Tag: credit


Why Your Credit Utilization Is So Important

By Melanie Lockert
August 11, 2020

Was this helpful?


How to Read a Credit Report

By Rebecca Lake
June 29, 2020

Was this helpful?


How to protect your credit during the coronavirus pandemic

By Jackie Lam
June 17, 2020

Was this helpful?


A Guide on How to Freeze Your Credit

By Rebecca Lake
April 16, 2020

Protecting your credit is important. For starters, a good credit score can help you get a car loan or a mortgage. So, it stands to reason that you’ll want to keep your credit information out of the hands of hackers.

One of the most beneficial ways to safeguard your credit against data breaches and identity theft includes a credit freeze. Here’s what you need to know about how to freeze your credit. 

What is a credit freeze?

A credit freeze or security freeze is a way to restrict who has access to your credit report. When you freeze your credit with the three credit bureaus, this means lenders and other entities can’t view your credit history. Since a lender or credit card company can’t pull your credit reports, this makes it hard for an identity thief to open a new credit account in your name.

A credit freeze, however, doesn’t mean no one can see your credit information. Your current creditors or debt collectors can still check your credit file. Government agencies can also access your credit if they have a court order, subpoena or search warrant. A credit freeze also doesn’t prevent you from getting prescreened offers for credit. For example, you can still get invitations to open new credit card accounts in the mail even if you have a credit freeze in place. 

How a credit freeze works

A credit freeze temporarily blocks access to your credit reports at the three major credit reporting bureaus: Equifax, Experian and TransUnion. It’s temporary because you can freeze or unfreeze your credit at any time. 

Credit freezes stay in place until you ask the credit bureau to remove them; no one else can unfreeze your credit. If you ask for a credit freeze to be lifted online or by phone, the credit bureau has to honor your request within one hour. If you make your request by mail, the freeze must be lifted no later than three business days after it is received. Also important to note: You have to request credit freezes and freeze removals individually with all three credit bureaus. 

Credit freezes affect specific types of credit activity. For example, when you have a credit freeze in place, you can still check your credit report and scores, apply for jobs, rent an apartment or purchase insurance. 

A credit freeze also has other limitations. For instance, if someone already has access to your bank account or credit card accounts, a credit freeze won’t prevent them from using your information to make fraudulent charges. In addition, credit freezes can’t prevent fraudsters from misusing your information without involving a credit check. So, for instance, someone may use your personal information to obtain government benefits fraudulently or file a fraudulent tax return in your name to get a refund. 

How do I freeze my credit?

If you’re interested in how to freeze your credit, it’s not a complicated process. But remember: You have to make your request for a credit freeze with each of the three credit bureaus. You can do that online or over the phone. 

Here’s how you can get in touch with each of the credit bureaus to initiate a credit freeze:

When you request a credit freeze, you’ll need to give the credit bureaus certain personal information. That includes your name, address, date of birth and social security number. Experian requires you to set up a personal identification number (PIN) to freeze and unfreeze your credit. With Equifax and TransUnion, you can set up an account online and create a unique password to log in. 

If you need to unfreeze your credit you can do so online. You can either unfreeze one or all three of your credit reports. You can also ask that a freeze be lifted for a certain number of days or permanently. As of September 2018, it’s completely free to freeze and unfreeze your credit

Do I need to freeze my credit?

Whether it makes sense to freeze your credit can depend on a couple of things, namely whether you’ve worried about being a victim of identity theft and whether you think you’ll need to apply for credit in the near-term. 

Again, while it isn’t completely foolproof, freezing your credit reports can help lower your odds of having your personal and financial information compromised. On the other hand, if you plan to apply for loans or credit cards in the short-term, you’ll need to plan in advance. While it’s possible to have a credit freeze lifted in an hour, it’s good to give yourself an extra cushion of time for the freeze to be lifted. 

You also may need to unfreeze your credit if you’re applying for a job and a prospective employer requests a credit check. While this isn’t the norm, some employers ask for credit checks and background checks as part of the hiring process. 

Alternatives to a credit freeze

If you’re interested in alternatives to how to freeze your credit, you can also consider a fraud alert or using a credit monitoring service. Fraud alerts let creditors know that your personal or financial information has been stolen. For instance, you can set up a fraud alert on your credit reports if your information was part of a data breach. 

It’s free to set up a fraud alert and they can stay in place for up to one year, or you can request an extended fraud alert that lasts seven years. Putting a fraud alert on one of your credit reports alerts all three credit bureaus.

