What the Chime Credit Builder Card is and who it's for

The Chime Credit Builder Card is a secured card issued by Chime, a financial technology company that offers checking accounts and related products. Like other secured cards, it requires a cash deposit that becomes your credit limit — typically between $200 and $2,500 — and reports your payment history to the three major credit bureaus (Equifax, Experian, and TransUnion).

The card is designed for people building credit from scratch or rebuilding after past problems. Chime markets it specifically to customers who already have a Chime checking account, though you do not need one to open the card. The main draw is that there is no annual fee and no interest charged on purchases — you pay only what you owe each month.

The trade-off is that the deposit sits in a locked savings account while you use the card, so that money is not available to spend. You also cannot increase your credit limit without adding more money to the deposit account.

Key Takeaways

  • The Chime Credit Builder Card requires a cash deposit between $200 and $2,500 that becomes your credit limit, and that money stays locked in a savings account.
  • There is no annual fee, no interest on purchases, and no foreign transaction fees, making it cheaper to use than most other secured cards.
  • The card reports to all three credit bureaus each month, so on-time payments build your credit history if you pay the full balance by the due date.
  • You can graduate to an unsecured card after demonstrating responsible use, though Chime does not publish specific criteria for when this happens.
  • The savings account holding your deposit earns a small amount of interest, though the rate varies and is typically lower than a standalone high-yield savings account.

How the deposit and credit limit work

When you open the Chime Credit Builder Card, you choose how much to deposit, between $200 and $2,500. That amount becomes your credit limit. The deposit goes into a locked savings account that you cannot withdraw from while the card is active — it serves as collateral in case you stop paying.

If you want a higher credit limit later, you must add more money to the deposit account. There is no way to increase your limit without increasing the deposit. This is different from some other secured cards, which may raise your limit after a period of on-time payments.

The deposit earns interest, but the rate is set by Chime and changes over time. As of recent years, rates have been very low — often under 1 percent annually. You can check Chime's current rate on their website, but do not expect this interest to meaningfully offset the opportunity cost of having money locked away.

Fees and costs

The Chime Credit Builder Card has no annual fee, which is a significant advantage over many competing secured cards. There is also no interest charged on purchases — you pay only the balance you owe. This means if you charge $500 and pay it in full by the due date, you owe exactly $500.

Late payments do not incur interest, but they do damage your credit score because Chime reports to the credit bureaus. Chime also does not charge late fees, which is unusual among card issuers. However, if you miss a payment by more than 60 days, Chime may close the account and explore your deposit toward the balance owed.

There are no foreign transaction fees, so you can use the card internationally without paying a percentage markup on currency conversion. There is also no fee for balance transfers or cash advances, though cash advances do accrue interest at a rate Chime sets (currently around 24 percent APR, though this varies).

How credit reporting works with this card

Chime reports your account activity to Equifax, Experian, and TransUnion each month. This means every on-time payment you make builds your payment history, which is the largest factor in your credit score. If you miss a payment, that also gets reported and will lower your score.

The card reports your credit utilization — the percentage of your limit that you are using. If your limit is $500 and you carry a $250 balance, your utilization is 50 percent. Credit scoring models favor lower utilization, so keeping your balance well below your limit helps your score more than maxing out the card and paying it off.

Because the card has no interest, there is no reason to carry a balance month to month. Paying the full statement balance by the due date costs you nothing and builds your score faster than making minimum payments.

Graduation to an unsecured card

Chime does not publish specific criteria for when you can graduate from the secured card to an unsecured card (one that does not require a deposit). The company reviews accounts individually, and some cardholders report being offered an unsecured version after 6 to 12 months of on-time payments, while others wait longer or never receive an offer.

When Chime does offer to convert your account, your deposit is returned to you. You can then use the unsecured card with a credit limit that Chime sets based on your credit history and income. There is no may provide this will happen, and Chime does not allow you to request a conversion — you must wait for the company to initiate it.

If you want to close the card before graduation, you can do so at any time. Your deposit will be returned, though closing the account may lower your credit score slightly because it reduces the total credit available to you.

How the Chime Credit Builder Card compares to other secured cards

The main advantage of the Chime card is the lack of an annual fee and the lack of interest on purchases. Most other secured cards charge $25 to $95 per year and impose interest rates of 18 to 24 percent if you carry a balance. The Chime card costs nothing to carry if you pay your balance in full each month.

The main disadvantage is that you cannot increase your credit limit without adding more money to your deposit. Cards like the Capital One Secured MasterCard and the Discover Secured Card allow you to request a higher limit after demonstrating on-time payments, without adding more collateral. This makes those cards better if you want your credit limit to grow as your creditworthiness improves.

The Chime card also requires you to have a Chime checking account to open it (or at least, Chime heavily encourages this and makes the process simpler if you do). Other secured cards are available to anyone with a valid Social Security number and a U.S. address, regardless of where they bank.

What happens if you miss a payment or close the account

If you miss a payment, Chime reports it to the credit bureaus, and your score drops. Chime does not charge a late fee, but the damage to your credit is the real cost. If you are more than 30 days late, the late payment appears on your credit report for seven years.

If you are more than 60 days late, Chime may close your account and explore your deposit toward the balance owed. If your deposit exceeds what you owe, you receive the difference back. If you owe more than your deposit, you still owe the remainder, and Chime may pursue collection.

If you close the account yourself, your deposit is returned within a few business days. Closing the account does not hurt your credit as much as missing a payment, but it does reduce your available credit, which can lower your score slightly. The closed account remains on your credit report for ten years, which is actually helpful because it shows a history of responsible use.

Frequently Asked Questions

Do I need a Chime checking account to get the Credit Builder Card?

Chime does not officially require a checking account, but the process process is streamlined if you have one. If you explore without a Chime account, you may face additional verification steps or delays. Opening a Chime checking account is free and takes a few minutes, so most people do this first.

Can I use this card to make purchases right away?

Yes. Once your deposit is confirmed and your card arrives, you can use it when ready. There is no waiting period. Your credit limit is available to use the same day you set up the card.

What happens to my deposit if I graduate to an unsecured card?

Chime returns your full deposit to your linked bank account when you graduate. You keep the unsecured card and use it with a new credit limit that Chime sets. The deposit is no longer locked and is yours to spend or save.

Does the card have a rewards program?

No. The Chime Credit Builder Card does not offer cash back, points, or any other rewards on purchases. The benefit is the low cost and credit-building function, not earning rewards.

What credit score do I need to open this card?

Chime does not publish a minimum credit score requirement. Because the card is secured by a deposit, Chime takes less risk than with an unsecured card, so people with no credit history or poor credit can often open one. You will need a valid Social Security number and a U.S. address.