Home Debt Debt Consolidation

Stop Paying Credit Card Debt and Stop Worrying About It

It’s tempting to give up and stop paying your credit card bill. Learn strategies to deal with debt successfully.

credit cards, outstanding payments
Updated June 26, 2024
Written by Rachel Alulis
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

  • Stopping paying your credit card bills can lead to a lower score, increased interest rate, late fees, and having your accounts sent to collections.
  • Consumers have legal rights and protections against debt collection. Know your rights and how to handle collection efforts.
  • There are many ways to get out of debt including debt repayment plans, negotiating with creditors, consolidation loans, and even bankruptcy.

Stop paying credit card debt right now and end the stressful cycle. The burden of unpaid credit card debt can be too much to bear. It can feel like no matter what you do, there’s no way to repay the debt.

Millions of Americans struggle to pay credit card debt. Many seriously wonder what happens if I stop paying my credit cards? It’s tempting to give up and stop paying. 

We’ll go over strategies on how to stop paying credit card debt and stop worrying about it so you can get on with your life.

Jump to:

Consequences of not paying credit card bills

Ever considered not paying your credit card bill? If that’s the case, it’s important to understand what happens.

Impacts credit scores

Your credit score will take a hit as soon as you miss your first minimum credit card payment. Payment history is the biggest factor in how credit scores are calculated. When you miss a payment, it’s reported to the credit bureaus. Even one missed payment can lead to a noticeable drop in your score.

Late fees and increased interest rates

penalty interest rates

If you don’t make the minimum payment due, expect to be charged a late fee. The maximum late fee allowed by law for the first missed payment is $30. It then shoots up to $41 for subsequent missed payments. That adds up fast. If you miss five payments, you could pay $194. The exact amount is set by your credit card issuer.

In addition to late fees, your credit card issuer may increase your interest rate. Many companies apply penalty APRs (Annual Percentage Rates) for late payments, which can dramatically increase the amount of interest you owe.

Ready to be done owing money?

Click here to get out of credit card debt.

The account can be sent to collections

Your account will be marked as delinquent and you’ll start receiving calls and letters from the creditor attempting to collect the debt. If the account remains unpaid for 180 days it likely be sold to a third party collection agency, which will then take over the collection efforts.

If you’re wondering what happens if you never pay collections, be prepared for persistent collection calls and letters. Dealing with collection agencies can be stressful and further harms your score.

You can be sued for credit card debt

In extreme cases, collectors may sue you for the outstanding balance plus any fees and interest accrued. If the court rules in their favor, they may be granted a judgment to garnish your wages or levy your bank accounts.

What happens if you quit paying your credit cards? In short, you’ll be charged lots of fees, your score will plunge, and you may be taken to court. Missing payments are not the way to go.

9.7
Moneyfor score

Pay Back Less Than What You Owe

  • FREE Consultation
  • Reduce your debt
  • Lower Interest rates

Pay Back Less Than What You Owe

Apply Now
Review 12,985

Stages of credit card delinquency

The consequences of a delinquent credit card account depend on how late you are.

30 Days Late: Late fee and it may be reported to the credit bureaus

60 Days Late: Another late fee and it is reported to the credit bureaus

90 Days Late: A third late fee, a 90 days late mark on a credit report, and possible penalty APR.

120-180 Days Late: Creditors may charge off the debt, sending it to collections.

Beyond 180 Days: The debt is likely sold to a collection agency, leading to persistent collection attempts and potential lawsuits.

Sued by a debt collector?

Creditors can sue, but you can fight it.

Will your credit score be impacted?

The decision to stop paying your credit cards can have significant, long-lasting effects on your credit score. Your payment history makes up 35% of your score. Missing a payment can have serious consequences.

When you stop making payments, your lender will report your account as delinquent to the credit bureaus. Your first missed payment can drop your score by 50 to 100 points. The higher the score, the bigger the drop. Each subsequent missed payment will further damage your score making it hard to secure favorable interest rates or even pass certain employment screenings. Missed payments stay on your credit report for up to seven years.

The good news is the further you get from a missed payment, the less effect it has on your score. So yes, the negative mark will not have the same impact on year six as it had when you first missed the payment.

Want to consolidate?

Find out how to consolidate debt without impacting your credit score.

