By : 
Mr Credit Card
Mr Credit CardIntro: 2 good Rebuilding Cards
The Extra Debit Card is one of the rare debit card that actually reports to credit bureaus while the Chime Secured Visa is a rare secured credit card that allows you to use your security deposit to "pay your bill" and subsequently "top up" your security deposit. It is also a very rare secured credit card that requires you to "pay in full"!
I will now compare these two cards.
Basics: How the cards work?
Extra Debit Card Basics
The Extra Debit Card is one of the very rare debit cards that actually reports to credit bureaus and helps you build or rebuild your credit without the risk of you getting into debt. To get approved, you need to give Extra access to your bank or checking account via PLAID. Your balances and cash flow will be analyzed and how much you can charge to the Extra Debit Card will be determined from this analysis. Extra claims that approval rate is 99% for those who go through with it.They report to both Equifax and Experian and There is a $7 monthly fee.
Chime Secured Visa Basics
Unlike Extra, Chime is a secured credit card. However, it is unlike traditional secured credit cards in many ways.To get this card, you first have to open a Chime online bank account. You then have to set up a direct deposit and as long as you make a direct deposit of $200 within 365 days (ie one year), you can get the secured credit card. The way you do it is to transfer money to a "credit builder account" from your Chime savings account. There is no minimum amount that you have to transfer to this credit builder account. The amount you transfer becomes your credit limit. This is one feature difference between Chime and traditional secured credit cards where you have to transfer a minimum security deposit.
The amount you transfer to the credit builder account becomes you credit limit. But you can use that money to pay your bill. That is again a big difference with traditional secured credit cards. In fact this is like a prepaid or debit card just like Extra, If you use the money in your credit builder account to pay your secured credit card bill, you can simply transfer money from your Chime savings account and start the process again. In fact, this process can be automated every month.
Similarities
- No Credit Checks - Both cards do not perform any credit checks (though they have different requirements to get approved).
- Have to pay in full - Both the Extra Debit Card and Chime Secured Visa require you to pay your bills in full. While Extra is a debit card and money will be drawn from your bank account when you make a charge on the card, the Chime Secured Visa requires you to pay your bills in full as well. It is different from all other secured credit cards we know because most allow you to carry a balance. In a sense, Chime Secured works kind of like a debit card.
- Reports to credit bureaus - Both cards report to major credit bureaus although the Extra Debit Card does not report to TransUnion.
Differences
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Requirements to get approved - Though both cards do not perform any hard inquiries or credit checks, they have different approval criteria. The Extra Debit Card requires you to link your bank account via PLAID where your cash flows will be analyzed. Your approval and credit limit will be based on this analysis.
Chime requires you to open an online savings account. Then you have to make a qualifying direct deposit of $200 within 365 days (or 1 year). Once that is accomplished, you can get the Chime Secured Card by simply transferring any amount into a "credit builder account". This acts as your credit limit. You can even use this to pay off your bill and top up your "credit builder account" automatically. - Fees - There is no fee required to open a Chime online account and neither is there a fee for their secured credit card. The Extra Debit Card charges a $7/month fee.
Which is better? Extra or Chime?
The Chime Secured Visa edges out the Extra Debit Card when it comes to fees, namely, there are none. There are no fees for it's bank account and no fee for the secured credit card. In contrast, the Extra Debit Card has a $7/month fee. However, despite not having any fee, the Chime Secured Visa requires you to open an online bank account with them and you have to set up a direct deposit and use it to deposit at least $200 within a year to be eligible for the secured credit card. For those of you who already have a bank account and have already set up direct deposits with your employer, having to set up a new online bank account and change your payroll direct deposit might just put you off.
In contrast, the Extra Debit Card does not have such requirements. Instead, you have to give them acccess to your primary bank account via PLAID and as long as you have income and positive cash flow and bank balances, you should be approved relatively easily.
To sum up, I like both these cards as a credit builder or rebuilding card. The Chime Secured has no fees though you need to go through the hassle of setting up a bank while the Extra Debit Card makes it easier to get approved. If you are sensitive about fees and do not mind setting up a direct deposit with a Chime banking account, then the Chime Secured Visa is an excellent choice.
However, if you are already happy with your bank account and payroll deposit situation, then the Extra Debit Card is one of the rare debit cards that report to credit bureaus and helps you build or rebuild your credit. It is also a very good choice.