Chime Credit Builder Secured Visa® Review: Build Credit Without Fees or Interest

Quick Review

The Chime Credit Builder Secured Visa® is a charge card that’s open to people of all credit backgrounds. It’s a unique credit-building option that’s definitely worth a look if you have no credit history or a damaged credit score and you want an alternative to an ordinary secured card.

Here are the key points to consider when deciding whether to get the Chime secured card:

• No fees: This card is essentially free to use since you’ll never have to pay maintenance fees or interest on the amount you borrow. The only exception is the $2.50 cash advance fee that Chime charges for withdrawing money from an out-of-network ATM.
• You have to pay your full balance each month: One key feature of this card that Chime does a good job of keeping quiet is that it’s not actually a credit card at all—it’s a charge card. This means you have to pay your balance in full at the end of each month. Regular credit cards offer the option to roll over some debt from one month to the next.
• The zero-interest policy isn’t as generous as it seems: Chime’s 0% interest policy may seem exciting, but the truth is that most credit cards have a grace period where you can repay your balance interest-free. Chime spares you from interest by forcing you to pay your balance in full at the end of each billing cycle, which is before interest would begin accruing on a regular card anyway.
• You have to do all your banking digitally: Chime doesn’t have any brick-and-mortar locations, and you’ll need to download the Chime app to apply for the Credit Builder secured card and manage your account. This isn’t ideal for cardholders looking for a more traditional approach to banking.

The Chime secured card doesn’t offer any rewards or many of the basic benefits that usually come with a credit card. However, it offers credit-building features and comes at a minimal cost to borrowers.

Pros & Cons

Who Is the Chime Credit Builder Secured Visa® Best For?

Because the Chime Credit Builder card is so unique, it definitely won’t suit everyone. There are a few groups of people most likely to be able to make the most of Chime’s benefits:

• Credit newbies: If you’re looking for your first ever credit card or you want to dip a toe into the world of credit before fully diving in, then the Chime Credit Builder card may be a good place to start since it has no fees, doesn’t require a credit history, and enforces good payment habits by requiring full-balance payments each month.
• Credit builders on a budget: Keeping your spending under strict control is a lot easier with a charge card like the Chime Credit Builder card than with a regular credit card. This is because you can only spend what you have available in your account, and you don’t need to worry about going deep in debt due to late fees or growing interest.
• Blacklisted cardholders: If you recently filed for bankruptcy, have a history of credit card charge-offs, or you’ve burned your bridges with most major credit card issuers, then you might not have many options, even among secured credit cards. Chime is an alternative financial organization that can give you a fresh start without subjecting you to a credit check.

How Does the Chime Credit Builder Secured Visa® Work?

With no fees, no interest, and no credit check required, the Chime Credit Builder Secured Visa® may seem too good to be true—and you’d be right to be suspicious. Chime does a good job of advertising the main attractions of the card, but they do an equally good job of hiding the details about how it really works.

The key point to take away is that the Chime Credit Builder card is not a typical credit card. It’s a charge card, which has important implications for your responsibilities as a cardholder.

Here’s what you need to know:

• You need to set up a checking account first: To get the Chime Credit Builder Secured Visa®, you need to open a Chime Checking Account and set up a direct deposit of at least $200 before you can apply for the Chime Credit Builder card.
• You have to pay off your full balance every month: Instead of a minimum payment, your full balance will be due every month—and failing to pay in full will damage your credit. This makes the Chime card less than ideal if you want a card that will increase your spending power.
• You need to keep topping up your account: The Chime Credit Builder secured card only allows you to spend up to what you’ve put down as your deposit. You’re allowed to use your security deposit to pay off your balance each month, but each time you do that, your credit limit will go down to $0 until you add more money to your security deposit.
• Your credit limit won’t affect your credit score: Chime won’t report your available credit to the credit bureaus. One advantage to this is that your credit score won’t drop if you max out your card. However, you won’t be able to improve your score by increasing your credit limit.

What the Crowd Says

With no fees, no interest, and no credit score requirements, the Chime Credit Builder Secured Visa® is nearly impossible for reviewers not to recommend. But that doesn’t stop them from voicing concerns about the card’s inconvenient quirks, the lack of basic benefits for cardholders, and the implications of getting a charge card with a fintech company rather than a regular credit card from a proper bank.

What Major Publications Say

Major credit card review publications acknowledge the Chime Credit Builder Secured Visa® as an incredibly safe and low-cost option for building credit. With no fees or interest whatsoever, it’s hard not to recommend.

