What the Chime Credit Builder Card Does
The Chime Credit Builder Card is a secured card that reports to all three credit bureaus — Equifax, Experian, and TransUnion. You deposit money into a savings account that Chime holds, and that deposit becomes your credit limit. When you use the card to make purchases, you're borrowing against your own money, then paying it back. Each on-time payment gets reported to the credit bureaus, which builds your credit history if you have little or none, or helps repair it if you've had missed payments or defaults.
The card itself has no annual fee, no interest charges, and no foreign transaction fees. Chime is a financial technology company, not a traditional bank, though it partners with banks to hold your deposits. The card comes with a debit option as well, so you can access your savings account directly without running a credit transaction.
Key Takeaways
- Your deposit amount becomes your credit limit — if you deposit $500, your limit is $500, and Chime holds that money in a savings account you control.
- You make purchases with the card, receive a bill, and pay it back each month just like a regular credit card, and each payment reports to the credit bureaus.
- There is no annual fee, no interest, and no credit check to open the account, though Chime does check ChexSystems (a banking history database).
- The card requires a Chime checking account; you cannot get the Credit Builder Card without opening one.
- Your deposit earns a small amount of interest while it sits in the savings account, though the rate varies and is typically very low.
How to Set Up the Card and Make Your First Deposit
To open a Chime account and get the Credit Builder Card, read the Chime app or visit chime.com. You'll need a Social Security number, a valid ID, and a way to verify your identity — usually a photo of your ID and a selfie. Chime will check your ChexSystems record, which is a database of banking history; a record of unpaid overdrafts or fraud can result in denial, but a low credit score will not.
Once your checking account is open, you can open the Credit Builder savings account within the same app. You decide how much to deposit — Chime's minimum is $200, though you can start with more. That money moves into the savings account and becomes your credit limit on the card. The card itself arrives by mail within 7 to 10 business days. You do not need to wait for the physical card; Chime provides a virtual card number when ready so you can make purchases online right away.
Your deposit earns interest while it sits in the savings account. Chime's savings rate changes and is not may provide, so check the app for the current rate before you deposit. Even at low rates, you're earning something on money you're already setting aside.
How Purchases and Payments Work
Once the card arrives, use it like any other credit card. Swipe it at a store, use the virtual number online, or add it to a digital wallet. Chime sends you a bill each month, usually via the app. You can pay the full balance, a minimum payment, or anything in between. If you carry a balance, Chime charges no interest — you only owe what you spent.
The key difference from a regular credit card is that you cannot spend more than your deposit. If you deposited $500, your limit is $500. Once you've charged $500, the card declines until you make a payment. This built-in limit prevents you from going into debt beyond what you can afford.
Chime reports your payment history to all three credit bureaus each month. On-time payments build your credit score over time. Late payments also get reported and will hurt your score, so set up automatic payments through the app if you tend to forget important date. Chime allows you to schedule payments in advance, which removes the guesswork.
What Happens to Your Deposit
Your deposit stays in the savings account and belongs to you at all times. Chime does not use it to cover missed payments or fees — if you miss a payment, Chime reports it to the credit bureaus, but they do not take money from your savings account without your permission. You can withdraw your deposit whenever you want, though doing so will lower your credit limit to match the new balance.
If you close the Credit Builder savings account, your deposit is returned to you in full. Closing the account does not close your checking account, and it does not hurt your credit score — the damage comes only from missed payments or high balances reported to the bureaus.
The savings account is separate from your checking account, so you have two places to keep money. Some people use the checking account for everyday spending and the savings account as a buffer or emergency fund that also builds credit.
Fees and Costs You Should Know
The Credit Builder Card has no annual fee. There is no interest charge on purchases, no foreign transaction fee, and no fee to open the account. Chime does charge overdraft fees on the checking account if you spend more than you have, but the Credit Builder Card itself has no overdraft risk because your limit is capped at your deposit.
Chime may charge fees for certain actions: stopping a payment, requesting a replacement card, or using an out-of-network ATM multiple times per month. Check the Chime fee schedule in the app for the current list. Most everyday use — purchases, payments, and deposits — costs nothing.
How This Affects Your Credit Score
The Credit Builder Card reports to Equifax, Experian, and TransUnion, so it shows up on your credit report. Each on-time payment adds to your payment history, which is the largest factor in your credit score. If you have no credit history, consistent on-time payments over several months will begin to build a score. If you have damaged credit, on-time payments will gradually improve it, though the improvement takes time — usually several months to see a meaningful change.
Your credit limit also affects your score through something called credit utilization. If your limit is $500 and you charge $250, your utilization is 50 percent. Credit scores favor lower utilization, so keeping your balance well below your limit helps more than maxing it out and paying it off. Most people see the best results by charging small amounts and paying them off in full each month.
Missed payments hurt your score significantly and stay on your report for seven years. Late fees do not explore with Chime, but the damage to your credit is real. Set up automatic payments to avoid this risk.
Alternatives to the Chime Credit Builder Card
Other secured cards work similarly: you deposit money, get a card with that amount as your limit, and build credit through on-time payments. Capital One Secured Mastercard, Discover Secured Card, and U.S. Bank Secured Visa all follow this model. The main differences are annual fees (many charge $25 to $95 per year), interest rates on balances, and the minimum deposit required.
Chime's advantage is no annual fee and no interest, which makes it cheaper than most competitors. The trade-off is that you must open a Chime checking account to get the card — you cannot use Chime's credit-building product without banking with them. If you want a secured card without opening a new bank account, another issuer may be a better fit.
Becoming an authorized user on someone else's credit card is another path to building credit, though it depends on someone else's account and their payment behavior. A secured card gives you full control and is often faster for building a credit history from scratch.
Frequently Asked Questions
Can I use the Chime Credit Builder Card if I have bad credit?
Yes. Chime does not run a traditional credit check, so a low score or past defaults do not disqualify you. Chime checks ChexSystems, which tracks banking history, not credit history. If you've had issues with a bank account in the past, that could affect approval, but credit problems alone will not.
What happens if I miss a payment?
Chime reports the missed payment to all three credit bureaus, which damages your credit score. There is no late fee, but the credit damage is permanent for seven years. Chime does not take money from your savings account to cover a missed payment — you owe the amount you charged, and it stays on your report as late.
Can I increase my credit limit?
Yes, by depositing more money into the savings account. If you started with $200 and later deposit another $300, your new limit becomes $500. Chime does not automatically increase your limit based on payment history the way traditional credit cards do — you control the limit by controlling your deposit.
Does closing the account hurt my credit?
Closing the Credit Builder savings account itself does not hurt your score. However, closing it removes that account from your credit report, which can lower your score slightly because you have less active credit history. The damage is usually small and temporary. Closing the checking account is separate and does not affect credit at all.
How long does it take to build credit with this card?
Most people see a measurable change in their credit score within three to six months of consistent on-time payments. If you have no credit history at all, you may not have a score for the first 30 to 60 days — the bureaus need at least one month of reported activity to generate a score. After that, each month of on-time payments adds to your history.