Your Chime Checking Account comes with a Visa® Debit Card, so why should you still open a Credit Builder card?
That’s easy: Chime Credit Builder is the interest-free way to build credit history. A higher credit score means easier approval for personal loans, car loans, and even renting an apartment— and at a lower interest rate.
Let’s break down the advantages of a Credit Builder card:
No fees 💳
Nearly a quarter of all credit cards charge an annual fee — and it’s an average of $94 a year, per a 2021 Consumer Finance study. That’s $94 just to keep the credit card in your wallet.
So what’s the annual fee for a Chime Credit Builder card? $0.
But even more costly for consumers is a credit card’s interest rate. According to Forbes, the average credit card interest rate in 2021 clocked in at 16.45%.
And the interest rate on a Chime Credit Builder card? (I think you know the answer.) None.
Chime’s Credit Builder card is an interest-free way to start building your credit without the risk of slipping into inescapable credit card debt.
Oh, and late fees? Accidents happen (we’ve been there too), so we won’t charge you a cent if you miss a payment.
No credit check 🔎
Most major credit card companies perform a credit check when you apply for a card. If you have no credit history or a low credit score, it can be almost impossible to get approved.
Chime doesn’t perform a credit check. You’re good to go as long as you have a Chime Checking Account and a qualifying direct deposit of $200. No credit history? No problem.
No minimum security deposit5 🔒
Chime Credit Builder is a secured credit card. You move money to your Credit Builder Account and whatever amount you move is the amount you can spend. Think of it as funding a debit card with cash in your checking account.
Other secured credit cards have a minimum security deposit, and they won’t let you use that deposit to cover your purchases; they hold onto it until you close the account. Not so with Chime. The money you move into your Credit Builder Account is yours to spend.
Level up your credit score 💪
The main draw of Credit Builder is in the name: It’s a way to help build your credit.1 So how can Credit Builder increase your credit score?¹
- On-time payments: We report your on-time payments to all three credit bureaus to help you build payment history.
- No credit utilization: Chime doesn’t report credit utilization to the credit bureaus, so you can use the full amount every month without a drop in your score.
- Length of credit history: The longer you keep your Credit Builder Account open and make on-time payments, the stronger your score will be.
On average, Chime members see a 30-point increase in their credit score with Credit Builder.⁶
Easy-to-use credit features 📱
Using Credit Builder is safe and easy, especially if you’re already a Chime pro with your checking account. Here’s how we help you build credit:
- Available to Spend: Why do we say Credit Builder is safe to use? The money you move to Credit Builder is how much you can spend on the card (seen on the app as “Available to Spend”). At the end of the month, you can also use that money to pay your monthly balance. This design helps you to avoid overspending and racking up debt!
- Move My Pay: With Move My Pay, a portion of your paycheck will automatically flow into Credit Builder.
- Safer Credit Building: We recommend turning on this feature. With Safer Credit Building, the money you’ve moved over from your checking account will automatically pay your monthly balance on time¹. Keep this feature turned on to avoid negatively affecting your credit.
- Easy monitoring: Not sure how much you’ve spent this month? Just open your Chime app to see all your purchases, outstanding balances, and how much you have left to spend. You can even use the app to disable your card to prevent fraudulent activities.
