Chime just launched their brand-new credit card with 1.5% cash back and no annual fee, targeting their existing bank customers. But before you get excited about another "no fee" card, let's dig into whether this secured card actually makes sense for building credit—or if you're better off with proven alternatives.

Bottom line up front: The Chime card isn't terrible, but it's not great either. Most people will get more value from established secured cards with clearer graduation paths and better credit-building features.

What Is the New Chime Credit Card?

The Chime Card (different from their existing Credit Builder card) is a secured credit card that requires you to be a Chime+ member. Here's what you need to know:

• 1.5% cash back on rotating quarterly categories (groceries, gas, restaurants)
• 0% cash back on everything else
• No annual fee (finally, some good news)
• Secured card requiring a security deposit
• Weekly cash back payouts (faster than most)
• Chime+ membership required (free with direct deposit)

The card targets people building or rebuilding credit who are already in Chime's banking ecosystem. But there's a catch—those rotating categories severely limit your earning potential.

Chime Credit Card Features & Benefits

Earning Structure

The 1.5% rate sounds decent until you realize it's only on rotating categories. Categories change quarterly and include:

• Groceries
• Gas stations
• Restaurants
• Other categories (announced in the app)

Everything else earns 0%. That's a major limitation compared to flat-rate cards.

Chime+ Membership Perks

To qualify, you need Chime+ membership (free with direct deposit):

• 3.75% APY on savings accounts
• SpotMe overdraft protection (up to $200)
• Early direct deposit access
• Priority customer support
• Chime Deals that stack with credit card cash back

Design Options

Chime offers several card designs:

• Classic Black
• Evergreen
• Titanium metal finish for $50 (seriously?)

Paying $50 for a metal secured card feels like missing the point of building credit affordably.

How Chime Card Compares to Top Secured Cards

When you compare the Chime Card to established secured cards, it falls somewhere in the middle—not terrible, but not the best choice for most people.

Chime Card: Offers 1.5% cash back on rotating quarterly categories but 0% on everything else. No annual fee, but the graduation timeline remains unclear. Best for existing Chime customers who spend heavily in rotating categories.

Capital One Quicksilver Secured: The clear winner for consistent earning, offering 1.5% cash back on every purchase with no category restrictions. Also comes with no annual fee and typically graduates cardholders within 6-12 months. Perfect for building credit with reliable rewards.

Discover it® Secured: The rewards champion, earning 2% on rotating quarterly categories (up to $1,000 in purchases) and 1% on everything else. The Cashback Match feature doubles all earnings in your first year, effectively giving you 4% on rotating categories and 2% on other purchases. Graduation typically happens within 8-12 months with clear criteria.

OpenSky® Secured: No rewards earning, but charges a $35 annual fee. The main advantage is no credit check required for approval, making it accessible for complex credit situations. Graduation typically takes 12+ months.

Secured Mastercard® from Capital One: A basic credit-building option with no rewards and no annual fee. Graduation can happen within 6+ months with good payment history, making it ideal for those focused purely on building credit quickly.

The verdict: Chime falls somewhere in the middle. The Capital One Quicksilver Secured offers better earning potential with 1.5% on everything, while the Discover it® Secured crushes it with 2% on rotating categories plus 1% on other purchases.

Who Should Consider the Chime Credit Card?

Good Fit If You:

• Already use Chime banking and love the ecosystem
• Spend heavily in rotating categories (groceries, gas, restaurants)
• Want weekly cash back payouts instead of monthly
• Value the Chime+ membership perks (3.75% APY savings)
• Don't mind tracking quarterly category changes

Skip It If You:

• Want consistent rewards on all purchases
• Prefer established graduation timelines
• Need a card that works independently of a specific bank
• Want maximum flexibility in earning categories
• Are comparison shopping for your first secured card

Better Alternatives for Most People

For Consistent Rewards: Capital One Quicksilver Secured

The Capital One Quicksilver Secured wins for simplicity. You'll earn 1.5% on every purchase—no category tracking, no quarterly changes, no "oops, I forgot to activate" moments.

