SAN FRANCISCO, CA / ACCESSWIRE / August 24, 2021 / Car payments. Mortgage bills. School loans. Americans keep getting swept under by debt, making financial freedom seem like a unicorn dream.
According to reporting from Pew, 86% of Millennials carry some kind of debt. In fact, about eight out of 10 adults owe money, whether for education, transportation, or housing. Those high numbers indicate just how impossible it can be to manage money.
What's the cause of all this collective debt? To be sure, the reason differs depending upon the person or household. Some people have never had financial guidance. Others barely live paycheck to paycheck, causing them to forego any chance of building up nest eggs. And the rampant uncertainty and job loss fueled by the Covid pandemic didn't help matters.
Despite these challenges the goal of financial security may not be as out of reach as many people presume. Many disruptors, including financial tech company Chime, are working to help consumers successfully handle money and boost wealth.
Not Just Another Debit Card
The Chime focus differs from other card issuing companies in several key areas. Taking a more customer-powered approach, Chime provides tools to make financial administration easier and more intuitive. By leveraging technology customers already use, Chime opens the door for consumers to control incoming and outgoing funds.
Chime serves to help move and hold money in more transparent and even lucrative ways. The end result? Customers who can make smarter choices with their wealth.
The Chime system presents some unique benefits not available collectively through other companies.
1. Customers can build credit securely with a Chime card.
One of Chime's most popular vehicles is its Credit Builder Visa secured credit card. Unlike other credit cards, the Credit Builder card does not allow for spending up to a limit based on a credit score. Instead, the card can only be used up to the amount of money that has been placed in the account.
For instance, a customer can place $1,000 onto the Credit Builder card. The card can then be used wherever Visa is accepted. However, the Chime cardholder cannot spend more than $1,000. This prevents the customer from overspending or being unable to pay bills.
After each purchase, Chime automatically deducts the correct amount from the card account. The card can never be "run up." Over time, Chime sends positive reports to the three credit bureaus. Best of all, Credit Builder cardholders gain an average 30-point credit score bump in time based on a study they did with TransUnion. Thirty points can make a huge difference, especially for consumers trying to move beyond subprime credit levels.
2. Chime savings account users get a generous interest rate.
It's not unusual for savings accounts to accrue interest. However, most interest rate levels are barely enough to cause a stir. Chime has bucked this trend with a surprising 0.50% Annual Percentage Yield for all its savings accounts.
This means a consumer who keeps $5,000 in a savings account can expect an additional $25 after the first year. As successful money managers agree, even a small amount can add up. Plus, allowing money to "grow" without having to do anything makes getting richer less complicated.
The Chime savings account can be linked to other Chime accounts, as well as outside financial institution accounts. Users have the ability to freely move their money, or just watch the account get larger.
3. A fee-free Chime debit card delivers automatic savings.
Most people are accustomed to using debit cards to pay for everything from snacks to auto insurance premiums. Chime has developed a Visa debit card spending account linked to a Chime savings account.
As with many spending account systems, Chime offers overdraft protection and other perks. However, one notable advantage is the account's round-up feature. Each time the Chime debit card is used, the amount paid to the vendor is rounded up to the nearest dollar. The difference between the two amounts is then deposited immediately into the user's Chime savings account.
Here's how the system works: A Chime user buys a coffee for $4.45 with a Chime debit spending account card. Chime pays the vendor $4.45 but internally rounds the figure up to $5.00. The difference, which is $.55, is then placed into the user's Chime savings account. This little method of saving a bit here and there adds up. It also requires no forethought, making it a convenient method to stash away for those inevitable rainy days.
4. Chime features robust, safe technology.
In addition to a thorough website, Chime relies on its technological underpinnings to present customers with intuitive interfaces. These include a friendly mobile app that puts power into Chime users' hands. All accounts are visible on the Chime mobile app, making money moving and management seamless.
From paying others without incurring fees to turning off a debit card account with a swipe, the Chime app removes financial friction points. At the same time, it feels completely natural thanks to its thoughtfully streamlined design.
Perhaps most importantly for users concerned about security, Chime offers high levels of user protection. Consequently, Chime customers can feel at ease about working with the tech company to help them improve their money management skills.
Handing Consumers the Key to Unlock Their Financial Goals
The state of personal finances in America hasn't been rosy for many people in recent years. Nevertheless, products like Chime's variety of cards and accounts serve to make financial freedom a real possibility. People from all generations, whether they're up-and-coming GenZers or retired Baby Boomers, can get a leg up on debt. And they can do it with a little assistance from startup disruptor Chime.
Let's face it: When people feel like they have power over their money decisions, they tend to make smarter choices. Frankly, Chime's not just a portal to better financial savvy. It's an educational provider showing users how to adopt healthier relationships with money.
CONTACT:
General Inquiries
844-244-6363
support@chime.com
SOURCE: Chime
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