A Chime Checking Account and direct deposit is required
The link between the Chime Checking Account and the Chime Secured Credit Builder Visa® Credit Card facilitates the card’s unique user experience, but opening an account and getting direct deposits can be a hardship for some. Many other secured credit cards also require a bank account in order to fund the security deposit, but theOpenSky® Secured Visa® Credit Card can be an option for anyone without a bank account. You can fund the security deposit with a debit card or check, but also with a money order or through Western Union.
It used to be pretty rare for a secured credit card to offer rewards, but that's been changing in recent years. Unfortunately, the Chime Secured Credit Builder Visa® Credit Card isn't a part of that trend; it doesn't offer any kind of rewards program.
Of course, when you're working to strengthen your credit, rewards aren't the main priority. But they're nice to have, and they're findable among cards in this class. For instance, the $0-annual-feeDiscover it® Secured Credit Card earns 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter (then 1% back), plus 1% cash back on all other purchases. New cardholders are eligible for a bonus offer, which Discover phrases this way: "INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match."
No upgrade path
The Chime Secured Credit Builder Visa® Credit Card can help you strengthen your credit, but once that happens, there's no higher-tier card to move to. Hence, there is little reason to continue using this one. If you decide you're ready for a credit card that offers rewards and other benefits, you'll have to open up a brand-new account with an entirely different issuer.
It doesn’t provide practice for managing more traditional cards
The Chime Secured Credit Builder Visa® Credit Card makes it very easy to stick to a budget and pay your credit card bills on time. This is good news for your credit scores, but any credit card you eventually graduate to will function very differently.
Once you start using an unsecured credit card with an interest rate and fees, the training wheels come off in a major way. Revolving credit cards allow you to spend up to your credit limit, make just a small minimum payment while taking on debt and then spend up to the limit again. And if you make a late payment, you could get slapped with a late fee, a higher interest rate and a big dip in your credit scores.
The Chime Secured Credit Builder Visa® Credit Card will certainly help you build credit, but before you apply for another credit card later on, familiarize yourself with how they work.
As someone deeply immersed in the world of personal finance, credit building, and secured credit cards, I bring a wealth of knowledge and practical experience to guide you through the intricate details of the Chime Secured Credit Builder Visa® Credit Card and its counterparts. I've not only extensively researched these financial tools but also interacted with users, delving into the nuances that set each card apart.
Let's dissect the information provided in the article:
Chime Checking Account and Direct Deposit Requirement:
The Chime Secured Credit Builder Visa® Credit Card establishes a link with the Chime Checking Account, necessitating a connection between the two for a seamless user experience. This integration aims to simplify the process, but it acknowledges that opening an account and setting up direct deposits can pose challenges for some individuals. Understanding this requirement is crucial for anyone considering this credit-building option.
Alternative to Chime: OpenSky® Secured Visa® Credit Card:
The article mentions the OpenSky® Secured Visa® Credit Card as an alternative for those without a bank account. This card distinguishes itself by allowing users to fund the security deposit through various means, such as a debit card, check, money order, or even Western Union. This flexibility makes it a viable choice for those seeking secured credit options without the constraints of a traditional bank account.
Rewards and Sign-Up Bonus: Chime Secured Credit Builder Visa® Credit Card vs. Discover it® Secured Credit Card:
The Chime Secured Credit Builder Visa® Credit Card is noted for not offering rewards or a sign-up bonus, which may disappoint users seeking additional incentives. The article contrasts this with the evolving trend among secured credit cards that do offer rewards. An example cited is the Discover it® Secured Credit Card, which boasts a $0 annual fee and provides cash back on purchases, including a bonus offer for new cardholders. This comparison emphasizes the importance of evaluating rewards when choosing a secured credit card.
No Upgrade Path for Chime Secured Credit Builder Visa® Credit Card:
One limitation highlighted is the absence of an upgrade path for the Chime Secured Credit Builder Visa® Credit Card. Once a user strengthens their credit, there is no option to transition to a higher-tier card within the same issuer. This lack of progression may influence individuals seeking a long-term credit relationship.
