Chime Credit Card Basics
Chime offers a credit builder card designed to help people build or rebuild credit history. Unlike a traditional credit card, the Chime Credit Builder Card requires you to deposit money into a secured account first — that deposit becomes your credit limit. You then use the card to make purchases against that limit, and Chime reports your payment activity to the three major credit bureaus (Equifax, Experian, and TransUnion).
The card itself is a Visa, so you can use it anywhere Visa is accepted. There is no annual fee, no interest charged on purchases, and no late fees. The main cost is the monthly membership fee of $5 if you maintain a balance on the card, or $0 if you pay off your balance in full each month.
Chime also offers a Chime Credit Card (unsecured) for customers who already have an established credit history with Chime or who meet their credit criteria. This version does not require a deposit and works more like a traditional credit card, though it carries the same $5 monthly fee structure.
Key Takeaways
- The Chime Credit Builder Card requires a cash deposit that becomes your credit limit, while the unsecured Chime Credit Card does not.
- You pay a $5 monthly membership fee only if you carry a balance; paying in full each month means no fee.
- Chime reports your payment history to all three credit bureaus, which is how the card builds your credit score over time.
- The card earns no rewards points or cash back, so it is designed purely for credit building rather than earning benefits.
- Your deposit is held in a separate savings account and earns a small amount of interest while securing your credit line.
How the Deposit and Credit Limit Work
When you open a Chime Credit Builder Card, you choose how much to deposit, typically between $200 and $2,000. That amount becomes your credit limit — if you deposit $500, you can charge up to $500 on the card. Your deposit sits in a Chime savings account and earns interest (the rate varies and is published on Chime's website), but you cannot withdraw it while the card is active.
The deposit protects Chime if you do not pay your bill, which is why the card does not require a credit check or existing credit history. You are essentially lending money to yourself through Chime. Once you have built credit and want to close the card, you can withdraw your deposit, though Chime may hold it for a short period after closure.
If you want to increase your credit limit, you can add more money to your deposit. Chime does not automatically raise your limit based on payment history the way traditional cards do.
Monthly Fees and Payment Structure
The $5 monthly membership fee only applies if you carry a balance on the card at the end of your billing cycle. If you pay off everything you charged during the month, there is no fee. This is different from traditional credit cards, which charge interest on unpaid balances — Chime charges a flat fee instead.
You can set up automatic payments from your Chime checking account (if you have one) or from an external bank account. Payments typically post within one business day. There are no late fees, but if you do not pay your bill, Chime will eventually report the delinquency to the credit bureaus, which will hurt your credit score.
Interest is not charged on purchases, but the $5 fee can add up quickly if you regularly carry a balance. For example, carrying a $300 balance for 12 months costs you $60 in fees alone, which is why the card works best if you use it lightly and pay it off monthly.
How Chime Reports to Credit Bureaus
Chime reports your account status, credit limit, balance, and payment history to Equifax, Experian, and TransUnion each month. This reporting is what allows the card to build your credit score. The three things that matter most to credit bureaus are: whether you pay on time, how much of your credit limit you use, and how long you have had the account open.
With the Chime Credit Builder Card, you control all three. You decide when to pay (ideally before the due date), you decide how much to charge (keeping it low relative to your limit helps your score), and the longer you keep the account open, the better. Even one late payment will be reported and will lower your score, so the card only works if you treat it seriously.
Chime does not report to the bureaus immediately — there is typically a one-month delay between your billing cycle and when the information appears on your credit report. This means you should expect to see score movement after two to three months of on-time payments.
Who Should Use the Chime Credit Builder Card
The card is most useful for people with no credit history (first-time credit builders), people rebuilding after damage like missed payments or collections, or people who want a second credit account to improve their credit mix. Because there are no rewards and the fee structure penalizes carrying a balance, it is not a good choice for everyday spending or for people who already have solid credit.
If you have an existing Chime checking account, the card integrates with your account — you can see your balance in the Chime app and set up automatic payments easily. If you do not have a Chime checking account, you can still open the credit card, but you will need to link an external bank account for payments.
The card is not a good fit if you cannot commit to paying the full balance each month. The $5 fee makes carrying a balance expensive relative to what you are building, and the whole point is to demonstrate responsible credit use to the bureaus.
Comparing Chime to Other Credit Builder Options
Other banks offer secured credit cards with similar structures — Discover, Capital One, and LendingClub all have versions. The main differences are in the deposit range, interest earned on the deposit, and whether the card offers rewards. Chime's card has no rewards, but it also has no annual fee and no interest charges on purchases, which makes it competitive for pure credit building.
Some credit unions offer credit builder loans as an alternative to secured cards. With a loan, you borrow money against your own deposit, make monthly payments, and build credit through the payment history. Loans often cost less overall but require a commitment to a fixed payment schedule, whereas a credit card gives you flexibility in how much you charge each month.
If you are choosing between Chime and another secured card, compare the deposit range (can you afford the minimum?), the interest rate on your deposit, and whether you want any rewards. For pure credit building with no frills, Chime is straightforward and low-cost.
What Happens When You Close the Card
When you close your Chime Credit Builder Card, your deposit is returned to you, usually within 5 to 10 business days. Chime will continue to report the closed account to the credit bureaus for up to seven years, which means the account continues to help your credit history even after you stop using it.
Closing the card can actually lower your credit score temporarily because it reduces your total available credit and removes an active account from your credit mix. However, if you have built solid credit and opened other accounts in the meantime, the impact is usually small. The longer you keep the account open, the less damage closing it will do.
Some people keep their Chime Credit Builder Card open indefinitely, even after building credit, because the account history helps their score. If you do this, you can simply stop using the card and pay nothing — as long as you do not carry a balance, there is no monthly fee.
Frequently Asked Questions
Can I use the Chime Credit Builder Card if I have bad credit?
Yes. The card does not require a credit check, so your credit score does not matter. The deposit is what secures the card, not your creditworthiness. This is the main reason people with damaged credit use it.
What happens if I miss a payment?
Chime will report the missed payment to the credit bureaus, which will lower your score. There are no late fees, but the damage to your credit history is the real cost. You should still pay as soon as you realize you missed the due date.
Can I withdraw my deposit while the card is active?
No. Your deposit must stay in the account as long as the card is open. If you need the money, you would have to close the card first, which means losing the credit-building benefit and potentially lowering your score.
Does Chime offer a rewards program on this card?
No. The Chime Credit Builder Card earns no cash back, points, or other rewards. It is designed purely for building credit, not for earning benefits on spending.
How long does it take to build credit with this card?
You should see score movement after two to three months of on-time payments. Significant improvement typically takes six months to a year, depending on your starting point and what other accounts you have.