Updated & Verified: September 6, 2021
Approximately 26 million Americans currently have no credit history – and roughly 16% have what is considered poor credit (a credit score of 579 or below).
There are many options available to help people establish and build their credit with some working better than others.
Not long ago, Chime introduced the Chime Credit Builder card which is a simple yet effective way for people to build their credit with little to no risk, unlike a typical credit card.
I decided to research Chime Credit Builder and have uncovered the answers to some of the more common questions people have related to the service.
In This Post:
- 1) What is Chime Credit Builder Card?
- 2) How Does Chime Credit Builder Work?
- 3) Can I Use My Chime Credit Builder Card at an ATM?
- 4) What Is The Best Way to Use My Chime Credit Builder Card?
- 5) What is the Chime Credit Builder Card Limit?
- 6) Can I Get a Chime Credit Builder Card Without Needing a Direct Deposit?
- 7) Can I Withdraw Cash From My Chime Credit Builder Card?
- 8) Can I Rent a Car With My Chime Credit Builder Card?
- 9) Can I Overdraft My Chime Credit Builder Card?
- 10) How Can I Get a Chime Credit Builder Metal Card?
- 11) When Does Chime Credit Builder Report to The Credit Bureaus?
- Wrapping Up
1) What is Chime Credit Builder Card?
The Chime Credit Builder card is a secured credit card that makes building your credit simple and without the need to incur debt. It’s especially useful for people with little or no credit history since you aren’t required to pass a credit check to qualify. Using it can help you build up your credit score relatively quickly with next to no effort or risk.
2) How Does Chime Credit Builder Work?
Typically to build credit, you need to take on debt – often a loan or credit card. Even if you pay off that debt at the end of each month (which you should), you still are taking on short-term debt.
Unlike a typical credit card, the Chime Credit Builder card is a secured credit card. What this basically means is you transfer money onto the card and that money is the maximum amount of money you can spend with the card. Chime then reports to all 3 major credit bureaus monthly that you made your payment toward that credit card on time.
By doing this, you avoid taking on any debt, avoid paying any fees and reduce the risk one would have with a normal credit card but still get all of the same benefits as far as building your credit score.
How to Apply
To apply, go into the Chime app and below your Spending Account balance, you’ll see information about your Credit Builder Account. Click on Open Credit Builder Account.
You will then be asked to set up a qualifying direct deposit. This direct deposit needs to be at least $200.
If you haven’t had a qualifying direct deposit yet, you have to wait until that happens. Once that has happened, you should be enrolled and have a Credit Builder Account and will receive your card in the mail within a few days.
3) Can I Use My Chime Credit Builder Card at an ATM?
Yes, you can now use your Chime Credit Builder card at an ATM to withdraw cash up to the amount of either your Available to Spend amount or a max of $500 every 24 hours – whichever is the lower amount. You will need to set a PIN from within the Chime app before making your first ATM withdrawal.
How to Set a PIN
To set your PIN for your debit card and ATM, you need to go into the Chime app itself. Once you’re in the app click on the gear icon in the top left corner of the app to go into your settings. Scroll down until you see “Change your PIN” and click on it. Set your 4 digit Debit/ATM PIN.
4) What Is The Best Way to Use My Chime Credit Builder Card?
As a general rule of thumb, the best way to use your Chime Credit Builder card is to use it as consistently as possible. Since Chime automatically reports to the credit bureaus that you paid your balance in full monthly, the dollar amount or what you used it for is a non-factor.
5) What is the Chime Credit Builder Card Limit?
Unlike many credit cards, your Chime Credit Builder card doesn’t have a limit based on your credit history. Instead, there is a $10,000 per day limit on purchases.
6) Can I Get a Chime Credit Builder Card Without Needing a Direct Deposit?
It is not currently possible to get a Chime Credit Builder card without a direct deposit. In order to get started with Chime Credit Builder, you need to have a qualifying direct deposit of at least $200.
7) Can I Withdraw Cash From My Chime Credit Builder Card?
You can withdraw cash from your Chime Credit Builder card at any ATM. You just have to generate a PIN from within the Chime app before you do so. Keep in mind you can only withdraw your available spend amount or a max of $500 every 24 hours.
8) Can I Rent a Car With My Chime Credit Builder Card?
As a general rule of thumb, you can’t rent a car with your Chime Credit Builder card. The only known exception is if you try to rent a car from Alamo and they have a self-checkout kiosk, you are able to use your Chime Credit Builder card there.
9) Can I Overdraft My Chime Credit Builder Card?
Since your Chime Credit Builder card is a secured credit card, it is impossible to overdraft it. You can only spend the amount of money that you load onto the card and if you try to make a purchase that exceeds the amount on your card, the transaction will be declined.
10) How Can I Get a Chime Credit Builder Metal Card?
To get a Chime Credit Builder metal card, you need to have a Chime Credit Builder account, must have received an email asking if you want a metal card, and have made at least 40 qualifying transactions of at least $1.00 with your Chime Credit Builder account within 60 days of receiving the email.
11) When Does Chime Credit Builder Report to The Credit Bureaus?
In general, Chime will report your purchases as on-time payments to all 3 of the main credit bureaus at the beginning of each month. However, it can take a couple of weeks for the credit bureaus to process things and for your automatic on-time payments to show up on your credit report.
Chime Credit Builder is an easy and effective way for people to build and improve their credit. You can use it at most places that you’d be able to use a normal credit card including the ability to withdraw cash.
It’s particularly useful for people who don’t have any credit or have bad credit since you don’t need a certain credit score to qualify – just a minimum direct deposit of $200.