Secured Chime Credit Builder Visa^® Credit Card Review: Is It a Good Card?

If you have limited / poor / fair credit, the Secured Chime Credit Builder Visa^® Credit Card could be a great option to help you build credit without incurring fees or interest**. However, you can only get the card if you have a connected Chime bank account, as well as a $200 cash deposit.

You should know that Chime is not a bank: It’s a financial technology company that partners with banks to offer financial products like this credit card. Banking services are provided by The Bancorp Bank, N.A. or Stride Bank, N.A.

The Secured Chime Credit Builder Visa^® Credit Card has a unique credit limit and payment structure, outlined below, and is a solid option for a credit card as a last resort.

But if you’d prefer the simplicity of a traditional credit card that offers rewards, we encourage you to check out alternative credit-building cards.

Want to use a credit card to help improve your credit? Check out the best credit cards for building credit

• Deposit amount: No minimum deposit required (does require Chime account with at least $200 in it to open card)*
• Annual fee: $0
• Regular purchase APR: N/A
• Foreign transaction fee: $0
• Sign-up bonus: N/A
• Rewards: Non-rewards card
• Other benefits: Up to $200 fee-free overdraft protection, Reports to all three credit bureaus
• Recommended credit: Limited / Poor / Fair

• No minimum deposit* or preset spending limit

  Traditional secured credit cards, like the Discover it^® Secured Credit Card, generally require a minimum security deposit of $200, which serves as your line of credit. But with the Secured Chime Credit Builder Visa^® Credit Card, there is no minimum deposit.

  Instead, you’ll set your available credit limit by depositing the amount of your choosing into your Credit Builder account. You can then spend up to that amount on your card. You can also use your deposit to pay off the card. Just remember that if you do the latter, you’ll need to add additional funds to your account to increase your available spending balance.

• No annual fee, late fees or foreign transaction fees

  Some credit cards that are geared toward building credit come with a spectrum of fees, including setup fees, monthly maintenance fees and annual fees. But the Secured Chime Credit Builder Visa^® Credit Card doesn’t charge any of those fees.

  Although it doesn’t charge late fees, you should still make your payments on time to help build your credit. And since there are no foreign transaction fees, you can use this card abroad, wherever Visa is accepted.

  Some Secured Chime Credit Builder Visa^® Credit Card users have reported on Reddit that there are daily spending limits on your card. It appears to vary by cardholder, but some report their limits around $2,500 — which is more than you’d typically spend on an average day.

  → Discover nine common credit card fees and how to avoid them

• Doesn't charge interest**

  Interest charges can add up quickly and easily defeat the best-laid plans for building credit. Fortunately, the Secured Chime Credit Builder Visa^® Credit Card doesn’t charge interest, mostly because it works differently than traditional credit cards.

  With a regular credit card, you’re essentially borrowing money every time you use your card. If you don’t pay your balance off in full each month, you’ll be subject to interest charges (unless the card has a 0% intro APR offer).

  But with the Secured Chime Credit Builder Visa^® Credit Card, you can’t spend more than what’s available in your account. And since you’re not rolling over a balance on your card from month to month, you won’t incur interest charges.

  Out-of-network ATM withdrawal and over the counter advance fees may apply. See here for details.

  → Learn how your credit card interest is calculated

• No credit check required

  The Secured Chime Credit Builder Visa^® Credit Card doesn’t require a credit check for approval. This can be especially helpful if your credit is too poor or limited to be approved for a traditional credit card — or even a secured card.

  → Find the best no-credit check credit cards

• Builds credit with all three bureaus***

  When you’re looking for a credit card to build credit, finding one that reports to the three major credit bureaus — Experian, Equifax and TransUnion — is extremely important. And the Secured Chime Credit Builder Visa^® Credit Card reports to all three. That means your responsible card usage (paying on time, for example) will be reflected on your credit report and help boost your credit profile.

  Check your credit score for free with LendingTree Spring

• Chime account and direct deposit required

  You’ll need to have a Chime checking account and qualifying direct deposits of $200 or more to be eligible for the Secured Chime Credit Builder Visa^® Credit Card. If you already use Chime, this may not be a huge barrier.

  But if you aren’t a current Chime customer and aren’t interested in opening a Chime account, you’ll likely be better off with a credit-building credit card that doesn’t have these requirements.

• Doesn't prepare you for how credit cards work

  The Secured Chime Credit Builder Visa^® Credit Card doesn’t operate like a traditional credit card in many ways. That can be a plus if you find that this card can help you manage your money more responsibly. But if you’re looking to earn stellar rewards or get access to more benefits, a traditional secured card might be a better stepping stone.

  One notable difference between this card and a traditional credit card is that — because it doesn’t have a credit limit — your credit utilization ratio won’t be negatively affected if your charges are close to your deposit. Typically it’s best to keep your balance under 30% of your credit limit, which for a $200 limit is $60.

  Did you know? Chime has an overdraft feature called SpotMe® which allows you to overdraft your account by up to $200. However, it’s important that you don’t rely on features like this because the average overdraft fee is $35. Also, Chime cardholders on Reddit note that most people don’t start with a $200 limit, but rather $20 or $30. And it can take quite a while to get to the $200 threshold. Sticking to a budget will go a long way in helping you develop solid financial habits and save money in the process.

