The
Chime Credit Card is good for people who want to build or rebuild their credit at a low cost. It has a
$0 annual fee, and you can even earn up to 2% - 5% cash back on purchases, depending on how much you direct deposit to your Chime checking account each month.
What I Like About the Chime Credit Card
Cash back on eligible purchases
You can earn 2% or 5% cash back with this card, up to $1,500 spent per month in your choice of categories. The options aremay include restaurants, groceries, gas, cable/internet, phone bills, taxi/ridesharing, and travel.
Your cash back rate depends on how much you direct deposit each month. If you direct deposit $200+, you get 2% back. If you have $3,000+ in monthly direct deposits, you get 5% back. Our research shows that the average rewards rate on other cards is about 1% back, so these earning rates are very good.
No minimum deposit requirement
Some secured credit cards require you to put down at least $200 or $300 as collateral. The Chime Card is a bit more relaxed, as there’s no specific minimum amount you need to deposit. Just remember that your spending is still limited to the amount in your secured deposit account, so you’ll have to put something down in order to actually use the card.
No annual fee
It’s important to keep costs down while you’re building credit. At this point, paying extra probably won’t get you better terms, as it might when you have good or excellent credit. So, it’s good that you won’t have to pay a fee just to own the Chime Credit Card. You won’t have to spend a dollar more than necessary on your way to a better credit score.
No interest charges
You don’t have to worry about racking up expensive debt with this card. You won’t be able to spend more than you can afford to pay off, based on the funds in your bank account, and interest charges won’t be applied to your balance. But if you don’t pay on time, your ability to make new purchases will get suspended. So it’s best to set up automatic payments.
No minimum credit score requirement
One of the best things about this card is the fact that you can get it even if you have a bad credit score or no credit history. That’s because there’s no credit check when you apply. Most credit cards can’t say the same.
Monthly credit bureau reporting
The Chime Credit Card can help you build credit history and improve your credit score, if you use it responsibly, since it reports to the major credit bureaus each month. You can track your progress with
free daily credit score updates here on WalletHub.
What I Don’t Like About the Chime Credit Card
Checking account bundle
When you get the
Chime Credit Card, you’re also getting a Chime Checking Account and a Chime Secured Deposit Account. If you already have a good checking account and don’t want another, you might want to consider a different card.
Limited rewards
If you don’t direct deposit $200+, you won’t earn rewards. Even if you do deposit enough, you’ll only earn rewards on a single type of purchase, up to a monthly limit. A lot of other credit cards for people with limited or bad credit offer above-average rewards on all purchases.
Bottom Line: Is the Chime Credit Card Worth It?
It’s worth applying for the
Chime Credit Card if you have limited or bad credit, since it doesn’t charge an annual fee or interest and it can help you build credit. But it probably won’t save you as much as other cards for
building or
rebuilding credit that offer rewards on all purchases.
Note: This review is not provided, commissioned or endorsed by any issuer. Opinions and ratings are our own.
