Chime Credit Builder Secured Visa® Credit Card Review: Build Credit With No Fees and No Credit Check

If your goal is to build credit, the Chime Credit Builder Secured Visa® Credit Card may be a good option for you. This secured credit card doesn't require a credit check, and there are no late fees, foreign transaction fees, or interest charges, making it a genuinely fee-free card.

While you will need to open an account with Chime to use this card, account activity is reported to all three credit bureaus, which can help you build credit. Find out more about this card's perks in our full Chime Credit Builder Secured Visa® Credit Card review.

This credit card is a good fit for: Consumers with limited credit who want a secured card with no fees, no minimum security deposit, and no credit check for approval.

Top perks

Here are the best features of the Chime Credit Builder Secured Visa® Credit Card.

No annual fee

There is no annual fee to use this card. It's worth noting that there's also no application fee or maintenance fees. While there are other secured cards with no annual fees, some do charge a yearly fee. If you have limited funds, choosing a card with no annual fee is a smart idea, and this card fits the bill.

No interest charges

Typically, interest is charged when a cardholder uses their card and doesn't pay the balance in full by the due date. This is the case with most unsecured and secured credit cards. The Chime Credit Builder Secured Visa® Credit Card doesn't charge interest.

No foreign transaction fees

There are no foreign transaction fees for international purchases with this card. Credit cards with this type of fee typically charge around 3%.

No credit check

If you have limited credit, getting approved for a credit card can be challenging, especially if the card issuer requires a credit check. The good news is the Chime Credit Builder Secured Visa® Credit Card doesn't require applicants to undergo a credit check for approval. This can be especially helpful for applicants with minimal credit or low scores.

No minimum security deposit

Unlike many secured credit cards, this one has no minimum security deposit requirement. While there is no required amount, keep in mind that your credit limit will be determined by the deposit you make. For example, if you make a $250 deposit, your limit will be $250.

Reports to all three credit bureaus

The Chime Credit Builder Secured Visa® Credit Card is a good option for consumers who want to build credit or improve their existing credit. Account activity is reported to Equifax, Experian, and TransUnion. This includes reporting whether your balance is paid on time every month and tracking late payments.

Security deposit can be applied to payment

Most secured credit cards hold on to your deposit, and you must pay your bill with separate funds. With the Chime Credit Builder Secured Visa® Credit Card, you can use your deposit toward payments. Just remember that your credit limit will go down as you use your deposit funds.

What could be improved

Despite its many perks, the Chime Credit Builder Secured Visa® Credit Card has some areas that could be improved.

Must have an account with Chime

If you want to use the Chime Credit Builder Secured Visa® Credit Card, you'll need to open a Chime Spending Account. In addition, you must have had at least $200 in direct deposits made to that account within the past 365 days. So if you don't yet have an account with Chime, you'll want to plan on taking these steps first.

The card works together with your Chime Spending Account so you can move money from your Chime Spending Account to your Credit Builder account. If you don't want to open an account with Chime, this isn't the right card for you.

Functions similarly to a prepaid card

Unlike other secured credit cards, this card functions more like a prepaid card. Instead of charging money to your card and borrowing it from the card issuer, you will load money from your Chime Spending Account into your Credit Builder account.

You can use your initial deposit to make payments, and the money you load into your Credit Builder account can also be used as payments. Since you're spending your own money, it's more like a prepaid card. While this isn't a flaw, it's something to know before applying.

No ability to earn rewards

If you're hoping to earn rewards on your spending, this card isn't a good fit. It doesn't offer any rewards or sign-up bonuses. If you want to earn rewards, check out some of the best secured card options to see if there's a better fit for you.

No option to graduate to an unsecured credit card

Some secured credit cards let cardholders move to a secured credit card after a certain amount of time -- or after showing they can manage their credit well. The Chime Credit Builder Secured Visa® Credit Card doesn't offer this option. If you hope to get an unsecured credit card in the future, you'll have to apply for one separately.

Because there's no credit check when applying for the Chime Credit Builder Secured Visa® Credit Card, your credit score won't be a factor in determining whether you're approved. You will, however, need to open a Chime Spending Account with a $200 qualifying direct deposit before applying for this card.

If you have limited credit and are searching for a secured card to help you build your credit, this card may be for you.

If these statements describe you, consider applying for the Chime Credit Builder Secured Visa® Credit Card:

• You have limited credit
• You're looking for a fee-free secured credit card
• You're ready and able to make a deposit
• You don't want to have to do a credit check for approval
• You have an account with Chime or are willing to open an account there
• You plan to make your payments on time

However, if you want a secured card that offers the opportunity to graduate to an unsecured credit card or a secured card that earns rewards, this may not be the best option for you.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.