Thursday, August 4, 2022

Why Does Chime Need My Social Security Number

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Social Security Card Or Individual Taxpayer Identification Number

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Banks also require you to have either a valid Social Security number or individual taxpayer identification number to open a checking account. If you have an SSN, bring your Social Security card with you to the bank so the representative can verify the document. Otherwise, bring proof of your ITIN. If you dont have either, be sure to apply for an ITIN before going to the bank to open your account. You can do so by filling out and submitting Form W-7 to the Internal Revenue Service . Remember, it can take several weeks to get it.

The Credit Builder Secured Credit Card

True to its corporate mission of opening up financial services to those who have previously experienced credit-related issues, Chime also offers a secured credit card.

Applicants must already have or open a Spending Account before applying for the secured credit card. The Credit Builder features no annual fee or interest, no credit check during the application process, and no minimum security deposit.

The other central selling point for consumers with past credit problems is that their average credit score increases by approximately 30 points just for opening a Credit Builder account. As a cardholder uses their secured card over time and builds a payment history, that rating will continue to go up.

Credit Builder customers boost their credit rating by quickly moving the amount of money they want to spend from their Spending Account into Credit Builder. Customers remain in complete control of how often and how much money they move onto their secured card.

Is Chime Bank A Real Bank

Technically speaking, Chime is a financial technology company, not a bank. However, customers can engage in all traditional activities checking, savings, debit card, credit card customarily associated with consumer-level banking.

Most customers find that they dont miss those things once theyve had an account for a few months, anyway. The majority of American consumers want free, no-hassle access to their accounts. Moreover, they want access to their checking and savings accounts, a debit card, and the ability to boost their credit rating.

All of these services are simple and straightforward. The actual banking services are provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC.

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Why Do Banks Require Ssn

Because SSNs are heavily used as a form of identification, many banks require them when opening an account. Even so, there is no legal requirement to have an SSN to open a bank account.

One also needs to remember credit unions and online banks as an alternative to traditional banks.

While these financial institutions might not necessarily have lower entry requirements, they are still good to keep in mind as they offer more options.

How To Open A Bank Account Without An Ssn In The Us

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If you want to open a bank account without an SSN, you can learn how to do it here.

This government document will help you with many things while youre in the U.S. But if your immigration status prevents you from getting a social security number, we will explain to you the account opening process and which financial institutions or banks dont require an ID to do it.

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Does Chime Ask For Ssn

Many customers have complained about the Chime bank requesting the SSN to open your bank account. However, DO NOT GIVE YOUR SSN TO CHIME BANK!

Chime is one of those online only banks, and the fact that they ask for your SSN is simply nonsense. Not even recognized and well-stablished banks do request SSN, while the chime platform requests a SSN card picture to open an account.

Reviewing, criticizing or praising the chime banks service to customers is not the purpose of this post. Many customers have been using chime for a long time considering they have a good service, while others dont.

Its your decision to give your SSN card to open a chime account. Nonetheless, remember that you are giving your SSN card information voluntarily and that represents many risks.

What If Ive Been Denied Accounts Elsewhere

Thats usually not a problem. In fact, Chime is an excellent option for consumers who have no credit or past credit history problems. If youve previously been denied service elsewhere, Chime just might offer you second chance banking services. These will allow you to access financial services and build a credit rating.

The primary instrument for building or rebuilding a credit rating would be their Credit Builder secured credit card. Consumers with credit issues are attracted to this. This is because they can leverage their everyday purchases gas, groceries, whatever to send updated payoff information to three major credit bureaus.

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First Things First: What Is Identity Theft

Identity theft is when a scammer steals a valuable piece of sensitive, personal information to use to their advantage. The most common type? You probably guessed it financial identity theft. Thats when a scammer uses your info to their financial gain.

Example: Your Social Security number, name, home address, or credit card number are used to: Get a tax refund, take out a loan, open new bank accounts in your name, or make purchases.

Why is it so important to protect yourself? Depending on the type of theft and your situation, you could be on the hook for paying part of the financial damage. In fact, according to a 2020 identity theft report, consumers paid $3.5 billion in out-of-pocket costs in 2019. And Iincidences of identity theft are on the rise. The Federal Trade Commission reported that cases of identity theft have doubled in 2020 from 2019. Thats 1.4 million cases here.

Get Started With Digital Banking At Your Own Pace

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Most U.S. consumers dont particularly want to spend a lot of time thinking about banking. Or, they dont want to take time out of their day to drive to the bank for something they should be able to take care of online. This evolving reality has helped to shape digital banking services. Instead, most people just want a simple, secure, direct way to spend, save, and build up their credit rating.

This is one company that doesnt just accept this new state of affairs but actively embraces it. Chime tailors its four banking products to the needs of the majority of consumers. As a result, they have shifted the playing field. An increasing number of account holders are starting to ask themselves the Why? question when various charges show up on their traditional banking and checking accounts.

One of the best things about digital banking is that consumers can move into it at their own speed. But, unfortunately, many people hang onto their traditional checking and savings accounts while opening up their first digital banking account.

The people at Chime have done well to allow customers to bank digitally with a minimum of fuss. As a result, an increasing number of digital account holders find that they also want to embrace digital banking after a few short months.

