Chime’s Credit Builder Card does offer the option to withdraw cash at an ATM, which can be considered a cash advance. However, the unique aspect of Chime’s Credit Builder Card is that it does not charge any interest or fees for this service. This means that withdrawing cash with your Credit Builder Card works just like using a debit card.
Typically, when you use a credit card for a cash advance, you are charged a higher interest rate than for regular purchases. Additionally, there may be additional fees associated with cash advances, such as transaction fees or ATM fees. These fees and high interest rates can make cash advances quite expensive and can lead to a cycle of debt if not managed properly.
However, Chime’s Credit Builder Card operates differently. It is specifically designed to help individuals build or rebuild their credit history. Since the card is secured by a refundable security deposit, there is less risk involved for Chime, which allows them to offer this cash advance feature without charging any interest or fees.
The lack of interest and fees for cash advances with Chime’s Credit Builder Card can be a significant benefit for those looking to access cash when needed. It provides a convenient option for individuals who may not have a traditional credit card or who are working on improving their credit score.
It is important to note that while Chime does not charge interest or fees for cash advances, there may still be ATM fees charged by the ATM operator itself. These fees are not controlled by Chime and will vary depending on the ATM you use. It is always a good idea to be mindful of any potential fees when using ATMs.
Chime’s Credit Builder Card does offer cash advances without charging any interest or fees. This can be a useful feature for those who need to access cash while working on building their credit history. However, it is important to be aware of potential ATM fees that may be charged by the ATM operator.