Discover it Secured and Chime Credit Builder Secured Visa are both secured credit cards designed to help individuals build or rebuild their credit. However, they have distinct features that may appeal to different preferences and financial goals.
General Comparison
Discover it Secured stands out with its cash back rewards, providing a unique incentive for responsible credit use. Users earn cash back on their purchases, making it a more rewarding option for those looking to improve their credit while enjoying some benefits.
Additionally, Discover it Secured offers the potential to transition to an unsecured card and get the initial deposit back after seven months of responsible use, adding an extra layer of financial flexibility.
On the other hand, Chime Credit Builder Secured Visa focuses on simplicity and financial inclusion. Chime emphasizes a no-fee structure, with no annual fees or interest charges. Chime's Credit Builder also includes features like early direct deposit and round-up savings, which can help users manage their finances more effectively.
To apply for the Credit Builder card, you'll need a Chime checking account and direct deposits of $200 or more. The card works as a secured credit card, where your spending limit is based on how much you deposit into the secured account. The great thing is, there's no set credit limit—your limit adjusts based on the funds you have in the account, offering you more flexibility.
Here's a side-by-side comparison of the card's main features:
|
| |
|---|---|---|
Chime Credit Builder Secured Visa | Discover it Secured | |
Annual Fee | $0
| $0 |
Rewards | None
| 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and unlimited 1% cash back on all other purchases |
Welcome bonus | None
| Discover will match all the cash back you’ve earned at the end of your first year. |
Credit Limit | Depends on how much you move from your Chime Checking Account | $200 – $2,500 |
Foreign Transaction Fee | 0%
| 3% |
Purchase APR | N/A | 28.24% Variable |
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Compare Extra Perks & Credit Building Features
Chime Credit Builder Secured Visa
No Annual Fee or Interest: Chime Credit Builder comes with no annual fees or interest charges, making it a cost-effective option for users.
No Credit Check: Applying for Chime Credit Builder doesn't involve a credit check, providing accessibility to individuals with various credit backgrounds.
No Minimum Security Deposit: Unlike many secured credit cards, Chime Credit Builder doesn't require a minimum security deposit, offering flexibility for users.
Reports to All 3 Credit Bureaus: Chime Credit Builder reports to all three major credit bureaus, aiding in the establishment and improvement of credit over time.
No Credit Utilization Reporting: With Chime's unique account design, there's no pre-set credit limit, and credit utilization isn't reported to credit bureaus. Users can spend based on their transferred amount without concerns about credit utilization percentages, providing more financial freedom.
- $0 Fraud Liability: You have the reassurance that you will not be held financially responsible for any unauthorized charges.
Discover it Secured
- Automatic Reviews: After 7 months, automatic monthly account reviews begin to determine eligibility for an upgrade to an ‘unsecured' card, potentially returning your deposit.
- Free FICO® Credit Score: Discover provides your FICO® Credit Score for free, allowing you to track and understand how your credit actions impact your score.
- $0 Fraud Liability Guarantee: The card ensures that you won't be held responsible for unauthorized purchases, providing a $0 Fraud Liability Guarantee.
- U.S. Based Customer Service: Enjoy the convenience of 100% U.S. based customer service, allowing you to speak to a real person anytime you need assistance.
- Social Security Number Alerts: Discover provides free alerts if your Social Security Number is found on any of thousands of Dark Web sites, enhancing security measures for cardholders.
- Credit Bureau Reporting: It reports monthly to all three major credit bureaus, aiding users in demonstrating responsible credit behavior, which is crucial for improving their credit score over time.
Compare The Alternatives
If you're looking for a credit-building credit card, here are some alternatives :
|
|
| |
|---|---|---|---|
OpenSky® Secured Visa® Credit Card | First Progress Platinum | Milestone® Mastercard® | |
Annual Fee | $35 | $29
| $175 the first year; $49 thereafter |
Foreign Transaction Fee | 3%
| 3%
| 1% of each transaction in U.S. dollars
|
Purchase APR | 25.14% Variable | 25.24% Variable
| 35.90%
|
Compare Discover It Secured Card
Unlike the Citi Secured card, the Discover it Secured offers rewards in addition to credit-building features, and therefore, it's our winner.
Discover it Secured vs Citi Secured Mastercard: How They Compare?
When it comes to secured cards, both Discover and Capital One offer decent cards to build and improve your credit. Which one is better?
Compare Chime Credit Builder Card
Both Chime and Upgrade cards are new in the view, offers great features for beginners who don't established their credit yet. Which one wins?
The Chime card is more flexible and has no credit check, whereas Capital One opens up possibilities for transitioning to an unsecured card.
Chime Credit Builder Secured Visa vs. Capital One Secured Mastercard: Comparison
Chime is our winner as it offers no credit check and no foreign transaction fees, unlike the Citi Secured which is a more conservative card.
Chime Credit Builder Secured Visa vs. Citi Secured Mastercard: Comparison
The Chime Credit Builder Visa® Credit Card is issued by either The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, under a license from Visa U.S.A. Inc. You can use the card wherever Visa is accepted. To find out which bank issued your card, just check the back of it.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. The secured Credit Builder card issued by Stride Bank, N.A.
