Mobile banking offers numerous benefits over and above traditional banking services. Do you want to know how to borrow money from chime? Here is the step by step guide.
As the name implies, mobile banking provides access to your money whenever you need it. That makes it especially suitable for on-the-go entrepreneurs and digital nomads.
Besides the convenience that comes with increased liquidity, mobile banking services are also relatively cheaper than traditional banking methods. That’s primarily because there’s no cost involved in traveling physically to the banks.
Mobile banking clients also get prompt insights into actionable data and loyalty programs. All these services work towards improving the overall customer experience.
The many benefits of mobile banking explain why this sector is so thriving. Statistics by Verified Market Research indicate that the global mobile money market size was estimated at USD 4.82 billion in 2022 and might reach USD 25.5 billion in 2030. That represents an impressive compound annual growth rate (CAGR) of 26.9% during the forecast period.
Thanks to the rising demand for mobile banking, many companies are now providing these services at a fraction of the fee traditional banks charge. One such company is Chime.
In this article, we focus on how to borrow money instantly using Chime’s mobile money application.
Chime Financial, Inc., commonly known simply as Chime, is an American financial technology company that provides online banking services through a partnership with The Bancorp Bank and Stride Bank, N.A.
Contrary to popular misconception, Chime isn’t an actual bank. The company operates primarily as an online banking service provider offering the same services provided by its partner banks but free of charge.
The company’s top products include checking accounts, savings accounts, credit cards, debit cards, fee-free overdrafts, and p2p.
Another interesting fact about Chime is that the company has no physical branches. It also charges ZERO monthly and overdraft fees. Besides, it doesn’t impose opening deposits or minimum balances on its checking accounts.
These are the main reasons Chime has maintained a dominant position in the mobile banking segment for years. As of February 2020, the company had 8 million account holders and was raking in upwards of $200 million in annual revenue.
A Brief History of Chime
Chime was founded in 2012 by Chris Britt and Ryan King, who currently serve as its chief executive officer (CEO) and chief technology officer (CTO), respectively. The company was established in San Francisco, California, and has maintained its headquarters.
Chime’s founders envisioned a company that would be a convenient alternative to traditional banking by providing swift access to cash on the go. They invested a great deal of their time and money to build the startup into the big brand it is today.
Britt and King launched Chime publicly on April 15, 2014, on the Dr. Phil Show. This became the first in a series of milestones that the online banking service provider would achieve over the years.
Chime’s rise to the top of the financial banking sector was largely due to its penchant for partnerships and acquisitions. Notable mentions include the 2018 acquisition of the credit-building startup Pinch and the January 2020 partnership with the National Basketball Association (NBA) team Dallas Mavericks. The latter deal involved sponsoring the club’s jerseys.
How Does Chime Work?
Anyone can apply for Chime’s services if they meet the eligibility criteria.
Account holders receive Visa debit cards or credit cards that grant them access to an online banking system available via the company’s website or mobile application.
Borrowing Money from Chime
Although Chime is not an actual bank account, the company provides account overdraft services. You can borrow up to $500 with the mobile banking service provider. And the best part is that these overdraft services are 100% free.
Chime’s fee-free overdraft service is known as SpotMe. Unlike traditional banks that normally levy hefty overdraft fees, this service lets you overdraw on debit card purchases fast and free of charge.
Below is a step-by-step guide on how to borrow money from Chime and cover your expenses before your next payday.
(i) Sign up for a Chime account if you don’t already have one.
You must be a U.S. citizen at least 18 years old to open a Chime account.
The account registration procedure is as follows;
(a) Head on to Chime’s official website.
(b) Select Accounts and then click “Checking Account.”
Alternatively, you could bypass steps (a) and (b) by heading straight to this page.
(c) Once you reach the accounts opening page, click “Get Started.”
You’ll be taken to a page that asks you to complete a security check to verify that you’re a human. Simply check the box and let the page load.
