Chime Enters Secured-Card Fray Without Checking Clients’ Credit

Digital-banking firm Chime Financial Inc. is entering the world of secured cards with an offering that doesn’t require a credit check.

The Credit Builder card lets users transfer money from their Chime checking account and spend as much as that amount each month. The deposit acts as a credit line for the Visa card while allowing customers to improve their credit scores -- making it different from a debit card. Users can set up automatic transfers that are reported as card payments to major credit bureaus.

“Americans have embraced debit cards for greater control but this limits their ability to ...