How to Start Building Credit for the First Time

Here at MoneyFor, our goal is to help you make informed financial decisions. We are committed to accuracy and impartiality in all our content. It’s important to note that articles may reference products from our partners who compensate us. This influences which products we feature and their presentation on our site, not our evaluation.

Key takeaways

The earlier you begin building credit, the better. A good score can lead to more opportunities and better savings.
You can establish a payment history and begin working on your score by becoming an authorized user, opening a secured credit card, or taking out a credit builder loan.
A good credit score takes time and patience. You can achieve this by consistently paying your bills on time, avoiding carrying a balance, and maintaining a low utilization rate.

Start building credit when you’re ready, but the sooner you begin, the better. Establishing a good credit score makes life easier. It will help you save money on interest and provide you with more opportunities for credit cards, loans, apartments, and even job opportunities.

The trick is that it can be hard to get credit when you don’t have it in the first place. Luckily, there are tools to help you get started building credit and proving that you’re a trustworthy consumer.

Let’s take a look at how you can get started and then what you can do to improve your score.

8 Ways to establish credit for beginners

Opening your first account and building credit can be challenging, but it doesn’t have to be. Financial institutions offer numerous options for beginners to establish a credit history. You can find credit cards to build credit with no credit and other tools that let you show you are responsible.

Take a look at the following eight options and select a few that appeal to you. No matter which one you choose, the key is to be responsible, meaning always pay your bills on time.

1. Apply for a secured credit card

Figuring out how to start building credit begins with opening your first credit card account. You can get your own card once you turn 18. If you’re under 21, you may be required to show proof of income so that the issuer knows you can afford to make payments.

The problem is that when you don’t have a score or payment history, it will be challenging to get an unsecured credit card with decent terms. In that case, consider a secured card. The key difference between secured vs unsecured credit cards is that secured cards require a cash deposit (100% refundable), which acts as your credit limit. The deposit also serves as collateral for the issuer, making these cards relatively easy to obtain.

Not all secured cards require a deposit. There are some newer models that link to your bank account instead. These are typically offered by online banks and, like other secured cards, are very easy to be approved for.

No matter which option you choose, make sure that the card issuer reports payments to all three major credit bureaus – Equifax, Experian, and TransUnion. Reporting your credit activity is the only way to improve your score. Then, pay your bills on time and keep your utilization low. Using a secured credit card responsibly is one of the most reliable methods for how to build credit fast. Once you have a good credit score, consider applying for an unsecured card.

2. Become an authorized user on a parent’s credit card

If you want to start building credit before you turn 18 consider becoming an authorized user on a friend or family member’s account. You benefit from the primary cardholder’s payment history and can use the card without being legally accountable for the bill.

Before requesting to become an authorized user, ensure the primary cardholder has a good credit score and responsible financial habits. You don’t want a poor payment history or high credit utilization added to your report. Also, check that the issuer reports the authorized user to all three major credit bureaus, as not all do.

3. Get a credit-builder product or a secured loan

Credit-builder loans are specifically designed to boost your score. These products work by holding the loan amount in a savings account while you make regular monthly payments. Your timely payments are reported to the three major credit bureaus, helping to establish a strong payment history.

These loans are typically for small amounts, ranging from $300 to $1,000. You can find them at credit unions and other financial institutions. The great thing about credit-builder loans is that they help you improve your score and save money at the same time. Check the interest rates and fees before you apply for a loan, as they may not be free.

4. Set up a joint account or get a loan with a co-signer

Another way to establish credit is to apply for a small personal loan. If you can’t get a loan on your own, set up a joint account or secure a loan with a co-signer. You are responsible for the payments, but the co-signer is on the hook if you don’t pay. Having a co-signer makes lenders more willing to work with you and offer more favorable terms. Make timely payments on the loan, and your score will improve.

5. Get credit for the bills you pay

Does paying rent build credit? Rent and utility bills are typically not reported to the credit bureaus as they aren’t a form of borrowing. That said, some services allow you to report your monthly bills. Potential bills include rent, utility, subscriptions, and even phone bills. If you have a thin file, with fewer than five accounts, adding monthly bills can help you establish or improve your credit score.

