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How does Chime Credit Builder Works

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“Chime Credit Builder”. The name itself suggests what it does.

The Chime Credit Builder, Visa Credit card, helps you build your credit. It is a no-fee, no interest secured credit card.

Yes! Chime too has a credit card.

This write-up will help you get a complete view of the Chime Credit Builder. Whether you are a newbie or you are well-versed with it, We have assembled all that you need to know. 

How is Credit Builder different from Chime Debit Card?

Chime Credit Builder performs almost similar functions as that of Chime Visa Debit Card. It is used for all your purchases. These purchases will help you build credit. The only difference between the two is that Chime Credit Builder does not support ATM Withdrawals and Spotme. Hence, Make sure you keep both, Chime Visa Debit card and chime credit builder.

Working Of Credit Builder

Chime Builder helps you Move, Spend and Build money. It works in the following way-

Move Money-

You can move money quickly to your Credit Builder Secured Account. This money is spent on your card through the Move My Pay option. Choose an amount, and it will be transferred from Spending account to Chime Credit Builder. It can also be done manually.

Spend Money-

Chime Credit Builder can be used anywhere where Visa cards are accepted. You can spend the money present in your secured amount. This money can also be used to pay the monthly spendings automatically. You have access to your connected account and can control how much to spend.

Build Credit-

On-time payments help to build your credit score. Your everyday purchases pitch in your credit history. Turn on Safer Credit Building to avoid late fees. This feature will automatically pay your balance every month. Chime keeps the major credit bureaus updated with the same.

Build Your Credit Score

Credit Builder helps you build your payment history, increase the length of your payment history over time, thus balancing your credit mix. Consequently, it improves your credit score. It makes On-time payments easier. Chime Credit Builder helps avoid outstanding balances and builds credit with your own money. It also enables avoiding credit utilization. All these perks help you maintain a healthy credit score. More credit score ensures high credit building.

Why Chime Credit Builder?

Chime Credit builder is comparatively a better alternative. It helps you create more credit than other traditional methods. The positives of Chime Credit Builder are highlighted below-

  • No minimum deposits

Chime Credit card is a more flexible and suitable option. It can be created by transferring money from the Chime spending account to chime credit builder card. Unlike other cards, it does not require a deposit. It only requires collateral while the amount can be received from Chime spending account.

  • No fees and interest

Chime’s 0% APR is another primary reason for its supremacy. It means if you carry a balance in your credit-builder account, it will not charge you any interest. Even if other cards have this feature, it is only for a limited period. Chime does not charge any fees like maintenance fees or annual fees. Thus, with Chime, credit building is a more comfortable and straightforward process without any extra charges.

  • No credit check 

Chime does not check your credit. Hence, leaving your credit score unaffected. The traditional method of a hard enquiry costs you a few credit score which stays on your credit report for two years.CHime promises not to affect your credit score. It only requires a direct payroll deposit of $200 in the last 45 days. 

Conclusion

The Chime Credit Builder helps you create immediate profits and enhances your credit mix. Also, it is elementary to operate. Its fee-free services and safer credit building process adds to its glory. Chime Credit Builder is the best mobile bank providing remarkable features to its members. Chime can be the best replacement for any other traditional banking methods. Therefore, Chime Credit Builder helps increase your credit score with its secured credit card. You can earn maximum credit with its services.

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