How Does Chime Credit Builder Work?

Last Updated on January 30, 2025 by Amrita Das

Chime Credit Builder offers a unique way for users to establish a positive credit history by using a secured credit card. In this guide, I will talk about “How does Chime Credit Builder work” and its benefits for everyday purchases.

From setting up direct deposit to managing your spending limit, this program provides an effective and convenient way to build credit with Chime. So let’s dive in and learn more about “How Does Chime Credit Builder Work”.

Table of Contents

Introduction to Chime Credit Builder

The Chime Credit Builder Card is a great option for those looking to build their credit safely and responsibly. With no annual fees or interest, this secured credit card makes it easy for qualifying Chime members to start building their credit history.

Simply deposit a security deposit into the Credit Builder secured account, use your credit card for everyday purchases, and make timely payments each month to see improvements in your credit score.

And with Chime’s SpotMe feature, you can access up to $200 in coverage without any fees when using your Credit Builder card. It’s a win-win situation for those looking to build their credit while enjoying the benefits of a Chime membership.

How does Chime Credit Builder work?

In this section, I will discuss the step-by-step process of how Chime Credit Builder works and its benefits.

Step 1: Move Money into Your Credit Builder Secured Account

Moving money into your Credit Builder secured account is the first step towards building your credit with Chime. This can be done easily through the Chime app. The amount you transfer becomes the available balance on your secured card, which can be used for purchases.

Two Ways to Move Money into Your Credit Builder Secured Account

Move My Pay: This is the recommended option. You can set a specific amount to be automatically shifted from your Chime checking account to your Credit Builder account every time you get paid. This ensures consistency and helps build a positive payment history.
Manual Transfer: The second option is to manually transfer money from your checking account to your Credit Builder-secured account whenever you want to increase your available balance. However, this requires more effort on the user’s end and may not be as consistent as Move My Pay.

Step 2: Spend Money

Once you have funds in your Credit Builder account, you can use the card everywhere Visa® is accepted. This gives users the flexibility and convenience to make purchases and build their credit score simultaneously.

Step 3: Build Credit

Using Credit Builder consistently can help users build a positive credit history over time. Chime offers several features that aid in this process, such as payment reminders and credit score monitoring. These tools help users stay on top of their credit and make informed decisions to improve it.

With responsible use, Credit Builder can also raise the length of your credit history, which is another important factor in determining your credit score.

Chime Credit Builder Cards Features and Benefits

Credit Utilization

One of the standout features of the Chime Credit Builder card is that it does not report credit utilization rates to credit reporting bureaus. This can be a huge benefit for those looking to improve their credit score, as traditional credit cards often take into account your credit utilization when calculating your score.

Credit utilization refers to the amount you owe on your credit card compared to your available credit limit. A high utilization rate (typically over 30%) can negatively impact your credit score.

However, in the case of the Chime Credit Builder, there is no need to worry about this factor. You can use the card up to its full balance without it affecting your credit score.

Safer Credit Building with Chime

Chime offers a unique feature called Safer Credit Building that helps you build your credit score in a secure and hassle-free manner. This feature is activated when you make a purchase using your secured Visa card.

Instead of the funds going directly towards the purchase, they are held in your Credit Builder account. Then, each month, Chime automatically pays your account balance on time, ensuring timely payments.

Direct Deposit with Move My Pay

Chime offers a convenient feature called Move My Pay, which allows you to automatically transfer funds into your Credit Builder account. This means that you can choose the amount you want to save and have it directly deposited every pay period.

Experian Boost with Chime

In partnership with Experian, one of the leading credit bureaus, Chime offers you an opportunity to further improve your FICO score by utilizing your Chime account to pay for eligible bills.

These eligible billers include popular streaming services like Netflix, Disney+, and Hulu, as well as major mobile providers like AT&T and Verizon. With Experian Boost, Chime is helping you boost your credit score faster and more effectively.

How to Apply For Credit Builder with Chime?

Applying for a Chime Credit Builder is simple. In this section, I’ll talk about the necessary steps and requirements.

