Looking to borrow money from Chime. Stick around as we'll provide all the steps required to get a cash advance from the online-only bank.
As a financial institution, offering loan options is important to maintain trust between Chime and its customers.
Chime features a feature known as SpotMe which lets eligible customers get a loan ranging from $20 to $200.
What's the process for borrowing money from Chime? Don't worry, we got you covered.
That said, this article focuses on showing you all you need and what steps to take to borrow money from Chime.
Table of Contents
What is Chime SpotMe?
SpotMe is a free service that allows Chime Checking Account members with an active debit card to perform certain transactions that might otherwise overdraw their accounts.
SpotMe can assist you if you need a little more cash to cover an expense.
You'll be able to overdraw your account by up to $20 once you're eligible for the feature and switch it on in your app.
Chime reserves the right to increase this limit based on the history of any Chime-branded accounts you have, direct deposit history and quantities, spending behavior, and other risk-related considerations.
To find your current limit, go to Settings on your app.
Transactions that would result in your account being overdrawn by more than your SpotMe limit will be refused, and you will not be charged any fees.
Chime has the right to modify your limit at any time. Although there are no overdraft fees, ATM transactions may be subject to out-of-network or third-party costs.
Non-debit card transactions, including as ACH transfers, Pay Anyone transfers, and Chime Checkbook transactions, are not covered by SpotMe.
Features of Chime SpotMe Loan
- You would receive a prepaid card that would allow you to access more authorized loans with more favorable terms.
- Applicants have the option of paying in 16 days or 3 months. The payback period is variable and can be shortened or lengthened depending on your needs.
- You can complete the entire application procedure online. After you've been approved for the loan, you'll have immediate access to the funds.
- You can also choose to pay off the debt earlier. There would be no charge for the penalty.
- The dashboard of your SpotMe online account also allows you to handle the majority of other services.
Eligibility Requirements to Get SpotMe and Borrow Money from Chime
To be eligible for SpotMe at the $20 base limit, you must have received at least $200 in a single direct deposit into your Chime Checking Account during the previous 34 days.
The deposit must be made via Automated Clearing House (ACH) from your employer, payroll provider, gig economy payer, or benefits payer, OR via Original Credit Transaction (OCT) from your gig economy payer, in order to qualify.
The following types of transactions will not qualify you for Chime SpotMe:
- ACH transfers
- Pay Anyone transfers
- Verification or trial deposits from financial institutions
- Peer-to-peer transfers from services like PayPal, Cash App, or Venmo
- Mobile check deposits
- Cash loans or deposits
- One-time direct deposits like tax refunds
If SpotMe becomes available to you and you have an active debit card, you can switch it on and agree to the terms and conditions under the app's Settings area.
You'll receive a notification alerting you that the functionality has been turned on in your app.
To keep using SpotMe, you must continue to receive qualifying direct deposits of at least $200 every 34 days.
How To Borrow Money From Chime
- Ascertain that you have met the basic eligibility requirements by getting a Chime Debit Card and making a qualifying deposit.
- To see if you're qualified for the SpotMe feature, go to the Settings tab in your Chime app (make sure you have the latest version of the Chime app).
- Accept the SpotMe Terms and Conditions to enroll in Chime SpotMe.
- It will show you the SpotMe limitation once it is activated. Up to this level, you can now use your Chime Debit card to make purchases that exceed your bank balance. You can get cash at an ATM or use a cashback transaction at a retail store like Walmart to get money through self-service check out at the POS machine.
Any money borrowed is deducted from your Chime SpotMe limit, and the available balance on the app is updated.
In your Chime Checking account, the amount borrowed appears as a negative balance.
How Much Can You Borrow From Chime?
You can borrow money up to the amount shown on your Chime Mobile App as your SpotMe Limit.
Chime sets this limit for you based on your account activities and history.
Nonetheless, SpotMe offers loans ranging from $20 to $ 200.
Because the amount you can borrow, i.e. the Chime Spo Me limit, is calculated automatically by algorithms, you have no control over it. However, there are some ways to increase your Chime SpotMe Limit.