(d) Enter your first name, last name, and email address on the next page, then click “Next.”
(e) Enter your date of birth and click “Next.
(f) Enter your mobile phone number and click “Next.”
(g) Enter your street address and click “Next.”
(h) Create a strong password using the combination of UPPERCASE letters, lowercase letters, numbers, and special characters, then hit “Next.”
(i)Enter your Social Security number and hit “Next.”
(j) Fill in a few more details, including your income source, annual income (in case you’re employed), and how you came to know about Chime, then hit “Next.”
(k) Read and agree to Chime’s Terms of Service, then click “Submit application.”
(i) Complete the process by confirming your information.
(ii) Once you have a Chime account, activate your Chime Visa debit card.
If you don’t already have a Chime Visa debit card, you can apply for it by heading to their website, clicking “Apply now” at the bottom of the page, and filling out the details.
(iii) Download the Chime app into your mobile phone or desktop.
Note that you can also access Chime directly on the web. However, the web-based version is unreliable when you need to borrow money on the go, which is often the case. The app is available both on the Google Play Store and the App Store.
(iv) Log into your Chime account using your credentials.
(v) Connect your existing bank account with Chime to enjoy hassle-free services.
(vi) Head to the “Settings” tab to establish if you can borrow from Chime.
Chime’s eligibility criteria for borrowing may change from time to time. But as of the time of writing (May 10, 2023), you must have been a Chime member for at least ninety days. You must also have deposited at least $500 in your account during the last ninety days.
Chime will let you know almost instantly if you’re eligible. The company’s app or web-based service will also determine the amount you’re approved to borrow. Ideally, this amount depends on various factors, including your income and purchase history.
As already stated, you can overdraw by up to $500 using Chime’s SpotMe if your financial profile allows it. You could even exceed the $500 usual borrowing limit if you have an excellent credit history, can provide solid proof of income, and have a bank account that works with Chime.
Chime SpotMe’s loans are typically due on your next payday. Failure to repay the balance within 90 days of your checking account incurring a negative balance could lead to a suspension. And this is where things can get a little nasty.
While Chime may get back to you on the steps you can undertake to avoid suspension, the company reserves the right to suspend your account without prior notice.
(vii) Once you’ve established that you meet Chime’s eligibility criteria for borrowing, read the Terms & Conditions and access your funds.
NOTE: Chime’s SpotMe works as an overdraft service. That means you won’t receive cash in your account like you would with other cash advances.
Also, while Chime levies no fees on its overdraft services, this may not necessarily be the case with your bank. So, it’s imperative to check with your bank to determine if there are any applicable fees and how they could affect your borrowing limit.
Other Chime FAQs
What Applications Work with Chime?
Chime is compatible with several applications. You can use the service with the following apps to borrow money;
Is Chime Available Worldwide?
Chime accounts are accessible only to US citizens aged 18 years or over.
However, you can use your Chime card to make payments or withdraw money from ATMs anywhere around the world where Visa is accepted.
Is Chime Legit?
Chime is a legitimate company with a solid reputation earned over the years. The firm has amassed thousands of positive reviews from its former and current clients, proving that it delivers on its claims.
Transparency is another thing that sets Chime apart from many mobile banking service providers. The company is forthright about its services and fees. It even offers disclaimers to its clients to check their bank account charges before borrowing money using the app.
This ensures that customers fully understand the fee implications when using Chime’s services, much as the company doesn’t charge a dime.
Affiliation with many reputed third-party applications also lends credence to Chime’s legitimacy. Besides, the mobile services provider is a partner with The Bancorp Bank, N.A. and Stride Bank, N.A., both of which are FDIC-insured.
Chime provides a slew of mobile money products. However, the company especially stands out for its fee-free services.
As a parting shot, assessing how much you can repay within the given timeframe is best before initiating the borrowing process. This will help build your credit score and possibly increase your borrowing limits.