It’s hard to keep track of your spending and even harder to stay within your budget. You don’t want to overdraft and get hit with expensive fees, but it’s easy to do.
According to a recent study, Americans paid over $30 billion in overdraft fees last year. That’s a lot of money that could have been saved if people had access to better financial tools.
The Chime SpotMe program is here to help. It removes overdraft fees while providing you with a worry-free shoulder to depend on when you’re in desperate need of cash.
Unlike traditional banks, which are only interested in making as much money as possible, Chime is more concerned with your well-being.
Don’t be alarmed; there are no hidden costs or motives behind this generosity—just a few essential terms and conditions.
This article will go through all you need to know about Chime SpotMe Program.
Why should I Use Chime?
Chime is a financial technology company, not a bank that provides instant, free, direct deposits, and unlimited bank transfers for consumers and small businesses in the United States.
Chime is a mobile banking app with high app store ratings and impressive growth. Here are a few reasons why you should consider using Chime:
- Chime has the highest app store ratings of any mobile banking app, with an average rating of 4.8/5 stars.
- Chime has grown rapidly, signing up over 1 million customers in just 18 months.
- Chime offers unique features not found in other mobile banking apps, such as spending notifications, automatic savings, and early direct deposit.
- Chime is FDIC-insured and backed by Visa®.
What is SpotMe by Chime?
SpotMe by Chime is a service that allows you to make purchases without paying any fees.
They offer an overdraft-free cash advance when your balance reaches zero, and it will be taken out from the next deposit, so there’s no need to worry about getting charged extra!
Eligible members can use their debit cards at participating retailers for shopping with no added charge as long they don’t exceed whatever limit has been set beforehand (generally $100).
How Does Chime SpotMe Work?
The SpotMe service is available to Chime customers who have a direct deposit of up to $500. Don’t worry if you forgot there’s a program like this; Chime will remind you.
$500 entitles you to a $20 free overdraft. However, depending on other variables such as account activity and history, you may be eligible for an overdraft of up to $100.
The Chime will spot you up to your limit if you make a debit purchase that exceeds your balance. Remember that this only occurs if you join the Chime SpotMe program.
As a result, Chime will add the negative balance to the next deposit when you make it. They also provide you the option of ‘paying it forward.’
As a result, they will assist more customers through the SpotMe initiative. If you don’t comply, it will have no bearing on your SpotMe eligibility.
You can scan your receipts for money when making grocery purchases.
Who Can Participate in SpotMe?
SpotMe is open to almost everyone; all you need is a Chime bank account. It isn’t much else you need to do to be eligible for SpotMe once you’ve applied and been accepted. You’ll be eligible if you start receiving direct payments of $500 or more each month.
Chime SpotMe Rules
According to the Chime website, Chime SpotMe only accepts purchases made with a Chime Debit Card, and it also includes ATM cash withdrawals and cashback transactions.
Payments to pals, ACH transfers (including direct debits and services like Venmo or Square Cash), and Chime Checkbook transactions are not included.
What is Covered?
- Purchases on Chime Debit Card
- ATM withdrawals
- Cashback transactions
What is NOT covered?
- pay friends transfers
- Automatic bill payments using Direct Debit from Chime Spending Account
- Transfers to other apps like Venmo and Cash App
- Chime Checkbook transactions
- Chime SpotMe is only available to people at least 18 years old.
- You must have an active Chime-managed demand deposit account in your name.
- Enrollment in Chime SpotMe does not necessitate a credit check.
- You can only overdraw an amount up to your SpotMe Limit for qualifying transactions.
- Chime might increase or decrease your SpotMe Limit based on your account activities.
- You must have a minimum single direct deposit of $200 or more in your Chime Account to be eligible to use the Chime SpotMe feature. The direct deposit had to be made within the previous 34 days.
- If you initially met the qualifying direct deposit requirement but failed to meet those requirements, Chime may terminate or suspend your SpotMe access until you meet the criteria again.
- More information about the Chime SpotMe terms & conditions can be found on the Chime website.
Where Can Chime SpotMe Be Used?
