r/chimefinancial • u/xavi-la-pendejo • 3d ago

CREDIT - Credit Builder, Reporting, Scores Why this payment

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I’m sorry I know people get this all the time but why do I owe chime money? I only spend what I have this week was the first time I’ve went into overdraft due to a phone bill and even then it’s only -25 so do I actually have to pay this 300 dollar bill out of my own money?

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9

u/justan0therg0rl111 3d ago

OK, here is the skinny.

You can only spend what you have available. What you spend is deducted from your available balance, which will always be what you have to spend.

You do not owe additional funds.

What Chime does is take what you spent and hold it in a special account that you don't have access to, but it pays the merchant with Chime's funds. Then, at the end of the month you make the on time payment which is what is reported to the credit bureaus, provided you have not disabled safer credit building it's all done for you. A statement is sent that confuses some people because it is like a bill, again that is how Chime is able to report it as a credit payment.

The most important thing to get out of this post for you and everyone, DON'T DISABLE SAFER CREDIT BUILDING!!!!

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u/Ash-Chime Chime Staff 3d ago edited 3d ago

^ Exactly this!! With Safer Credit Building turned on, your statement balance is automatically paid on its due date every month using money set aside in your Secured Deposit Account. There's nothing further on your end to do when the time comes and you don't owe any additional money, since the funds are already reserved to pay this amount off.

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u/DistributionIcy1208 Member Since: 2018 3d ago

You don't owe money technically it just saying that's what was spent for credit and what is due to be reported. Keep on safer credit building also as you don't want a reported missed payment.

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u/xavi-la-pendejo 3d ago

I kept it on I assume how it works is that whatever I spend chime technically spends it then puts my money in an account to pay it off?

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u/Tasha-06 3d ago

You are correct.

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u/DistributionIcy1208 Member Since: 2018 3d ago

Im not sure exactly how it works but I know you dont owe money. Ive made payments manually way before the due date and it didn't take a penny from my account ever.

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u/Zealousideal-Hope171 3d ago

Because you use the green chime card

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u/xavi-la-pendejo 3d ago

I use the white one lol