Thursday, June 16, 2022
HomeBankChime vs. Capital One: What's the Best Secured Credit Card?

Chime vs. Capital One: What’s the Best Secured Credit Card?

The Chime Credit Builder card puts a new spin on building positive credit history. We specifically designed this card with Chime members in mind. 

Whenever you’re comparing the best secured credit cards, you want to check out the features and benefits. But we prefer to highlight what Credit Builder doesn’t have:

  • No minimum security deposit requirement³

That’s a big difference compared to other secured credit cards on the market, which may have double-digit APRs and high annual fees. 

So how does Chime Credit Builder work? It’s pretty simple. 

First you need a Chime Checking Account and a $200 qualifying direct deposit to apply. Next, you move money from your Chime Checking Account to your Credit Builder secured account. This is the amount you’ll be able to spend with your card.

Once you’ve moved money over, you can use your Credit Builder card to make purchases anywhere Visa® is accepted. Buy gas, go out to dinner with friends, pick up groceries – all the things you normally spend money on day to day.

Now here comes the credit-building part. The money you moved to your Credit Builder secured account can automatically pay your monthly balance when you turn on the Safer Credit Building feature¹. Chime reports that activity to the major credit bureaus, helping you to build a positive credit history over time.¹ 

What are the pros and cons?

Chime’s Credit Builder helps to make building credit as easy as possible. Here’s why you might consider it if you’re looking for the best secured credit card:

  • There’s no risk of being denied since there’s no credit check to apply. (You just need a Chime Checking account and qualifying direct deposits.)
  • You won’t pay any steep annual fees.
  • Chime doesn’t charge interest either.
  • There’s no minimum deposit required³ and no preset spending limit, so you can control how much you spend month to month. 

Chime doesn’t report credit utilization to the credit bureaus as a percentage. Carrying a higher balance won’t work against your score the way that it can with other secured credit cards. That’s just one more way Credit Builder helps you improve your credit health.

Now, are there any downsides? You won’t earn rewards on purchases, but that might not matter much if your main goal is to help build a better credit score.

That’s definitely something the Credit Builder card helps you to achieve. And with the Safer Credit Building feature¹, you don’t have to worry about hurting your score because you accidentally forget to make a payment on time. 



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