendly mobile app, autopay and a flexible credit limit.
  • Chime requires no minimum security deposit and no hard credit checks.
  • The Chime Credit Builder may be a good fit for individuals who need help building or repairing their credit.
SUMMARY

A good credit score can help you save money on your auto insurance, qualify for the best rates on a home loan and reduce the total cost of buying a vehicle.

Unfortunately, it takes time to build a strong credit history. If you’ve never used credit, or you have a few negative items on your credit reports, you may not qualify for an unsecured credit card. To help consumers improve their credit scores, Chime? is now offering a secured credit card with no annual fee.

We put together this guide to the Chime? Credit Builder Secured Credit Builder Visa? Card to help you understand how it works and determine if it’s a good fit for your situation. Find out how you can use the Chime Credit Builder to achieve your financial goals.

Pros & Cons

Pros

  • No annual fee
  • No credit check required to apply
  • No annual interest charges

Cons

  • No credit limit greater than your deposit
  • Need direct deposit account with Chime
  • No option to upgrade
Chime Credit Builder Secured Visa? Credit Card
LEARN MORE
Key Information
No rewards. Works similarly to a debit card but helps to build credit. Does not require a credit check. No annual fee. Must receive a single qualifying direct deposit of $200 or more to apply (see card details).

Get $10 with your Chime Checking Account and Visa? Debit Card

Activate your Chime debit card within 30 days of enrollment and get $10 with our exclusive code SAVE10.

Chime believes that your money shouldn’t cost money?, so you’ll pay:

  • No monthly fees
  • No overdraft fees
  • No minimum balance requirement
  • No foreign transaction fees
  • No transfer fees
  • Use code SAVE10 and get $10

Chime Checking Account

Is the Chime Credit Builder Card worth it?

The Chime Credit Builder is worth it if you meet at least one of the following criteria:

Like all credit cards, the Chime Credit Builder has both pros and cons.?

Here’s what to expect if you sign up for one of these cards.

  • No hard credit checks: Chime doesn’t do a hard credit check, so applying for the Chime Credit Builder Secured Visa? does not affect your credit.
  • 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.
  • 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.
  • User-friendly mobile app: With the mobile app, you can deposit checks, contact a live support agent, view live transaction alerts and more.
  • 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.
  • 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.
  • 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.
  • 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.
  • Requires a Chime checking account with a minimum qualifying direct deposit: To qualify for this credit builder, you must open a Chime checking account. You must also have at least one qualifying direct deposit of?$200 or more.
  • No option to upgrade to a traditional credit card: Many companies allow you to convert a secured card into an unsecured card once you have a history of on-time payments. Chime doesn’t offer this option, so you’ll need to keep using your Credit Builder Card or apply for an unsecured credit card with another company.
  • No rewards program or sign-up bonus: Chime doesn’t have a rewards program, so using this secured credit card won’t help you earn cash back, airline miles or other rewards. There’s also no sign-up bonus for opening a Credit Builder Card.
  • You need to pay balances in full each month: With a traditional credit card, you can carry a balance from one month to the next — although it’s better to pay your balance in full to avoid interest charges. If you have the secured credit card from Chime, you must pay your entire balance off every month. This makes it a little less flexible than other credit cards.

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.

If your employer doesn’t offer direct deposit, or you don’t want to use your Chime checking account to manage your paycheck, you may be able to meet the direct deposit requirement by transferring money from Apple Cash, PayPal, SoFi Money or Circle Pay. If you’re not sure if your financial institution qualifies, contact a Chime support agent.

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. 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.

Is the Chime Credit Card a good way to build credit?

Overall, the Chime Credit Builder is a good credit card to build credit.

Chime reports on-time payments to the major credit bureaus (Equifax, Experian and TransUnion), which may help you increase your credit score.?

This credit builder also has a feature called Safer Credit Building. If you turn it on, Chime will automatically pay your monthly balance with the money you have in your Chime Credit Builder secured account. The Safer Credit Building feature eliminates the need to worry about missing a payment and hurting your credit score instead of improving it.

Earning 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.

Fees and other costs

Chime is somewhat unusual because it’s one of only a few credit builders that have no annual fee and no foreign transaction fees.

If you plan to travel overseas, the lack of foreign transaction fees may make your trip a little more affordable. Additionally, Chime charges no late fees on its secured credit cards. You should still make your payments on time, but if you miss a due date for some reason, you can catch up without incurring a financial penalty.

However, you do have to pay fees for the following:

Who is the Chime Credit Builder Card best for?

This credit builder works best for three types of users.

1

If you 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.

