Chime Retools Its Secured Card, Adding 1.5% Back on Eligible Spending

Chime — the financial technology company behind the Chime Secured Credit Builder Visa® Credit Card — has reworked the product's design and name, while also adding the opportunity to earn rewards.

Now called simply the Chime Card™, it's still a $0-annual-fee secured card and will retain its key credit-building features: There's no credit check, no APR and no minimum security deposit required, and the card will continue to report to all three major U.S. credit bureaus. But unlike its predecessor, the Chime Card™ will earn an uncapped 1.5% cash back on rotating quarterly categories for cardholders who set up direct deposit into their Chime Checking Account. (You still must have a Chime Checking Account to get a Chime credit card.)

The categories that qualify for rewards will change every three months, and members will be able to view those eligible categories in the Chime app. Rewards will be paid out weekly. Spending in other non-qualifying categories won't earn rewards.

Chime says existing holders of the original Chime Secured Credit Builder card may opt to keep their card or upgrade to the Chime Card™. Any credit history that has been built with the Chime Secured Credit Builder card will carry over to the Chime Card, and the card number will stay the same, the company says.

» MORE: Best secured credit cards

What else is changing?

Holders of the Chime Card™ will also get a 3.75% APY on their Chime savings account balance, if they've chosen to open one. The interest rate drops to 1.25% without direct deposit.

In addition, Chime has streamlined the card management experience. The previous version of the card requires holders to manually transfer money from their Chime Checking Account to their Chime secured account whenever they want to increase their credit limit. The updated Chime Card™ eliminates this process; instead, cardholders will see within the Chime app their "Available to Spend" number that represents the total balance between the Chime Checking Account and the Chime Card™.

With the card refresh, Chime is also extending its MyPay program to holders of the Chime Card™. MyPay offers paycheck advances to eligible cardholders, up to $500 per pay period. Advances within 24 hours are free; instant advances cost $2. Advances are automatically paid from the next direct deposit.

What's staying the same?

As is the case with the Chime Secured Credit Builder card, payments to the Chime Card™ are made from your required Chime Checking Account. Payments may be made manually or automatically using Chime’s Safer Credit Building feature.

Statement balances that aren’t paid within 24 days after the statement is issued will result in the Chime Card being paused until the full balance is paid off.