Have you heard about the Chime credit card? Our favorite bank has debuted a Credit Builder card that builds credit but works like a debit card. If you’re having a hard time building credit, then you need to know about this.
What is the Chime credit card?
The Chime Credit Builder Visa Credit Card is designed to help customers build their credit history. It’s a secured card that functions similar to a debit card. It does not allow for overspending, for example.
How does the Chime credit card work?
When you use your card, you will transfer money from your Chime spending account to your Chime Credit Builder Secured Account. You will then be able to use the Credit Builder Visa card to spend up to the amount that you transferred into the account.
Why should I use the Chime credit card?
This card has one purpose: to help you build your credit. If you’ve struggled to establish credit, or if you’ve struggled to establish good credit, then this card can help you.
If you’re looking for a credit card that can be used in emergencies when you need access to funds you don’t have, then this card isn’t right for you. You’ll be spending against your secured balance without any means to access additional funds.
The Chime credit card is a safer way to build your credit.
Chime decided to launch this service because debit cards are so popular. The majority of Millennials prefer debit cards over credit, but this means that they aren’t building their credit history. That can be a major problem when it’s time to purchase a car or a house.
Personally, I was advised to get 3-5 credit cards when I decided to purchase our first home because I did not have an adequate credit history. My credit was poor, so I could only get credit cards designed for people with bad credit. These cards came with hefty annual and monthly fees, which led to an unsustainable debt cycle that later wrecked my credit (after we bought the house).
Chime’s card is a much safer way to build your credit, because it will prevent you from overspending and exceeding your limits. it also has no fees! No annual fee, no interest, and no minimum security deposit. It also has a Safer Credit Builder feature that will pay your entire balance from the secured account on time. The payments are then reported to the major credit bureaus.
The Chime Credit Builder actually works.
The Chime credit card has been in testing since June 2019. During the test period, users helped improve their credit score by an average of 30 points. They also helped 95% of users with no credit history establish a credit score.
How can I get the Chime Credit Builder Visa Secured Credit Card?
If you’re interested in getting the card, you’ll need to join the waitlist. They are opening this program incrementally. Click here to visit the Chime website and then follow the prompts.