How To Borrow Money On Chime
The banking app, Chime, is a must-have if you are into digital finance management. It is packed with security features to protect your funds and allows you to borrow money and receive it directly into your bank account.
It is not a very popular cash advance app, but it works like one. There is a cash advance feature that allows you to take a cash advance and pay it on your next payday. Due amounts will be conveniently deducted from your Chime account.
Take note that Chime is not a bank but a financial tech company. This means its Visa Debit Card is provided by its partner banks, The Bancorp Bank, and the Stride Bank.
It supports instant transactions and daily balance alerts on top of the two-factor authentication. If accidents happen, you can also block the card with a single click on the app.
Chime Features for Your Convenience
There are many features packed into this powerful app. Let me explain all the good ones apart from its cash advance function.
- $200 Overdraft – when your funds run low, you endanger your balance to go below the minimum amount for your account. This means additional fees in the form of overdrafts. Qualified members who use chime can access an extra $200 from Chime to cover the excess amount you might commit during purchases or payments
- No Account Monthly Fees Forever – unlike savings accounts in banks, you don’t get charged additional fees in Chime for simply storing your money. With their debit card, you can withdraw cash anytime in more than 60,000 fee-free ATM machines located in stores like 7-Eleven, Walgreens, CVS, and others.
- Payday Advance – unlike other accounts, you don’t have to wait for your next payday to get funds. With the direct deposit feature, you can get your paycheck as early as two days before the scheduled date.
- The Credit Builder Card – who knew it’s this easy to build your credit back up? Just get the debit card and keep on using it for payments. It will increase your FICO Score up to 30 points if you are a good payer. Take note that you are not using a Chime bank account, but an account in one of their partner banks.
- Send and receive money from other chime users instantly. Chime is a financial technology app mainly for transferring funds. With the Chime debit card, you can get cash at an atm. Processing is real-time even for third-party sources like Chime. But if you transfer between Chime accounts, you won’t need to worry about transfer fees forever.
How to Borrow Money from Chime
You can get a cash advance from the app through Chime Instant Loans. It offers easy access to funds whenever you need extra.
As soon as your loan is approved and you have accepted it, the money will be deposited into your Chime account.
If you have not taken a loan yet but have applied for eligibility, you will see a cash advance limit amount that represents the maximum amount you can loan.
Once you have a loan, you can use the app to set up auto-debit arrangements to pay back the loan.
What Amount can you Borrow?
Instant loans have a minimum of $100 and increase based on your credit history and app history. Once you are given a limit in the app, it will represent the maximum amount.
Take advantage of this when you need a small amount of money.
Do note that if you have an existing loan with Chime, you cannot get another loan even if you have an increase in the limit. You need to pay off the current loan first and then just loan a higher amount next time.
Chime does not charge transfer or withdrawal fees if you withdraw cash at an ATM they work with.
What are the Fees and Interest?
For the minimum $100 loan, your interest will be $5 or 5% of the loan amount. The more you borrow, the more interest you incur.
Say for example you get $1000, your interest will then be $50. However, take note the app only provides for small values so don’t expect large sums.
What’s interesting to note is that the amount you can borrow money instantly is not fixed. Over time, it will increase as you gain a good record in the app.
Additionally, you can also save on interest if you pay early too. The amount is prorated so you can stop to rely on cash advances if you think you can settle the debt early. It will be good for your credit too.
Cash Advance App that Works with Chime
There are many cash apps in the market. However, only several are as good as Chime. There is an even smaller number of apps that work with Chime.
Chime offers small loans that can serve as your extra cash before payday. The funds are deposited to your Chime checking account and Chime users receive a notification for every fund activity.
You can connect your Chime account to Moneylion to gain access to the latter’s lending features.
There are other payday loan apps that can be used with Chime. You can have Chime to use Earnin. And then there’s also Albert – an almost similar financial management tool.
And then there’s Dave, an app that features similar overdraft support.
These are just a few examples of apps compatible with Chime. There can be others not on this list. Let us know if you find any and we’ll gladly add them here.
Borrow from Chime Easily with these New User Tips
At the moment, Chime only extends loan credit to eligible chime users. If you are qualified for a loan you will get a push notification in your Chime app.
Here are a few tips to make yourself more eligible for credit checkers.
- Have a good-standing Chime account
- Have consistent transactions in the app every month
- Have no unpaid or existing loans with Chime
- Have a bank account you can link your Chime account
How to Repay the Money Borrowed from Chime
The most popular method to pay back your loan is through setting up automatic payments in the app for your schedule.
This way, the app will automatically deduct a specific amount required to settle your due balance each period.
Chime Payday Loan Explained
A Chime payday loan is just like a cash advance – only through the app. Chime doesn’t lend out large amounts of money to members. What they offer are short-term loan features that are meant to help you get through unexpected tough times.
With a payday loan, you can expect to only make one repayment at the end of the period. Due to the small amount involved, most borrowers are given a month or a date equal to their next paycheck.
You can initially use an external bank account like Chime for fund sources, but they recommend making full use of their debit card provided by Bancorp Bank.
For the qualifications, Chime goes through your activity with the app. It also takes into consideration your provided personal information and linked bank account. Bank with Chime to use its security features.
Part of the information needed is your current work details and paydays so they can best schedule your repayment. Once you agree to the loan terms, Chime will ask for your consent to auto-deduct your repayments when due.
Chime SpotMe Feature Explained
Another curious feature of Chime is Spot Me. It is an optional service you can opt-in if you want to have emergency funds for payments that may go over your available credit limit.
For starters, newly qualified members will all get a starting Chime Spot Me limit of $20 on debit card payments and withdrawals. After you gain good history, you may be eligible for up to a $200 overdraft limit.
Your limit will be posted on your Chime mobile app. You will get notifications whenever there is a change in your limit. The increase or decrease is subject to Chime’s discretion only.
You should connect your Chime to your debit card for easier fund transfers. It is also good for your Chime account history.
Does Borrowing from Chime Affect Your Credit Score?
The app can support Chime users with their immediate financial troubles through its varied features. While most are short-term, they can still affect your credit score as they are still considered loans. Any form of cash lent to others can be the basis for your FICO score.
What might make you feel better is that not all your loans can affect your score. Chime also has its own feature that can help you build your score back up.
If you avail of their services like the 100 cash advance or the credit builder, you may increase your score to an average of 30 points.
In conclusion, Chime’s cash advance app is an excellent way for people to access the funds they need quickly and easily. It’s a great alternative to traditional payday loans, as it can help you avoid high-interest rates and late fees.
Plus, you can use cash advances to build up your credit score over time. Furthermore, with Chime’s customer support, you can rest assured that any issues or questions you have will be addressed promptly and competently.
Just make sure to read through all of Chime’s terms and conditions before applying so you know what fees and interest rates are associated with the loan.