Credit monitoring services, on the other hand, are often free and allow you to keep tabs on changes to your credit reports month to month. 

Regardless of whether you choose a credit freeze, fraud alert or credit monitoring service, keep in mind that it’s still important to monitor your credit card and bank account activity regularly for any potentially suspicious or fraudulent activity. 

[the_ad id=”21630″]

Was this helpful?


What You Need to Know About the New FICO Score Changes

By Erica Gellerman
March 12, 2020

Your credit score is a three-digit number that heavily impacts your financial life. For example, if you want to upgrade from a debit card to a credit card or take out a home loan, your credit score will determine whether you get approved, and at what interest rate. 

Yet, that credit score is about to change. FICO plans to roll out new scores during the summer: FICO 10 and FICO 10T. With household debt at an all-time high, the aim of these new scores is to give lenders better predictive abilities to determine if potential borrowers pose a risk of defaulting on loans

Since your FICO score plays such an important part in your financial life, it’s a good idea to know just what’s changing and how it may impact you. Read on to learn more. 

What is a FICO Score?

Lenders want to make the best decisions about loaning money. Your credit history helps them determine whether you’ve paid off past debts on-time and if you carry a lot of debt. 

A FICO score is calculated using your credit history. FICO isn’t the only credit scoring agency, but these scores are the most widely used. And, there isn’t just one type of FICO score. Previous versions include FICO 8 and FICO 9, both of which are still being used. There are also product-specific FICO scores. For example, if you apply for an auto loan, your lender will likely use a FICO Auto Score. If you apply for a credit card, your FICO Bankcard Score will probably be used. 

FICO 10 and 10T are going to be the newest additions. 

What Factors go into a FICO Credit Score?

Before we talk about the changes coming, let’s break down exactly what goes into your FICO score calculation. 

FICO takes the information that is reported to the credit bureaus — your credit history — and creates a score that shows your creditworthiness. The exact calculation isn’t shared, but there are five main factors it considers when calculating your credit score:

  1. Your payment history is the largest component of your FICO score. Have you done a good job repaying your debt in the past? If you’ve made on-time payments, a lender may feel more comfortable that you’ll continue making payments in the future. 
  2. The amount you owe. Is your credit maxed out? Do you have a large credit limit but very little debt outstanding? A FICO score includes how much you owe vs. how much you are able to borrow (also known as your credit limit). 
  3. Length of your credit history. The longer you’ve been effectively managing your credit, the better off you’ll be when it comes to your FICO score. 
  4. What does your credit mix look like? Do you have a mortgage, a car loan, and a credit card? FICO scores take into account your available credit as well as the type of credit you have. This isn’t a major contributor to your score calculation, but it will be included. 
  5. Do you have new credit? Opening a number of new credit accounts within a short period of time can hurt your credit score. Why? Lenders may worry you’re taking on a lot of debt because you’re about to experience financial troubles.

What’s Changing? FICO 9 vs FICO 10

The last time FICO changed their scoring model was back in 2014 with the introduction of FICO 9. That scoring model included rent payments (where available) in the calculation. It also put less emphasis on medical debt and disregarded collections payments that were fully paid off. 

Now that we’re looking at FICO 10 and FICO 10T, there are additional changes that we can expect to see. 

The biggest change is that FICO 10T will now use 24 months of trended data in your score calculation. This trended data can show how you’ve managed your accounts over the past 24 months. With the current FICO scoring model, potential lenders can see how much debt you have outstanding, but they don’t know whether your outstanding debt has been increasing or decreasing over time. 

For example, do you carry a balance every month on your credit card, or pay it off? Trended data will show whether you carry a balance every month and whether you are increasing or decreasing your debt balance over time. And, your debt trend will now impact your FICO score.

There will also be other changes, like potentially penalizing people who carry both personal loans and credit card debt, or those with high credit utilization for a long period of time. 

How Does this Impact You?

According to The New York Times, FICO estimates that 110 million people will see their score change by less than 20 points and 80 million people will see their score change by more than 20 points – in either direction. 

But even if your score changes, you may not notice the impact. Remember, there are a number of different FICO scores that are used, so lenders may not make an immediate jump to the FICO 10 score. 

Bottom Line

These FICO changes serve as a reminder, and possibly as a warning: Stretching yourself thin with debt is not a wise financial move. 

