With this overdraft line of credit, members can access up to $200 in fee-free SpotMe coverage when using their Credit Builder card, the company said in a Thursday (March 21) blog post.
The launch of this offering comes at a time when banks charge billions of dollars in overdraft fees, Madhu Muthukumar, chief product officer at Chime, said in the post.
“SpotMe allows you to overdraft up to $200 fee-free,” Muthukumar said. “Bringing this feature to Credit Builder is one more way Chime is prioritizing our members’ financial progress, rather than profiting off it.”
Chime’s SpotMe feature has “spotted” its members billions since 2021, according to the post.
Now, with this feature available when using the company’s Credit Builder card, members can use SpotMe while also using the card to help build their credit history, the post said.
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Using SpotMe does not impact member’s credit score, per the post.
SpotMe joins several other features of Chime’s Credit Builder card, including those that let members apply with no credit check required; use a card with no annual fees, interest or minimum security deposit; instantly disable their card to prevent fraudulent use; and build credit with everyday purchases and on-time payments, the post said.
“As we cross milestones like +1 million 5-star app reviews, Chime reaffirms its dedication to providing a mobile banking experience that genuinely caters to our members’ needs,” the press release said.
Chime announced its plans to introduce SpotMe in September 2019, saying the feature would provide an alternative to traditional overdraft protection that could cost Americans hundreds of dollars per year in overdraft fees when making a few small purchases each month.
In December 2021, the National Advertising Division (NAD) of BBB National Programs determined that Chime’s advertising for the SpotMe program disclosed the necessary information when using terms like “no overdraft fees” and “no hidden fees.”
In another recent product launch, Chime said March 14 that it has expanded the availability of free access to its in-app tax filing pilot program. Following a successful pilot launch, the new tax feature is now available to millions more eligible Chime members.