• Can't graduate to an unsecured credit card

  Some issuers of secured credit cards let you graduate to an unsecured card and get your deposit back after you’ve demonstrated responsible use of credit. Unfortunately, the Secured Chime Credit Builder Visa^® Credit Card doesn’t provide this option.

  If you opt for the Discover it^® Secured Credit Card, after some time, you may be able to upgrade to an unsecured Discover credit card that offers better perks.

• Doesn't offer rewards

  Earning rewards shouldn’t be your main focus when trying to build credit, so it’s not a major downside that the Secured Chime Credit Builder Visa^® Credit Card doesn’t offer a rewards program. However, Chime Deals™ does allow you to earn cash back at over 30,000 merchants for everyday purchases like gas, groceries and dining out at restaurants.

  But there are also credit-building cards available, like the Discover it^® Secured Credit Card, that offer rewards on every purchase you make.

  How do the fees and rewards compare?
  In the table below, you’ll see that the Secured Chime Credit Builder Visa^® Credit Card overall value comes up short when compared to similar credit-building cards that do offer rewards:

  	Yearly fees	Estimated first-year rewards*
  Secured Chime Credit Builder Visa® Credit Card	$0	$0
  Discover it® Secured Credit Card	$0	$90
  Chase Freedom Rise® Credit Card	$0	$79
  Petal® 2 Cash Back, No Fees Visa® Credit Card	$0	$54

  *Based on LendingTree’s value methodology

• Account may require more maintenance than traditional cards

  You may find it tedious to move money from outside sources to your Chime bank account, but this isn’t a deal breaker. It’s important to be proactive about managing your finances and setting up autopay and automatic transfers from your bank to your Chime account may help you stay organized.

Secured Chime Credit Builder Visa^® Credit Card vs. Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card is a great choice to help build credit. In fact, it’s currently our top pick for the best secured credit card. This $0-annual-fee card offers cash back on every purchase, and there’s no penalty APR. As for late fees, there are none the first time you pay late. After that, up to $41.

You will have to submit a security deposit ranging from $200 to $2,500, which serves as your line of credit. But after you’ve had the card for seven months, Discover will begin conducting monthly account reviews to see if you’re eligible to graduate to an unsecured card and get your deposit refunded.

The Discover it^® Secured Credit Card also offers a 10.99% Intro APR for 6 months on balance transfers — rare for a credit card intended for those with limited / poor credit. After the intro period, a 27.24% Variable APR applies.

Secured Chime Credit Builder Visa^® Credit Card vs. Chase Freedom Rise® Credit Card

The Chase Freedom Rise® Credit Card is our top pick for the best credit card to build credit. It comes with a sign-up bonus, cash back rewards and a $0 annual fee. You can increase your chances of being approved for this card by opening a Chase checking account with a minimum balance of $250. Plus, you should also know that Chase will begin evaluating your account for credit line increases in as little as six months.

With this card, you can earn 1.5% cash back on all purchases. Plus, earn a $25 statement credit when you sign up for automatic payments within the first three months of opening your account and remain enrolled for at least 90 days.

The card does come with a 25.99% Variable APR if you carry a balance on your card from month to month. Once you’ve built your credit, you can consider moving to another Chase credit card that offers better benefits or travel rewards.

Secured Chime Credit Builder Visa^® Credit Card vs. Petal^® 2 Cash Back, No Fees Visa^® Credit Card

Much like the Secured Chime Credit Builder Visa^® Credit Card, the Petal^® 2 Cash Back, No Fees Visa^® Credit Card doesn’t require a credit check and comes with limited fees. It has a $0 annual fee, a $0 late fee and $0 foreign transaction fees.

The Petal^® 2 Cash Back, No Fees Visa^® Credit Card offers credit limits ranging from $300 to $10,000. Plus, you may be eligible for a credit line increase in six months after making qualifying on-time payments.

A major downside of this card is that you may end up with an extremely high APR if you can’t qualify for the lower amount: 28.99% - 30.99%. It does, however, let you earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants. Plus, earn up to 1.25% cash back on most purchases after six months of timely payments and up to 1.5% cash back on most purchases after 12 months of timely payments.

If you’re unable to get a traditional credit card due to poor or limited credit, the Secured Chime Credit Builder Visa^® Credit Card may be a good intermediary card to help build your credit with a credit card. The safety nets it offers make it an ideal beginner credit card for someone who’s still developing good financial habits.

But if you can qualify for a more traditional credit-building credit card, like the Discover it^® Secured Credit Card, you’ll get a rewards program and the ability to graduate to an unsecured card after demonstrating responsible card usage.

We devote a large part of the score for credit-building cards to features that help build credit — we want to help you locate cards that don’t cost a lot to own and get help you upgrade to better card offers.

• Annual savings (50% of rating): We calculate how much the average cardholder can save with the card on a yearly basis. If it is a rewards card, we use U.S. Bureau of Labor data and $300 in monthly spend (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
• Credit building features (50% of rating): We give points for features that help build credit, including reports to all three credit bureaus, regular account reviews for card upgrades and free credit score access. We detract points for features that can be costly to cardholders trying to build credit, such as security deposits, penalty APRs and late payment fees.