It’s important to not assume too much debt and to keep up with your current monthly payments. It’s also a smart move to open up a savings account and begin making automatic payments monthly. This way you aren’t always reaching for a credit card.

Learn More

Now that you know what FICO changes are coming, it’s a good reminder to work on improving your credit score. These articles can help you get started. Happy reading!

Credit Score Ranges: Where do You Stand?

How to Improve Your Credit Score in 7 Steps

Chime’s Ultimate Guide to Building Credit

7 Things You Didn’t Know Could Impact Your Credit

Was this helpful?


How to Use a Secured Credit Card Responsibly

By Jackie Lam
February 24, 2020





Was this helpful?


How a Secured Credit Card Can Help You Rebuild Your Credit

By Jacqueline DeMarco
February 13, 2020

When it comes to getting a credit card, it can be overwhelming – especially when you have less than stellar credit. 

For starters, it’s hard to decipher the web of credit card features, fees, and interest rates. And, things can get even more confusing when you throw the term “secured” credit card into the ring. 

You might want to know, “What is a secured credit card”? Or, how does a secured credit card work? 

If that’s the case, this guide is here to answer your questions about secured credit cards, including how these cards can help you build your credit.  

What is a secured credit card?

A secured credit card is different from a regular credit card in that you generally have to provide the card issuer with a deposit before you’re allowed to use your card. That deposit acts as collateral in case you default on your payments. 

When using a secured credit card, you’ll make all of your purchases as if you were using a normal credit card. Yet, secured credit cards tend to have smaller credit limits than traditional credit cards as your spending limit is usually the same amount as your deposit. 

Using a secured credit card responsibly is a great way to boost your credit history. For example, if your card issuer reports your credit card usage to credit reporting companies (ask them if they do this), then you can begin to build a history of responsible payments

Plus, if you use a secured credit card each month to make purchases and then pay off your balance in full, you’ll show the credit reporting companies that you can properly manage credit. 

How does a secured credit card work?

A secured credit card works like a regular credit card. As we stated above, the main difference is that you have to put down that initial deposit and you generally have a lower spending limit than other types of credit cards. 

If you decide that a secured credit card is the right fit for you, you’ll apply for one through a credit card company or a banking institution. Ideally, try to find one without application or processing fees. You’re also better off choosing a card with low annual fees and a low interest rate.  

During the application process, the card issuer will review your credit history. Next, you’ll make your first deposit. Once your secured credit card is set up, you can begin using it to make purchases. 

Is a Secured Credit Card the Same as a Prepaid Card?

Secured credit cards are often confused with prepaid cards, but they’re very different. 

For one thing, secured credit cards often have lower fees than prepaid cards. 

Secured credit card companies also report information about your credit usage to the three credit reporting bureaus (Equifax, TransUnion, and Experian). A prepaid card company, on the other hand, typically doesn’t report your card usage to the credit bureaus. 

Lastly, if you use your secured card responsibly, you might see your credit score improve over time. 

The Pros and Cons of Secured Credit Cards

Like all things in life, secured credit cards have pros and cons. 


  • You can boost your credit score
  • You can use your card to make secure purchases online
  • You don’t need a high credit score to get approved for a card


  • You generally receive a smaller credit limit
  • You may encounter annual fees and high interest rates
  • If you default on payments, you may lose your deposit

Can you use a secured credit card to build your credit? 

A secured credit card can help build your credit. So, make sure your actions are reported to the credit reporting companies. 

Plus, if your goal is to eventually move to a traditional credit card, you should talk to your card issuer about including a “graduation” component. A graduation component will allow you to transition from your secured card to a traditional card once you’ve demonstrated a pattern of consistent payments.

Is a secured credit card worth it? 

When all is said and done, only you can answer this question: Is a secured credit card a good idea for me? 

If you need help rebuilding your credit history, then a secured credit card may help. And, if you’re struggling to get a traditional credit card due to a poor credit history, you’re more likely to be approved for a secured credit card. 

Here’s a final pro tip: Using your secured credit card responsibly can help improve your finances. Plus, over time you’ll create positive spending habits that can affect all areas of your financial life. 

Was this helpful?


7 Things You Didn’t Know Could Impact Your Credit

By Jackie Lam
November 21, 2019

So you dinged your credit. 

Maybe you were clobbered with unfortunate events, like losing your job and getting saddled with a stack of medical bills. Or perhaps your car went kaput and repairs cost a small fortune. 

Or, maybe you just made some mistakes and forgot to pay your credit card bill in time for a few months in a row. We’re just human after all, and sometimes we don’t make the smartest decisions about saving money and our overall financial sitch.  

