A big thanks to Chime for sponsoring this post. Planning for a first debit card? This one is perfect.
The young adult experience today is very different from the one of my past.
I’m reminded of that fact every time I see young adults navigating a smartphone or paying for a candy bar with e-currency. Did you know the majority of individuals 18 and up pay with a debit card? It’s the way of the future and there are ways to get comfortable with the idea as well as prepare your young adults to handle e-currency responsibly. If you haven’t heard about Chime yet, you’ll want to know about it, especially if you have a recent high school graduate or college-age child entering the workforce or independence. You must be 18 years or older to apply for a Chime account.
What is Chime?
Chime is a financial technology company that brings you a new kind of checking account with no monthly fees and plenty of benefits. It’s a great first debit card for anyone 18 and older who is just starting the journey of financial responsibility, or for individuals who live paycheck to paycheck. Chime is an easy way for young adults to manage their money.
It’s a simple, safe debit card.
Banking services provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. Please see back of your Card for its issuing bank.
How does it work?
Signing up for Chime is quick and takes maybe 90 seconds. Chime is fast, free, and easy.
In a few weeks, your Chime card will show up in the mail and all you do is activate it in the Chime app and you’re ready to go.
Some benefits of Chime:
- Get paid up to 2 days early^ with direct deposit: Depending on the employer, you could receive your paycheck up to 48 hours early so you can keep up with your bills.
- Build credit with purchases you already make and on-time payments. Average Chime members see a score increase of 30 points.¹ This is a great way for young adults to get a head start on good credit. Eligibility requirements apply.² Learn more about Credit Builder here.
- No interest of annual fees.
- No credit check to apply.
- Minimum Security deposit NOT required.³
^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.
¹Based 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.
²To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your 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 Friends 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.
³Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder 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.
No annual fees. Like, ever.
No annual, monthly, or membership fees. Promise. No low-balance fees, fee-free overdrafts* up to $200 with SpotMe®*, nada.
So if Chime is a business, how do they get paid? They partner with The Bancorp Bank and Stride Bank, N.A., Members FDIC to design member-first financial products. Chime is NOT a bank, but rather a financial app and debit card.
Everything is done online and done efficiently. To get started, you will fund your account with a direct deposit or online transfer. From that point on, you’ll mainly use the Chime App and your Chime card.
60,000+ fee-free(~) ATMs at stores you love
With Chime, you’ll have access to over 60,000 in-network ATMs that won’t charge you a fee~ to use them. Just use the Chime app to find the closest ATM near you (you’ll find them in stores like CVS, Walgreens, and 7-Eleven).
~Out-of-network ATM withdrawal fees may apply except at Moneypass ATM in a 7-Eleven location, or any Allpoint or Visa Plus Alliance ATM.
Spot Me: Fee-Free Overdraft*
Don’t have the cash in your account when your phone bill is due? No worries…Chime will spot you up to $200* on debit card purchases and cash withdrawals with no fee. That’s a huge perk!
*SpotMe eligibility requirements apply. Overdraft only applies to debit card purchases and cash withdrawals. Limits start at $20 and may be increased up to $200 by Chime. See chime.com/spotme.
Grow Your Savings by Rounding Up to the Nearest Dollar
This is one of my favorite Chime features. Young adults can start an optional savings account with Chime with very little effort. A Chime Checking Account is required to be eligible for a Savings Account. Chime’s optional Savings Account lets users round up every purchase they make to the nearest dollar and puts the overage into a savings account that keeps building and building.
That means when you buy your favorite drink and candy bar at the gas station for $3.73, Chime will round that purchase up to $4.00 and put the overage of $.27 into your Savings Account. How cool is that?
Young adults can save without even thinking about it.
You can also opt to save every time you get a direct deposit of $500 or more by having 10% of your paycheck automatically transferred to your Chime Savings Account when you set up Direct Deposit.
Security and 24/7 Live Support
How safe is Chime for young adults to use? It’s a valid concern with modern-day identity theft. My fears were assuaged with Chime. They consider information security a top priority and your funds are FDIC insured up to $250,000 through The Bancorp Bank or Stride Bank, N.A., Members FDIC. Security and Fraud teams are on hand to make sure your money is safeguarded.
Have questions? Need to talk to a real person? Chime offers live customer support whenever you need it via a live agent, email, or through the Chime in-app chat.
Pay or Request Money Instantly, Chime Member or Not
Does your college student owe you gas money? Need to pay him or her for a job well done? One of the coolest features of having a Chime account is that you can pay or request money the fast way, just like Venmo, from anyone whether they are a Chime member or not. And Chime guarantees those payments are safe and secure, with no fees on either end.
Sold yet? I was. Chime is a great first debit card experience for anyone 18 and older or just an easy debit card experience whether it’s your first or your fourth. Chime was so easy to set up and just as easy to maintain.
It teaches valuable fiscal responsibility and money management skills. It helps first-time debit card users learn that you have to work to have money, you have to learn how to maintain it, and when you save it…money in your Chime account can equal freedom.
What a priceless lesson to learn.
^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.
¹Based 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.
²To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your 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 Friends 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.
³Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder 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.
~Out-of-network ATM withdrawal fees may apply except at Moneypass ATM in a 7-Eleven location, or any Allpoint or Visa Plus Alliance ATM.
*Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Spending Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Friends transfers, or Chime Checkbook transactions. See terms and conditions.
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