With that said, many reviewers warn against the card’s downsides. They point out the potential inconvenience of needing to open a Chime checking account and then needing to continually top up your checking account balance to maintain your spending limit, not to mention the total lack of basic benefits and purchase protections you’d get with any other credit card.

Some reviewers also voice concerns that the Chime secured card is almost too safe—that it might give a false impression of cardholder responsibilities and won’t adequately prepare beginners for the realities of managing a traditional credit card account.

What Cardholders Say

Most people who have the Chime Credit Builder Secured Visa® report that the card is everything it claims to be—it’ll improve your credit score at no cost whatsoever, and you won’t have any risk of late payments. The mobile app is easy to use, and depositing money is a quick and simple process.

Negative reviews tend to focus on how account information is reported to the credit bureaus, particularly the lack of transparency from Chime and unexplained credit score drops. Some cardholders simply say that the card didn’t do much at all to help their credit, or they express dissatisfaction with some of the consequences of having an account with a company that’s not a proper bank.

Potential Credit Score Drop

A small group of users mention that the Chime Credit Builder card hurt their credit scores. This seems to be a risk if you use the card frequently but don’t immediately top it up again. Your balance may be reported inaccurately, or your utilization rate may appear as 100%.

These cardholders are left confused about how exactly the card works and how payments and credit utilization are reported to the credit bureaus, and it seems like customer service reps don’t usually do much to shed light on these matters.

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Rates & Fees

Fees

Even though the Chime Credit Builder Secured Visa® is advertised as a no-fee card, it’s important to note that they do charge a cash advance fee of $2.50 when you use your Chime card to withdraw money from an out-of-network ATM.

You can get free cash withdrawals from the following in-network ATMs:

• Moneypass ATMs at 7-Eleven locations
• Allpoint ATMs
• Visa® Plus Alliance ATMs

Chime also charges a $20 fee for expedited delivery of a replacement card if your Chime card is lost or stolen. Standard delivery is free of charge.

Interest Rates

If you’re someone who’s struggled with credit card debt in the past, then the Chime card’s lack of interest charges may seem especially appealing.

As mentioned, you can also avoid paying interest on regular credit cards by simply paying your full balance each month. Since Chime requires you to repay your balance in full each month anyway, they’re not really offering you a better deal than what standard credit card issuers offer—they’re just forcing you to pay back everything you spent rather than offering you the option to only make a minimum payment.

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Rewards

While it’s common for credit cards for bad credit and limited credit not to offer rewards, there are a handful of credit cards that do. If earning cash back or credit card points is important to you, look into other credit cards for bad credit or credit cards for no credit.

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Credit Limit

The credit limit you’ll get on the Chime Credit Builder Secured Visa® will be the equivalent of however much money you’ve directly deposited into your Credit Builder account from your Chime checking account.

Unlike the case with many secured credit cards, the credit limit on the Chime card is completely under your control. You can add money to your deposit at any time to increase your credit limit. However, there is one notable downside: increasing your credit limit won’t improve your credit score.

Most credit cards for building credit offer potential credit line increases that boost your credit score by increasing the amount of available credit you have listed on your credit report. However, Chime doesn’t report credit utilization to the credit bureaus.

This has both advantages and disadvantages. On one hand, your score won’t drop if you max out your card. On the other hand, you have one less way to raise your credit score.

Security Deposit

Instead of requiring a traditional deposit, the Chime Credit Builder card requires you to have a Chime checking account with at least $200 of qualifying direct deposits from your employer, payroll provider, or benefits payer.

The following deposits will not be considered qualifying direct deposits:

• Bank ACH transfers
• Pay Anyone transfers
• Verification or trial deposits from financial institutions
• Peer-to-peer transfers from services such as PayPal, Cash App, or Venmo
• Mobile check deposits
• Cash loads
• Using Your Security Deposit

Once your qualifying deposit has been made into your checking account, you can move $200 or more to your Chime credit account and use that as your credit limit. You can add to these funds at any time to increase your credit limit.

Additionally, you can use your security deposit directly to pay balances on your credit card. This is a rare feature, as many secured cards lock your security deposit until you upgrade to an unsecured card or close your account.

Benefits

Unfortunately, the Chime Credit Builder Secured Visa® doesn’t come with many benefits for cardholders. You won’t get any of the purchase protections, insurance coverage, or travel benefits that come with many credit cards.

You’ll get Visa’s zero liability protection, but this is standard across Visa cards. This gets you off the hook for paying back any charges made on your Chime Credit Builder card that you didn’t authorize.

