If you can only get a secured credit card based on your credit history, the Chime Credit Builder Visa Secured Card may sound like music to your ears. It won't hassle you with fees, annual interest, and there is no minimum security deposit, making it one of the most affordable options in its class. But you will have to open a Chime spending account before you can open your Chime Credit Builder card.
| Positive points | Negative points |
|---|---|
| No annual interest | Low basic reward rate of 1% on everything else |
| No minimum security deposit requirement | Bonus categories must be activated quarterly |
Unlike a traditional secured card that essentially holds your security deposit hostage until you close that account, you can use your Chime deposit to pay off your balance at the end of each billing cycle. For example: if you have $200 in your Credit Builder account and use $100 to pay off your Chime Credit Builder card, your credit limit the following month will only be $100, unless you add more money to your Chime Credit Builder account.
This lack of a firm credit limit may not work as well for you if you are running low on cash to increase your deposit from one month to the next. This may make Chime Credit Builder not look as good compared to a more traditional safe option where you only disburse money once.
| Benefits | |
|---|---|
|
Payment
|
Use your deposit to pay your monthly balance |
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Report
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Reports for all three credit bureaus |
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Verification
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No credit check to apply |
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Safer Credit Building
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Activate Safer Credit Building and your balance will be paid automatically on the spot |
Building credit
Like most credit cards, Chime Credit Builder reports your credit card activity to the three major credit bureaus: Experian, TransUnion, and Equifax. This information goes into your credit reports and can affect your credit score. If you manage your card well, your credit score can improve. Click the button below and apply for your card:
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You will also not have to worry about credit utilization, even if your credit limit is very low. Credit utilization, or how much of your credit line you are using, is the second most important credit score component. Chime Credit Builder does not report this data, so even if you are using 100% of your available credit each month, your score will not be affected.
Will this card be good for me?
If you want to build credit, but are worried about going into debt with a traditional credit card, the Chime Credit Builder is an excellent option for you. Its features will allow you to focus on the task at hand while eliminating most of the risks associated with credit cards.
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