Key takeaways
Chime® offers a secured credit card that can help you safely build credit.
Chime reports to all three of the major credit bureaus: Equifax®, Experian®, and TransUnion®.
Chime reports payment history, current balance, and account age but not credit limit or utilization.
Some Chime members have seen increases to their credit scores of 28 points on average.
Building credit is one of the most important steps toward financial progress, and understanding how credit reporting works can help you make the most of it. Here's what you need to know about how credit reporting works and what Chime reports on your behalf.
How does credit reporting work?
Credit reporting is the process by which lenders and financial institutions share your account activity with the three major credit bureaus: Equifax, Experian, and TransUnion. These bureaus compile the information into credit reports, which are then used to calculate your credit scores.
Each month, your lenders report details like your payment history, current balance, and the age of your accounts. Not every lender reports to all three bureaus, which is why your reports can vary depending on where you check. Some secured credit cards, like the secured Chime Visa® Credit Card (see disclosure 1) , report to all three major bureaus, giving you broader credit-building coverage.
Understanding how this process works can help you make informed decisions about managing and building your credit over time.
Who decides your credit score?
Credit scores are calculated and reported by the three major credit bureaus: Equifax®, Experian®, and TransUnion®.
All three credit bureaus receive information from your lenders each month, including your account balances, whether your payments are on-time, late, or delinquent, and the age of your account. The bureaus use this information to determine your credit scores.
How is your credit score calculated?
Your credit scores are calculated using a variety of factors that affect your credit score, each with a different weight for your score.
FICO® scores, the most commonly used credit score, are calculated using the following factors (see disclosure 2) :
Payment history: 35% of your score. Tracks your history of on-time payments.
Amounts owed: 30% of your score. Tracks your credit utilization, or how much credit you use versus how much you have access to.
Length of credit history: 15% of your score. Refers to the average age of credit accounts in your file.
New credit: 10% of your score. Tracks the number of new accounts you've applied for or opened recently.
Credit mix: 10% of your score. Favors a mix of different loan types such as installment loans, credit cards, and mortgages.
The bureaus use this information to update your credit history and score over time.
Note: Not every lender reports to all three bureaus. This is one reason you may see differences in your score depending on where you check.
What does Chime report to the credit bureaus?
Chime reports specific details about your account to all three major credit bureaus. Here's a breakdown of what we do and don't report.
What Chime reports
Chime reports the following to all three credit bureaus:
Payment history: Includes both your on-time payments and any late or missed ones. We recommend turning on the Safer Credit Building feature (see disclosure 3) to automatically pay your balance on time each month with money you set aside in your secured account.
Credit age: The length of time your Chime account has been open. The longer your credit history, the better it reflects your financial habits to lenders.
Current balance: Includes anything you currently owe as well as overdue payments. Having a current balance is normal.
What Chime does not report
There are a few things Chime does not report to the credit bureaus:
Your credit limit: The Chime Card™ doesn't have a preset credit limit. The amount of money you have in your account doubles as a flexible "limit."
Credit utilization: Without a credit limit, there's no way to calculate a utilization ratio, so we don't report one to the bureaus. (see disclosure 4)
This matters because with a traditional unsecured credit card, high usage of 30% or more can cause a drop in your credit score.
Since Chime doesn't report utilization on our secured credit card, your score may not be negatively affected even if you use all of the money in your account during the month.
When does Chime report your credit activity?
Chime reports to credit bureaus at the beginning of the month, but the bureaus themselves can also take time to process the information. You might not see changes to your score until a few weeks later, since credit scores update on each bureau's own timeline.
Generally, you should have an updated credit score at least once a month. However, the timeline can vary, especially if you have multiple accounts with different lenders.
When will your credit score go up?
Building credit is a meaningful step toward financial progress, but it doesn't always happen overnight. Some Chime members see fast improvements to their credit score, while for others it can take a little longer.
The average Chime Card user may see an increase of around 28 points to their credit score (see disclosure 5) with consistent on-time payments. For example, if you started with a score of 650, a 28-point increase could push you from the "fair" category to the "good" category with a new score of 678.
If you keep up with good credit habits, you may see your score climb even higher.
How to check your credit report
Checking your credit report regularly helps you stay on top of your financial progress and catch errors early. You can access your credit report for free from each of the three major bureaus.
Visit AnnualCreditReport.com to request free reports from Equifax, Experian, and TransUnion. You can also check your credit score through various free services. Reviewing your report does not affect your credit score because it counts as a soft inquiry.
When reading your credit report, look for any unfamiliar accounts, incorrect balances, or outdated information. If you spot errors, you can dispute them directly with the credit bureau.
Build credit safely with Chime
Building credit doesn't have to be stressful or complicated. With the right tools and consistent habits, you can grow your credit score over time.
Chime reports your on-time payments with the Chime Card to all three major credit bureaus without reporting credit utilization. Combined with features like Safer Credit Building3, which helps you pay your balance automatically each month, it's designed to help you stay on track with your credit goals.