To borrow money from Chime, you have two main options: SpotMe (a fee-free overdraft service) and Instant Loans (a small personal loan product).
1. Borrowing with Chime SpotMe (Overdraft)
- Eligibility: You must have a Chime Spending Account with at least $200 in direct deposits within the last 34 days
- How it works: Once enrolled, you can make purchases with your Chime debit card even if it causes your balance to go negative, up to your SpotMe limit (starting at $20 and possibly increasing over time based on account activity and deposits)
- Repayment: The negative balance is automatically repaid with your next direct deposit. There are no fees or interest charged for using SpotMe
To activate SpotMe:
- Open the Chime app, go to Settings, scroll to SpotMe, and follow the prompts to enroll
2. Borrowing with Chime Instant Loans
- What it is: Instant Loans are three-month installment loans up to $500 available to pre-approved Chime members who receive direct deposits to their Chime Checking Account
- Eligibility: Must be a Chime member with a checking account in good standing and regular direct deposits (usually at least $500 per month for the past six months). No credit check is required
- How to apply:
- Chime will notify eligible members via the app.
- Review and accept the loan offer.
- Funds are deposited instantly into your Chime account upon acceptance
- Repayment: Fixed interest rate of $5 per $100 borrowed, repaid in three monthly installments. Repayments are automated and capped at 10% of your monthly cash inflows to ensure affordability
- Credit impact: On-time payments are reported to credit bureaus, which can help improve your credit score by 10-30 points
Summary of Steps to Borrow via Instant Loans
- Ensure you meet eligibility criteria (active Chime account, direct deposits).
- Wait for pre-approval notification in the Chime app.
- Review loan terms and accept the offer.
- Receive funds instantly in your Chime account.
- Repay in three monthly installments automatically
In short, to borrow money from Chime, either use SpotMe for small, fee-free overdrafts or apply for an Instant Loan through the app if you are pre- approved, allowing you to borrow up to $500 with fixed repayment terms and no credit check