How to pay your credit card bill

If you’re wondering when to pay credit card bill to increase credit score, aim to pay at least a few days before the due date. Paying your credit card bill on time is crucial for obtaining a good score. Is it bad to pay credit card early? Not at all. You can pay your credit card early or throughout the month. The problem is if you never pay the first bill. Paying your bill early will help you keep your utilization low. For those wondering when to pay credit card to build credit, paying off your balance in full and on time is the best approach.

You can pay your bill online via your bank or credit card issuer’s website, by mailing a check, or by visiting a bank branch.

When do credit cards charge interest?

Credit cards charge interest when you carry a balance past the due date. To avoid interest, pay your full statement balance by the due date each month.

Want to negotiate with creditors and collectors?

Check out how you can negotiate debt and potentially pay less.

How to resolve debt with every debt collector

Resolving debt with collection agencies can be daunting but it’s a manageable task.

The key is to:

  • Never admit to the debt
  • Always verify the debt
  • Get everything in writing
  • Negotiate

Don’t Admit to the Debt: Do not confirm that the unpaid bill is yours. Listen to what the collector has to say, but do not volunteer any information. If you admit it is yours and it’s passed the statute of limitations, you may legally have to pay it.

Verify the Debt: Request a debt validation letter. This letter should detail the amount owed, the original creditor’s name, contact information, when the last payment was made, and how to dispute it. Verifying the debt ensures you’re not paying something you don’t owe.

Communicate in Writing: Keep a record of all communications with collection agencies.

Negotiate a Settlement or Payment Plan: Be honest about what you can afford to pay. Many collectors are willing to settle for a lesser amount or agree to a payment plan that fits your budget. Don’t be afraid to negotiate.

Reasons why you should never pay a charge-off when the collection agency first calls include that the debt may not be yours, you may restart the statute of limitations, and you may be able to settle the debt for a lower amount.

How to answer a summons without an attorney

First, read the summons and complaint to understand the claims against you. Then, file a written response with the court. Address each allegation, either admitting, denying, or stating you lack sufficient information. Include any defenses or counterclaims you have. Follow the court’s instructions for formatting and filing the response within the specified deadline. Consider seeking free legal advice or resources from legal aid organizations to ensure your response is adequate.

How to stop paying credit cards legally

You can negotiate a debt settlement, enroll in a debt management program, or take out a debt consolidation loan. As a last resort, you can file for bankruptcy. When considering how to get rid of credit card debt without paying, always consult with a financial advisor or attorney to explore your options and their legality.

Interested in affordable payments?

Learn more about debt management plans.

What protections do I have if I stop paying credit card debt

For those who have stopped paying credit cards years ago or are considering this route, it’s important to understand the protections in place.

The Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive, unfair, or deceptive debt collection practices by creditors and collection agencies. It limits how and when collectors can contact you and gives you the right to request that they stop contacting you.

By federal law, debt collectors cannot:

  • Harass you
  • Make false statements
  • Use deceptive methods
  • Threaten you with legal action, jail time, property liens, wage garnishment, etc.
  • Use abusive language
  • Misrepresent what you owe
  • Contact you at odd hours
  • Call you at work

If a collector does not comply, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), or your state’s attorney general’s office. Be sure to provide details of the harassment and written evidence of all communications with the collector.

You can send a cease and desist letter to the collection agency asking them to stop contacting you, even if they haven’t violated the FDCPA. While this stops the calls and letters, it does not eliminate the debt, and the creditor can still take legal action.

Additionally, states set statute limitations on debt, typically 3 to 6 years. Once the statute of limitations has passed, collectors can contact you about unpaid bills but they cannot sue you.

These protections can offer some relief but they do not absolve you of your obligations. Credit card companies can still take action if you stop paying.

Payday loans piling up?

Payday loan consolidation may be the answer.

How to resolve student loan debt

There are several ways to resolve student loan debt.

Income-Driven Repayment Plans: Federal student loans offer plans that cap payments based on your income and family size, potentially reducing monthly payments and extending the loan term.

Loan Forgiveness Programs: Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness are options for those in qualifying professions. These programs forgive the remaining balance of federal loans when you work a qualifying job and make a set number of payments.

Deferment or Forbearance: Temporarily pause payments if you’re facing financial hardship. Interest may still accrue.

