How Chime Credit Builder card can help your credit score
Chime reports your credit card activity to the three main credit bureaus – Experian, Equifax and TransUnion, these companies are responsible for maintaining your credit reports. Since credit score is calculated based on the information in these reports, positive payment history can improve your credit score.
Also, if Chime is your first credit card, it will add to your credit mix, which also can have a positive effect on your credit score.
Note that Chime Credit Builder doesn’t have a pre-set credit limit, so Chime won’t report your credit utilization.
However, that’s not necessarily a disadvantage. Many secured credit cards have a low credit limit. This can lead to using a high percentage of your credit line even with small charges. A high credit utilization ratio can hurt your score, but with Chime Credit Builder, that’s not going to be a concern.
To help you make sure you’re building a positive credit history, Chime also offers a “Safer Credit Building” feature to make automatic payments. This way, you won’t miss a payment, causing damage to your credit score. Chime Credit Builder has a 0% APR, so if you carry a balance, you won’t have to pay anything in interest.