Chime Credit Builder Visa® Secured Credit Card Review
Here are the best features of the Chime Credit Builder Secured Visa® credit card.
No annual fee
There is no annual fee to use this card. It should be noted that there are also no administration fees or maintenance fees. While there are other secure cards with no annual fee, some charge an annual fee. If you have limited funds, choosing a card with no annual fee is a good idea, and this card is fine.
No interest charges
Typically, interest is charged when a cardholder uses their card and does not pay the balance in full by the due date. This is the case with most unsecured and secured credit cards. The Chime Credit Builder Secured Visa® credit card does not charge interest.
No foreign transaction fees
There are no overseas transaction fees for international purchases with this card. Credit cards with this type of fee typically charge around 3%.
No credit check
If your credit is limited, it can be difficult to get approval for a credit card, especially if the card issuer requires a credit check. The good news is that the Chime Credit Builder Secured Visa® credit card does not require applicants to undergo a credit check for approval. This can be especially useful for applicants with minimal credit or low scores.
No minimum security deposit
Unlike many secured credit cards, this one does not have a minimum security deposit requirement. While there is no amount required, keep in mind that your credit limit will be determined by the deposit you make. For example, if you make a deposit of $ 250, your limit will be $ 250.
Reports to the three credit bureaus
The Chime Credit Builder Secured Visa® credit card is a good option for consumers who want to build up or improve their existing credit. Account activity is reported to Equifax, Experian, and TransUnion. This includes reporting if your balance is paid on time each month and tracking overdue payments.
Security deposit can be applied to payment
Most secured credit cards keep your deposit and you have to pay your bill with separate funds. With the Chime Credit Builder Secured Visa® credit card, you can use your deposit to make payments. Keep in mind that your credit limit will decrease as you use the funds in your deposit.
What could be improved
Despite its many advantages, the Chime Credit Builder Secured Visa® credit card has some aspects that could be improved.
Must bank with Chime
If you want to use the Chime Credit Builder Secured Visa® credit card, you will need to open a Chime spending account. In addition, you must have made at least $ 200 in direct deposits to this account in the last 365 days. So if you haven’t used Chime yet, you’ll want to start by following these steps.
The card works with your Chime spending account so that you can transfer money from your Chime spending account to your Credit Builder account. If you don’t want to open a bank account with Chime, this card isn’t for you.
Works like a prepaid card
Unlike other secured credit cards, this card works more like a prepaid card. Instead of debiting money from your card and borrowing it from the card issuer, you will load money from your Chime spending account to your Credit Builder account.
You can use your initial deposit to make payments, and the money you load into your Credit Builder account can also be used as payment. Since you’re spending your own money, it’s more like a prepaid card. While this is not a flaw, it is something to know before applying.
No possibility to earn rewards
If you are hoping to earn rewards on your spending, this card is not a good choice. It does not offer any rewards or signup bonuses. If you’re looking to earn some rewards, check out some of the best secure card options to see if they’re better for you.
No option to switch to an unsecured credit card
Some secured credit cards allow cardholders to switch to a secured credit card after a certain period of time, or after they have shown that they can manage their credit well. The Chime Credit Builder Secured Visa® credit card does not offer this option. If you are hoping to get an unsecured credit card in the future, you will need to apply for it separately.