Step 1: Start the process of obtaining a Chime checking account

The first step to applying for Chime Credit Builder is to have a Chime checking account. This is the basic requirement as the credit builder program is only available to current Chime members. You can apply for a Chime checking account on their website, and it takes only two minutes to complete the application.

Step 2: Set up a direct deposit of $200 or more from your employer

Once you have a Chime checking account, the next step is to receive a direct deposit of at least $200 from your employer. It’s important to note that only direct deposits from an employer or payroll service qualify for Chime Credit Builder.

Bank ACH transfers are not eligible, and the direct deposit must be a single, not many.

Step 3: Now Ask for a Chime Credit Builder Card

After fulfilling the first two requirements, you can now apply for Chime Credit Builder. This can be done by visiting their website or using the app. Simply go to Settings, then click on Try Credit Builder.

One of the great things about this program is that Chime won’t check your credit during the application process, so your current credit standing won’t affect your chances of being approved.

Approval and Use

If your application for Chime Credit Builder is approved, you will receive your secured credit card within 7-10 business days. This card functions just like any other Visa credit card and can be used everywhere Visa cards are received.

How can the Chime Credit Builder assist in building your credit score?

As you know, the Chime Credit Builder card is a valuable tool for anyone looking to build or improve their credit score. With its unique features and benefits, this card offers a simple and effective way to boost your creditworthiness over time.

Making On-Time Payments Effortless

One of the key factors in building credit is making on-time payments. With the Safer Credit Building feature, Chime takes away the stress and hassle of remembering to make payments each month. By using the money in your secured account, Chime will automatically pay your monthly fees on your behalf.

This not only ensures that you never miss a payment but also helps establish a positive payment history that is reported to the three major credit bureaus.

Build credit responsibly with your funds

Unlike traditional credit cards, the Chime Credit Builder card allows you to use your own money to make purchases and pay off balances. This helps you stay within your budget and avoid overspending, which can lead to high utilization rates and negatively impact your score.

By using only what’s available in your secured account, you can effectively manage your spending and build a responsible credit record.

Say goodbye to credit utilization worries

Another factor is that Credit utilization plays a huge role in deciding your credit score. However, with the Chime Credit Builder card, there is no preset limit or line of credit, as you are using your own money. This means that high utilization rates will not be reported to credit bureaus, preventing any negative impact on your score.

Boost Your Credit Score Over Time

By consistently using the Chime Credit Builder card and maintaining a healthy account, you can gradually increase your average credit period.

This shows lenders that you are responsible and can be trusted with larger loans or other credit products in the future. With time, this will lead to an improved credit score and open up more opportunities for financial growth.

Factors Affecting the Speed of Credit Score Improvement with Chime Credit Builder

The speed at which Chime Credit Builder can improve your credit score depends on several factors unique to each individual. The starting credit score before opening a Chime Credit Builder account, the frequency of card usage, and the ability to make timely payments are all important contributors.

On average, Chime members experience a 30-point boost in their credit score after using the Credit Builder card for approximately eight months. However, it’s important to note that when first opening a Credit Builder account, there may be a temporary decrease in credit score due to the hard inquiry on your credit report.

This is just one aspect that can impact your overall credit score, along with factors such as average period of credit history. Despite any initial setbacks, as you continue to use Chime Credit Builder and make on-time payments through its Safer Credit Building feature, your credit score has the potential to improve significantly in just a few months.

Each credit journey is unique, but with the help of Chime Credit Builder, individuals have the opportunity to see real and lasting improvement in their credit score.

How Much Credit Does Credit Builder Card Offer?

The amount of credit Chime Credit Builder gives you is directly linked to the balance in your account. For instance, if you have $200 in your account, your credit limit will also be $200. However, if you only spend $100 and don’t deposit more funds during the month, the credit limit for the following month will decrease to $100.

On the other hand, if you deposit an additional $150 into your account, your new credit limit will increase to $250. This unique feature allows for a flexible and personalized approach to building credit with Chime Credit Builder.