Consult with a financial advisor or student loan counselor to determine the best approach for your situation.

Settle your medical debt

Who should you contact if you have trouble making payments on medical bills? The hospital’s billing department. They may offer payment plans, financial assistance, income-based hardship plans, or charity care for eligible patients. Explain your financial situation and request a payment plan that fits your budget or a reduced lump-sum settlement. Depending on your situation, you may qualify for a plan that reduces or forgives your medical debt entirely.

Are you trying to save but still owe money?

Check out if you should pay off debts or save money first.

Other ways to get rid of your credit card debt

Tackling credit card debt requires making more than the minimum payments. Minimum payments will keep collectors away but cause the interest to grow.

Minimum credit card payments

Minimum payments are the smallest amount you must pay each month to keep your account in good standing. Typically, they are 1%-3% of your outstanding balance or a fixed dollar amount, whichever is greater. Making minimum payments will help you avoid late fees, but interest will accrue. To reduce debt more effectively, aim to pay more than the minimum.

Snowball and avalanche methods

A popular debt payment strategy is the snowball method. You pay off the smallest amount first while making minimum payments on the rest. The result is little wins and motivation.

If you want to save money, try the avalanche method and prioritize repaying debts with high interest rates.

Is it better to pay off one credit card or reduce the balance to two? No matter which method you choose, the answer is to do both. The snowball method has you pay off the smallest balance in full. The avalanche method says to pay the highest interest rate card first to save money. Both require you to continue to make minimum payments the other cards.

pile of credit cards

Debt management plan

Debt management plans are offered by nonprofit credit counseling agencies. They consolidate your unpaid bills into a single monthly payment at a reduced rate to make it affordable. You pay the agency, and they disperse your payments to creditors.

Debt settlement

If you’re overwhelmed with bills, learning how to settle credit card debt might be a viable solution. Debt settlement involves negotiating with creditors to pay a lump sum that’s less than the total amount owed. This can be done independently or through a debt settlement company. While it can significantly reduce your debt, it also negatively impacts your score, has potential tax implications, and companies charge fees.

Stop paying and negotiate

Stop paying if you can no longer afford to catch up. Then, negotiate with the collection agency to pay a lump sum that is less than you owe or see if you can get credit card debt forgiveness. Always get the agreement in writing.

Stop harassing phone calls from debt collectors

Call and explain what happened. Collectors are human too. They may be willing to take a lesser amount or agree to an affordable payment plan if it means they’ll get paid.

Debt consolidation

If you want to know how to stop interest on credit card debt, consider taking out a personal loan with a lower interest rate and using it to pay your bills. You’ll pay less interest each month and only have one debt. Debt consolidation is a great way to save money and simplify payments.

Read more about debt consolidation.

Consider bankruptcy

If none of the above options work, consider bankruptcy. Chapter 7 erases unsecured debt, but you have to sell your assets, and it stays on your report for ten years. Chapter 13 has you repay your debts under a court-ordered repayment plan, but it stays on your report for seven years. Bankruptcy can offer a fresh start, but it comes with serious repercussions.

Frequently asked questions

1. What happens if your payment is 30 days late?

When your payment is 30 days late, credit card companies typically charge a late fee and may report the delinquency to the credit bureaus, causing your score to drop. If it’s your first missed payment, they may not report it.

2. What happens at 60 days late?

At 60 days late, the consequences intensify. Your issuer will report a second late payment to the bureaus, further hurting your score. You’ll incur another late fee and may be subject to a penalty APR. The penalty APR and additional fees make it harder to catch up and pay your card balance.

3. What happens at 90 days late?

At 90 days late, issuers will again charge a late fee and report the late payment. Your score may drop by 180 points this time. Your account may be classified as “charge-off” and sold to a collection agency.

4. What is the best way to avoid falling into credit card debt?

The best way to avoid debt is to only spend what you can afford to repay each month.

5. How much credit card debt is too much?

Debt becomes too much when it exceeds 30% of your limit and you’re struggling to make minimum payments.

6. Can I negotiate credit card debt?

Yes, contact your issuer to discuss options such as lower interest rates, reduced monthly payments, or a lump-sum settlement.

7. What is a reason to pay more than the minimum payment due on your credit statement each month?

Paying more than the minimum payment helps reduce the principal balance faster, saving you money on interest charges. It also shortens the repayment period and improves your credit score by lowering your utilization ratio.

