What the Chime Secured Credit Card Is

The Chime Secured Credit Card is a secured credit card issued by Chime, a financial technology company. You put down a cash deposit—typically $200 to $2,500—and that deposit becomes your credit limit. You then use the card like a regular credit card, and your payment history gets reported to the three major credit bureaus: Equifax, Experian, and TransUnion.

The card is designed for people building or rebuilding credit. Because your deposit secures the card, Chime takes on less risk, which is why they can issue it to people with no credit history or a damaged one. The goal is to use the card responsibly for several months or a year, then graduate to an unsecured card once your credit score improves.

Chime also offers a checking account and savings account, and the secured card integrates with those accounts—though you do not have to use Chime's bank accounts to hold the card.

Key Takeaways

  • Your cash deposit becomes your credit limit, and Chime holds that deposit for the life of the account unless you close it or graduate to an unsecured card.
  • There is no annual fee, but you must make at least a minimum payment each month to keep the account in good standing and have your activity reported to credit bureaus.
  • Chime reports your payment history to all three credit bureaus, which means on-time payments build your credit score over time.
  • You can request a credit limit increase after six months of on-time payments, and Chime may increase your limit without requiring an additional deposit.
  • The card has no foreign transaction fees and includes fraud protection, but interest rates are higher than unsecured cards because the account carries more risk for you.

How to Open a Chime Secured Credit Card Account

You can open a Chime Secured Credit Card through the Chime mobile app or website. The process takes about 10 minutes and requires your Social Security number, date of birth, address, and income information. Chime will run a soft credit check (which does not affect your credit score) to verify your identity.

Once your identity is verified, you choose your deposit amount. The minimum is typically $200, and the maximum is $2,500. That deposit is transferred from your bank account or a Chime checking account if you have one. Chime holds the deposit in a separate account and does not use it to pay your bills—it is purely collateral.

After your deposit clears, your card is activated and you can begin using it. The physical card arrives by mail within 7 to 10 business days, but you can use the card number when ready for online purchases through the app.

Deposit Requirements and What Happens to Your Money

Your deposit is not a fee or a down payment on the card itself. It is collateral that Chime holds to cover the credit line they are extending to you. If you charge $500 on the card and pay it back, your deposit remains untouched. The deposit only moves if you close the account or if you default on payments and Chime uses it to cover what you owe.

The deposit earns no interest while Chime holds it. You cannot withdraw it while the account is open and active. If you close the card or graduate to an unsecured Chime card, Chime returns the deposit to your bank account within 5 to 7 business days.

If you want to increase your credit limit later, you can request a limit increase after six months of on-time payments. Chime may grant the increase without requiring an additional deposit, though they may also ask you to add more money to your deposit if they choose to raise your limit.

Fees, Interest Rates, and Costs

The Chime Secured Credit Card has no annual fee, no monthly fee, and no foreign transaction fees. Those are significant advantages over many other secured cards on the market.

The interest rate (called the APR, or annual percentage rate) ranges from 18% to 24%, depending on your creditworthiness at the time you open the account. This is higher than most unsecured cards, but it is typical for secured cards because the issuer is taking on more risk. If you carry a balance, interest accrues daily on the unpaid amount.

Late payment fees are $25 if you miss a payment by 30 days or more. If you miss a payment by 60 days, the fee increases to $35. Missing payments also damages your credit score and may trigger Chime to close the account or use your deposit to cover what you owe.

How Chime Reports Your Activity to Credit Bureaus

Chime reports your account status, credit limit, balance, and payment history to Equifax, Experian, and TransUnion every month. This means every on-time payment you make helps build your credit score, and every late payment or missed payment hurts it.

Your payment history is the single largest factor in your credit score—it accounts for about 35% of your score. Using the Chime card responsibly and paying on time every month is one of the fastest ways to improve a low credit score. Most people see meaningful score improvements within 3 to 6 months of consistent on-time payments.

Chime also reports your credit utilization—the percentage of your credit limit that you are using. If your limit is $500 and you carry a $250 balance, your utilization is 50%. Credit bureaus prefer to see utilization below 30%, so keeping your balance low relative to your limit also helps your score.

When You Can Graduate to an Unsecured Card

After 6 to 12 months of on-time payments, you may be offered the chance to graduate to a Chime unsecured credit card. When this happens, Chime returns your deposit and converts your account to a standard credit card with no collateral required.

Graduation is not automatic—Chime reviews your account and decides whether to offer it based on your payment history and credit score. If you have made every payment on time and your credit score has improved, you are more likely to be offered graduation. If you have missed payments or carried high balances, Chime may not offer it yet.

You can also request graduation yourself after 6 months if Chime has not offered it. Contact Chime customer service through the app or website and ask whether you are may be able to access. Even if you are not offered graduation when ready, continuing to use the card responsibly will eventually make you may be able to access.

How to Use the Card and Manage Your Account

The Chime Secured Credit Card works like any other credit card. You can use it online, in stores, or over the phone anywhere Visa is accepted. You receive a statement each month showing your balance, minimum payment due, and due date.

You can pay your bill through the Chime app, through the Chime website, or by setting up automatic payments from your bank account. Chime recommends setting up automatic payments so you never miss a due date. You can choose to pay the full balance, the minimum payment, or any amount in between.

Paying the full balance each month means you avoid interest charges entirely. Paying only the minimum means interest accrues on the remaining balance, which costs you money over time. Most people building credit aim to pay the full balance each month if possible, or at least keep the balance below 30% of their credit limit.

You can view your account activity, credit limit, current balance, and payment history anytime through the Chime app. You can also set up alerts to notify you when your payment is due or when your balance reaches a certain amount.

Frequently Asked Questions

Can I use the Chime Secured Credit Card if I have no credit history?

Yes. The Chime Secured Credit Card is designed for people with no credit history, poor credit, or credit that is being rebuilt. Chime does not require a minimum credit score to open the card. You only need to be at least 18 years old, have a valid Social Security number, and have a way to fund your deposit.

What happens if I miss a payment?

A missed payment is reported to the credit bureaus and damages your credit score. If you miss a payment by 30 days, Chime charges a $25 late fee. If you miss by 60 days, the fee increases to $35. Repeated missed payments may result in Chime closing your account or using your deposit to cover what you owe.

Can I increase my credit limit without adding more money to my deposit?

After six months of on-time payments, you can request a credit limit increase. Chime may grant the increase without requiring an additional deposit, though they may also ask you to add more money. Contact Chime through the app to request a limit increase and find out what they require.

How long does it take to build credit with the Chime Secured Credit Card?

Most people see meaningful credit score improvements within 3 to 6 months of consistent on-time payments. The longer you use the card responsibly, the more your score improves. After 6 to 12 months, you may be may be able to access to graduate to an unsecured card if your payment history is clean.

What happens to my deposit if I close the account?

When you close the account, Chime returns your deposit to your bank account within 5 to 7 business days. If you have an outstanding balance on the card when you close it, Chime may use part of your deposit to cover that balance before returning the rest to you.