How To Use Spot Me On Chime – Step-To-Step
There are thousands upon thousands of disadvantages to overdraft fees! Almost everyone has been affected in some way. The accumulated charges eventually equal, if not exceed, the draught itself. In 2018, Americans paid $34 billion in overdraft fees. That is, if I may say so, an outrageous sum. This low-key robbery by traditional banks inspired Chime’s SpotMe service, which helps you avoid overdraft fees while providing you with a worry-free shoulder to lean on when you’re in need of money. This post will walk you through everything you need to know about using spot me on Chime, as well as any other relevant information.
What is Chime?
Chime is a San Francisco-based startup bank. Chime, on the other hand, is not your typical financial institution. Chime, as opposed to traditional banks, is a digital bank. Chime, like any other bank, provides checking and savings accounts, as well as a credit card. Chime is entirely digital, with almost everything handled through the Chime app on your smartphone, rather than physical locations. If you prefer a more traditional banking experience, there are 90,000 retail ATM locations in the United States where you can interact with your money.
Chime distinguishes itself from traditional banks by offering customers only one checking account, one savings account, and one secured credit card. Other banks will try to entangle you in as many different accounts, cards, and services as possible. This is frequently not in your best interests, but rather the banks’ attempt to extract as much income from you as possible. Chime is a fantastic way to manage your money from the palm of your hand, with features such as high-yield savings accounts, free mobile payments to friends and family, and a powerful savings function, all in a simple app.
While Chime is a fantastic option for consumers who want to take advantage of the new era of digital money, there are some drawbacks to using an online bank. Some are obvious, such as a lack of physical branch locations to help you with major banking issues that may be difficult to resolve over the phone or online. Furthermore, due to the nature of internet banks such as Chime, they are not always covered by other financial institutions.
What is SpotMe?
If you, like millions of other Americans, live paycheck to paycheck, you know what it’s like to see your bank account fluctuate between negative and positive balances. Every day could consist of you checking your account balance and obsessing over every minor transaction or payment you make. If you make a transaction and don’t have enough money in your bank account, your account will go negative, and your bank will charge you an overdraft fee. Depending on your bank and account, you could be fined between $30 and $40 for going negative. Overdrafting your account is not only inconvenient and aggravating, but it can also be expensive!
To combat this, Chime created a solution called “SpotMe.” Chime decided to launch SpotMe after receiving several requests from customers, in order to directly address its clients being charged costly overdraft fees.
SpotMe In a nutshell, Chime provides funds to cover your account whenever you go overdrawn. Chime starts with a $20 buffer to cover any overdraft fees. This can be increased to around $100 after a while. Assume your account has a $5 balance. Assume you pay $15 for a large cup of coffee and a muffin. Your account balance would normally be $-10, indicating that you spent $10 that you didn’t have to begin with.
If you dipped into the negative with a traditional bank, you would be charged a high fee. SpotMe Chime, on the other hand, will advance you $20 to cover the cost of this purchase. Your account balance would be $0 or $10, depending on how much Chime decides to direct deposit to you. The amount borrowed from Chime will be deducted from your next payment into your account, depending on how much you borrowed.
As you can see, Chime SpotMe could be a useful tool for preventing overdrafts. Because not every bank does this, using Chime to avoid overdraft fees could be a compelling reason to switch to Chime. SpotMe could save you a lot of money if you live paycheck to paycheck.
How Does SpotMe Work?
Chime SpotMe only works if you use Chime’s services. If you use a different bank account or credit card, you will be unable to use Chime. SpotMe does not accept credit cards and requires both a Chime bank account and a Chime debit card to be used.
As previously stated, if your Chime account becomes negative as a result of a debit card purchase, Chime will reimburse you to a certain extent. If you go $10 negative, Chime will spot you the money, preventing you from overdrawing your account and incurring overdraft fees. Because SpotMe requires a monthly deposit account, Chime will deduct the funds advanced to you from your next direct deposit.
For instance, if you were spotted $10, Chime will deduct $10 from your next paycheck or direct deposit into your account. Chime will only spot you for $20 at first. While this may be sufficient for minor transactions, if you make a large purchase that overdraws your account or a series of smaller purchases, you will be out of luck if the total amount drained exceeds $20. If you go over this limit, you will be charged overdraft fees.
As time passes and Chime determines that your account is healthy through things like regular direct deposits and purchasing activity, they can increase this $20 limit to $100, providing you with a significant buffer against overdrafts.
Chime SpotMe Rules
Chime SpotMe, according to the Chime Website, can only be purchased with a Chime Debit Card. Cash withdrawals from ATMs and cash return transactions are also included. Payments to friends, ACH transfers (including direct debits and services such as Venmo or Square Cash), and Chime Checkbook transactions are not included. The following are some of the requirements that must be met in order to be eligible for Chime SpotMe.