The catch is that not all credit scoring models consider monthly bills. VantageScore 3.0 and 4.0 include rent payments in their scoring calculations, as does FICO Score 9. FICO Score 8, the most commonly used version, does not factor them into score calculations. While they will appear on your credit reports that lenders look at, they may not boost your actual score. Even so, potential lenders will appreciate the additional positive payment data on your report.

6. Make small purchases and pay them off quickly

A practical tip on how you can build credit at 18 – or any age, for that matter – is to keep your utilization low. Aim to use less than 30% of your limit, 10% is even better. A low utilization rate indicates to lenders that you do not rely heavily on credit. Consumers who don’t rely on borrowing are more likely to pay their bills on time.

A simple way to maintain a low utilization is to make small purchases and pay them off in full each month. This habit not only keeps your balance manageable but also shows lenders your ability to repay debt promptly. You can even set up autopay so you never miss a bill.

7. Diversify your credit accounts

Credit cards are an easy way to start building credit, but don’t overlook loans. Your credit score will benefit from a mix of revolving (such as credit cards) and installment (such as loans) accounts. Having a mix of accounts and paying your bills on time shows that you can handle different types of credit responsibly.

Credit mix is a small factor. Don’t take on debt you cannot afford to improve your score. It is entirely possible to reach an excellent credit score with only credit cards.

8. Avoid unnecessary credit inquiries

Each time you apply for a credit card or loan, the financial institution will conduct a hard inquiry on your credit report. Hard inquiries temporarily lower your credit score by a few points. One inquiry isn’t a big deal, but multiple ones will hurt your credit.

To avoid damaging your credit, consider prequalifying before applying. Prequalifying for loans and credit cards lets you gauge your chances of approval without impacting your score. Then you only apply for accounts where you meet the basic criteria.

Why you should start building credit early

The sooner you establish a credit history, the better off you’ll be. But at what age can you start building a credit history? Generally, you can start as soon as you turn 18, when you are legally eligible to apply for your first credit card or loan. However, you can start building credit at 16 or younger with the right tools. The sooner you start, the better off you’ll be. Learning how to use a credit card to build credit can lead to more favorable loan terms and lower interest rates in the future.

New

Turn easy tasks into real rewards –
worth up to $499/year!

Establishing a good credit score means you will be able to:

Rent an apartment: Landlords will check your credit report to determine if you are a reliable tenant. They want to know that you have a history of making on-time payments. When you don’t have a credit history, they may deny your application, ask for a higher security deposit, or require a guarantor.
Get your own utilities: Utility companies – such as electricity, water, internet, and phone – run background checks. If you don’t have a score, you may have to put down a deposit to be approved.
Apply for your own credit card: Your credit score affects which card you can get and the terms associated with it. A lower score or none at all will result in high-cost cards.
Land the job you want: Certain employers will check your report as a way to see your financial health and how responsible you are.
Secure car insurance: Depending on the state you live in, you may get a lower premium if you have a good score.

Credit affects so much of your financial life; it’s a good idea to start early.

Want a credit card of your very own?

Click here for tips on how to get your application approved.

Common mistakes young people make when building credit

When you’re brand new to anything, it’s easy to make mistakes. It’s no different here. You have new bills to pay and new debts to manage. There’s a lot to keep in mind. Let’s go over a few common mistakes to avoid.

1. Overusing credit cards: Many people receive their first card and view it as free money, leading to spending beyond their means. This can quickly result in accumulating balances that you cannot pay off each month. Carrying an outstanding balance means you’ll be charged interest, and credit card interest rates are high. Instead, treat it like a debit card and use it only for purchases that you can pay off within the month.

2. Making late payments: Missing a payment or making it late will adversely affect your score. Your payment history makes up 35% of your FICO score. Even one payment more than 30 days late can drop your score and will stay on your report for up to seven years. Set up payment reminders or autopay to avoid this.

3. Only paying the minimum: While making the minimum payment keeps your account in good standing it is a debt trap. The minimum payment does very little to reduce your balance and you will accrue interest on the remainder. Pay more than the minimum each month; pay the balance in full whenever possible.

4. Applying for too many accounts: Each time you apply for a new account, a hard inquiry is made, which typically lowers your score by a few points. Understanding what credit score you need to get a credit card can help you avoid unnecessary application denials. If you are denied, space out your applications by at least six months to give your score time to recover.

