Chime Introduces New Credit Card with 1.5% Cash Back and No Annual Fee

Chime has launched a new secured credit card offering 1.5% cash back in rotating categories with no annual fee, late fees, or interest. The card requires a $200 direct deposit into a Chime Checking Account to qualify for cash back. It doesn't require a credit check for approval and reports card activity to the three major credit bureaus to help build credit history. The Chime Card is designed to be a safe and rewarding option for building credit.

Chime, a leading digital bank, has introduced a new secured credit card offering 1.5% cash back in rotating categories such as gas, groceries, restaurants, and utility bills. The Chime Card™, which replaces the Chime Credit Builder Secured Visa® Credit Card, is designed to be a safe and rewarding option for building credit. The card does not require a credit check for approval, and there are no annual fees, late fees, or interest charges.

To qualify for cash back rewards, cardholders must make a qualifying direct deposit of $200 or more into a Chime Checking Account within the past 34 days. The card automatically reports card activity to the three major credit bureaus, helping users build a positive credit history. The unique structure of the Chime Card includes a Chime Checking Account and a Chime Secured Deposit Account, where funds are automatically transferred to act as collateral and determine the spending limit. This design helps reduce the risk of accumulating debt.

The Chime Card is available in free styles in colors like Classic Black or Evergreen, or cardholders can upgrade to a Titanium finish for an additional $50 plus tax. The card is part of Chime's expanding suite of financial products, which also includes fee-free checking and savings accounts, early access to paychecks, and overdraft protection. Chime+ members, who set up a qualifying direct deposit, earn additional rewards, such as 3.75% APY on savings and fee-free overdraft protection with SpotMe.

Chime's new cash-back secured credit card is a strategic move to attract more customers and compete with traditional banks. By offering a no-fee, rewarding credit card, Chime is targeting middle-income Americans and those with thin or weak credit histories. The card's cash back rewards accrue every nine days and disappear if the card is closed.