Kikoff Credit Account vs Chime Credit Builder Card

2 Different Types of Credit Builders

Many of you want to see a comparison between the Kikoff Credit Account and the Chime Credit Builder Card. Both of these are new rebuilding instruments from FinTech companies but they are actually quite different. In this comparison, I will explain why they are different and see if one is really better than the other.

The Basics

Kikoff Credit Account

The Kikoff Credit Account is actually an online store that gives you an unsecured credit of $500. The online store sells financial and wellness ebooks that cost $10. Because of the low cost of their products and the fact that they face no delivery fees, Kikoff does not check your credit when you apply and you will definitely be approved. You will be charged a monthly membership fee of $2/month and it is renewed every 12 months. Kikoff reports to both Experian and Equifax and also provides a free Vantage Score from Equifax. They also do not charge any interest when you make a purchase on the account so that APR is 0%. Unlike many new products from FinTech companies, there is no need to link your bank account.

Chime Credit Builder Card Basics

The Chime Credit Builder Card is a secured credit card that actually works like a prepaid credit card. To get the Chime Credit Builder Card, you first have to sign up for the Chime "Spending Account", which is their online bank account. You then have to set up and transfer $200 via direct deposit into your Chime Spending Account within 365 days (ie 1 year). Once you have met this requirement, you can then set up a Chime "Credit Buider Account", which is your secured credit card account. You need to fund your security deposit in your Chime Credit Builder Account by transferring money from your Chime Spending Account. That security deposit becomes your credit limit. There is no minimum or maximum amount you can transfer for the security deposit.

Unlike most secured credit cards, you have to pay your bills in full with Chime. But more interestingly, you can use your security deposit to pay your bills. You can then top up your security deposit again from your Spending Account and there is a way to do this automatically from your account as well. This characteristic makes Chime more like a prepaid credit card than a secured credit card in that you do not have to tie up your security deposit while you have the card. Chime reports to all three major credit bureaus.

Similarities

• No Credit Checks - Both cards do not perform credit checks so you will definitely be approved.


• Do Not Charge Interest - Both Kikoff and Chime do not charge any interest although for Chime, that is because you have to pay in full. You can carry a balance with Kikoff and yet pay no interest.

Differences

• Different Types of Cards - Both Kikoff and Chime are different types of cards. The Kikoff Credit Account is an online store card that reports to credit bureaus. Chime on the other hand is a secured credit card and a Visa card.


• Where card can be used - Because Kikoff is a proprietory store card, it can only be used at their online store. The Chime Secured Visa can be used anywhere Visa is accepted.


• Fees - While the Chime Credit Builder Card has no annual fee, Kikoff charges a $2/month membership fee.


• Credit Limits - Kikoff's credit limit is fixed at $500 whereas there is no credit limits to Chime. It depends on how much security deposit you want for the account.

Which is better?

To be honest, I cannot say which card is better simply because they are different. Both are good low cost (or no cost) rebuilder cards. If fact, nothing stops you from getting both cards.

Many rebuilders start off with a secured credit card and if that describes you, then you should definitely investigate Chime as a candidate. But you might also want to consider getting Kikoff in addition to a secured credit card simply to get 2 trade lines on your credit report.

To sum up, I would consider a secured credit card as a main tool for rebuilders and Chime is an excellent candidate. I view Kikoff more as a supplement card or tradeline in your rebuilding efforts simply because you can only use it at their online store and not everywhere where Visa or Mastercard is accepted. Still, both are useful for a rebuilder.