Chime uses your direct deposit from your work to evaluate your eligibility and the amount that can be lent to you, so it has a lot riding on it.
However, you have a lengthy experience with Chime goods and have used them extensively.
You don't have a defined time frame for when your Chime SpotMe will rise. So this is one of the disadvantages of using the app to borrow money: you can only borrow up to the amount determined by the app.
Some Chime members have expressed dissatisfaction with the lack of progress in their limits.
However, Chime's strategy is to use its own processes to encourage prudent borrowing and reduce risk.
The Spot Me limit, on the other hand, may be reduced from time to time for reasons such as a non-consistent direct deposit, a reduction in direct deposit amount, or late repayments. It's all based on data.
One great feature with Chime Spot Me is the ability to send and receive a Spot Me boost from other Chime members every month, which can temporarily raise your Chime Spot Me limit by $5 per boost.
It helps to have friends who are Chime users exchange boosts, as it does not impact your own borrowing ability.
If the Chime Spot Me Limit does not give you comfort, you can check our post on other cash advance apps that work with Chime.
How Do You Repay The Money Borrowed From Chime
The ease and convenience of borrowing money from Chime is one of the main advantages.
You don't have to be concerned about repaying the money manually on time.
If you have a consistent stream of payroll direct deposits, everything is automatic.
So, when you receive a direct deposit or funds are deposited to your Chime Checking Account in any other way, whichever comes first, any amount borrowed through Spot Me (resulting in negative balances on your Chime bank account) will be automatically repaid before your balance is brought back to zero.
Take note of the Chime SpotMe terms, which state that if a Chime SpotMe negative balance is not repaid within 90 days of the initial balance, Chime may suspend your Chime Checking Account.
Chime will let you know what you need to do to prevent being suspended.
It is always preferable to pay dues via direct deposit during the same month so that your borrowing ability, i.e. Spot Me limit, is not negatively impacted.
Does Borrowing Money From Chime Affect Your Credit Score?
A credit check is not required to sign up for Chime SpotMe to borrow money.
If you read the Chime terms, you'll notice that they don't disclose failure to repay to credit reporting agencies.
This does not preclude them from taking legal action against you, but it does make you ineligible for future Chime SpotMe services.
Furthermore, if the advance is not repaid on the due date, neither Bancorp nor Chime will participate in debt collection actions, place the amount advanced as a debt with or sell it to a third party, or report any failure to repay to a consumer reporting agency.
So, in theory, it shouldn't affect your credit score, and it appears that Chime is on your side.
But do keep a tab on the terms from time to time as they can be changed in the future.
How Can You Use The Money Borrowed From Chime?
- Make everyday purchases with your Chime Debit Card, such as groceries and online shopping.
- Withdraw money from an ATM in the form of cash.
- Withdraw cash via a cash-back transaction at a retail store like Walmart, Walgreens, or other similar businesses.
What you cannot use Chime Spot Me for
- Payments to friends transfer
- Automatic bill payments using Direct Debit from the Chime Spending Account
- Transfers to other apps like Venmo and Cash App
- Chime Checkbook transactions
Frequently Asked Questions
Can I borrow money from Chime?
Yes. Chime's distinctive feature, SpotMe, allows you to borrow money from the company. It permits you to overdraft by $200 or more without incurring any further costs.
Does Chime allow users to overdraft?
You can take out a $200 overdraft from your Chime account. However, you must first establish a relationship with Chime.
How can I get a loan from my Chime bank account?
If your Chime checking account has been active for more than three months, you can borrow money from it. You must also maintain a solid credit score. Following that, you will be qualified for a $250 payday loan, which will be deposited directly into your account.
Chime Financial, Inc. is a financial technology company based in the United States that offers fee-free mobile banking services through The Bancorp Bank or Stride Bank, N.A. Account holders are given Visa debit or credit cards and have access to an online banking system via the company's website or mobile apps.
The majority of Chime's income comes from the collection of interchange fees.
Chime features SpotMe which is a feature present in Chime that lets its customers borrow money from the platform.
Eligible SpotMe users can borrow between $20 and $200 from Chime which will let them manage their different issues.