Chime offers a variety of products, from checking and savings accounts to money transfers. Now they offer a credit building card designed for anyone looking to start building or repairing their credit score.

This new Chime credit card is officially called the Chime Credit Builder Secured Visa Credit Card. That’s right - it’s a secured credit card, not a normal credit card or a credit building debit card like Fizz. The Chime Credit Builder doesn’t charge fees or interest and Chime doesn't run a credit check when you apply.

However, as a secured card, there are plenty of things users need to watch out for. You’ll need to make a deposit to use the card - in other words, Chime locks up some of your money for as long as you have the card open to make sure you pay them back. You’ll also need to have a Chime Checking Account with regular deposits. And while you’ll still be able to build credit, you won’t be eligible to earn rewards.

It’s true that the Chime Credit Builder isn’t the same as most student credit cards, such as the ones you’ll find at Discover or Bank of America. But that doesn’t mean it’s the best option for students. Let’s take a closer look at how Chime stacks up against Fizz.

Account

To use the Chime Credit Builder, you need to be a Chime customer already. You must have a Chime Checking Account to open a Chime Credit Builder card, which is less than ideal if you like your current bank account. Even if you do decide to switch to Chime, you need to have qualifying direct deposits of $200 or more to be eligible, which can be difficult for college students who don’t always have regular income in the form of direct deposits.

With Fizz, you get to keep your existing bank account and spend the way you normally do. In fact, Fizz connects to your existing bank account to keep you from spending more than you have and going into debt.

Security deposit

It’s also important to note that Chime doesn’t have a minimum deposit requirement, but you’ll need to lock up your money with Chime if you want to use the card. If you deposit $200, say, you can spend up to that amount, but you need to keep that amount deposited to continue using the card. You can’t withdraw your money and still use the card.

Fizz, on the other hand, doesn’t require a security deposit. We want you to be able to keep your money and use it how you want to. That’s part of why we link to your existing bank account when you sign up. This also keeps you from spending more than you have. Fizz is also completely free!

Credit building

Both Chime and Fizz can help you build your credit. Both are designed to help those who don’t have good credit or don’t have any credit to begin with. The biggest difference in credit building is that Fizz is designed for college students, whereas Chime Credit Builder is just a secured credit card - and there are plenty of other options for secured cards out there.

Fees and interest

Chime and Fizz both stand out in this category. Neither card charges hidden fees or interest to its users. It’s a huge perk, and one that really stands out when compared to other student and credit-building cards. Most cards charge fees for missed payments, late payments, transfers, and more. But not Fizz and not Chime.

Chime doesn’t charge a monthly fee, whereas Fizz costs $70 per year ($50 for students). But while Chime doesn’t charge a membership fee, their direct deposit requirements and security deposit requirements are quite expensive.

Rewards

Rewards can be an afterthought when your main concern is building your credit score. But if you’re going to be spending money, you may as well be rewarded for it! The Chime Credit Builder doesn’t offer any rewards. You don’t even get a flat cashback percentage, which is usually pretty standard.

Fizz, on the other hand, partners with lots of different brands to help save you money. By partnering with brands that students love as well as local campus spots, Fizz helps you save money on your everyday purchases. And while most cards offer just a few percentage points of cash back, your Fizz card can earn in the neighborhood 10% at certain places you love to eat!

The bottom line

Chime does a decent job stacking up against Fizz. The fact that the Chime Credit Builder doesn’t require a credit check and doesn’t charge fees or interest is certainly a step above Discover, Bank of America, and other student cards. But the security deposit and the lack of a rewards program makes Chime a pretty lackluster option. The fact that you need a Chime bank account to open the card is another serious drawback.

Fizz clearly has a leg up over the competition. With no security deposit, hidden fees, interest rates, or credit checks, Fizz is a great option for college students that are working towards financial freedom. And the Fizz rewards program is just a cherry on top. So if you’re a college student looking to take control of your personal finances, download the Fizz app and get your card today!