8. Can you pay a credit card with a credit card?

You generally cannot pay a credit card with another card. You can use a balance transfer card with a lower interest rate to move debt from one card to another. The lower interest rate can help you pay off debt faster.

9. Why is it difficult to get out of debt when you only pay the minimum payment?

Only paying the minimum amount means most of the money goes toward the interest and only a small portion toward reducing the principal balance. You’ll continue to accrue interest on your balance. To get out of debt, you need to pay down both the principal and the interest.

10. How can you avoid paying interest on your credit cards?

Always pay your balance in full by the due date each month. This prevents interest charges from accruing.

11. Can you go to jail for not paying credit card bills?

No, you cannot go to jail for not paying credit card bills, as it is considered a civil debt, not a criminal offense. However, creditors can take legal action against you to recover the debt, which may result in wage garnishments or liens on your property.

12. What happens if I don’t pay my credit card bills for 5 years?

Your debt will likely be sold to collections, severely damaging your credit score. You may face legal actions, including lawsuits and wage garnishments.

13. Which is a long-term consequence of paying less than the minimum amount due on your bills?

You will significantly damage your credit score. A low score can lead to higher interest rates on future loans, difficulty obtaining credit, and potential legal actions from creditors.

Bottom line

The temptation to stop paying credit card debt and stop worrying about it might seem appealing, but the consequences are far-reaching. Stopping payments affects your financial goals and creditworthiness for years to come.

Instead of ignoring your unpaid bills, explore alternative solutions such as negotiating with your issuer, seeking counseling from a nonprofit agency, or restructuring your budget. Taking proactive steps toward addressing your debt is possible. A debt-free life is within your reach.

MoneyFor can help you become debt-free, secure a loan, or find the perfect job. See how we can help you improve your financial wellbeing.

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. Read more
2. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. 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. Read more
3. 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. Read more
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. Read more
5. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. 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 Read more
6. 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 Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to Fee-free Overdraft Terms and Conditions. Read more
7. You may earn Points in connection with your everyday spending 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. The Current Points program is not available to Teen Account holders. See Current Points Terms and Conditions. Read more
8. 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. Read more
9. 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. 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%. A qualifying direct deposit of $200 or more is required for 4.00%. No minimum balance required. For more information, please refer to Current Boost Terms and Conditions. Read more
10. Cryptocurrency services are powered by Zero Hash LLC and Zero Hash Liquidity Services LLC, and may not be available in all states. Terms and conditions apply. When you buy or sell cryptocurrency, a difference between the current market price and the price you buy or sell that asset for is called a spread. However, unlike most other exchanges Current does not charge an additional trading fee. Cryptocurrency transactions are a form of investment, and all investments are subject to investment risks, including possible loss of the principal amount invested. Cryptocurrency is not insured by the FDIC or any other government-backed or third-party insurance. Your purchase of cryptocurrency is not a deposit or other obligation of, or guaranteed by, Choice Financial Group or Cross River Bank. The cryptocurrency assets in your Zero Hash account are not held at Current, Choice Financial Group, or Cross River Bank. Current, Choice Financial Group, and Cross River Bank are not responsible for the cryptocurrency assets held in any Zero Hash account. Neither Current, Choice, nor Cross River Bank is involved in the purchase, sale, exchange of fiat funds for cryptocurrency, or custody of the cryptocurrencies. Terms and Conditions apply (platform and user agreements). Crypto on Current is not currently available in HI. Licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. This does not constitute investment advice. Read more
11. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. 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. Read more
12. 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. Read more
13. 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. Read more
14. 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. Read more
15. 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. Read more
16. 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. Read more
17. 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. Read more
18. 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. Read more
19. 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. Read more
20. 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. Read more
21. 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. Read more
22. 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. Read more
23. 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. Read more
24. 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. Read more
25. 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. Read more
26. 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. Read more
27. 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. Read more
28. 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. Read more
29. 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. Read more
30. 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. Read more
31. Tipping or not tipping has no impact on your eligibility for SpotMe®. Read more
32. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. Read more
33. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account. Read more
34. 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. Read more
35. 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. Read more
36. 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. Read more
37. 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. Read more
* EarnIn is not available for Connecticut residents Read more

About the author

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.

Read more