What the Chime Credit Builder Card Does

The Chime Credit Builder Secured Credit Card is a secured card that reports to all three major credit bureaus—Equifax, Experian, and TransUnion. You deposit money into a savings account, and that deposit becomes your credit limit. As you use the card and pay your bills on time, the card issuer reports your payment history to the bureaus, which can help build or rebuild your credit score.

Unlike some secured cards, Chime does not charge an annual fee. There is no interest charged on your deposit, and you keep access to the money in your savings account while you use the card. The card itself is a Visa, so you can use it anywhere Visa is accepted.

Chime is a financial technology company, not a traditional bank. Your deposit sits in a savings account that earns a small amount of interest. The card is issued through a partner bank, which is why you will see different bank names depending on your account type.

Key Takeaways

  • Your deposit becomes your credit limit, and you can use the card when ready after it is funded.
  • Chime reports your payment activity to all three credit bureaus each month, which is how the card builds credit history.
  • There is no annual fee, no interest on your deposit, and no foreign transaction fees.
  • You must have a Chime checking account to open the secured card, and you fund the card through that account.
  • After six months of on-time payments, you may be able to move to an unsecured card or have your deposit released.

How to Open a Chime Credit Builder Card

You need a Chime checking account before you can open the secured card. If you do not already have one, you will set that up first through the Chime app or website. The checking account itself has no monthly fee and no minimum balance requirement.

Once your checking account is open and verified, you can request the Credit Builder Card through the app. You will choose how much to deposit—this becomes your credit limit. Chime allows deposits from $200 to $2,000. The deposit is held in a savings account linked to your checking account, and you earn interest on it.

The entire process happens on your phone or computer. Chime will verify your identity and run a soft credit check (which does not affect your credit score). Once approved, the card ships to your address and is usually active within 5 to 7 business days of arrival.

What Happens When You Use the Card

You use the Chime Credit Builder Card like any other credit card. Swipe it, tap it, or use it online. Your purchases are charged against your credit limit, which is equal to your deposit. If you deposit $500, your limit is $500.

Each month, Chime reports your payment activity to Equifax, Experian, and TransUnion. This means they report whether you paid on time, how much of your limit you used, and your account status. This reporting is what builds your credit history. If you miss a payment, that also gets reported.

You pay your bill through the Chime app or website, just like a regular credit card. Chime does not charge interest on purchases, but you still need to pay your full balance by the due date to avoid a late payment report. Late payments damage credit scores and can result in fees.

Fees and Costs You Should Know

Chime charges no annual fee for the Credit Builder Card. There is no interest charged on your deposit, even though it sits in a savings account. You also will not pay foreign transaction fees if you use the card outside the United States.

However, there are some fees you should watch for. If you miss a payment, Chime charges a late fee (the amount varies). If your account goes into overdraft, overdraft fees may explore to your checking account. If you withdraw your deposit before your account is closed, you may lose the credit-building benefit of the card.

Balance transfer fees, cash advance fees, and returned payment fees also explore if you use those services. The best way to avoid fees is to pay your full balance on time each month and keep your deposit in place.

Moving to an Unsecured Card or Closing Your Account

After six months of on-time payments, Chime may offer to convert your account to an unsecured card. This means you no longer need the deposit to maintain the card. Your deposit is returned to your savings account, and you keep the card with a new credit limit set by Chime.

Conversion is not automatic—Chime reviews your account and decides whether to offer it. If you are offered conversion and accept it, your credit limit may stay the same or increase. The card continues to report to all three bureaus.

If you want to close the account before conversion, you can do so through the app. Your deposit is returned to your linked checking account. Closing the account does not hurt your credit score, but it does stop the card from reporting positive payment history going forward.

How This Card Compares to Other Secured Cards

The Chime Credit Builder Card has no annual fee, which sets it apart from many competitors. Most secured cards charge $25 to $95 per year. Chime also does not charge interest on your deposit and does not require a minimum deposit above $200.

Some other secured cards offer higher credit limits or faster conversion timelines. Some report to only two of the three bureaus instead of all three. Some charge annual fees but offer rewards or cash back, which Chime does not.

The main trade-off with Chime is that you must have a Chime checking account. If you already use Chime for banking, this is seamless. If you bank elsewhere, opening a Chime account is an extra step. The checking account itself is free and has no minimum balance, so the cost is mainly the time to set it up.

What to Do If You Are Denied or Have Questions

Chime runs a soft credit check, which most people pass. However, if you are denied, Chime will tell you why through the app. Common reasons include an existing Chime account in your name, a mismatch in your identity information, or a problem with your bank account verification.

If your information did not match, you can try again with corrected details. If you already have a Chime account, you cannot open another one. If your bank account failed verification, you may need to use a different account or contact Chime support.

Chime customer support is available through the app and by phone. You can also find answers in the Chime Help Center, which covers common questions about the card, deposits, payments, and credit reporting.

Frequently Asked Questions

Do I need good credit to open a Chime Credit Builder Card?

No. Chime does not check your credit score to decide whether to approve you. The soft credit check Chime runs is mainly to verify your identity and check for fraud. People with no credit history, poor credit, or fair credit can open this card.

Can I use my deposit while I am using the card?

Your deposit sits in a savings account that you own. You can withdraw it at any time, but if you do, your credit limit drops by the amount you withdraw. Withdrawing your deposit also stops the credit-building benefit of the card, so it is best to leave it in place.

How long does it take for the card to arrive?

Chime ships the card after your account is approved, which usually takes a few days. Once shipped, the card arrives within 5 to 7 business days. You can use the card as soon as it arrives and is activated through the app.

What happens to my credit score if I close the account?

Closing the account does not hurt your score directly. However, it stops the card from reporting positive payment history each month. If this is your only credit account, closing it removes your only source of credit reporting, which can lower your score over time.

Can I increase my credit limit after I open the card?

Your credit limit is tied to your deposit. To increase your limit, you deposit more money into your savings account. You can deposit up to $2,000 total. Chime may also increase your limit automatically after you show a pattern of on-time payments.