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Build Credit with No Fees: Chime Card™
July 1, 2025
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Are you looking to build your credit history and improve your credit score? The Chime Card™, issued by Stride Bank, N.A., Member FDIC, could be the perfect tool. This innovative secured credit card is designed to help you establish a positive payment history, which is one of the key factors in determining your credit score.
What sets the Chime Card™ apart is its unique structure and lack of hidden fees. Unlike traditional credit cards or even many other secured credit cards, Chime's offering doesn't require a credit check or security deposit. Instead, it's linked to your Chime® Checking Account, allowing you to build credit while using your own money.
Chime is a financial technology company, not a bank. The secured Chime Card™ is issued by The Bancorp Bank, N.A. or Stride Bank, N.A.
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How the Chime Card™ Works
To get started with the Chime Card™, you'll need to have an active Chime® Checking Account. This can be done easily through the Chime app, and to apply for a Chime Card™, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT).
Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits. Once your account is set up, you can move money from your Chime® Checking Account into your Chime Card™ secured account.
Your Chime Card™ secured account acts as your credit limit. Whatever amount you transfer into this account is the amount you can spend on your Chime Card™. Money added to your Chime Card™ will be held in a secured account as collateral for your Chime 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. For example, if you move $500 into your Chime Card™ secured account, you'll have a $500 credit limit on your card.
As you make purchases with your Chime Card™, Chime will automatically pay off your balance on time using the funds in your Chime Card™ secured account (if you have Safer Credit Building enabled). This ensures you're building a positive payment history, which is reported to all three major credit bureaus - Experian, Equifax, and TransUnion.
The secured Chime Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank.
Benefits of the Chime Card™
One of the standout features of the Chime Card™ is its transparent fee structure with no annual fee. There's no annual fee, no interest charges (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), and no foreign transaction fees. This makes it an affordable and accessible option for anyone looking to build credit.
Another benefit is the ability to increase your credit limit at any time by adding more funds to your Chime Card™ secured account. This can help improve your credit utilization ratio, which is another important factor in your credit score. A lower credit utilization ratio, meaning you're using a smaller percentage of your available credit, is generally seen as a positive by credit scoring models.
Based on a representative study conducted by Experian®, members who made their first purchase with Chime Card™ between June 2022 and October 2022 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.
NEW: 1.5% Cash Back on Rotating Categories - One of the biggest updates for 2025 is that Chime Card™ now offers unlimited 1.5% cash back on rotating categories when you have a qualifying direct deposit set up. With a qualifying direct deposit, earn 1.5% cash back on eligible secured Chime Visa® Credit Card purchases. This transforms the card from a purely credit-building tool into a rewarding everyday spending card. The rotating categories change periodically, giving you opportunities to earn cash back on different types of purchases throughout the year.
NEW: SpotMe® on Chime Card™ - Chime's popular SpotMe feature is now available for Chime Card™ users. This fee-free overdraft coverage allows you to spend up to $200 beyond your available balance when needed, with no fees or interest charges. The negative balance is automatically repaid from your next direct deposit.
Metal Card Upgrade Option - Chime now offers a metal card upgrade challenge. Complete 40 purchases within 60 days of getting your Chime Card™, and you can earn a premium metal card at no additional cost.
The Chime Card™ also offers the convenience and security of a Visa credit card. You can use it anywhere Visa is accepted, and you'll enjoy features like zero liability protection for unauthorized purchases.
While you build your credit with the Chime Card™, you can still earn rewards on your purchases with Kudos Boost. Get 1% back at over 15,000 partner stores when you shop using Kudos, making your credit-building journey even more rewarding.
Using the Chime App to Manage Your Credit
Chime's user-friendly mobile app makes it easy to manage your Chime Card™ and track your progress. You can view your account balance, move money between your Chime® Checking Account and Chime Card™ secured account, and monitor your spending.
The app also provides helpful insights and tools to support your credit-building journey. For example, you can set up direct deposit to your Chime® Checking Account and automatically transfer a portion of your paycheck to your Chime Card™ secured account each month with the "Move My Pay" feature. This can help ensure you're consistently building credit over time.
Comparing the Chime Card™ to Alternatives
While the Chime Card™ has many appealing features, it's not the only credit-building option available. Let's compare it to two popular alternatives: the Self Credit Builder Account and Capital One Quicksilver Secured Cash Rewards Credit Card.
Self Credit Builder Account: The Self Credit Builder Account is not a credit card but rather a credit builder loan. You make monthly payments to build your credit history, and at the end of the term, you receive the money you paid (minus interest and fees) in a savings account. While this can be an effective way to build credit, it doesn't provide the flexibility and convenience of a credit card like Chime's offering.
Capital One Quicksilver Secured Cash Rewards Credit Card: The Capital One Quicksilver Secured Cash Rewards Credit Card is a secured credit card that earns cash back rewards. While it offers rewards, it also has a variable APR of 29.74% for purchases and balance transfers, which can be costly if you carry a balance. In contrast, the Chime Card™ doesn't charge interest since you're using your own money.
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Is the Chime Card™ Right for You?
If you're looking for a simple, affordable way to build credit, the Chime Card™ is definitely worth considering. It's especially well-suited for those who are new to credit or have had trouble getting approved for other credit cards due to a limited or poor credit history.
The addition of 1.5% cash back rewards in 2025 makes it even more attractive, especially when combined with the SpotMe overdraft protection and metal card upgrade option. With a qualifying direct deposit, earn 1.5% cash back on eligible secured Chime Visa® Credit Card purchases. These features make it competitive with other secured credit cards while maintaining its unique no-fee, no-interest structure.
However, it's important to keep in mind that the Chime Card™ isn't a traditional unsecured credit card. Your credit limit is tied to the amount you have in your Chime Card™ secured account, so you'll need to have money available to fund that account.
Additionally, while the Chime Card™ reports to all three major credit bureaus, it's not the only factor that impacts your credit score. Payment history is the most important factor, but length of credit history, credit mix, and new credit inquiries also play a role. Building credit takes time and requires responsible financial habits across all your credit accounts.
The Bottom Line
The Chime Card™ offers a unique and accessible way to build credit. By linking your credit limit to your own funds and automatically paying off your balance each month, Chime helps ensure you're establishing a positive payment history. And with no hidden fees, it's an affordable option for credit building.
2025 Updates make the card even more compelling:
- 1.5% cash back on rotating categories with direct deposit (With a qualifying direct deposit, earn 1.5% cash back on eligible secured Chime Visa® Credit Card purchases.)
- SpotMe® fee-free overdraft coverage up to $200
- Metal card upgrade opportunity after 40 purchases in 60 days
- Enhanced mobile app features for better account management
Compared to alternatives like the Self Credit Builder Account and the Capital One Quicksilver Secured Cash Rewards Credit Card, the Chime Card™ stands out for its simplicity and lack of fees or interest charges. However, it's important to consider your individual needs and financial situation when choosing a credit-building tool.
Regardless of which path you choose, the key to building credit is making on-time payments and keeping your credit utilization low. Tools like the Chime app can help you stay on track, but it's up to you to develop responsible credit habits. With dedication and consistency, you can improve your credit score over time and open up new financial opportunities.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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