Chime Credit Builder Card Review: Huge Credit Score Drops | How To Fix It

On today’s video I wanted to talk about a rumor that has been going around about the Chime Credit Builder Card causing huge credit score drops on people’s credit scores, how to fix it and how to prevent that from happening to you if you have the chime credit builder card or plan on getting the chime credit builder card to build credit. 💰💳
Chime credit builder card is for anyone who seeks credit cards that are:
-Best credit cards 2021
-Credit cards for building credit
-Credit cards for beginners
-No Fee credit cards
-Secured credit cards
The chime credit builder card is a great option for people who are new to credit, have no credit, or want to build credit. You DO NOT need credit or a credit history in order to get this credit card and you can build credit easily with this credit card because this credit card reports to all 3 major credit bureaus!
How does the chime credit builder card work:
The chime credit card is a secured credit card which means you need to deposit money into the card in order to use it. The money you deposit into the card will then be your credit limit, which is the amount you’ll have available to spend.
(For example, if you deposit $100 into the credit card then that $100 will be the amount you can spend or in other words your credit limit)
Chime holds the money you deposit and use it to automatically pay your monthly balance once it’s due. But you’ll need to turn on a feature called Safer credit building. This will in return help you build credit fast and increase your credit scores fast!
How to get the chime credit builder card:
In order to get the chime credit builder card you need to first sign up for chime and setup direct deposit, but chime is currently offering $100 when you open an account and set up direct deposit (USE LINK BELOW) ⬇️
Fees and APR:
- No fees
- No interest
- No minimum security deposit
Why chime credit builder card is making your score drop/how to fix it:
Chime reports Payment status, Amount past due,Account age, and Current balance of your card to the credit bureaus.
The problem is that they DON’T report your credit utilization, since the chime credit builder card does not have a set limit. The card not having a set limit, in return confuses the credit bureaus and leads to the credit bureaus reporting your cards balance incorrectly, which ends up affecting your credit utilization although chime isn’t reporting utilization.
In simpler terms, the credit bureaus will look at the money you add to your chime credit builder card as a balance on your credit report, since there’s no set limit on the card, therefore causing an increase in your credit utilization.
In other words, if you deposit $200, then your limit is $200, regardless of that being reported as a $200 credit limit to the credit bureaus. So when you use those $200 at the end of the month, you’ll have a balance of $200 that must be repaid before you can use the card again.
Basically, if you don’t transfer the same amount back into your card before chime reports your on-time payments monthly, then that amount will be shown as your balance on the card and it will affect your credit utilization.
Just to be clear, chime does automatically pay off your balance monthly, and reports your on-time payments as paid in FULL to the credit bureaus. The problem is that the credit bureaus don’t know how to report this card.
My suggestion for those using the chime credit builder card or wanting to get this card to build credit, is to transfer a small amount of money into the card, that way you’re able to maintain that amount each month on your card, setting up move my pay and safer credit building, that way your card always has enough money, gets automatically paid off monthly and you don’t run into any issues.
In conclusion, the chime credit builder card is a good card to build credit but please keep this in mind and use the card properly!
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