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Chime Launches Secured Credit Card with Cashback Rewards
The neobanking app Chime has introduced a new secured credit card.
About the New Chime Card:
Chime is updating its secured credit product, introducing the new Chime Card.
With the Chime Card, the neobanking platform is building upon the Chime+ service it launched in March. Customers can unlock Chime+ perks by setting up a qualifying direct deposit of at least $200 per month. Existing Chime+ perks include an increased APY on savings (currently 3.75% versus the standard 2%), fee-free overdraft protection, priority support, and more.
Now, with the Chime Card, Chime+ customers will be able to earn up to 1.5% cashback. This rate will apply to spending categories that will rotate each quarter. Some possible categories mentioned include restaurants, groceries, gas, cable/Internet, and phone bills.
The new Chime Card also features an updated look, with customers able to choose from one of three colors. However, while the Classic Black and Evergreen designs are free, Chime members can also elect to claim a Titanium finish card for an additional $50 (plus tax).
This new option replaces the former Chime Credit Builder Secured Visa. In turn, current Credit Builder cardholders are advised to keep an eye on their email inboxes “soon” for more information on how to transition to the Chime Card. Moreover, Chime states that, while Chime Card has begun its rollout, it will become available to more new and existing customers in the coming weeks and months.”
What They’re Saying:
Announcing the updated product, Chime co-founder Ryan King said, “With the new Chime Card, we’re building on top of the everyday banking features our members already rely on, to make the Chime experience even more rewarding. We’ve kept the benefits people value most and removed the mandatory fees and barriers they don’t. That’s how banking should work when it’s built for everyone.”
My Thoughts:
It is great to see Chime making positive improvements to its secured credit card option. While 1.5% cashback in a rotating quarterly category may not be much in the world of unsecured cards, it’s head and shoulders above what some secured cards offer. I also think that customers will be more inclined to choose a credit card from Chime that’s secured with their banking account rather than going for a traditional security deposit card.
Having said all that, while it may be tempting, I’d advise those considering paying $50 for the Titanium card to think really hard about what else they could do with those funds. Personally, I think the Evergreen and Black cards look great — so maybe just stick with those and put the $50 into savings.
Author
Other Articles by Kyle Burbank
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