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
Traditionally, debit and prepaid cards don’t build credit history. But if you don’t want to go with a traditional credit card to improve your credit, there are unique secured card options to check out.
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.
Chime is a fintech company with banking services through its partners, The Bancorp Bank, N.A. and Stride Bank, N.A. Chime offers a Credit Builder secured card with no credit check, annual fees or APR. You set your spending limit by transferring money from your Chime Checking account, and payments are reported to all three credit bureaus. To qualify, you need a Chime Checking Account.
Fee
$0 per month
Minimum deposit to open
$0
Chime is a fintech company with banking services through its partners, The Bancorp Bank, N.A. and Stride Bank, N.A. Chime offers a Credit Builder secured card with no credit check, annual fees or APR. You set your spending limit by transferring money from your Chime Checking account, and payments are reported to all three credit bureaus. To qualify, you need a Chime Checking Account.
Pros
No credit check or annual fees
Reports to all three credit bureaus
No minimum security deposit
Cons
Requires a Chime Checking account
Can't transfer money from other banks to the card
Annual Percentage Yield (APY)
N/A
Fee
$0 per month
ATM transaction fee
$0
Overdraft fee
$0
Foreign transaction fee
0%
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.
Varo, an FDIC-insured online bank, offers the Varo Believe card to help build credit. There’s no interest, monthly fees or hard credit pull. You fund a Varo Believe Secured Account, which sets your spending limit. With Varo SafePay on, your purchases are automatically covered using these funds, and payments are reported to all three credit bureaus. Any unused funds roll over to the next cycle. While there’s no APR or fees, you’ll need a Varo Bank Account to move money into the Believe Secured Account.
Fee
$0 per month
Minimum deposit to open
$0
Varo, an FDIC-insured online bank, offers the Varo Believe card to help build credit. There’s no interest, monthly fees or hard credit pull. You fund a Varo Believe Secured Account, which sets your spending limit. With Varo SafePay on, your purchases are automatically covered using these funds, and payments are reported to all three credit bureaus. Any unused funds roll over to the next cycle. While there’s no APR or fees, you’ll need a Varo Bank Account to move money into the Believe Secured Account.
Pros
Reports to all three credit bureaus
No APR and no monthly fees
No hard credit pull
Cons
Requires Varo Bank Account
Up to $2,500 purchases per day
Up to $1,000 for cash advances
Annual Percentage Yield (APY)
N/A
Intro or bonus offer
Existing and new customers get a $25 referral bonus when signing up for a Varo Bank account. T&C apply.
Rewards
Get up to 6% Cashback when you use your card with select brands
Current is a fintech partnered with Choice Financial Group and Cross River Bank. Its Build card is a secured, credit-building charge card linked to your Current account, with your spending limit based on your deposits. Payments are reported to TransUnion to help build credit. There's no credit check, interest or annual fee, but a 3% fee applies for late payments.
APY
4.00%
Fee
$0 per month
Minimum deposit to open
$0
Current is a fintech partnered with Choice Financial Group and Cross River Bank. Its Build card is a secured, credit-building charge card linked to your Current account, with your spending limit based on your deposits. Payments are reported to TransUnion to help build credit. There's no credit check, interest or annual fee, but a 3% fee applies for late payments.
Cleo is a financial app with its Credit Builder Card, requiring as little as $1 as an opening deposit to set your spending limit. There's no credit check, no interest (balance repaid monthly) and Cleo reports to all three credit bureaus. For $14.99 per month, the Credit Builder membership includes cash advances, cashback rewards and an AI chatbot to keep tabs on your spending. But compared to others on this list, Cleo's credit-building card is more expensive.
Fee
$14.99. per month
Minimum deposit to open
$1
Cleo is a financial app with its Credit Builder Card, requiring as little as $1 as an opening deposit to set your spending limit. There's no credit check, no interest (balance repaid monthly) and Cleo reports to all three credit bureaus. For $14.99 per month, the Credit Builder membership includes cash advances, cashback rewards and an AI chatbot to keep tabs on your spending. But compared to others on this list, Cleo's credit-building card is more expensive.
One of the best benefits of secured cards is the opportunity to build a better credit history, and usually, it also means fewer fees than traditional credit cards.
Usually no APR. Most prepaid credit cards don’t charge interest.
Fewer fees. Many of these credit-building secured cards we’ve found don’t charge monthly fees.
The account is secured. Most of these cards require 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. The majority don’t require a hard credit pull, and if they do, the requirements tend to be easier to meet than traditional credit cards or loans.
There aren’t many downsides to these unique secured cards, as many of them lack interest charges, late fees and hard credit pulls.
But just like any form of credit, there’s still some risk of harming your credit history. Late payments and high utilization ratios can harm your credit score. While they’re called credit building products, it’s up to you to maintain a positive payment history to actually improve your credit score.
Keep these in mind while compared secured card options:
Low spending limits. Because these prepaid credit cards often require a security or deposit, the 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 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, Experian Boost only reports 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.
Building credit takes time — often years of hard work. While credit-debit cards can help push you in the right direction, they’re also not the only way to boost your credit history — see more tips on how to build your credit.
Who are credit-building cards best for?
Credit-building debit cards are best for anyone who wants to start improving their credit history, and many are often designed for college students or young people who are new to borrowing. Most of these prepaid credit cards don’t require a hard credit pull, so your credit history may not be a factor at all during the application process.
But count on needing a security deposit or a linked bank account to qualify for a prepaid credit card. And they won’t build credit on their own — you may have to use the card so that repayments get reported to the credit bureaus.
These cards aren’t designed for large purchases, earning cashback rewards or emergencies. They’re not made for seasoned borrowers who already have regular credit cards, either. If you’re a student in need of a regular credit line, but your credit score isn’t up to par, consider looking at student credit cards instead as they tend to have more lax credit score requirements than regular credit cards.
How credit-building cards compare to traditional cards
Both can help you build a credit history, but overall, debit-credit cards are likely to have fewer fees.
Type of card
Credit check
Charges interest
Annual fee
Late fees
Credit-building debit cards
Rarely
No
Rarely
Rarely
Secured credit cards
Yes
Yes
Usually
Usually
Unsecured credit cards
Yes
Yes
Usually
Usually
How to build credit for free
Most methods of credit-building involve taking on credit — personal loans, credit cards, auto loans and so on — and those tend to include interest charges. If you want to build credit for free, there are a few secured cards with no monthly or annual fees, and some free rent reporting services.
Secured credit cards. There are a few free credit-building debit cards like the Step card. It doesn’t charge monthly fees, annual fees or interest charges. If you go with a traditional secured card that is backed by a security deposit, you can choose one that has no annual fees and just be sure to pay your owed balance off each billing cycle to avoid APR.
Rent reporting. Some rent-reporting services charge monthly fees, but a few like Self and Experian Boost don’t charge anything to report your rent payments.
Subscription reporting. While most subscription reporting services do have some sort of monthly fee, there’s one that stands out for its very long trial period: Grow Credit. This service can report your subscription payments and its base plan called Build is free for 12 months and you can report up to $17 a month in subscriptions.
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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