See More See Less
2

If you’ve 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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3

If you’re 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.

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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.

How do I apply for a Chime Credit Card?

You can learn more about the Chime Credit Builder Secured Visa Card and apply online at your convenience.

Opening a secured Visa with Chime requires just four steps:

  1. Open a Chime checking account. Be prepared to provide proof of identity, such as a driver’s license, state-issued ID card or passport.
  2. Set up a qualifying direct deposit. Remember, if you don’t want to deposit your paycheck into your Chime account, you may be able to use a transfer from PayPal, Apple Cash or another source as your qualifying deposit.
  3. Fill out the application and submit it. Chime doesn’t do hard credit checks, so applying does not affect your credit history.
  4. Transfer funds from your checking account to your secured Visa. You may deposit up to $10,000 on your Chime credit card.

How does Chime compare to other secured cards?

The Chime Credit Builder Secured Visa is a bit different from other secured credit products.

One of the biggest differences is that many banks require you to pay a security deposit to open a secured card. You don’t get your security deposit back unless you pay off your balance and close your account. Chime doesn’t require a security deposit, making the Chime Credit Builder Secured Visa a little more accessible.

Chime also makes it much easier to increase your credit limit. Instead of applying for an increase and waiting for approval, you can increase your limit at any time by adding more money to your Chime Credit Card. You can do this as many times as you want until you reach the maximum limit of $10,000.

Additionally, the Chime Card comes with helpful features to prevent overspending and improve your ability to budget and track expenses. For example, the mobile app delivers transaction alerts, ensuring that you never forget you just spent $20 on pizza or $50 on a movie date.

Chime Credit Builder Card FAQs

Is the Chime Credit Builder Card an actual credit card?

The Chime card isn’t a traditional credit card. It’s a secured credit card that allows you to deposit money and spend it as needed. This Visa credit card also requires you to pay your balance in full every month. With a traditional, unsecured card, you’re allowed to carry a balance as long as you make your minimum monthly payment. Some people find it difficult to manage their money if they can charge purchases without having to pay them off in a single month.

How does the Chime Credit Builder Card credit limit and deposit work?

Once you open your account, you must transfer money from your Chime checking account to your Chime Credit Card. This amount of money becomes your credit limit. For example, if you transfer $1,500, you have a limit of $1,500.

What makes Chime different from other secured cards is that it allows you to increase your limit by depositing additional funds. For example, if you add $3,500 to your original $1,500, you end up with a limit of $5,000, increasing your purchasing power.

Does the Chime Credit Builder Card require a credit check?

Chime doesn’t require a hard credit check for its secured card. Therefore, applying for this product will have no impact on your credit, regardless of your approval status. Hard credit checks typically cause your score to drop a few points, so this is a real benefit to applying for the Chime card instead of another secured card.

Additionally, banks and other financial institutions may be hesitant to lend you money if you have multiple hard inquiries on your credit reports in a short amount of time. Applying for the Chime Credit Builder helps you avoid this problem.

Are cash withdrawals possible with the Chime Credit Builder Card?

Yes. If you use an in-network ATM, you can withdraw money from your Chime Credit Card without incurring any fees. There’s a $2.50 fee for withdrawing money at an out-of-network ATM. No matter how high your limit is, there’s a?cash withdrawal limit?of $1,015 per day.

How is the Chime Credit Builder Card issued?

This credit card is issued by Stride Bank, N.A., an FDIC-insured financial institution. It looks just like a regular Visa credit card or debit card, but you can only spend up to the amount you deposit from your checking account. To get the card, you must open a checking account with Chime, make at least one qualifying direct deposit and fill out the Chime Credit Builder application.

Is the Chime Card a debit card?

Chime offers both a credit card and a debit card. The debit card doesn’t help to build credit, but the credit card does. Additionally, credit cards are more widely accepted than debit cards, and it’s often more difficult to do things like rent a car with a debit card. The card we discussed in this article is the Chime Secured Credit card.

Sarah Stasik
Sarah Stasik Personal Finance

Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.

With more than a dozen years of writing experience, Sarah has tackled niches that range from technical advances in fintech to personal budgeting challenges. She has covered topics such as insurance and the economics of private healthcare, small business management and accounting, and credit and savings. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful and relevant resources for readers.

* Opinions expressed here are those of the LA Times Compare Cards Team and have not been reviewed or approved by any advertiser or entities included within this content. See our editorial policy for more details.

All products or services are presented in this content without warranty. The information, including card details such as rates and fees, is accurate at the time of publish. Please visit each bank's website directly for the most current information.

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