Why it's better:

• Earn on ALL purchases, not just rotating categories
• Clear graduation path (typically 6-12 months)
• Established track record with credit building
• Works independently of any specific bank ecosystem

For Maximum Rewards: Discover it® Secured

If you want to maximize cash back while building credit, the Discover it® Secured is hard to beat:

• 2% cash back on rotating quarterly categories (up to $1,000 in purchases)
• 1% cash back on everything else
• Cashback Match doubles all cash back earned in your first year
• Clear graduation criteria and timeline

Real example: In your first year, you could earn 4% on rotating categories and 2% on everything else thanks to Cashback Match.

For No Credit Check: OpenSky® Secured

If your credit situation is complex, check out our OpenSky® Secured Visa® review. It's the only major secured card that doesn't require a credit check—though you'll pay a $35 annual fee and earn no rewards.

Credit Building Strategy: Beyond the Card Choice

Choosing the right secured card is just step one. Here's how to maximize your credit building regardless of which card you pick:

Month 1-3: Establish Payment History

• Set up autopay for at least the minimum payment
• Keep utilization below 10% of your credit limit
• Make small purchases you can easily pay off

Month 4-8: Build Consistency

• Maintain perfect payment history
• Gradually increase spending (still keeping utilization low)
• Monitor your credit score monthly

Month 9-12: Prepare for Graduation

• Request credit limit increases if available
• Continue perfect payment history
• Research unsecured cards for when you graduate

Pro tip: Many secured cardholders get approved for unsecured cards from other issuers before their secured card graduates. Don't wait—apply for better cards once your score improves.

What Chime Doesn't Tell You

Unclear Graduation Timeline

Unlike Capital One or Discover, Chime hasn't published clear criteria for graduating to an unsecured card. This uncertainty makes it harder to plan your credit building strategy.

Category Limitations Hurt Long-term Value

That 1.5% rate sounds good until you realize:

• No rewards on rent, utilities, insurance, or other major expenses
• Category restrictions mean lower overall earning rates
• Quarterly changes require active management

Chime Ecosystem Lock-in

To get the card, you need Chime+ membership. While it's free with direct deposit, this ties your credit building to their banking platform—potentially limiting your future options.

Frequently Asked Questions

What credit score do I need for the Chime Card?

Chime hasn't published specific credit requirements, but as a secured card, it likely accepts applicants with limited or damaged credit. You'll need to be a Chime+ member first.

How much is the security deposit?

Chime hasn't disclosed minimum or maximum deposit amounts. Most secured cards require $200-$500 minimum, with your deposit typically becoming your credit limit.

When will I graduate to an unsecured card?

This is the big unknown. Chime hasn't published graduation criteria or typical timelines, unlike competitors who offer clearer paths.

Can I earn cash back on all purchases?

No—this is the card's biggest limitation. You only earn 1.5% on rotating quarterly categories. Everything else earns 0%.

How does this compare to Chime's other credit card?

The new Chime Card replaces their Credit Builder Secured card for new applicants. Existing Credit Builder cardholders can upgrade to the new card.

Is the $50 titanium card worth it?

Probably not. You're paying $50 for aesthetics on a secured card meant for building credit. That money would be better used increasing your security deposit for a higher credit limit.

The Bottom Line: Should You Get the Chime Card?

The Chime Card isn't a bad secured card, but it's not the best choice for most people building credit. The rotating category structure limits your earning potential, and the unclear graduation timeline makes credit building planning harder.

Better options for most people:

• Capital One Quicksilver Secured: 1.5% on everything, clear graduation path
• Discover it® Secured: Higher earning potential, established track record

Consider Chime if you're already invested in their banking ecosystem and spend heavily in rotating categories. Otherwise, you'll likely get more value from established secured cards with proven credit building paths.

The most important thing isn't which secured card you choose—it's using whatever card you pick responsibly to build a strong credit foundation for better rewards cards in the future.

Ready to start building credit? Compare your options with our comprehensive secured credit card guide to find the best card for your situation.

Last updated: January 2025. Credit card offers and terms change frequently. Always verify current offers on issuer websites before applying.

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