With a Chime Debit Card, Chime SpotMe can be used for almost any purchase or transaction. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank under a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.
The transaction amount must be less than your Chime SpotMe Limit to be cleared.
Chime SpotMe can be used for a variety of purposes, including:
- Purchases are made with a Chime Debit Card at physical locations such as restaurants, fast food restaurants such as McDonald’s, and grocery stores. petrol stations
- For ATM cash withdrawals
- When using the Chime Debit Card to pay for Uber rides
- Purchases made with your Chime Debit Card can be made online.
- For a Cash Back option at supermarkets such as Walmart, Dollar General, and others.
How Many Times Can You Overdraft With Chime?
There is no limit to how many times you can overdraft with Chime. Instead, the bank uses a total dollar amount limit. So long as you don’t exceed your set limit, whether it’s $20 or $100, you’ll be fine.
Using the mobile app to help you stay on track, you can track your limit. Any transactions that exceed your available credit may be denied.
How To Increase Or Decrease SpotMe Limit?
The maximum amount you can overdraw is called the SpotMe Limit, and it ranges from $20 to $200 or more based on member’s Chime account history. Chime automatically determines the limit and notifies you, which isn’t something you can change.
You can explore different options based on your activity and consumption by reading this guide on boosting Chime SpotMe Limit.
You can, however, set a maximum personal limit for your financial discipline that is LOWER than your Chime SpotMe Limit. To do so, follow these steps:
- To set lower SpotMe Limit.
- Open your Chime mobile app.
- Open the Chime SpotMe section (under settings or from your home screen)
- Tap on the pencil icon next to your existing SpotMe limit to edit
- Enter a personal Max
- Confirm your limit
Chime may first set a very low SpotMe restriction for you, ranging from $20 to $50. Then, based on your usage and deposit patterns, Chime will alert you whether your Chime SpotMe Limit has been increased or decreased.
Chime offers some advice and tips on how your SpotMe Limit will be affected by certain factors. “SpotMe restrictions are automatically adjusted by a range of factors connected to how you use your Chime account,” according to Chime.
This could contain information such as how long you’ve been a member, your account history, and the amount of money you direct deposit each month. Your SpotMe limit may alter as these factors change over time.”
In other words, Chime uses an algorithm to establish the SpotMe limit. The more Chime Usage data it has, the more aspects it can examine.
It can consider your deposit history, average daily balances, current SpotMe usage, and other data from your Chime usage, among other things.
SpotMe vs. Traditional Overdraft Protection
It’s like overdraft protection, but better. Allow the costs to speak for themselves.
Here is a general Fees of the two options:
- SpotMe Fees: $0
- Traditional Banks Overdraft Fees: $34
Chime SpotMe Program Benefits & Drawbacks
The advantages of SpotMe exceed the disadvantages, and we’ve compiled a list of them below.
- There is no overdraft cost. A $35 overdraft fee will be avoided.
- There is no need to create an account.
- Amounts ranging from $20 to $100 each month in overdraft
- The next deposit will be used to repay the loan.
Now for the disadvantages of the Chime SpotMe software. They are as follows:
- Only debit card purchases are subject to overdraft. For advanced users, that is far too simplified.
- You exclusively use direct deposit, which makes cash deposits impossible.
- An account can only be accessed online and does not have physical branches. This function may be ineffective for those who are not tech-savvy.
How Do I Become A Member Of The SpotMe Program?
To see if you’re qualified for the SpotMe function, go to the Settings tab in your Chime app. Make sure you’re using the most recent version of the app.
You are officially enrolled once you agree to the SpotMe Terms & Conditions.
You’ll then be able to use your debit card to overspend your account up to your limit. There are no overdraft costs.
Conclusion: Chime SpotMe Loan
The Chime SpotMe program is a lifesaver for Chime members who often find themselves short on cash. It’s a great way to avoid expensive overdraft fees and allows you to continue spending without worry.
Enrolling in the program is simple and easy, and there are no hidden costs. Just make sure you’re aware of your spending limit and try not to go over it.
The Chime SpotMe program can help you stay out of debt and keep your finances in check with a little self-control.
Thanks for reading!