What the Chime Credit Builder Card Is

The Chime Credit Builder Card is a secured credit card issued by Chime, a financial technology company. You deposit money into a savings account, and that deposit becomes your credit limit — typically between $200 and $2,000. Chime reports your monthly payments to the three major credit bureaus (Equifax, Experian, and TransUnion), which means using the card and paying on time builds your credit history.

Unlike a traditional secured card from a bank, the Chime Credit Builder Card does not charge an annual fee, application fee, or processing fee. You do pay interest on any balance you carry month to month. The card is designed for people building credit from scratch or rebuilding after damage — those with no credit history, thin credit files, or past delinquencies.

The card itself is a Visa, so you can use it anywhere Visa is accepted. Your deposit stays in a locked savings account and earns a small amount of interest. The card has no grace period, meaning interest accrues immediately on purchases, even if you pay in full.

Key Takeaways

  • Your deposit becomes your credit limit, and Chime holds that money in a savings account while you use the card.
  • There are no annual, application, or processing fees, but interest accrues on any unpaid balance starting immediately after purchase.
  • Chime reports your account activity to all three credit bureaus each month, so on-time payments build your credit score over time.
  • You can graduate to an unsecured card after demonstrating responsible use, at which point your deposit is returned.
  • The card has no grace period, so carrying a balance costs you interest even if you pay within 30 days.

How Your Deposit and Credit Limit Work

When you open a Chime Credit Builder Card account, you choose how much to deposit. That deposit amount becomes your credit limit. If you deposit $500, your limit is $500. Chime holds your deposit in a locked savings account that you cannot withdraw from while the card is active.

Your deposit earns interest at the rate Chime offers on its savings accounts, which varies but is typically competitive with high-yield savings accounts. This interest accrues monthly and is added to your deposit balance. You do not pay interest on the deposit itself — the interest is a return you earn.

Your credit limit does not increase automatically as you use the card. You stay at your initial limit until Chime offers you a credit limit increase, which may happen after several months of on-time payments. When and whether Chime increases your limit is at their discretion and depends on your payment history and account activity.

Interest Rates and Fees You Will Pay

The Chime Credit Builder Card charges interest on any balance you do not pay in full each month. The annual percentage rate (APR) varies by applicant and is disclosed when you receive your card. Chime does not publish a standard APR range publicly, so your rate depends on what Chime determines during underwriting.

Unlike most credit cards, the Chime Credit Builder Card has no grace period. This means interest begins accruing on new purchases immediately, even if you pay your full balance when the statement closes. If you carry a $100 balance for one month at a 20% APR, you will owe roughly $1.67 in interest on top of the principal.

There are no annual fees, application fees, or processing fees. Late fees do apply if you miss a payment — Chime charges a late fee for payments not received by the due date, though the exact amount is in your cardholder agreement. There is no foreign transaction fee if you use the card outside the United States.

How Chime Reports Your Activity to Credit Bureaus

Chime reports your account to Equifax, Experian, and TransUnion once each month. The report includes your credit limit, current balance, and payment history. On-time payments are recorded and help build your credit score. Late or missed payments are also reported and damage your score.

Your payment history makes up 35% of your credit score calculation, so consistent on-time payments are the primary way this card helps you build credit. The card also contributes to your credit mix (10% of your score) because it is a revolving account, different from installment loans or other credit types you may have.

The card does not report to the bureaus until your first statement closes, which is typically 30 to 45 days after you open the account. This means your credit score will not improve immediately — you must make at least one on-time payment before the bureaus see any activity.

When You Can Graduate to an Unsecured Card

Chime does not publish a specific timeline for graduating to an unsecured card, but it typically happens after six to twelve months of on-time payments and responsible use. When Chime determines you are ready, they will offer you an unsecured Chime credit card with no deposit requirement.

Once you graduate, your original deposit is returned to you. You keep the unsecured card, which has its own credit limit (separate from your deposit amount). Your credit history with the secured card transfers to your credit report, so the months you spent building credit count toward your overall credit profile.

Graduating does not happen automatically. Chime reviews your account periodically, but you can contact them to ask about your readiness. Having a higher credit score, a perfect payment history, and low credit utilization (using only a small portion of your limit) increases the likelihood they will offer you an unsecured card.

How the Card Compares to Other Secured Cards

Most secured cards from traditional banks charge annual fees between $25 and $95. The Chime Credit Builder Card charges no annual fee, which saves you money over time. However, many traditional secured cards offer a grace period on purchases, meaning you can avoid interest if you pay in full by the due date. Chime does not offer this.

Some secured cards, like the Capital One Secured Mastercard, allow you to increase your credit limit by making additional deposits. Chime does not have this option — your limit stays fixed until Chime increases it on their own. Other cards, like the Discover Secured Card, report to all three bureaus and offer cash back rewards. The Chime card offers no rewards.

The Chime card is most useful if you want to avoid annual fees and do not mind the lack of a grace period. If you can pay your balance in full each month, the no-grace-period structure costs you nothing. If you regularly carry a balance, a card with a grace period from another issuer may be cheaper despite the annual fee.

What Happens If You Miss a Payment

If you miss your payment due date, Chime charges a late fee and reports the late payment to the credit bureaus. A late payment stays on your credit report for seven years and significantly damages your credit score. Even one late payment can drop your score by 50 to 100 points or more, depending on your current score.

If your payment is 30 days late, Chime reports it as a 30-day late payment. If it reaches 60 days late, it becomes a 60-day late payment, which is worse. At 90 days late, the account may be charged off, meaning Chime writes it off as a loss and may sell the debt to a collection agency.

Your deposit is not automatically applied to a missed payment. Chime will not use your locked savings account to cover the debt. You must make the payment yourself. If your account is charged off, you may face collection calls and legal action, and the charge-off remains on your credit report for seven years.

Frequently Asked Questions

Can I withdraw my deposit while I have the card?

No. Your deposit is locked in a savings account and cannot be withdrawn while the card is active. You can only access it after you close the card or graduate to an unsecured card, at which point Chime returns the full deposit to you.

Does the Chime Credit Builder Card offer cash back or rewards?

No. The card does not offer cash back, points, or any other rewards on purchases. The primary benefit is building credit history, not earning rewards.

What is the minimum deposit required?

Chime's minimum deposit is typically $200, though this may vary. You choose your deposit amount up to a maximum, which is usually around $2,000. Your deposit becomes your credit limit.

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

Your first payment is reported to the bureaus after your first statement closes, usually 30 to 45 days after opening the account. Meaningful credit score improvement typically takes three to six months of on-time payments. Graduating to an unsecured card usually happens after six to twelve months of responsible use.

What happens to my credit history if I close the card?

Your account history stays on your credit report for ten years after you close the card. The months you spent building credit remain part of your credit profile. Closing the card does not erase the positive payment history you built.