Challenger bank Chime has launched a new card that’s a “hybrid” of debit and credit.
In Brief:
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Its new Visa card will help users build credit through everyday transactions.
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The credit card will allow users to control their spending by allowing users to transfer funds to a particular secured account.
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This means the amount they can spend is tied to the amount in their account.
What does this mean?
The idea that someone has to be in debt in order to build up a good credit history is something many FinTechs are looking to fix, and the new Chime card is a step in the right direction. The new card will help combat overspending which is often a concern with credit cards.
