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Trying to build your credit? Chime may have the answer. Chime is an online-only financial technology company, not a bank, that offers banking products, including a checking and savings account. It also offers the Chime Credit Builder Secured Visa® Credit Card.
Unlike most secured cards that come with a hefty security deposit and high fees, the Chime Credit Builder card is different. This card requires no minimum deposit or credit check to apply, and there are very few fees.
But you must maintain a Chime Checking Account to open the card, and you don’t have the option to upgrade to an unsecured credit card in the future.
| Key takeaway: The Chime Credit Builder card isn’t perfect, but for those with no credit or bad credit, its unique features make it a solid and easy option to start growing your credit. |
Is the Chime Credit Builder card worth it?
If you have poor credit (or no credit), the Chime Credit Builder card may be your best option.
For one, it’s one of the easiest cards to qualify for. There’s no credit check needed to apply — so if you want to avoid a hard inquiry on your account, this could be a good option. There are no annual fees, interest fees, or late fees.
The Chime Credit Builder card does come with some hassles. Compared to premium rewards cards, opening a checking account and making an initial direct deposit to get the card can be troublesome. Plus, like most secured cards, you won’t earn points, airline miles, or cash back on your purchases.
Also, Chime lacks a pathway to upgrade to an unsecured credit card, something offered by other financial institutions.
We recommend the Chime Credit Builder card only if you can’t qualify for an unsecured card with rewards or a secured card with the ability to upgrade. It’s best for those with no credit history or poor credit.
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Key features of the Chime Credit Builder card
Unlike other secured cards, the Chime Credit Builder card doesn’t require a security deposit. Of course, the caveat is that your credit limit will be whatever you deposit into your Chime Checking Account, which is required to get this card.
How to get the Chime Credit Builder card
To start, you must open a Chime Checking Account and receive a qualifying direct deposit of $200 or more. This deposit should come from your employer, payroll provider, or benefits payer.
The Chime Credit Builder card is truly open to almost anyone, regardless of your credit score or credit history. No credit check is required to qualify for the card. You can get approved if you open a Chime Spending Account and have a qualifying direct deposit.
Keep in mind that your credit limit will be whatever you deposit. For example, if you deposit $1,000, your credit limit will be $1,000. Chime offers one of the highest maximum credit limits on the market — up to $10,000.
Because you can only charge the amount you have in your checking account on your card, there’s no way to carry a balance. That means you don’t have to worry about late fees or interest charges.
Benefits and rewards
A key benefit of the Chime Credit Builder card is the ability to help you build credit. Chime reports your on-time payments to the major credit bureaus, helping you boost your score over time.
This card has other benefits, like SpotMe, a feature that allows overdraft protection of up to $200 as long as you receive $200 in qualifying direct deposits during that month. You can also access your paycheck as soon as it’s available in your Chime Checking Account.
There are no annual, late, or foreign transaction fees to worry about. Plus, you won’t have to pay interest because you can’t carry a balance. You can also withdraw or deposit cash into your Chime Checking Account for free at more than 60,000 in-network ATMs.
The Chime Credit Builder card is a Visa card, so you will get some Visa traditional card benefits, including Zero Liability, which protects your card against unauthorized use.
Drawbacks
Those considering the Chime Credit Builder Card should consider a few things.
First, you need to be comfortable banking online. As a financial technology company, Chime does not have physical locations. If you prefer to visit a bank branch and get in-person support, Chime may not be your best option.
The Chime Credit Builder card’s most pressing drawbacks are the complete lack of rewards and the inability to graduate to an unsecured card. Conversely, most financial institutions would offer the latter to reward prudent credit utilization.
There’s also the inability to carry a balance from one month to the next. While this is helpful to prevent overspending, it can be a drawback in an unexpected situation.
Who should get the Chime Credit Builder Card?
The Chime Credit Builder Card serves a specific purpose — helping you build credit. Since there’s no credit check required, it provides access and a second chance that many other cards don’t.
The Chime Credit Builder Card can be a good choice if your income or financial situation makes you ineligible for other secured credit cards. The Chime card makes the most sense if:
- You’re new to credit and want to establish a history
- You have bad credit and need to rebuild your score
- You want an easy approval with no credit check
The Chime card can also help you build good financial habits, like paying your credit card bill on time and avoiding overspending. After you’ve made progress with Chime and improved your score, you can apply for other credit cards.
Alternatives to consider
If the Chime Credit Builder card doesn’t fit your situation, there are plenty of other cards to consider. Here are some alternatives.
Capital One Platinum Secured Credit Card
The Capital One Secured card reports to all three credit bureaus and doesn’t require a credit check for approval. Like the Chime card, there are no rewards. This card doesn’t come with a security deposit – between $49 and $200 — which may limit your spending ability. One advantage is that Capital One will review your account for graduation to an unsecured line of credit.
Petal® 2 “Cash Back, No Fees” Visa Credit Card
The Petal 2 card is an unsecured card — so no security deposit is needed — but it doesn’t require a credit score to apply. One key advantage is that the Petal 2 card offers cash back rewards on eligible purchases. Like the Chime card, there are no late fees or annual fees.
The bottom line
The Chime Credit Builder Card is a solid option for those who need to build their credit history or improve their score.
The Chime card also fosters responsible use since your credit limit only goes as far as your security deposit. Over time, building your creditworthiness can help you access higher-tier credit cards.
But for most, the Chime card offers very limited value, especially regarding rewards. As always, analyze a card’s features before applying, and make sure they align with your financial needs and goals.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.