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The Secured Chime Credit Builder Visa® credit card is secure credit card Perfect as a first credit card or as a second chance card. rebuild your creditChime offers additional online features to ensure you never skip a payment.
However, the credit builder lacks the perks that come with traditional credit cards, such as earning rewards. is needed.
There are a lot of pros and cons to weigh, especially for similar cards. Here are all the things you need to consider before opening a Chime Credit Builder Visa card.
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Secure Chime Credit Builder Visa® Credit Card
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Usage
A credit builder secured card is one way you can build or restore credit. Here’s what you can expect:
First, set up a Chime Checking account and receive a minimum qualifying direct deposit of $200. Once your Credit Builder card is approved, you can move money from your checking account to your credit card account. No credit limit is set. No matter how much you move into your Credit Builder protected account, it will act as your credit limit.
You can then use your credit builder card anywhere Visa is accepted to make credit card payments on time. build trust.
Your progress will be reported to Three major credit bureaus — TransUnion, Equifax, and Experian. For reporting purposes, make sure the credit building feature is turned on for your account.
Differences from other secure credit cards
The Chime Credit Builder Secured card works like most secure credit cards. You still have to pay a security deposit and the payment will be reported to the credit bureaus. However, there are some differences that make this card stand out.
- No credit check. Some, but not all, secured cards may have a credit check.
- You can access your deposit. Many secure credit card issuers won’t let you touch your deposit, but you can use this money to pay your balance at the end of the month. If you have used the full amount of your deposit to pay your bill, you will need to add funds to your Credit Builder protected account to reactivate your line of credit.
- I have a checking account requirement. In addition to opening a Chime checking account, you must deposit a minimum of $200 directly into your checking account in the final year of your application. Deposits must be made by your employer or payroll provider. Peer-to-peer money transfers, mobile checks, and cash deposits are not eligible.
reward
Like many secure credit cards, Chime’s credit builder does not offer welcome bonuses or ongoing rewards. Since this card is meant to build or repair credit, we recommend that you focus on building good credit with this card. If you are interested in earning rewards, Discover it® Secure Credit Card Or the Capital One Quicksilver Secured Cash Rewards Credit Card may be a better choice/
Once you’ve settled into a good rhythm of paying off your balance in full each month, consider upgrading. Unsecured point card.
Security deposit/fees
This card requires a qualifying minimum of $200 to be deposited directly into your Chime checking account within one year of applying for the Credit Builder card. The deposit serves as collateral for your credit card, but can also be used to settle the balance at the end of the month. Luckily, the Chime Credit Builder Secured card has no annual fees, interest, out-of-network ATM or exchange card fees.
Getting started with APR
Credit Builder Secured cards include Introductory 0% APR period For new purchases or balance transfers. I need to transfer the outstanding balance to start credit repair, balance transfer credit card, to consider debt consolidation loanor concentrate on creating something feasible debt repayment plan instead.
Other card benefits
In addition to helping you build better credit over time, Credit Builder has some useful extra perks.
- Instant transfers between Chime checking accounts and Credit Builder cards
- Fee-free ATM transactions at 7-Eleven Allpoint, Visa Plus Alliance and MoneyPass ATMs
- Move My Pay is a feature that automatically transfers money from your checking account to your credit builder card when you receive a payment.
replacement card
Discover it® Secure Credit Card
The Discover it Secured card is another secure card. no annual fee card It also reports to all three major credit bureaus to build your credit. A minimum security deposit of $200 is required to get started, but after seven months Discover will verify your account and may upgrade to a credit card that is not protected by If approved, the deposit will be refunded.
If you want to earn rewards while building or repairing credits, this card may be a better choice than the credit builder. With Discover, you can get 2% cash back on your total purchases up to $1,000 every quarter at gas stations and restaurants, and 1% cash back on all other purchases. Additionally, Discover Cashback Matches offers unlimited Dolford Dollar Matches for all cashback earned at the end of his first year.
However, if you’re repairing credit and fear that earning rewards could lead to overspending, Chime Credit Builder might be a less risky option.
see our full Discover it® Secure Credit Card Review.
Milestone® Mastercard®
The Milestone Mastercard is an unsecured card and a good option if your credit is not perfect. While it doesn’t have the perks of the Discover option, the Milestone card does have some great perks. First, Milestone does not require you to open or link a checking account. Also, since it is unsecured, there is no need to pay a security deposit. However, unlike the $35-$99 credit builders, there is an annual fee and a $40 late fee. Finally, milestone cards require a credit check, but if your credit is limited or not perfect, they may be easier to approve than other traditional cards. You can also check if you are pre-qualified for the card.
Frequently Asked Questions
What is the Safer Credit Building feature?
With Chime’s safer credit building tools, you can automatically pay your balance each month with the remaining amount in your credit builder-protected account. Enabling this feature will ensure that payments are made on time.
Will my credit score drop if I hit my credit limit?
Chime’s credit builder tool does not report your credit usage (the amount of credits used compared to your entire credit line), so reaching your credit limit does not negatively impact your credit score. However, it is important that you use this credit card responsibly and only charge what you can fully repay to ensure that you pay off your monthly balance.
What happens if I don’t pay my Credit Builder card?
If you fail to pay, Chime will deactivate your credit card until the outstanding amount is paid. If the balance is not paid in full after 30 days, Chime may report the balance to credit bureaus, which may adversely affect your credit.
When is the Chime Credit Builder payment due?
Statements are available by the 28th of each month, and payments are made by the 23rd of the following month, Chime says.
The editorial content on this page is based solely on the objective and independent evaluation of our writers and is not influenced by any advertising or partnership. It is not provided or commissioned by any third party. However, we may receive compensation for clicking links to products or services offered by our partners.
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