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Chime is a nontraditional technology company offering access to checking, savings and credit accounts. Similar to other secured cards, the Secured Chime Credit Builder Visa® Credit Card promotes a way to establish a solid credit history. Before they can use the secured card to make regular purchases, cardholders must deposit money to the card to establish a credit limit. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N. A. or Stride Bank, N. A. , Members FDIC.
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Chime Doesn’t Run Credit Checks for Approval
Chime lists its mission as aiming to make financial peace of mind attainable for anyone. Chime doesn’t require a credit check to be approved and thus no minimum credit score² is required.
Perhaps unintentionally, Chime’s Visa Secured card promotes applications from people with poor credit or too many recent credit card application rejections. A credit score can be damaged and borrower approval rates may suffer from multiple hard credit checks conducted in a short amount of time.
Chime Doesn’t Charge Fees for Using Credit Builder, Doesn’t Offer Rewards
Like other credit-building cards, Chime doesn’t charge annual, international or maintenance fees. Unlike most credit cards, Chime also doesn’t charge cardholders any interest³ on purchases. This could be a huge perk for cardholders hoping to get a break from paying high interest fees.
Cardholders won’t benefit from rewards or welcome bonuses common with other credit cards. Chime doesn’t offer benefits like cash back, points or promotional cash deposits. If rewards or bonuses are more important than having no interest, Chime isn’t the best option.
Chime Credit Builder Card Review: Huge Credit Score Drops | How To Fix It
FAQ
Why did my credit score drop with Chime credit builder?
Does Chime mess with your credit score?
How do I increase my credit with Chime credit builder?
Can you move money back from Chime credit builder?
How does chime credit builder affect my credit score?
Each Chime member will have their own credit journey with Credit Builder. The impact on their credit will depend on their score before opening the Chime Credit Builder card, how often they use the card, their ability to make on-time payments, and additional credit factors outside the Credit Builder account.
Does chime credit card affect your credit score?
When you apply for a credit card, including secured cards, the issuer pulls your credit. A hard inquiry can cost you a few credit score points and will stay on your credit report for two years. Chime promises not to check your credit, meaning that applying for a Chime credit card won’t hurt your score.
Is chime credit builder a good credit card?
Cardholders have to be mindful of credit utilization, which can have a large impact on credit scores. Chime’s Credit Builder Visa Secured card may be a good option for cardholders who need to rebuild bad credit or start building credit history from scratch. There’s a $0 annual fee and no interest charges on any purchases.
What is chime credit builder?
Chime Credit Builder is a charge card that reports your monthly payments to the major credit bureaus. As a cardholder, you’ll move money from your Chime Spending Account to your Chime Credit Builder card before making any purchases. Can Chime Credit Builder hurt your credit? Yes.