While you may have heard about best practices to build your credit – like paying off your credit card balance in full each month – did you know that much of your not-so-stellar credit score has to do with other factors? 

According to credit card expert John Ulzheimer, about two-thirds of the points on your FICO or VantageScore credit scores have nothing to do with adhering to well-known tips. The bottom line: to build your credit, you need to know what’s what. 

Here are 7 things you didn’t know could impact your credit:

1. Having a balance on too many credits 

If your balances are spread among too many cards, this can negatively impact your credit score, explains Ulzheimer, who was formerly with FICO and Equifax. What’s more, it can be hard to keep track of your balances. 

Instead, stick to one or two cards and put all your transactions there. If your balances are on a bunch of cards, work on paying off the cards with smaller balances, and set them aside. 

2. Being dangerously close to maxing out on your cards

When your balance is too high on your cards, you’re upping what’s known as your credit utilization rate. This percentage rate is your current balance against the max on all your cards.

So, let’s say you have a total balance of $500, and the max limit on all your credit cards is $5,000. In that case, your credit utilization rate is 10%. If you have $1,000 on your cards, your rate is 20%, and so forth. 

You’ll want to keep this rate as low as possible. To do so, make sure you aren’t racking up too much debt on your cards. You can also sign up for alerts on your phone and receive weekly statements. 

3. Co-signing for someone else

When you co-sign for someone else, this can lead to horrible credit, says Ulzheimer. 

“While you may think you’re not liable for payments as the co-signer, you’d be mistaken,” he says. 

“You’re equally liable for payments.” 

Should the other person default and not keep up with the loan payments, you’re on the hook. And if you aren’t able to make the payments, then your credit will take a hit. 

If someone asks you to co-sign, be very cautious. They’re probably asking you to co-sign because their credit isn’t great. If you decide to take the plunge and co-sign, just be sure that you can pay off the loans.

It’s also important to understand that co-signing is different than listing someone as an authorized user. If you become an authorized user, this means you can make charges on someone else’s account but you are responsible for the payments. 

4. Withholding payment because you think a payment is unfair

This has probably happened to all of us: you think a bill is unfair or outright wrong. For instance, there might be a mistake on the amount on your cell phone or medical bill and you refuse to pay it. Or, the rates spiked for your Internet service and you feel it’s flat-out unfair. 

The thing is: even if you’re right, you are still responsible for making payments. If you don’t, you can wind up in collections, explains Gerri Detweiler, education director for Nav

That’s when these bills can really damage your credit scores, says Detweiler. 

“If you do (dispute a bill), keep a solid paper trail and make sure you don’t let it drag on too long,” she says.

Yet, what if a medical bill is legit and you simply can’t afford it? Detweiler suggests asking for a hardship discount or getting on a payment plan. 

“If medical bills go unpaid — and unresolved — after six months, they may wind up on your credit reports as collection accounts,” she says.

5. Opening a retail credit card

Many retail credit cards offer a discount on your first purchase. But if you’re opening a card just to get the discount, you might want to think twice. 

For one thing, when you open a credit card, it can result in a hard pull on your credit. In turn, it negatively impacts your credit scores. What’s more, you might find yourself spending more than you can afford, which can affect your credit utilization ratio. 

To avoid this, open new accounts carefully, and always make sure it’s worth it, says Detweiler. And before you sign up, look at the APR, fees, and find out if there’s an annual account fee to keep the card open. 

6. Avoiding credit like the plague

You might have your reasons for avoiding credit entirely, but doing so can result in a low credit score, points out Detweiler. “You can have plenty of money in the bank, but if you use a debit card for all your purchases and don’t have any open credit accounts, you may have a low credit score,” says Detweiler. 

If you’re a credit phobe, consider opening one credit card.

“Consider using a credit card, even if it’s just to pay a recurring bill each month.” 

And remember: You don’t have to carry debt to have a good score. 

7. Not checking your credit report

What you don’t know can hurt you. Errors on your credit report can ding your credit. 

To avoid this from happening, order a credit report. You can get one for free annually from each of the three major credit bureaus at Annual Credit Report. There are also a handful of free credit monitoring services out there. 

The bottom line

Knowing exactly what impacts your credit is important.

“It’ll help with avoiding any surprising and unintentional negative impact to your credit scores by avoiding silly things that you wouldn’t think can hurt your scores,” says Ulzheimer.

