Chime is a financial technology company that offers various services online. Its products include the Chime Spending Account, Chime Savings Account, Chime debit card, and the Chime Credit Builder Card. You can benefit from the services once you open an account online using your smartphone, tablet, or computer. Since it is a financial services company, you should use a secure internet connection to open your account. But can I overdraft my Chime credit builder card? We shall find out shortly.
Overdraft is the extra amount of money you get from your financial company to pay for a particular commodity. For example, let us say you were buying a radio in a retail store. Suddenly, you realize that you do not have enough money to buy the item. In such a case, your card issuer may give you an extra amount of money to complete the purchase. The money is payable with some fees on top. However, not every financial company charges fees.
For you to get a Chime account, you have to apply online. You can use your computer, mobile phone, or tablet and a secure internet connection. Since Chime is a financial company, they have to follow the federal guidelines that require financial companies to ask for details such as the identification document, Social security Number, physical address, phone number, and email address. By doing so, they help to prevent terrorists from opening bank accounts.
How to get started with Chime?
It is essential to know how to open your bank account with Chime since you require it to get your Chime Credit Builder Card. It is not that difficult since you can do it online. You can start by opening the Chime Spending account before anything else. We have the Chime savings account, but you cannot get it before opening the Chime Spending account.
To apply for your Chime Spending Account, you must share the following details:
- First and last name
- Social security number (SSN)
- Email address
- Password
The above details help financial institutions verify the account applicant’s identity to help minimize terrorism, money laundering, and fraud. Chime reviews and confirms your information before allocating you an account. You should be an American citizen and at least 18 years old to apply for an account with the platform.
Chime also offers a mobile banking app that you can download for free from the Google Play or Apple App Store. The app allows you to manage your money securely. You can then add a Savings account to keep the money for your future use in the app. The spending account allows you to enjoy the following services.
- Deposit money
- Manage transactions
- View your balance
- Get account alerts and notifications
Once you get your Chime Spending Account, you will also get a free Visa debit card. The spending account equals a checking account that you get from banks and credit unions.
How to get the Chime Credit Builder Card?
The Chime Credit Builder Card is a secured credit card for rebuilding credit. Once you complete your spending account application, you can apply online and start building your credit scores. It allows people with no credit and those with bad credit scores.
To start your application, you should first visit the Chime account application page to open one. However, if you already have a Chime account, you can log in to your account to apply for the card. Once the card processing is over, you will be able to get it to your physical address to activate it.
Since your physical address is essential for receiving your card, you must ensure it is updated. That way, you can avoid confusion during the delivery of your card via mail.
How does the Chime Credit Builder Card work?
Once you get it, the next question is, how does a Chime credit builder work? The operation of the Chime credit builder is like any other secured credit card out there. Once you get the card, you have to activate it. The process is easy as you open your Chime app, navigate the Settings option, select Credit Builder, and tap Activate Card. You should enter your card number, the expiry date, and the CVV when activating it.
Once active, you can deposit money to start borrowing against it. Chime has no minimum deposit requirements, and you can even deposit as low as $1 and start building your scores. The platform reports your card usage to the credit bureaus every month. Credit bureaus are the bodies that receive your borrowing information and use it to calculate your credit scores plus your credit report.
The Chime Credit Builder Visa® Credit Card has no interest or annual fees. It helps you build your credit without spending a lot of money, unlike other cards that charge a lot of fees.
How to deposit money in the Chime credit builder card?
Since the Chime Credit Builder is a secured credit card, you must deposit money in the account to use the card for its services. There are two ways you can build your credit. They include the following.
i) Use the ‘Move My Pay’ option.
The method requires you to choose an amount then Chime automatically transfers it from your Checking Account to your Credit Builder every time you receive your payments. You can even move money between the credit account to your Chime spending account.
ii) Move money manually
Instead of setting automatic transfers to your credit card account, you can move funds from your Chime Checking to your Credit Builder account every time you want to increase your Available to Spend.
Is the Chime credit builder card the best option?
According to various Chime secured credit card reviews, the credit builder is among the best you can use. There are numerous reasons why you can find the card amazing. They include the following.
- It allows you to put any amount of deposit you want. Therefore, you do not have to strain yourself with finding a lot of money for a deposit.
- Secondly, the Chime Credit Builder Visa® Credit Card has no annual fee. Therefore, you can be sure you won’t spend too much on fees.
- The card has no interest rate. That is one fantastic thing with the credit builder card. Most credit card issuers charge interest rates when you get their cards.
- There is no credit check when applying.
- Reports the card usage to the major credit bureaus.
How to use the Chime credit builder card?
There are various ways you can use the card for your day-to-day transactions. They include the following.
1) Buy goods and services
With the card, you do not need to carry cash to refill fuel at the filling stations or buy goods at a supermarket. You need to use the card, and you are good to go. As long as you buy goods and services that allow shopping with a payment card, you will have an easy time.
2) Withdraw money
The card allows you to withdraw money at over 60,000 ATMs countrywide located at Chime partner stores such as Walgreens, 7-eleven, and others. Unlike other credit card issuers who charge cash advance fees, there are no charges for withdrawing money from ATMs using the credit builder credit card.
Also, you can move money from your credit card account to your spending account to use it for your needs.
3) Build credit
Building credit is the primary use of the Chime credit card. The company reports to all three credit bureaus to help you build credit over time. You can see an increase of 30 points on average. You can build your credit with your daily purchases and on-time payments everywhere Visa credit cards are accepted.
Can I overdraft my Chime credit builder card?
Chime does not allow you to overdraft your credit builder card. That means you cannot exceed your credit limit. Therefore, it is always essential to budget yourself properly to ensure that your bill does not surpass what is in your card account.
However, you may move money from your spending account to your credit card account and continue purchasing your items or services. Most companies who offer overdraft fees do it at a fee.
Is the Chime credit card safe?
A Chime secured credit card is safe since it has various security layers to protect you from fraud. You usually get a PIN that you can use at ATMs to withdraw money. Unless you tell someone your PIN, no one should use your card at an ATM.
Moreover, your card usually has a security code to shop online securely when purchasing online. You must input details in the space provided, and you are good to go. The card number and the expiry data alone cannot authorize online spending.
Another mechanism that Chime utilizes to keep your card secure is encrypting all your data when shopping online. Therefore, third parties cannot access your data. Hackers are always masquerading online to find potential prey. If they access your data, you may wake up to find that all your money has been swept from your account.
Bottom line
Chime is a financial technology company that operates online. The Chime Credit Builder Visa® Credit Card is among the various products Chime offers. Others include the Chime Spending account., the Chime savings accounts, and the debit card. The secured credit card from Chime is mainly for growing credit scores as they can report your card usage to the credit bureaus. The card is secure to use due to its numerous security layers.
