The secured Visa card Chime’s credit Builder is available to anyone without a credit history. You can apply online within minutes.
You must own a Chime checking or savings account that has at least $200 of eligible direct deposits to get the card.
This can be from an employer, a payroll provider, or a benefits payer by Automated Clearing House (ACH) deposit.
There is no annual charge
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Chime doesn’t charge an annual fee for its credit card, making it an excellent option for people looking to build their credit without incurring high interest rates.
The minimum security deposit required for secured cards is not necessary.
Cardholders can instead fund their accounts by making a $200 direct deposit to their Chime checking account.
This transfer becomes their spending limit for the month and can be used to make purchases.
Unlike other credit cards, Chime doesn’t report credit utilization to the three major credit bureaus. This means you can max out your limit and make on-time payments, without negatively impacting your credit score.
There is no minimum security deposit
A minimum security deposit is not required for the Chime credit card.
It is an unusual feature of secured credit cards because you can deposit whatever amount you like instead of having to pay a set number.
You will need to open a Chime Account in order to get your card. This account works the same as any savings or checking account.
You also need to have a qualifying direct deposit into your spending account of $200 or more within the past year.
For people with limited credit, this card is great for building credit quickly and without a huge security deposit. You should also be aware of the possibility that you could lose your credit score if you miss a payment.
No credit check
If you want to start building credit without the hassle of a credit check, Chime Credit Builder may be the right card for you.
Although it does not offer the same perks as other credit cards you can still expect to improve your credit scores by paying on time and maintaining a low balance.
The Credit Builder card works in tandem with the Chime checking and savings account, making it easier to save and spend money.
The Credit Builder card automatically transfers the money that you receive from your paycheck to your Credit Builder account.
This feature, called “Move My Pay,” makes it easy to keep your finances in order.
No balance transfer fee
Chime offers a no balance transfer fee credit card that can be an excellent option for people looking to build credit.
These cards come with interest-free periods ranging from six to 15 months, which can help you save money on your monthly payments and reach zero balance sooner.
These cards also have the advantage of being more flexible than secured credit cards.
Chime allows you to set a spending limit that is based on funds from your Credit Builder account. This replaces the banks limits.
Chime also reports your payment history to the three major credit bureaus, which can help boost your FICO score over time.
It is vital because this information shows banks and credit agencies that you pay on time and make wise use of your credit.
Credit building that is more secure
Credit cards are a great way to repair or build credit. But it’s important to understand how they work before you sign up.
Chime is an online bank that works specifically with people who have poor or no credit history.
This means it doesn’t run a credit check on you, or run your name through ChexSystems to investigate the negative impact of past mistakes.
This makes it a great option for those looking to start building or rebuilding their credit without having to worry about making a big security deposit.
The credit bureaus will also receive reports about on-time payments. It is crucial because your credit score is influenced by payment history.