“It’ll also help with timing so you don’t do something unintentional the month before you apply for a mortgage loan.” 

So, make sure you’re in the know, and refer back to this guide for pointers so that you can work on improving your credit.

Was this helpful?


Credit Score Ranges: Where do You Stand?

By Rebecca Lake
November 8, 2019

Was this helpful?


Bad Credit vs. No Credit: Which is Worse?

By Aaron Salls
October 15, 2019

If you don’t have credit history because you’ve never had a loan or credit card in your name, you might think that makes you more financially responsible

Yet, while not opening loans or credit cards can help you avoid debt, zero credit history can work against you when you decide you’re ready to borrow money. 

Indeed, having no credit – or worse, bad credit – can make getting approved for car loans, mortgages or other lines of credit more challenging. And, if you are able to to get approved, you may find yourself paying higher interest rates on the amount you borrow. 

This guide explains what you need to know about bad credit versus no credit and what to expect when you have either one. 

What’s the Difference Between Bad Credit & No Credit?

No credit and bad credit are both ways to describe your credit history but they have different implications on your ability to borrow money. 

When you have no credit that means you have no credit score or credit report to speak of. Having bad credit, by comparison, means that you have or have had credit in your name at some point but there are negative marks on your credit history. 

So, is no credit worse than bad credit? Let’s take a deeper look so you can understand the difference. 

Having No Credit

Your credit report is a collection of information about your credit history. It includes basic things, such as your name, social security number and address history, along with details about your credit. For example, your credit history would include the types of debt you have or have had, how much you owe on your loans, and your payment history for debts listed on your credit report. 

Your credit report and the information in it is used to calculate your credit score, which is a three-digit measure of how financially responsible you are. 

When you have no credit score because you don’t have a credit history, borrowing can be problematic. You end up looking risky to lenders because with no credit score to consider, they don’t have a way to gauge how likely you are to pay back borrowed money. The good news is: There are several ways you can begin building credit from the ground up. For example, you can open a secured or unsecured credit card in your name, ask someone you know to add you to one of their credit cards as an authorized user, or take out a small credit builder loan. 

5 Ways to Build Credit From Scratch

Having no credit is not an ideal financial situation, but it’s one you can remedy. As mentioned already, there are a number of ways to establish and grow your credit score even if you’re starting from scratch. Here are some steps you can take to begin building a healthy credit footprint. 

1. Open a Secured Credit Card

A secured credit card is a type of credit card that requires a cash deposit to open. You give the credit card issuer a set amount of money for your deposit, which may be a few hundred to a few thousand dollars, depending on the card. That deposit doubles as your credit limit. You can then make purchases and repay them with interest. By charging purchases against your credit limit and paying your monthly bill on time, you can establish a pattern of responsible credit card use, which can help build a positive credit history. 

2. Sign Up for a Student Credit Card

Student credit cards are credit cards designed for college students. These cards may be secured or unsecured and some can even offer rewards on purchases. The 2009 CARD Act requires you to be at least 21 to open a credit card, unless you’re at least 18 and have proof of income. Like a secured credit card, the best ways to build credit with a student credit card include charging purchases, maintaining a low balance or paying in full, and paying your bill on time or early each month. 

3. Take Out a Credit-builder Loan

Credit-builder loans are an alternative to establishing credit with a credit card. These loans can work in one of two ways. The first option is to borrow a set amount of money, using cash that you have in savings as collateral to secure the loan. You pay the loan back and at the end of the term, your savings collateral is returned to you. The second option is slightly different. You borrow a set amount of money but instead of giving it to you, the bank holds it in an interest-bearing account. You repay the loan and once it’s paid in full, the money in the interest-bearing account, along with interest earned, is released to you. Meanwhile, your credit score can improve when you make your payments on time and pay the loan in full. 

4. Become an Authorized User of Someone Else’s Credit Card

Becoming an authorized user means that you have charging rights on another person’s credit card. You don’t necessarily need to use the card to make purchases to reap a credit score benefit. The primary cardholder’s positive account history will show up on your credit report, helping to establish and grow your credit score. The caveat is that to enjoy a positive effect, the primary cardholder must pay bills on time and use the card responsibly. If they pay late or max out their card, that can hurt both of your credit scores. 

