Chime Credit Builder Review

Credit builder accounts are one of the best ways to start establishing your credit history. The Chime credit builder card is a competitive option, but it might not be the right fit for everyone.

Here’s what you should know about the Chime card at a glance:

• Chime won’t check your credit when you apply
• There’s no annual fee or interest on the Visa credit card
• Chime reports to each major credit bureau
• Borrowers must provide deposits before using the account
• The account doesn’t build savings like credit builder loans

Of course, you’ll need to know a lot more to make an educated decision on whether the account is a good fit for you. Take a look at our in-depth review below for more information.

How Do You Start With Chime?

To start with Chime, you’ll need to fill out a standard application. Chime will verify your identity in the usual way (name, social security number, etc.).

Next, you’ll have to download the Chime app, which you can use to manage your Chime account, as well as take advantage of their banking services.

Chime is a completely online bank. Through the app, you’ll have access to the Chime savings account, checking account, Chime Visa Debit card with overdraft fee protection, and more.

You can take advantage of the additional services like the Chime debit card if you want, but it’s not necessary for building credit.

Finally, you’ll need to fund your Chime spending account, so you can get started making your purchases and building your credit rating. You can either set up a qualifying direct deposit with your employer, use ACH to transfer funds from your bank account, or deposit cash at retail locations.

How Does A Chime Credit Builder Card Work?

Most credit builder accounts operate like an inverse installment loan. The borrower makes monthly payments first and gets the proceeds at the end.

The Chime credit builder card uses a different model. The account doesn’t require installments, and in fact, functions more like a secured credit card.

Here’s how it works:

• You open a Chime account (with no credit check)
• You deposit cash into the secured account
• The deposit becomes your credit limit for the billing period
• You make charges on the account up to that limit
• At the end of the billing period, Chime automatically pays off the balance, on time and in full
• Chime reports each payment to build your credit

Note that if you’re looking for something to finance a purchase, Chime is not the way to go.

What Chime Credit Builder Card Offers

The Chime credit builder card offers people with a poor credit score a safe way to build credit without taking on an additional monthly loan payment, interest charges, or fees.

In fact, it shouldn’t impact your budget or spending habits at all. Just swap out your debit card for the Chime credit card, and continue as usual. The only difference is that, with the app,