You must be at least 18 years old in order to use Chime Spot Me.
You must have an active Chime-managed demand deposit account in your name.
Chime SpotMe enrolment does not require a credit check.
You can only overdraw up to your Spot Me Limit for approved transactions.
Chime may adjust your Spot Me Limit based on your account activity.
To use the Chime Spot Me feature, you must have a Chime Account with a minimum single direct deposit of $200 or more. The direct deposit had to be made within the last 34 days.
If you met the qualifying direct deposit requirement initially but then failed to meet such deposits, Chime may cancel or suspend your Spot Me access until you meet the criteria again.
Please visit the Chime website for more information on the full terms and conditions of using Chime Spot Me.
How to Use Spot Me on Chime
Go to the Settings page in your Chime app to see if you’re eligible for the SpotMe feature (make sure you have the latest version of the app).
If you agree to the SpotMe Terms and Conditions, sign up for Chime Spot Me.
Make a purchase with your Chime Debit Card that exceeds your balance but falls within your Chime Spot Me Limit.
The transaction will be approved, and you will receive notification that Chime paid for the purchase through Spot Me, as well as a negative balance on your account.
Your negative amount will be applied to your next deposit immediately, with no fees applied to you.
Where Does Chime Spot Me Work
Chime Spot Me can be used for almost any purchase or transaction that requires a Chime Debit Card. Please keep in mind that the transaction amount must be less than your Chime Spot Me Limit in order to be cleared. Chime Spot Me can be used to accomplish the following tasks:
Purchases made in physical locations such as restaurants, fast food restaurants such as McDonald’s, and grocery stores using a Chime Debit Card.
gasoline service stations
For cash withdrawals from ATMs
When using the Chime Debit Card to pay for Uber rides
To make online purchases.
For the Cash Back option at grocery stores like Walmart, Dollar General, and others.
Advantages of Spot Me
SpotMe is completely free to use. Other companies that offer similar services to Chime’s SpotMe may require a monthly subscription fee or a minimum payment to access a payday advance option like this. Fortunately, there is no extra cost for using SpotMe with Chime. Your only cost is the amount you must repay from the loan. However, because this is the same as what you previously spent, your nett loss is zero.
2. Saves you money
As previously stated, SpotMe can help you save a significant amount of money. Overdraft fees can cost Americans hundreds of dollars each year. If you use Chime to stay under your maximum SpotMe amount, you may save more money than you think. If you live paycheck to paycheck and find yourself frequently going negative or hovering around zero, Chime’s SpotMe can assist you in avoiding annoying and costly overdraft penalties.
3. Easier Qualification Requirements
Every product similar to SpotMe has specific conditions that the consumer must meet in order to use that product. For example, in order to repay the cash loan, the customer must show that they have a consistent cash input each month. However, some of these companies have stringent requirements, such as $1,200 in direct payments per month. This is not always possible for everyone, and Chime understands this. Instead, they simply require $500 in direct payments each month, along with other less stringent requirements than other organisations.
Disadvantages of Spot Me
1. Only for debit cards
SpotMe is unique in that it only accepts debit card payments. As their benefits improve, credit cards are becoming a wiser product to use than debit cards. Unfortunately, Chime SpotMe customers can only access SpotMe using debit cards. You are unlikely to use your debit card frequently enough to risk overdrawing your account. You may, however, be overdrawing your account with your credit card. SpotMe does not cover such expenses, and you will be charged the same high overdraft fees that you were hoping to avoid by using SpotMe.
2. Tipping can make it expensive
Chime, like other similar products, includes a “tipping” component, whereas SpotMe is free. Instead of charging a fee or interest on your SpotMe paycheck advance, Chime will ask if you want to tip them for their assistance with overdraft protection. Although there is no obligation, users frequently tip Chime out of goodwill. While this is the more ethical option, it may increase the cost of your SpotMe cash loan. Again, there is no obligation to pay Chime; however, doing so may result in a higher APR on your cash loan than you might expect.
3. Only covers specific transactions
In addition to Chime’s demand that SpotMe only be used with debit cards to cover overdrafts, Chime only permits certain purchases to be covered. SpotMe, for example, excludes ATM withdrawals and fees, money transfers from apps like Venmo, and Chime “chequebook” transactions. If one of these payments puts you in the red, Chime will not cover it through SpotMe, and you will be responsible for the overdraft fee.
Is SpotMe Right for Me?
Simply using Chime and having a bank account with them does not grant you access to their SpotMe feature. However, qualifying is not difficult, and chances are you meet most or all of the requirements to use SpotMe.
SpotMe requires a Chime bank account and a Chime debit card, as previously stated. This Chime account must receive at least $500 per month. Anything less does not qualify you to use SpotMe. Apart from that, there aren’t many more requirements.
Your SpotMe limit will once again begin at $20. Chime can increase your SpotMe limit to $100 after analysing your purchasing habits and direct deposit trends.