5. Get a Cosigner

A cosigner is someone who agrees to apply for and sign off on a loan alongside you. Each cosigner to a loan or line of credit is equally responsible for the debt. Asking someone to cosign can help you get a loan in your name but it’s important to understand how you both can be impacted if you fail to keep up with payments. If you pay late or default on the loan altogether, the negative payment history will show up on your credit history and your cosigner’s. In addition, you can both be sued for the debt. So, if you’re considering getting a cosigner, it’s extremely important to make sure you can afford the loan payments. 

Having Bad Credit

What is bad credit? Generally, bad credit refers to a credit history that includes negative marks, such as late payments or collection accounts. In terms of what is considered bad credit, it helps to understand credit score ranges. FICO credit scores, which are the scores used by 90% of top lenders in lending decisions, range from 300 to 850. According to myFICO, a poor or bad credit score is a score below 580

Some of the factors that can contribute to a poor credit score include:

  • One or more late payments
  • Using a higher percentage (>30%) of your credit limit 
  • Applying for multiple credit card or loan accounts in a short period of time
  • Closing credit card accounts, which shortens your average credit age
  • Collection accounts, defaults and delinquencies
  • Bankruptcies or foreclosure proceedings
  • Public judgments 

Repairing bad credit isn’t impossible but it can take months or even years. It may require you to take smaller steps to start, depending on your score. For example, you might be able to open a bank account with bad credit right away, but you may need to work at improving your score for a while before a credit card or loan is within reach. 

4 Ways to Fix Bad Credit

If you have bad credit, raising your score should be a financial priority. Doing so can make it easier for you to qualify for credit cards or loans. It can also work in your favor if you’re looking to upgrade your bank account. For example, you may have second chance banking now but a better credit score can help you gain access to premium checking or savings products. While this can take time, here are three things you can do to get the process started. 

1. Pay Down the Balance on Your Debt

FICO credit scores are based on five factors, with payment history being the most important. Second to that is credit utilization, or the percentage of your available credit you’re using at any given time. The lower this number is, the better for your score. A simple step in the right direction to improving bad credit is paying down some of your existing debt. The wider the gap you can create between your balance and credit limit, the more you can potentially improve your credit score. 

Read more: A Guide to Debt Consolidation

2. Request a Credit Limit Increase

Paying down your balance can take time but there is a way to improve your credit utilization ratio fairly quickly. Asking your credit card issuer to raise your credit limit can have an immediate impact on your utilization ratio, since you now have a larger credit line compared to what you owe. The key to using this strategy to improve your credit score is resisting the temptation to make new purchases against your higher credit limit. Doing so can work against your credit score, rather than help it. 

3. Look for Errors on Your Credit Report and…Report Them

Your credit report includes information about all of your credit accounts and you can get a report from these three firms: Equifax, Experian and TransUnion. You can also obtain a free copy of your credit report through AnnualCreditReport.com. If you haven’t checked your credit reports lately, it’s a good idea to get your free copies and review them for errors. The Fair Credit Reporting Act gives you the right to dispute errors and you can do this online through each credit bureau’s website. By law, errors must be removed or corrected, which can help your score. But this only applies to errors. Negative information related to bad credit card habits wouldn’t be eligible for dispute. 

4. Pay the Minimum Payment Twice Per Month

If your credit card or loan has a minimum payment, consider doubling up on those payments each month to pay down your balance more quickly. Making biweekly payments can help reduce what you owe, improving your credit utilization ratio. You can also improve your payment history by paying on time. If you can’t do this across all of your debts, focus on doing so with the debt that has the highest interest rate. This way, you can pay the balance down more quickly, reducing the total amount of interest paid in the process. 

Good Credit Is Essential

Having credit history is important because there are so many ways that credit can affect your daily life. Beyond helping you qualify for a car loan, refinance your student loan debt or get a home mortgage, you may also be subject to a credit check when you apply for a job or sign up for cell phone service in your name. 

Yet, it’s not enough to just have credit. It matters whether that credit is good or bad. And, remember this: Good credit can be the key to unlocking the best interest rates on loans, credit cards and lines of credit. The less you pay in interest, the more money you can save in the long-run. 


[the_ad_placement id=”mobile-sticky”]

[the_ad id=”7835″]

Was this helpful?

Banking services provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Chime Visa® Credit Builder Card is issued by Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see back of your Card for its issuing bank.

Please note: By clicking on some of the links above, you will leave the Chime website and be directed to an external website. The privacy policies of the external website may differ from our privacy policies. Please review the privacy policies and security indicators displayed on the external website before providing and personal information.

© 2013-2020 Chime. All Rights Reserved.