Chime is a financial technology company, not a bank. The secured Chime Credit Builder Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A. Credit builder: To apply for Credit Builder, you must have an active Chime® Checking Account. Security deposit: Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month. Building credit: On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations. No interest: *Out-of-network ATM withdrawal and OTC advance fees may apply. View the Bancorp agreement or Stride agreement for details; see back of card for issuer. SpotMe:SpotMe® on Credit Builder is an optional, no interest / no fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Credit Builder Account. To qualify for the SpotMe on Credit Builder service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your physical secured Chime Credit Builder Visa® Credit Card or Chime Visa® Debit Card. Qualifying members will be allowed to overdraw their Secured Deposit Account up to $20, but may later be eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Credit Builder Limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s or its banking partners’ discretion. Although Chime does not charge any overdraft fees for SpotMe on Credit Builder, there may be out-of-network or third-party fees associated with ATM transactions and fees associated with OTC cash withdrawals. SpotMe on Credit Builder won’t cover non-card transactions. SpotMe on Credit Builder Terms and Conditions.
Earn rewards while building credit:
Fizz debit card
9.4
Excellent
Earn 1,000 points ($10 value) when you download the Fizz app and enter code FINDER.
Earn 1,000 points ($10 value) when you download the Fizz app and enter code FINDER
Earn 1,000 points ($10 value) when you download the Fizz app and enter code FINDER.
What are prepaid credit cards?
We don’t want to get too bogged down in semantics, but technically, prepaid credit cards don’t exist. Prepaid cards are just reloadable cards that are not tied to a line of credit so they can’t build credit history.
But hold up — there are secured cards that function similarly to debit and prepaid cards that can build credit history.
Some fintechs, like Chime, Extra and Cleo, offer secured credit cards that function a lot like prepaid cards that report payments to credit bureaus. These cards are unique because they often don’t have interest charges and often skip the hard credit check, making them solid options for people new to credit cards or credit building.
These “prepaid credit cards” or “debit-credit cards” don’t charge interest because they require you to pay off your balance every month. Typically, they’re linked to an external bank account, so these cards allow you to borrow up to your linked account balance, and then repaid from your account balance. Payments are reported to the credit bureaus, helping you build a credit history.
Benefits of credit building cards
One of the best benefits of credit-building cards is the opportunity to build a better credit history, and usually, that means fewer fees than traditional credit cards.
Usually no APR. Most credit building cards don’t charge interest.
Fewer fees. Unlike traditional credit cards, some credit-building cards don’t charge annual or monthly maintenance fees.
The account is secured. Most have some type of security, whether it be a linked bank account or a security deposit, making them a safer way to borrow due to the lower risk of accumulated debt you can’t repay.
No credit check. While traditional secured cards might check your credit, some credit-building cards don’t require a hard credit pull.
What to watch out for
Credit-building products are considered safer than traditional borrowing methods, but with that safety comes some downsides.
Low spending limits. Because credit-building cards often require a security or deposit, spending limits are typically much lower than traditional credit cards.
Often requires linked bank accounts. Most require you to link an existing bank account, and most require you to open a specific checking account to qualify.
Check where they report. Some credit-building products don’t report to all three credit bureaus. For example, Affirm only reports payments to Experian.
Credit building loans take time. Unlike traditional installment loans, credit-building cards with loan installments won’t let you access funds until the term is over.
Who are credit-building cards best for?
Credit-building cards are great for anyone who wants to build or start improving their credit history.
However, you’ll need a security deposit or a linked bank account that’s funded for the card to actually work. They won’t build credit on their own — you have to use the card so that repayments get reported to the credit bureaus.
Frequently asked questions
Can I use a regular prepaid card to build credit?
No, regular prepaid debit cards don’t build or establish credit history. Prepaid cards aren’t a form of credit so they’re not added to credit reports. The term “prepaid credit card” is being used to describe some secured credit cards with reloadable deposits, making them similar to regular prepaid cards in that you can only spend what you’ve deposited in the linked account.
Do debit cards build credit?
No, regular debit cards that are linked to a deposit account don’t build or establish credit history. Similar to prepaid cards, debit cards are not a form of credit and are not added to credit files. Some credit-building secured cards refer to themselves as “debit cards” such as Extra and Fizz, but for payments to be reported, there has to be some sort of credit involved. For example, with Extra, you use the Extra card to make purchases and the amount is pulled from “Spend Power,” which is the line of credit. Extra pays itself back with the funds you deposited.
What is the fastest way to build credit from no credit?
There isn’t a perfect answer for this, but we will say that establishing a good history with no credit history tends to be easier than rebuilding a negative history. If you have nothing on your credit file, adding a credit card or installment loan can create a positive credit score quickly, often within a few months of on-time payments. If you go with a credit card, remember that your credit utilization ratio will greatly impact on your overall score, so try to keep your owed credit card balances below 30% of their credit limit and stay on top of your minimum payments.
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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