Credit Builder Account – How Much Should You Transfer?

You have the flexibility to choose how much money you want to transfer to your Credit Builder account. Keep in mind that the amount you move will determine your spending limit on the Credit Builder card. If you wish to increase your spending power, simply add more funds to your secured account.

With Safer Credit Building, any funds left in your secured account at the end of the month can be automatically used towards paying off your balance. Alternatively, you can manually pay off your balance using funds from either your Chime checking or secured account.

To easily and regularly transfer money into Credit Builder, consider using Move My Pay which will automatically move a specified amount every payday. You also have the option to manually transfer money from your checking account at any time by accessing the “Move Money” feature in the Chime app.

Where is the Chime Credit Builder card accepted?

The Chime Credit Builder card offers users the convenience and flexibility of being able to use it anywhere Visa cards are permitted. This means that you can use your card for everyday purchases such as groceries, gas, recurring bills, entertainment, etc.

By regularly using your credit card for these expenses and making timely payments, you can effectively build up your credit score. It is important to ensure that you have enough funds in your Credit Builder secured deposit account to avoid any issues while making purchases.

Utilizing Chime Credit Builder, can you take advantage of fee-free ATM withdrawals?

With your Credit Builder card, you have the ability to withdraw cash from any ATM without incurring interest or charges at in-network locations. Typically, using a credit card for an ATM withdrawal would result in a “cash advance.”

However, unlike other credit cards, Chime does not charge any additional fees or interest when withdrawing cash from an in-network ATM using your Credit Builder card.

Benefits of Using Credit Builder for Everyday Purchases

Credit Builder is an excellent tool for individuals looking to improve their credit score and build a positive credit history. While there are numerous benefits to using this card, two key advantages stand out when it comes to making everyday purchases.

Always Know Your Spending Limit

One of the most significant benefits of using your Credit Builder card for everyday purchases is that it allows you to stay on top of your spending. With this card, the fund you transfer into your secured account determines your spending limit. This feature ensures that you do not overspend and end up with an outstanding balance on your card.

Moreover, with Credit Builder, you can use the money in your secured account to pay for your monthly expenses automatically. This convenience helps you stay on top of your finances and ensures that you do not miss any payments, further improving your credit score.

No Impact on Credit Utilization

Another significant advantage of using Credit Builder for everyday purchases is that it does not report credit utilization to credit bureaus. This factor means that any amount spent on this card will not provide a high-utilization history on your credit record.

With traditional credit cards, high utilization can negatively impact your credit score. However, with Credit Builder, you have complete control over how much you can consume by managing the balance in your secured account.

This flexibility allows you to use your card for everyday purchases without worrying about the impact on your credit score.

Q: What Are the Benefits of Using the Chime Credit Builder Card to Build Credit?

A: The Chime Credit Builder Card offers numerous benefits for those looking to build or rebuild their credit. Not only is it completely fee-free, but you also can customize your security deposits and credit limit according to your needs. Plus, with no interest charged on your card balance, it allows for a stress-free approach to building credit.

Q: Is the Chime Credit Builder card a traditional credit card?

A: No, it is a secured credit card. This means that you will need to make a security deposit when opening a Chime Credit Builder card and you can also use the Safer Credit Building feature to automatically pay your monthly balance.

Q: Can I use my Secured Chime credit builder card without funds?

A: Unfortunately, you cannot utilize your Chime Credit Builder Card if no funds are available in your secured account. Your purchases need to be covered by the available credit on your card.

Q: What are the eligibility requirements for using the Chime credit builder card?

A: To be eligible for the Chime Credit Builder, you will need a Chime checking account and a qualifying direct deposit of at least $200. Once you have met these requirements, you can apply for the card through their website or mobile app.

The Chime credit builder card works like a regular Visa credit card allowing you to make purchases and payments anywhere Visa is accepted.

Q: Is it possible to transfer funds from a credit builder card?

A: Yes, you have the option to transfer money between your Credit Builder Secured Deposit Account, Savings account, and Chime Checking through the Chime app or by accessing your account online.