What the Chime Credit Builder Card does
The Chime Credit Builder Card is a secured credit card issued by Chime, a financial technology company. You put money into a savings account, and that deposit becomes your credit limit — typically between $200 and $2,000. You then use the card to make purchases up to that limit, and your payment history gets reported to the three major credit bureaus: Equifax, Experian, and TransUnion.
The card itself charges no annual fee and no interest on purchases. The main cost is the deposit you lock away while you hold the card. Unlike a debit card, using this card creates a credit history because Chime reports your on-time payments to credit bureaus. That payment record is what builds your credit score over time.
You need a Chime checking account to get the card. If you don't have one, you'll need to open it first — Chime does this online with no minimum balance requirement and no monthly fees.
Key Takeaways
- Your deposit becomes your credit limit, so a $500 deposit gives you a $500 limit; the money stays in a savings account and earns interest.
- Chime reports your payments to all three credit bureaus each month, so on-time payments build your credit score and late payments damage it.
- There is no annual fee, no interest charged on purchases, and no credit check to open the account.
- You must pay your full statement balance by the due date each month to avoid late fees and credit damage.
- After consistent on-time payments, you may be able to graduate to an unsecured card or request a credit limit increase without adding more money.
How to set up the card and fund your deposit
Start by downloading the Chime app or visiting Chime's website. You'll need to provide your Social Security number, date of birth, and address. Chime will verify your identity and check ChexSystems (a banking history database) but does not run a hard credit pull, so this won't hurt your credit score.
Once your checking account is open, you can fund your initial deposit. You can transfer money from another bank account, receive a direct deposit, or deposit a check through the app. Decide how much to deposit — this amount becomes your credit limit. Many people start with $200 to $500 to keep the locked-away money manageable while they build credit.
After your deposit clears, the card is usually ready to use within one to three business days. Chime will send you a physical debit card first (for your checking account), and the Credit Builder Card arrives separately, typically within 7 to 10 business days.
Using the card to build credit history
Once you have the card, use it for small, regular purchases — groceries, gas, a coffee — and pay the full balance before the due date each month. Chime reports to credit bureaus around the 21st of each month, so your payment needs to post before then to show up in that month's report.
The credit bureaus care most about two things: whether you pay on time and how much of your limit you use. Paying the full balance by the due date shows you can manage credit responsibly. Using less than 30% of your limit (for example, spending $150 on a $500 limit) looks better to credit scoring models than maxing out the card.
Your credit score won't jump overnight. Most people see movement within three to six months of consistent on-time payments. After 12 months of perfect payment history, your score may have improved by 50 to 100 points, depending on where you started and what else is on your credit report.
What happens if you miss a payment
If your payment is late, Chime charges a late fee (the amount varies but is typically $25 to $35). More importantly, the late payment gets reported to credit bureaus and damages your credit score. A single late payment can drop your score by 50 to 100 points, and the damage can linger for years.
To avoid this, set up automatic payments from your Chime checking account. You can choose to pay the full balance automatically on your due date, or you can pay manually through the app. The due date is usually 21 days after your statement closes.
If you do miss a payment, contact Chime as soon as you notice. Some issuers will waive a single late fee if you call within a few days and bring the account current. The sooner you pay, the less damage to your credit score.
Moving beyond the secured card
After 6 to 12 months of on-time payments, Chime may automatically graduate you to an unsecured credit card. This means your deposit is returned to you and you keep the card with a credit limit based on your payment history and credit score. You don't have to do anything — Chime reviews accounts periodically and makes the switch if you may have access to.
If Chime doesn't graduate you automatically, you can request a credit limit increase. You can add more money to your deposit to raise your limit, or you can ask Chime to increase your limit without adding funds. Chime may say yes if your payment history is strong.
Once you've built credit with this card, you become a candidate for other credit products: traditional credit cards with rewards, personal loans, or even a mortgage. The goal of a secured card is to prove you can handle credit responsibly, and this card is designed to make that proof visible to lenders.
Fees and costs to know about
Chime charges no annual fee for the Credit Builder Card itself. You also pay no interest on purchases because you must pay your full balance each month (there is no option to carry a balance). The main costs are a late fee if you miss a payment, and the opportunity cost of having your deposit locked away.
Your deposit does earn interest, though the rate is typically very low — often less than 0.5% per year. This interest accrues in your savings account and is yours to keep. When you close the card or graduate to an unsecured card, your full deposit plus any interest is returned to you.
If you close the account before building enough credit history, you lose the benefit of that payment history. Chime recommends keeping the card open for at least one year to see meaningful credit improvement.
Comparing the Chime card to other secured cards
Other banks offer secured credit cards with similar structures: Capital One Secured MasterCard, Discover Secured Card, and U.S. Bank Secured Card are common alternatives. The main differences are deposit requirements, credit bureau reporting, interest rates on deposits, and whether the card offers rewards.
Chime's card has no annual fee and no interest on purchases, which is standard for secured cards. The main advantage of Chime is that it's easy to open online with no credit check and no minimum deposit. The main disadvantage is that Chime is a smaller issuer, so some merchants may not recognize the card (though this is rare).
If you already have a Chime checking account, the Credit Builder Card is convenient because everything lives in one app. If you don't have a Chime account and don't want to open one, another secured card might be simpler.
Frequently Asked Questions
Does Chime run a hard credit check?
No. Chime checks ChexSystems (a banking database) but does not run a hard credit pull. This means opening the account won't hurt your credit score. You can open an account even if you have no credit history or a damaged credit score.
Can I use the card internationally?
Yes, the Chime Credit Builder Card is a Visa card and works at merchants worldwide. However, Chime charges a 1% foreign transaction fee on purchases made outside the United States, so international use costs more than domestic purchases.
What if I need to close my Chime checking account?
You can close your checking account, but you must pay off your Credit Builder Card balance first. Once the card balance is zero, you can close the checking account and your deposit will be returned to you. Closing the account also closes the credit card.
How long does it take to see my credit score improve?
Most people see movement within three to six months of on-time payments. The exact timeline depends on your starting credit score and what else is on your credit report. Consistent on-time payments over 12 months typically produce the most noticeable improvement.
Can I increase my credit limit without adding more money?
Yes, after demonstrating consistent on-time payments, you can ask Chime to increase your limit without adding funds. Chime may also offer automatic increases. However, you can always add more money to your deposit to raise your limit immediately.