Safer Credit Building

Safer Credit Building is a payment option you can choose that basically guarantees you never have any late or missed payments. When you sign up, your monthly balance is automatically paid using the money in your Credit Builder account.

Since all your on-time payments will be reported to the credit bureaus, your credit score will improve as you use your Chime card. Just be sure to move more money into your Credit Builder account so that you can keep spending.

Move My Pay

This feature of the Chime Credit Builder card allows you to set up automatic money transfers. You can choose to have a certain amount of money moved from your Chime checking account to your Credit Builder account whenever you get paid.

Chime Mobile App

With the Chime mobile banking app, you can manage your account digitally. You can perform money transfers and view your transaction history.

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How to Get a Chime Credit Builder Secured Visa®

Credit Score Required

There’s no minimum credit score required for the Chime Credit Builder card. In fact, you won’t have to undergo any credit check at all in order to get the card. This makes the card a great choice for people who’ve been rejected for other credit cards due to a bad credit score or insufficient credit history.

How to Apply

The application process for the Chime Credit Builder Secured Visa® is fairly straightforward, but you’ll need to complete a few preliminary steps before you can open your account and begin using your Chime Credit Builder card.

Here’s what you’ll have to do:

1. Open a Chime Checking Account. The easiest way to do this is to submit an online application. You’ll need to provide your name, address, date of birth, and Social Security number.
2. Download the Chime mobile app. You can find the app on Google Play or the Apple Store.
3. Set up a direct deposit to your Chime Checking Account from your employer, payroll provider, or benefits payer. You’ll need to receive an Automated Clearing House (ACH) deposit of at least $200 to be eligible for the Credit Builder account.
4. After you receive your qualifying deposit, open the Chime mobile app and find your invitation to apply for the Chime Credit Builder account. Select the “Apply Now” button and verify your personal information.

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Building Credit

Credit Reporting

Chime will report your payment activity (i.e., whether you make payments on time each month) but not your credit utilization. Credit utilization is the amount of your credit limit you’re currently using, and it’s one of the major credit scoring factors.

Tips for Building Credit

The Chime Credit Builder Secured Visa® has numerous features specifically designed to help you avoid pitfalls on your credit-building journey. There are steps you can take to ensure consistent progress:

• Sign up for Safer Credit Building: Taking advantage of this automatic payment feature ensures that you never have a late or missed payment. This is crucial for building credit since your payment history is the most important factor influencing your credit score.
• Keep your account open as long as possible: One secret to building good credit is to let your credit accounts age by keeping them open and active. Since the Chime Credit Builder secured card doesn’t have any maintenance fees, there’s no harm in keeping it in your wallet for years to come.
• Use your good credit to get a new credit card: The Chime Credit Builder Secured Visa® can increase your credit score by helping you build a good payment history, but it won’t impact your credit utilization rate. For an optimal score and a well-rounded credit profile, consider adding a traditional credit card to your credit file.

The most important thing to remember is that your credit score reflects how well you manage your debts and honor your obligations to creditors. Do what you can to keep your Chime Credit Builder account active and in good standing, and you should see an improvement in your credit score over time.

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FAQs

Can you get a cash advance with the Chime Credit Builder Secured Visa®?

Cash advances are allowed on the Chime Credit Builder card. However, if you use an out-of-network ATM to make a cash withdrawal, you’ll need to pay $2.50 per transaction.

Is Chime a real bank?

Chime is a fintech company that offers financial products to consumers, but it’s not a bank or a card issuer. Instead, the Chime Visa® Credit Builder Card is issued by Stride Bank, an FDIC member.

Where can you use the Chime Credit Builder Secured Visa®?

In theory, you should be able to use the Chime Credit Builder secured card anywhere that Visa is accepted.

However, some merchants (particularly car rental companies and hotels) won’t accept Chime debit or credit cards because of the higher risk of fraud associated with fintech companies like Chime compared with well-established banks. 1

How much can you withdraw from the Chime Credit Builder card?

Chime cards have a cash advance limit of $500. This is the maximum amount of money you can withdraw in one transaction from an ATM with your Chime Credit Builder card.

How do you get a Chime metal credit card?

For a limited time, some cardholders can get the Metal Chime Visa® Credit Card. To qualify, you need to receive an invitation by email and make 40 transactions of $1.00 or more within the first 60 days after you receive the invitation email.

For more details on qualification requirements and updated information on this promotion, check out Chime’s detailed guide on how to get the Chime metal card.