5. Carrying a balance: There’s an old myth that carrying a balance helps your score. Actually, the opposite is true. It’s much better for your score and your wallet to pay your bill in full every month. Don’t be tempted to only make the minimum payment. If you don’t pay off your balance in full, you will be charged interest on the rest, making your next bill more expensive. Always pay your bills on time and in full.

6. Underestimating interest rates and fees: Not paying attention to the terms of the agreement can lead to unexpected charges. Young users often fail to comprehend how interest rates and fees affect the total amount they will owe, leading to debt that becomes unmanageable. Know your interest rate and potential fees, then take action to avoid them.

Thinking of consolidating debt? Check out:

Does debt consolidation hurt your credit?

Choosing the right credit card to build credit

The ideal credit card for you depends on your credit score, finances, and spending habits. First, identify credit cards for your score range. Beginner-friendly options include secured credit cards, student credit cards, and subprime unsecured credit cards. These cards are designed for individuals with limited or no credit history. Make sure the issuer reports to all three major credit bureaus or else the card will not build credit.

Pay close attention to the fees. Many credit cards for bad credit come with annual fees and monthly maintenance fees. Choose a card with little to no mandatory fees. Keep an eye on the interest rate and credit limit as well. You won’t receive the best rates when you’re starting out, but they should be reasonable.

Credit cards are known for their rewards. That said, it can be difficult to secure a rewards card when you’re starting to build credit. If you do find a rewards card you qualify for, make sure the rewards align with your spending habits. That way you can earn cash-back or travel points on purchases you’re already making.

Wondering why it's important to pay bills on time?

Discover the impact of debt on your credit score!

How long does it take to build credit?

The exact timeline will vary, but in general, it takes a minimum of six months of responsible credit behavior to generate your first FICO credit score. FICO is the model used by 90% of lenders. You can establish a VantageScore only one month after opening an account.

Once you have your score, it can take one to two years to reach a good credit score. If you are rebuilding credit, you may see a bump in your score within three to six months of responsible use.

Either way, building or improving credit isn’t an overnight process. It takes patience and consistent, responsible behavior. Pay all your bills on time and maintain a low utilization rate. Gradually, you will achieve good to excellent credit.

Need cash but have less-than-perfect credit?

We’ve got your back with 500 credit score loans.

How can I monitor my credit?

Once you have a score, it’s a good idea to monitor it so that you can track your progress. Keeping tabs on your score will also help you address any unauthorized or fraudulent activity promptly.

9.7

Moneyfor score

Chime CreditBuilder Secured Visa® Credit Card

No annual fees
No credit check to apply
No minimum security deposit required

Chime CreditBuilder Secured Visa® Credit Card

Apple Now

Review 12,985

Check your credit scores and reports

You are entitled to a free credit report from each of the three major credit reporting agencies – Equifax, Experian, and TransUnion – once a year through AnnualCreditReport.com. Additionally, many issuers and banks will send you your FICO score for free once a month. Opting into this service is any way to make sure your score continues to improve.

Check your report for any errors or inaccuracies, such as an account that isn’t yours or a wrong address. If you find any discrepancies, dispute them with the issuing bureau. Errors could be a simple mistake or a sign of identity theft. They can also drag your score down, so it’s important to stay on top of them. Removing an inaccurate negative mark, such as a late payment, from your report can give your score an immediate boost.

Find the best ways to build and maintain a strong score – Go to Credit Score Builder now!

Frequently asked questions

1. What’s the best way to build credit from scratch?

The best way to build credit from scratch is to apply for a secured credit card. Select one that has no mandatory fees and reports usage to all three major credit bureaus. Ideally, the provider will let you upgrade to an unsecured card once you have a good score. Then, pay all your bills on time and keep your utilization under 10% of your credit limit.

2. Are credit-builder apps good for building credit quickly?

Credit-builder apps can be a helpful tool for building credit quickly, but the exact results depend on your ability to pay your bills on time.

3. What credit card should you choose for building credit?

Choose a credit card that reports to all three major credit bureaus. Reporting is the only way that you will improve your score. The right credit card depends on what you can qualify for. Secured cards are a good choice since they often come with fewer mandatory fees. If you want an unsecured credit card, look for one with low or no fees.

