Jul 25, 2020 | Applications, Cloud, iOS

In a little over year, Chime, the largest U.S. digital bank, has raised $700 million recently valuing the company at $5.8 billion. Amazingly, Chime one-ups T-Mobile MONEY, our former recommended digital bank, taking just five minutes to sign up for a checking account. And while Chime only offers 1% interest on savings account, it makes up with a brilliant new service for people looking to improve their credit rating.

Purchases charged to a Credit Builder credit card are reported to the credit bureaus, reportedly boosting credit scores by an average of 30 points. Here’s how it works. Chime users first add money to their Chime Spending Account. The Credit Builder credit card works like a secured credit card. Everyday charges for gas, groceries or subscriptions are automatically paid off at the end of each month using Chime’s Safer Credit Builder feature. Payments are then reported to credit bureaus TransUnion, Experian and Equifax.

Chime bank accounts are insured up to the standard maximum deposit insurance amount of $250,000 through partners, The Bancorp Bank or Stride Bank, N.A., members FDIC. Stride Bank was founded as Central State Bank in Enid, Oklahoma in 1913. In 1921, the bank became nationally-chartered and its name was changed to Central National Bank of Enid. In 2019, Central National Bank re-branded as Stride Bank.

Glad someone is giving banks a run for their grubby money. Not surprisingly, Chime has skyrocketed from 1 million accounts in 2018 to nearly 8 million as of February 2020.

Website: Chime

Price: No monthly minimum balance requirements, no monthly fees, no overdraft fees (fee-free overdraft up to $100), as well as a fee-free ATM network that includes 24,000+ locations.

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