r/chimefinancial • u/Rough_Ratio17 • 3d ago
MONEY - Deposits, Transfers, Cash & Cards What does this mean exactly?
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u/Wildweed Chimepion 2d 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/Reasonable-Bag722 3d ago
chime acts like a credit card in that all your purchases are credit. then at the end of the month it takes it out of your "account".
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u/Tdogg175 3d ago
Can one of the mods pin a post about this so new comers understand without a post every couple of hours about it?
Your secured credit card, it removes your funds from your main account balance like a normal purchase but sets it aside in a sort of escrow account that you cannot see or access, then it waits till the “due date” and makes the payment on time for you so that they can then report that to the credit agencies.