Do I still need to keep my Chime credit builder account?

[stewart504]

I have a Chime credit builder card that I've used for about a year, but then I opened a checking accout at a brick and mortar bank for my direct deposits.  I still have the chime account, just left a few $$ in it but don't really use it as I don't need it.  Will having the credit builder card still open do anything for my credit if I don't run much spending through it?   I may use it at the vending machine at work once or twice just to keep the account open.  I'm currently in the process of rebuilding my credit, so I guess the Chime credit builder will be my oldest card but I replaced it with a Capital One secured card which is still a turd, just a more polished turd.  

Getting my direct deposits in my Chime account then putting all my monthly spending on my Credit builder card took my credit scores from the lower 500's up to a 643.  I'm older and just don't feel comfortable using Chime so I opened a real bank account.  

[FicoMike0]

First, congratulations, 500's to 643 is a great improvement.

I'm not familiar with chime, but it appears to be credit card secured by a deposit account, sort of a debit card that reports as credit. Keeping it open will keep it reporting. Just make sure it's paid on time.

There are some real experts here, if you want the best advice, you should provide a data dump on your situation and what your goal is.

[stewart504]

Basically, that's correct.  Chime credit builder is a debit card that reports on your credit because you can only spend the money that you transfer to your credit builder account.  It's weird because when you set up your Chime account you get a plain debit card and it doesn't appear to be much different than any other prepaid debit card out there other than it doesn't charge any fees and you can make free cash deposits at Walgren's.  The magic happens when you set up direct deposits because then they send you the credit builder card.  Now you have your debit card account where you deposit your funds then you use their app to move the funds to your credit builder account.  Now you use the credit builder card exactly like you would use a debit card and you can only spend the money that's held in your credit builder account.  Funds are taken out of your credit builder account just like they would be reduced in your checking account only the credit builder card reports on your credit.  The difference between the credit builder card and a real credit card is the fact that Chime takes your funds as soon as you spend them then holds them in their account then they pay your account for you.  Just like a bunch of other prepaid cards out there, Chime will close your account for you if you stop using it, so while it's kind of akward, you need to transfer say $25 every month to Chime then move the money to your credit builder card to keep it open.  

I opened a new checking account with U.S. Bank because my employer thought it would look better if I had a real checking account.  I ended up getting a Capital One secured card so I would still have a card reporting in case Chime closes my credit builder account since I no longer receive direct deposits there.  I didn't think much about opening a new account with U.S. Bank but even though I've had credit cards before, due to some serious missteps every one of my cards was closed by the issuer making Chime credit builder my oldest card.   

[FicoMike0]

Any problem with making the monthly deposit to chime?

Do you have a goal to improve your credit score?