4. What are some tips for getting a first credit card?

Learning how to apply for a credit card for the first time can help you avoid unnecessary fees and rejections. Begin by checking your credit score and researching beginner-friendly options, such as secured cards or student credit cards. Compare fees, interest rates, and rewards. Apply for just one card to avoid multiple credit inquiries. Have proof of income ready, and consider asking a parent to co-sign if needed. Once approved, use your card responsibly and pay your balance in full each month.

Bottom line

The earlier you start building credit, the better. Establishing a good score takes time, so starting early can give you a leg up.

A good score leads to better financial opportunities and more savings. Who wouldn’t want that? Figure out which method – or methods – you want to use and begin working on your score.

No matter which strategy you choose, they all have one thing in common: responsible usage. Pay your bills on time, don’t borrow too much, and in time, you will achieve a good credit score.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

2. Paycheck Advance is an earned wage access service and is not a loan or credit product.

3. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and/or Cross River Bank, Member FDIC. The Current Visa® Debit Card, which may be issued by Choice Financial Group and/or Cross River Bank, and the Current Visa® secured charge card, which is issued by Cross River Bank, are all issued pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. A Current debit account is required to apply for the Current Visa® secured charge card. Independent approval required.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Debit card: Fees may apply, including out of network cash withdrawal fees, third-party fees, cash load fees, inactivity fees, account closure fees, international transaction fees, replacement card fees, express mail fees and escheatment fees. Build Card: Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

6. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

7. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

8. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

9. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC.

10. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements subject to Current’s discretion. Negative balances must be repaid within 60 days of the first Eligible Transaction that caused the negative balance. For more information, please refer to Fee-free Overdraft Terms and Conditions. Individual Current Accounts only.

11. For eligible customers only. You may earn Points in connection with your Build Card purchases at retailers whose merchant code is classified as: Dining (e.g., restaurants) and Groceries (e.g., supermarkets) and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. Points will expire 365 days after they settle. For more information (including specific eligibility criteria), please refer to the Current Points Terms and Condition.

12. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

13. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. No minimum balance required. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. To earn a Boost rate of 4.00%, the sum of your Eligible Payroll Deposits over a rolling 35-day period must be $500 or more, with at least one Eligible Payroll Deposit equalling a minimum of $200. For more information, please refer to Current Boost Terms and Conditions.

14. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

15. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

16. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

17. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

18. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

19. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

20. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

21. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

22. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

23. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

24. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

25. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

26. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

27. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

28. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

29. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

30. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

31. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

32. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

33. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

34. Tipping or not tipping has no impact on your eligibility for SpotMe®.

35. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

36. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

37. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

38. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

39. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

40. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

41. MyPay is only offered in select states

42. To be eligible for MyPay, you must receive qualifying direct deposits to your Chime Checking Account as set forth in the MyPay Agreement. A qualifying direct deposit is a deposit from an employer, payroll provider, gig economy payer, government benefits payer, or other permitted source of income by Automated Clearing House (“ACH”) or Original Credit Transaction (“OCT”). Your MyPay Credit Limit and Maximum Available Advance may change at any time. MyPay is a line of credit and available limits are based on estimated income and risk-based criteria. Eligible members may be offered a $20 – $500 Credit Limit per pay period. Your Credit Limit and Maximum Available Advance will be displayed to you within the Chime app. MyPay is currently only available to eligible Chime members in certain states. Other restrictions may apply.

43. Not affiliated with Empower Annuity Insurance Company of America (www.empower.com). Not everyone will qualify. Offers range from $10-$300 for first-time customers; $10-$400 for all others. Offers are based on our eligibility requirements and can go up with on-time payments. In Feb 2025, the average offer was $95 for first-time customers; $187 for all others. Instant delivery is optional—see fees in Empower’s Terms. Empower offers a 14-day trial for first-time customers followed by an auto-recurring $8/month subscription fee. Cancel anytime.

* EarnIn is not available for Connecticut residents

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor's credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor's degree in journalism and an MBA.

Email Read more

How to Start Building Credit for the First Time

Key takeaways

Jump to: