What the Chime Credit Builder Card does

The Chime Credit Builder Card is a secured credit card that reports to the three major credit bureaus — Equifax, Experian, and TransUnion. You deposit money into a savings account that Chime holds, and that deposit becomes your credit limit. When you use the card to make purchases, you pay from your regular Chime checking account, not from the deposit. Chime reports your on-time payments to the credit bureaus, which builds your credit history over time.

The card itself has no annual fee, no interest charges, and no minimum credit score to open it. You need a Chime checking account to use it — if you don't have one, you'll need to open that first. The deposit you make is yours; Chime holds it as collateral but doesn't take it as a fee.

Key Takeaways

  • You deposit money into a Chime savings account, and that amount becomes your credit limit on the card.
  • You make purchases on the card using funds from your Chime checking account, keeping the deposit separate and untouched.
  • Chime reports your payment history to all three credit bureaus each month, which is how the card builds your credit score.
  • There is no annual fee, no interest, and no minimum credit score required to open the card.
  • Your deposit stays in the savings account and earns a small amount of interest; you can withdraw it once you close the card or graduate to an unsecured card.

How to set up the Credit Builder Card

First, you need a Chime checking account. If you already have one, you can request the Credit Builder Card through the Chime app or website. If you don't have a Chime account, you'll open one first — this takes a few minutes and requires your Social Security number, date of birth, and a valid ID.

Once your checking account is active, you decide how much to deposit into the linked savings account. This deposit becomes your credit limit. Chime allows deposits ranging from $200 to $2,000, though the exact range may vary. You fund this savings account from your checking account or by transferring money in from another bank. After the deposit clears, your card is ready to use.

You don't need to wait for a physical card to arrive before you can start using it — Chime provides a virtual card number immediately that you can use for online purchases. The physical card arrives by mail within 7 to 10 business days.

How payments and credit reporting work

When you make a purchase with the Credit Builder Card, the charge comes out of your Chime checking account, not from your savings deposit. This is important: your deposit stays untouched in savings, earning interest. You're essentially using your own money to build credit, which is why there's no interest charged on the card itself.

Chime reports your account activity to the credit bureaus monthly. What gets reported is whether you paid on time, how much of your credit limit you used, and your account status. Making purchases and paying them off on time each month shows lenders that you manage credit responsibly. Missing a payment or paying late will also be reported and will hurt your credit score.

Your statement closes on the same day each month, and payment is due by a set date. Chime typically gives you at least 21 days from the statement close date to pay. You can set up automatic payments from your checking account so you don't miss a due date.

What happens to your deposit and credit limit

Your deposit earns interest while it sits in the savings account. The rate Chime offers on savings varies and changes over time, but it is typically higher than what traditional banks offer. You can check the current rate in the Chime app.

Your credit limit stays the same as your deposit amount unless you choose to increase it. If you want a higher limit, you can add more money to the savings account, and your limit will increase by that amount. You cannot decrease your limit or withdraw from the savings account while the card is active — the money must stay there as collateral.

Once you've built credit and want to move to a regular unsecured credit card, you can close the Credit Builder Card. When you do, Chime releases your deposit, and you can withdraw it or keep it in savings. Some cardholders graduate to Chime's unsecured Chime Credit Card, which has no deposit requirement.

How this card affects your credit score

The Credit Builder Card helps build credit in two ways: it creates a new account on your credit report, and it establishes a payment history. Both of these factors matter to credit scoring models. A new account initially lowers your score slightly because it's a hard inquiry and a new line of credit, but this effect fades quickly.

Payment history is the largest factor in most credit scores — about 35 percent. Making on-time payments with the Credit Builder Card demonstrates reliability. Over several months of consistent, on-time payments, you should see your score improve, especially if you also keep your credit utilization low (meaning you don't use most of your available credit limit each month).

The card also helps if you have no credit history at all or if you're rebuilding after negative marks. Because there's no approval process based on your existing credit, people with poor or no credit can open it and start building immediately.

Costs and fees to know about

The Credit Builder Card has no annual fee, no monthly fee, and no interest charges. You will not be charged for late payments in the form of interest, though late payments will be reported to the credit bureaus and will damage your credit score.

Chime does charge fees for some other services — for example, if you overdraft your checking account or use out-of-network ATMs. These fees are not specific to the Credit Builder Card but apply to your Chime account overall. Review Chime's full fee schedule to understand what might cost you money.

There is no cost to close the card. When you're ready to move on, you simply close it through the app, and your deposit is released to you.

Alternatives and when the Credit Builder Card might not be right for you

If you don't want to open a Chime checking account, other banks offer secured credit cards that work similarly. Capital One Secured MasterCard, Discover Secured Card, and U.S. Bank Secured Visa are common alternatives. These cards also require a deposit, report to credit bureaus, and have no annual fee, but they may have different deposit ranges, interest rates on savings, or approval processes.

If you already have a credit score above 600 and access to unsecured credit cards, a secured card may not be necessary. Unsecured cards build credit just as effectively and don't require you to tie up money as a deposit. However, if you have no credit history or poor credit, a secured card is often the most straightforward path to building a score.

If you prefer not to use a debit-based checking account or want more robust fraud protections, traditional secured cards from banks may feel more familiar, though Chime does offer fraud protection on its accounts.

Frequently Asked Questions

Can I use the Credit Builder Card if I have bad credit?

Yes. The Credit Builder Card has no credit score requirement and no approval process based on your existing credit. You only need a Chime checking account. This makes it one of the few cards available to people with poor credit or no credit history.

What happens if I miss a payment?

A missed payment will be reported to the credit bureaus and will lower your credit score. Chime may also charge a late fee depending on your account terms. Unlike unsecured cards, you won't be charged interest on the unpaid balance, but the damage to your credit report is the same.

Can I withdraw my deposit while the card is open?

No. Your deposit must stay in the savings account as long as the card is active. It serves as collateral and determines your credit limit. You can withdraw it only after you close the card.

How long does it take to build credit with this card?

Credit bureaus typically need at least six months of payment history to generate a credit score. Most people see meaningful score improvement within three to six months of consistent on-time payments, though the exact timeline depends on your starting point and other factors on your credit report.

Will closing the Credit Builder Card hurt my credit score?

Closing any credit card can temporarily lower your score because it reduces your total available credit and may increase your credit utilization ratio on remaining cards. However, the long-term benefit of having built a positive payment history usually outweighs this temporary dip.