Due to the coronavirus pandemic and the situation in the world, many people are facing financial difficulties. While some people have lost their jobs and cannot cope with the expenses, others do not have enough income to deal with the emergency. Even though the government offered some help, it was often not enough.
That is why many people began to look for suitable financing options. For now, online banking like Chime has become a good contactless, online alternative to traditional banks. So, now more and more people are in need of money and are choosing loans as the fastest financing option. That is why most often they wonder if there are Payday Loans that accept Chime?
At the moment, there are some financial institutions that offer Payday Loans even if the customer has a Chime Internet bank account.
For now, a Chime bank account works just like any other loan provider (other than there are no physical branches). Let’s take a closer look at what Chime is and how it works in order to understand if you can get a Payday Loan with Chime.
What Is Chime?
Chime (Chime Financial, Inc.) is an American financial technology company that provides free mobile banking services. Chime itself is not a bank. Let’s see why.
At the moment, obtaining the status of a bank in the United States is a rather complicated and lengthy process. That is why the services offered by Chime are actually provided by two small banks, The Bancorp Bank and Stride Bank. The important fact is that none of them are traded on the exchange.
How Does Chime Work?
At the moment, Chime works like this: it uses an application that helps users create checking and savings accounts. What’s more, they can also get a debit card (in partnership with Visa). But how does Chime make money?
As you know, most often banks charge a fee on account. Chime, by contrast, takes a portion of transaction fees (which Visa charges merchants when customers use a Chime card).
Chime is also popular because it offers clients the opportunity to get paid two days early.
Thus, the Chime current account is the same financial system as the others, which works completely online. It also differs in that it does not charge overdraft fees or monthly accounting costs.
However, even Chime has his own disadvantages. The main one is that it uses an online bank account and many clients have problems getting Payday Loans (since it is a non-traditional loan provider).
How Is Chime Different From A Traditional Bank?
Simply put, Chime is a type of fintech startup. Its main difference lies in the fact that it provides only online banking services (also called “neo-bank”).
At the moment, neo-banks are already a serious competitor to traditional banks. The fact is that, on average, US bank customers pay about $300 a year in commissions. That is why neobanks want to provide an alternative source of checking and savings accounts with little or no fees at all. At the moment, Chime is one of the largest neo-banks in this area, although it already has competitors both in the US and around the world.
Can I Get A Payday Loan That Accepts Chime?
So, lately, more and more people are wondering if they can get an online Payday Loan with Chime bank account online. Of course, this solution may seem great, but it is in turn complicated.
Since Chime is a completely new neo-bank, not all lenders are ready to work with it. What’s more, customers can quickly terminate potential account at any time. Thus, there are often some risks associated with working with Chime for payday lenders.
However, several online Payday Loan providers still offer an improved version of the loan to their customers. Despite the fact that the probability is low, some lenders do work with Chime.
Which Payday Loan Apps Accept Chime?
You probably know that Chime offers a cash advance of up to $200 (however, it actually starts with an advance or overdraft of just $20).
However, until customers build a credit history, they want to know what other Payday Loans and cash apps work with Chime.
At the moment, there are several financial applications that can be connected to Chime. What’s more, they also offer an advance that can be transferred to Chime (note that sometimes you need to have a direct deposit for this). So, you can use apps like Dave, Albert, Cleo, MoneyLion, Empower and Varo.
Moreover, you should also pay attention to the fact that many Payday Loan apps have a lot more features than just that. Most often they have the same features as Chime.
For example, with Dave you can get $200 advance with a direct deposit set up. No credit check is required so you can apply and get financing even with a bad credit history! So, in order to get a cash advance from Dave you have to do the following: either set up a direct deposit (to get $200) or link a bank account (like Chime for example) to get up to a $100 advance. It is also important to note that the time of advance will depend on a large number of factors, such as your income, history of deposits and transactions (for the last 60 days), how much money you usually have in your account, and so on.
Payday Loan Calculator
$500 Your loan + $79 Your fee = $579 Total Cost*
* Total Cost - The sum of money you are to pay off within the term you’ve chosen if you borrow the stated above amount for the average (or required by your lender) APR.