Table of Contents
Building credit to recover from a credit misstep or establishing your credit for the first time can be a challenge. Most cards require that you have an ability to prove that you can manage credit to qualify, which can be a catch 22. The Chime Credit Builder card was created to provide a solution. It is designed to pair with a Chime Spending Account. You can use money from your account to fund your Credit Builder card. You can then use your card with any retailer or store where Visa is accepted.
Chime will report your card activity to Equifax, TransUnion and Experian. Additionally, there is an option to turn on the Safe Credit Building feature. This automatically pays the balance of your card on time.
On Chime's Secure Website
Sign up Bonus
Balance Transfer Fee
No Credit – Poor
The card also has other attractive features. There are no fees, including annual fees. The card has 0% APR and requires no deposit. Best of all, there is no credit check to qualify. The card does not have a credit limit, so while Chime will not report your credit utilization, this can work to your advantage. Many poor credit cards have a low limit. This means that even if you only have small charges on the card, it can lead to a high credit utilization ratio that can hurt your credit score.
The main limitation of the card is that the balance in your account will dictate your card limit. So, if you have $300 in your account and use $150 to pay your Chime Credit Builder Card, the limit in the following month will be $150 until you add more funds to your account.
Let’s take a look at the benefits of this credit card and see if it’s the right one for your wallet or not.
One of the most attractive benefits of this card is there are no fees at all. This means no annual fee, no interest, no foreign transaction fees. So, you don’t need to worry about racking up charges that will compromise your finances and credit.
Unlike most cards, there are no credit check requirements to apply for the Chime Credit Builder Card. The only restriction is that you need to have a Chime Spending Account that will link to your card.
If you’re concerned about making your payments on time each month, you can enable Safe Credit Building. This will automatically take your monthly payments from your Spending Account. There is no requirement that you retain the balance in your account as a set security deposit and have separate funds to cover your card.
You can set your own credit limit with no minimum deposit. Your limit will be equal to the deposit in your Chime Spending Account.
The only restriction is that you need at least one direct deposit to your Spending Account within a year of your application date. This should be $200 or more. You can use the funds from your Spending Account to pay your Credit Builder Card each month.
Another great advantage of this card is that Chime reports your card activity to all three of the major credit bureaus. This will help you to build your credit, making it easier to apply for credit in the future.
Let’s take a look at the drawbacks of this credit card and see if it’s the right one for your wallet or not.
This card is designed to work with a Chime Spending Account. So, you must open an account first.
Since the balance in your Spending Account determines your credit limit, it can go both up and down. For example, if you use the funds in your Spending Account to pay your monthly bill, you will need to transfer in more funds or your card limit will drop.
Chime does not offer an upgrade to a standard credit card, once you have established a better credit score.
You will need some funds to use as a deposit and set your credit limit. So, if you are short of cash, this card will not provide great benefits for you.
The Chime Credit Builder Card is only available for Chime Spending Account clients. If you don’t already have a Spending Account you will need to sign up for this first. Once your account is open, you can proceed with your Credit Builder Card application.
You can begin the application process online. Simply click the green “Apply Now” button to start.
You’ll need to then provide your name and a valid email address.
You can also apply using the Chime app. The application link is under settings. You’ll see a “Try Credit Builder” under the Credit Builder Card tab.