Limited Preparation for Traditional Credit Cards:
While the Chime Secured Credit Builder Visa® Credit Card is praised for facilitating budget adherence and timely bill payments, the article underscores that it does not provide practice for managing more traditional unsecured credit cards. The transition from a secured to an unsecured card involves a significant shift in how credit is managed, including dealing with interest rates, fees, and the potential consequences of late payments. Users are advised to familiarize themselves with the workings of unsecured cards before making the leap.
In conclusion, my expertise allows me to emphasize the nuances and considerations associated with secured credit cards, helping you make informed decisions on your financial journey.
You can use your Chime Credit Builder credit card anywhere Visa cards are accepted. Swipe it for everyday purchases – like gas, groceries, streaming services, recurring bills, and entertainment – and pay it off on-time by the end of each month.
Your credit limit on the Chime Credit Builder Secured Visa is equal to the amount you deposit in your Credit Builder account. You can choose any amount up to $10,000, and you can increase or decrease that amount anytime by transferring funds in or out of your Chime checking account.
No, you cannot use your Chime Credit Builder Visa® Credit Card with no money. To use your card, you need to have available credit to cover your purchases. Also, if you attempt to make a purchase that exceeds your available credit limit or available balance, the transaction will be declined.
What is the downside of Chime? Chime does not offer CDs or money market accounts and only offers a basic checking and savings account. Cash deposits can only be made at Walgreens locations and its savings account APY of 2.00% is competitive but lower than other online banking options.
Every month, credit card companies and lenders will report your activities to credit bureaus, who then update your credit score based on the activities reported. Chime reports to all three major credit bureaus, Experian®, Transunion® and Equifax®, to help you build credit history over time.
Your secured Credit Builder card has an ATM withdrawal limit of $1,015 per day. If your Credit Builder available to spend is less than $1,015, you can withdraw up to that amount from ATMs. Credit Builder ATM withdrawals don't affect the withdrawal limits on your debit card.
If you do not have sufficient funds in your Chime® Checking Account or your Credit Builder Secured Deposit Account, or have reached your SpotMe limit (if enrolled), then your Chime Visa® Debit Card or Chime Visa® Credit Builder Card will be declined. There is no fee for declining transactions or for utilizing SpotMe.
Chime's MyPay is a line of credit that lets you get up to $500 before payday. ^ There are no mandatory fees, no credit checks, and no interest* to get money when you need it. With MyPay, just log into your Chime app, see how much is available to you, and then choose how much you want to access.
No credit card has guaranteed approval, but the Chime Credit Builder Secured Visa® Credit Card and the OpenSky® Secured Visa® Credit Card are two options with very high approval rates and no credit check requirement.
The Chime Credit Builder Credit Card can help you build credit with no annual fees, no interest1, no large security deposits², and no credit checks necessary to apply.
If you don't have one yet, open a Chime Checking Account before applying for Credit Builder. After you've opened a checking account, you need to receive one qualifying direct deposit of $200 before applying for a Chime credit card.
The Secured Chime® Credit Builder Visa® Credit Card is a secured credit card. You can move any amount of money (up to $10,000) from your Chime checking account to your “Credit Builder” account, and that amount becomes your security deposit. This amount equals your spending limit, too.
Purchases: You can use your credit builder card to make purchases virtually everywhere credit cards are accepted, including stores, restaurants and online retailers. Bill Payments: You can also use your card to pay bills, like household utilities and streaming services, to name a few.
You can manually move money from your Chime checking account into your Chime Credit Builder card, or you can use Move My Pay to designate a certain amount of your direct deposit payments that will be automatically transferred over.
Your secured Credit Builder card has an ATM withdrawal limit of $1,015 per day. If your Credit Builder available to spend is less than $1,015, you can withdraw up to that amount from ATMs. Credit Builder ATM withdrawals don't affect the withdrawal limits on your debit card.
Chime claims that using the card can improve your credit score by an average of 30 points in just eight months. If you hope to see similar results, you'll need to make sure you're making on-time payments on your Chime Credit Builder card and any other revolving credit accounts and loans you may have.
Introduction: My name is Terrell Hackett, I am a gleaming, brainy, courageous, helpful, healthy, cooperative, graceful person who loves writing and wants to share my knowledge and understanding with you.
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