Chime SpotMe Review
Chime has received generally mixed reviews. Some users like Chime’s straightforward and modern approach to banking. On the other hand, some customers are upset with Chime because of account issues and poor customer service.
SpotMe, on the other hand, has mostly received positive feedback. Users regard it as a fantastic product that consistently saves them money over time.
How To Use Chime Spot Me On Cash App
SpotMe funds cannot be transferred to other apps like Venmo, Cash App, or PayPal. You can deposit your normal Chime amount into these accounts, but you cannot borrow money from your SpotMe balance.
To transfer money directly from Chime to Cash App, first connect your Chime account or card to the Cash App from within the Cash App. This implies that you should only do this if it’s your own Cash App account, because otherwise, the Cash App owner will gain access to your Chime login information, which is undesirable. To transfer money directly from Chime to Cash App, follow the steps outlined below.
1. Launch the Cash App.
Open the Cash App and go to your profile. By tapping on your photo, you may see your profile. If you’re using the desktop, the procedure is the same.
2. Include a bank account
Tap the ‘Add Bank’ button when you find it. This will bring up a list of various common bank accounts, including Chime. Select the Chime symbol.
3. Log in to your Chime account
You must now log in to your Chime account using your credentials. This will link the two accounts, and you will be able to transfer funds immediately.
4. Transfer Money
You can transfer a small amount of money to see if the accounts are connected or send the whole amount right once.
How To Use Spot Me On Chime Without Card
Can you withdraw money from your Chime account without a card? Maybe you misplaced your card, left it at home, or simply don’t have it with you. While it is not an easy process, withdrawing money from Chime without a card is possible if you have a friend who has a Chime card or another bank account to which you can transfer money and withdraw.
Unfortunately, as of December 2021, withdrawing money from Chime without a card is difficult because the platform does not currently support cardless withdrawals.
How To Use Spot Me Boost On Chime
What’s more, giving Boost to your friends has no effect on your personal Spot Me Limit. It is simply a way for you to help others at no cost to yourself.
Even if the sum is small, it can make a difference. You can send your friends SpotMe Boosts to help them get through a difficult time. Chime’s unique concept allows you to choose and provide boosts to the people you want to help.
You may send your pals SpotMe Boosts to help them get through a rough patch. It is a unique idea that Chime empowers you to select and provide boosts to the people you wish to assist.
Continually, if you want to temporarily increase your Spot Me Limit, you will need to share Chime Spot Me Boost with your friends. When you send a Chime Spot Me Boost to someone, they have the option to “Boost You Back” and return the favour.
As a result, the more Chime pals you have, the more people you can Boost or share with. You can also distribute your Boosts to your partner, boyfriend, girlfriend, best friends, and so on. However, keep in mind that there is a monthly limit of four boosts, which may allow you to overdraw an additional $20.
And you’ll get a new batch of Spot Me Boosts (4) to distribute every month. As a result, Chime renews your ability to do more and help others on a monthly basis.
How to Use Chime Spot Me Boost
Start the Chime App. Choose the Friends tab, followed by the SpotMe Boosts section.
Choose a contact from your list to whom you want to send a boost.
Then, next to their name, tap the “Send $5 Boost” button.
Your friend will receive the boost and will be given the option to “Boost you Back” if they wish to reciprocate.
How to Increase Chime Spot Me Limit
- Increasing the amount of direct deposit.
- Increasing the frequency of direct deposits.
- Increase in ageing of your Chime account [Longer the better]
- Manage the frequency and amount of Chime Spotme usage.
- Maintain a healthy record of paying back Chime SpotMe amount on time.
How do I increase my SpotMe limit?
You will be able to overdraw your account by up to $20 when you first become eligible for SpotMe. Your limit may be increased by up to $200 over time based on the history of any Chime-branded accounts you have, the frequency and amount of direct deposits, your spending activity, and other risk factors. Chime determines your SpotMe limit solely at its discretion, and it may change at any time based on these factors.
Direct deposits and the use of your Chime card are important factors in determining your SpotMe limit.
Unfortunately, Chime Member Service agents cannot increase your limit manually for you.
Chime SpotMe is a free service that requires a single monthly deposit of $200 or more in qualifying direct deposits to the Chime Checking Account. All qualifying members will be able to overdraw their accounts up to $20 on debit card purchases and cash withdrawals at first, but may be eligible for a higher limit of up to $200 or more in the future based on the member’s Chime Account history, direct deposit frequency and amount, spending activity, and other risk-based factors. The Chime mobile app will display your limit to you. Any changes to your limit will be communicated to you. Chime reserves the right to change your limit at any time.
Even though there are no overdraft fees, ATM transactions may incur out-of-network or third-party fees. Non-debit card transactions, such as ACH transfers, Pay Friends transfers, or Chime Checkbook transactions, are not covered by SpotMe.