Chime Credit Builder Review: How It Work
You can use the Chime Credit Builder Card to help you build your credit. It’s an easy-to-use, almost-fee-free secured credit card. Though its features aren’t what you’re used to, they’re made for people who want a simple way to improve their credit scores. This article explains all you need to know about Chime Credit Builder.
Watch the below video on Chime Credit Builder Review:
To build your credit but not get into debt, this might be the right card for you. The card isn’t like any other secured card, and it may take some time to get used to. A simple way to build credit is great if you don’t want to spend a lot of time.
The card doesn’t work well for people who want to get rewards or bonuses for becoming a new cardholder because it doesn’t have any rewards or bonuses for that.
Card: How does this work?
Those who have at least one direct deposit of $200 to their Chime Spending account in the last 365 days are in. Use the card: You must move money from your Chime Spending account to the secure account that is linked to your Chime Credit Builder card in order to use the card. Send up to $10,000 to your Chime account.
Your “credit limit” is the amount of money in your secured account. Each time you buy something, Chime takes money from your secure account to pay for it. This means that your available funds go down.
To pay your bill on time when it’s due, you can make manual payments from any bank account, or you can use Chime’s Safer Credit Building feature, which automatically pays your balance with the funds in your secured account when the bill comes due.
It will be in default if you don’t pay your balance by 5 p.m. Eastern time on the next business day after your due date, which is the day after the next business day. It’s possible that if this happens, Chime will use money from your secured account to pay the balance and it might close your card account, too.
The Chime Credit Builder is different from other secured credit cards because it doesn’t charge interest or late fees. That’s bad because most secured cards like the Discover it Secured give you money back for buying things.
Chime Credit Builder has both good and bad things about it. The good things are that there are no fees and no credit checks.
A way to build credit that isn’t too risky
Reports to the three credit bureaus are sent out.
* Can’t keep a balance.
* Doesn’t offer rewards or a welcome bonus.
* You must use it with a Chime Spending Account to pay for things like gas.
This is how the pros explained it to you:
The only fee you’ll pay with this account is $2.50 for out-of-network ATM withdrawals, which is easy to avoid.
This card may be easier to get if you don’t have good credit, and there won’t be a short-term hit to your score from a credit check.
It’s easier to stay out of debt with this card because you have a secured account that you can use to pay off your balance in full.
Each of the three credit bureaus will see your payment history, balance, and account age. Chime will do this.
A list of things that could go wrong.
It’s not meant to be used to pay for things, so you can’t keep a balance.
No rewards or a welcome bonus are given out: If you want to get rewards or get a welcome bonus, you’ll have to look somewhere else. It’s true that there are a few secured cards with rewards, but not many.
It must be linked to an account called “Chime Spending” in order to work: In order for you to be able to get the Chime Credit Builder card, you need to have a Chime Spending account.
Make the Most of It
Because the Chime Credit Builder card is a credit card, it will help you build your credit in a safe way. You must pay off your balance each month, which means that you must pay on time and pay your balance in full. You should see your score go up just by using the card every month, so that’s why.
You may not have the same protections when you move from the Chime Credit Builder to unsecured cards, so you may not be able to get the same credit. This is how most credit cards work: You can make the minimum payment each month, pay down part of your balance, or pay off your balance in full each month. Another thing: If you don’t pay your credit card bill on time, you may be charged a fee.
To use Chime Credit Builder, you have to pay a fee.
Because the Chime Credit Builder card is almost free to use, it’s one of the best things about it. A secured card doesn’t charge any of the fees that other cards do. There are no annual fees, interest charges, or late fees because you can’t pay late.
Chime credit builder card limit
This is the maximum amount of money you can spend on your credit cards with Chime Credit Builder
There isn’t a credit limit on the Chime Credit Builder Card, which is different from most other credit cards. Instead, the limit is based on how much money you decide to put on the card.
The maximum amount you can spend on the Chime credit builder card in a day is $10,000.
That’s enough for most people.
Chime Credit Builder Review: Conclusion
For someone who has a good credit score and is used to paying their bills on time, a credit card with a bonus might be more beneficial.
Using the Chime Credit Builder is a good idea for anyone who wants to build credit history. If you already use Chime or are thinking about getting a Chime account, there are more positives than negatives to using the Credit Builder.