You can suffer from low credit scores. It can be stressful to carry out everyday tasks like renting a car or signing up for a new cell phone plan. Especially when you know that your credit score is on your back.
One of the most effective ways to improve your credit score is to get a new credit card. While making on-time payments. Do you keep getting turned down for credit cards because of your bad credit score? So how do you get one?
How to Start Building Your Credit
Credit card companies aren’t willing to bet that you will repay everything you borrow from them. This happens if you have a credit history laden with late payments or delinquent accounts.
With a secured credit card like Chime’s Credit Builder, you can prove to your creditors that you’re financially responsible and capable of managing more credit than you currently do.2 In order to qualify for this offer, you must open a Chime Checking Account and deposit at least $200 in direct deposits.3
Simply deposit the money you want to use to pay your balance into your Credit Builder secured account. This will become your credit limit. You don’t need to pass a hard credit check to qualify for this card. Your deposit serves as your guarantee that you’ll repay what you borrow.
How it Works
The credit bureaus will be informed of your payment history by Chime. Your credit history will improve because you continue to make on-time payments every month. As a result, your credit score will likely rise as well.4
In contrast to conventional credit cards, Chime will not penalize you because you maxed out your card. Paying the minimum payment every month is all you need to do.
Additionally, you can track your credit score and factors affecting it with the Chime app. Thus, if your score doesn’t improve much with on-time payments, look for other possible reasons for the low score.
Here is What You Can Do To Improve Your Credit Score
Chime’s Credit Builder card is different from other credit cards. It does not charge annual fees, no charges for maintenance does not charge interest or perform credit checks.
Join Chime Credit Builder and get a free credit card today. You have nothing to lose, not even your deposit, and so much to gain in terms of improving your credit score.
Start here to learn how many points you can add to your credit score.
Banking services for the Chime Checking Account are provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. Please see back of your Card for its issuing bank. The Chime Credit Builder Visa® Credit Card is issued by Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank and Stride Bank N.A. (“Banks”). Banks are not responsible for the accuracy of any content provided by the author(s) or contributor(s).
1 Based on a representative study conducted by TransUnion®, members who started using Chime Credit Builder in September 2019 observed a median credit score (VantageScore 3.0) increase of 30 points by January 2020. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.
2 Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder 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.
3 To be eligible to apply for Credit Builder, you need to have received a qualifying direct deposit of $200 or more to your Checking Account within 365 days of your Credit Builder application. The qualifying direct deposit must have been made by your employer, payroll provider, or benefits payer by Automated Clearing House (ACH) deposit. Bank ACH transfers, Pay Friends transfers, verification or trial deposits from financial institutions, peer-to-peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, and cash loads or deposits are not qualifying direct deposits.
4 On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.