The Chime Secured Credit Card Review

Chime is an American financial technology company that provides free mobile banking services through The Stride Bank, N.A., or Bancorp Bank. It does not have physical branches, and account holders have to manage their accounts online. Once you open your account, you can get a Visa debit or credit card for various transactions. The Chime services are accessible via the company’s website or through its mobile apps. The company’s source of revenue is from the collection of interchange fees. I will do the Chime secured credit card review later.

Despite having no physical branches, Chime has grown to get millions of account holders over the years. As of February 2020, Chime had attained 8 million account holders, and there is a possibility that the number has shot up as we speak. The excellent reputation and low-cost banking services have placed the institution where it is today. Again, your money is safe at the bank since it has insurance from the partner banks as I have mentioned above. Your money has insurance up to the maximum of $250,000.

For your understanding, Chime only operates in the United States. That is contrary to other online platforms such as Payoneer and Paypal, which operate worldwide. You must create an account online to begin using the platform’s service. You can get various services, including checking and savings accounts, to effectively manage your money on the go. The chime checking account is the most profound product of the company that allows you to use money online conveniently.

How to open a Chime account?

Since Chime is an online company, you have to open your account online to start using its services. Before opening your account, you should gather all the required details, including the following.

  • Identification document
  • Phone number
  • Social Security Number (SSN)
  • Email address

You may require a bank account or debit card to fund your transactions. One might be wondering why they need all these. The SSN and your identification document help Chime and other financial institutions verify your identity and minimize money laundering and fraud. Also, due to cases of terrorism, the U.S. government has been strict on financial companies to obtain the documents mentioned above to prevent terrorists from funding their activities. After Chime confirms your information, you’re in!

To open a Chime account, you must be a U.S. citizen of at least 18 years. Once you have everything with you, you can open your account by following the steps below.

Chime Secured Credit Card

i) Apply for a Chime Spending account

You can apply for your Chime Spending account using any internet-enabled device. One can use a smartphone, laptop, or tablet to execute the process. You only need to fill in all the spaces appropriately to ensure that your application goes through. To get started you only need to visit the Chime account application page to get started.

On the page, you will fill in your first and last names and your email, then tap Next for the following page, and enter your date of birth. Remember that the dates should match the date on your identity document. After that, you should enter your U.S. mobile phone number and ensure that it is not a VOIP. It should be able to receive text messages. You can then proceed with the following prompts until you submit your application. It is a self-guided process, and you do not have to suffer.

ii) Download the Chime app

Chime offers an online banking system and a mobile banking app. Once you create your account, you can download the app from the relevant stores to easily manage your finances on your palm. You can get the app from the Google Play Store or Apple App Store. Remember that using your account on the app is more secure than when you do it online.

With Chime, you should sign up for a Spending Account first, then open a Savings Account. The spending account is a checking account, and thus you should not be confused by the name. You can use your spending account to carry out the following transactions.

  • Deposit money
  • Manage your transactions
  • Check your balance

Also, your Chime Spending Account comes with a free Visa that you can use for your transactions online and at physical stores. You can also withdraw finances at an ATM using the card. 

iii) Deposit money into your account

Your Chime account is almost useless if you do not have money. Therefore, you should deposit funds in your account to ensure that you can transact effectively. You can set up direct deposit to receive your paychecks or government benefits directly into your account. One can also add finances to their account using their bank account.

What is a Chime Credit builder?

The credit builder is a secured credit card for rebuilding credit that you can get from Chime once you open an account and apply for it. It is very effective when building your credit from scratch or bad credit situation. Since it is a secured credit card, you must deposit funds to use its services. The deposit you make is the security or guarantee that Chime keeps so that they can regain their money if you are unable to repay your loan.

Usually, a secured credit card borrowing limit corresponds with your deposit. The larger your deposit, the higher your credit limit, and vice versa. While some issuers set a minimum deposit amount, Chime does not have a particular amount. You can deposit as low as $1 and begin building your scores right away.

Chime Credit Builder is the best option if you want to get approved for a credit card with no credit. There is no essence in checking your scores because you already have a security deposit in your account.

Why get the Chime Credit Builder?

We have a few reasons why one should consider the Chime Credit Builder card. They include the following.

  • No annual fees. Most payment cards usually charge fees as a way to make money. You have to pay annual fees for some credit and debit cards. You can save a lot with the Chime credit builder since they do not charge such fees.
  • No minimum deposit. Imagine a secured credit card having a minimum deposit of $250. How many people will afford it? To accommodate people with no money for high deposits, Chime leaves it up to you to deposit whatever amount you can afford.
  • There is no credit check. After all, the credit card is a secured one, and thus no need to inquire about the applicant’s FICO scores. There is no risk accompanying the borrower.

How does the Chime credit builder work?

We have seen that you can effectively build your scores with the Chime Credits builder secured credit card. The question is, how does a Chime credit builder work? Understanding how the card works will ensure that you plan effectively before getting it.

First, you should apply for the card online at Chime’s website. The first step is to move finances into your Credit Builder secured account. Remember, it requires a deposit since it is a secured credit card. You can transfer the funds from your account online or in the Chime app.

The funds you move to your secured account are the ones you will spend with your card. You can move money in your account using two main options. The first one is through the Move My Pay option. You must choose an amount that automatically transfers from your Checking Account to Credit Builder.

Secondly, you can manually move money from your Chime spending account to your secured credit account.

How is the secured card different from the unsecured one?

The difference between secured and unsecured credit cards is that the secured ones require you to deposit money in your account to get them. In contrast, unsecured credit cards require you to have credit scores to get them.

Another difference that emerges between the two cards is that unsecured cards with bad credit attract high-interest rates. Secured credit cards usually charge low-interest rates.

How to use the Chime secured credit card?

The first use of the credit builder card is to grow your scores. You can use it to get FICO scores from scratch or a bad credit point. Whichever way, the card comes in very handy. Keep in mind that the card requires no specific minimum deposit.

Also, you can use the card to buy goods and services online and at physical stores. When buying online, you only need to provide the card number, expiry date, and security code when checking out. You can swipe or tap the card at the register at the physical stores to pay.

Bottom line

Chime is an American financial technology company that provides mobile banking services through The Stride Bank, N.A., or Bancorp Bank. It does not have physical branches, and account holders have to manage their accounts online. Once you open your account, you can use it for various transactions such as buying goods and services and sending money to other Chime users. You can also withdraw money at an ATM using your debit card, etc.