If you are looking for a low-cost credit card, then the Chime Credit Builder Visa card is for you to have a look at its pros and cons.
The Chime Credit Builder Visa is a low-cost credit card option for building up a credit history. Chime won’t charge any fees or surprises and also won’t charge you annual interest on credit. But in order to get one, you first have a Chime spending account and qualify for a direct deposit of a minimum of $200 within 365 days.
Table Of Contents
- 1 Pros
- 2 Cons
- 3 Highlights No interest charges
- 4 Introduction
- 5 How The Card Stacks Up:
- 6 Chime Credit Builder Card v/s Discover it® Secured Credit Card
- 7 Chime Credit Builder Card* vs. Secured MasterCard® from Capital One.
- 8 Chime Credit Builder Card* vs. First Progress Platinum Prestige MasterCard® Secured Credit Card
- No annual charges
- No annual interest
- No minimum security deposit requirement
- No annual fees or surprises
- Reports to all credit bureaus
- Mandatory to have a direct deposit account with Chime
- Credit limit depends on your deposit (more you deposit, more credit limit you get)
- No option to shift over on the unsecured card
- No rewards or major benefits
Highlights No interest charges
- No annual or hidden fees
- No fees on foreign transactions
- Minimum security deposit required limit not required
- No need of credit check to apply
If you are looking for a secured credit card based on your credit history, a secure Chime Credit Builder Visa® card might be the best option for you. Chime doesn’t charge you an annual interest or hidden fees, and there is no minimum security deposit, making it the most affordable option in its class. All you need to have is to open a Chime spending account before you can open your Chime Credit Builder Card.
The thing that makes it different from a traditional secured card is that it essentially holds your security deposit hostage until you close that account; you can use a Chime deposit to pay your balance at the end of each billing cycle. For example: If you have $200 in your Credit Builder account and you use $100 to pay your Chime Credit Builder card, your credit limit for the next month will only be $100 unless you add more money to your Chime Credit account your Builder.
This lack of a fixed-line of credit may not work well for you if you are short of cash to build your deposit back up from month to month. This might make Chime Credit Builder not look good compared to the traditionally safer option where you only get to beat cash once.
How The Card Stacks Up:
Chime Credit Builder Card v/s Discover it® Secured Credit Card
Discover It – Secured Credit Card first choice of secured cards holder. 0 annual fee no hidden charges over card offer cashback rewards – a rarity in guaranteed cards. The cardholder receives 2% cashback every quarter on joint purchases at gas stations and restaurants. Also, get 1% unlimited cash back on all purchases.
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At the end of your first year, Discover will automatically give you a dollar-for-dollar match for all the cash you receive. Another feature that can make this card more attractive than Chime Credit Builder: Discover will review your account starting at eight months to determine if you are eligible to upgrade to an unsecured account.
Chime Credit Builder Card* vs. Secured MasterCard® from Capital One.
The secured MasterCard® from capital one comes with some of the benefits of a secured card. Service provides 0 annual fees depends upon your creditworthiness. You can qualify for a limit of $200 on a deposit of $49, $99, $200. Your credit line can be increased in considerable six months.
Chime Credit Builder Card* vs. First Progress Platinum Prestige MasterCard® Secured Credit Card
The platinum Prestige MasterCard® has the lowest APRs overall secured, unsecured cards. On the one hand, its ongoing APR is 9.99% but has annual fees of $49. It’s the best option when you have to carry a balance while building up your credit, and this card will be the best option over the cards having no annual fees.