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Online Banking: Alternative Options

Are you interested in an online bank, but Chime just doesnt seem like the best fit for you?

I wrote about the best online banks for Among my favorite choices is Ally Bank, which is similar to Chime in terms of its features, competitive interest rate and well-designed app. And unlike Chime, Ally supports joint accounts.

Another one of my favorites is Capital One, which Ive described as the ultimate jack-of-all-trades of online banks. Capital Ones banking option doesnt necessarily market itself around a singular feature, but its extremely difficult to find a weakness.

The Warning Sign Ahead For Chime

According to Chime’s CEO, Chris Britt:

Our largest channel for customer acquisitions is not paid TV ads or Internet ads, its referrals. Customers are bragging about us.

The Forbes article goes on to say:

Thats not to say Chime is only relying on referrals to grow the business. Britt said more money will go toward customer acquisitions including TV and social media ads.”

Do you see the contradiction here?

If–as the article states–Chime is the fastest growing neobank, and doing so with relatively little paid TV and internet ads, then why does it need to increase marketing spend on TV and social media?

The clue to the answer is in the type of consumer Chime has attracted to date.

Chime’s success has been predominantly with lower-income consumers. While these consumers are drawn by early wage access and no fees, that leaves the challenger bank with a challenge of its own–how to make money.

According to Britt, Chime customers transact 50 times a month . Relying on interchange as a revenue strategy has its limitations, in part due to the success of merchant apps that store funds to avoid paying interchange fees.

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Fake Chime Support Websites And Social Media Profiles

Some particularly ambitious scammers go as far as creating Chime Support websites and social media profiles, with the goal of luring members to share their login information and account details.

As we noted above, Chimes legitimate social media accounts are all verified with a blue checkmark next to our name. If you want to make doubly sure youre interacting with the real Chime, you can visit our homepage and click the social media icons at the bottom of the page.

Chime Bank Name Change Procedure

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If you hold a checking or savings account with Chime Bank you should update your account information as soon as possible after your name change. Youll experience issues when cashing checks in a name that is different from your account, so make your Chime Bank account a priority.

Financial institutions such as Chime Bank have a higher standard of proof to document your name change. Thats because they hold your funds and can allow access to credit. Generally, all banks ask for both your proof of name change as well as updated government photo ID. That means you should update the SSA first, followed by your state DMV and then your Chime Bank account.

Easy Name Change helps by providing ready to send name change forms, letters and emails for all the necessary companies. Get the name change form for the SSA and your state DMV, if they have one. We also provide detailed filing instructions for 1,000 other organizations, including Chime Bank, your credit card, utility provider, insurance company, phone and hundreds more! Where accepted, we also provide personalized notifications that you can just sign and send!

Considering Changing Names?

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Additional Credit Builder Card Benefits

Next, after moving the necessary funds, customers use their secured credit card at any location that accepts Visa. Then, Chime turns around and reports card activity to the major credit reporting agencies, namely Transunion, Experian, and Equifax. Customers can sit back and watch their ratings rise. And, they can do so as they go about their business buying gas, groceries, and other everyday items.

Using the app, secured cardholders can also enable the Safer Credit Building feature. Doing so guarantees that the outstanding Credit Builder balance will be paid in full every month, providing yet another shot in the arm to that individuals credit rating. Chime makes sure that this zero-balance information also gets sent to credit reporting agencies.

How To Apply For An Itin

An ITIN for a bank account is possible. The Individual Taxpayer Identification Number is a 9-digit tax processing number the IRS uses to record tax payments and process Federal tax returns.

To get an ITIN, you complete a designated IRS form, submit required documents to verify your identity, and submit the application. If you have a tax return, you can submit it while you present your application. If everything is in order, you should receive your ITIN in approximately 6 weeks.

ITIN recipients can comply with Federal and State regulations while earning income. Its often that people who use an ITIN dont legally qualify for an SSN.

Find more in-depth step-by-step instructions on how to apply for an ITIN.

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Option 1 Use Another Account Or Card

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If you don’t have a Chime debit card, you’ll probably have another bank account or card to use to withdraw money from at an ATM. This could either be a debit card linked to a bank account at another bank or a credit card.

If you have a debit card, you can even transfer money from your Chime account to the associated bank account via ACH . You can do this by tapping Link a Bank Account in the Chime app or website, choosing from among the banks listed, and entering your other banks login details . Once the transfer arrives, you’ll be able to withdraw money from an ATM via debit card using cash that had initially been from your Chime account.

However, naturally enough, this method won’t work if you’ve lost or forgotten your entire wallet along with your Chime card!

Make A List Of Banks That Dont Require Social Security Numbers

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Now that you know which types of bank accounts you want, youll need to cross-reference which banks offer the accounts you want and accept the documents you have.

This process might take some time, and a few concessions might need to be made since finding a perfect fit is not always the case.

Either way, the important thing is to balance what you want to do with what you can actually do.

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How To Open A Bank Account Without An Ssn

Most likely, to open a bank account with no SSN, youll need to get an ITIN. Once you have it, you can use the ID number to open a bank account. The bank will also verify your name, date of birth , and your current address.

But you dont necessarily need an ITIN . Depending on the bank, instead of an SSN or ITIN, they may accept a passport number, government-issued ID numbers, such as municipal and community identification cards, or an alien ID card.

Chime Comprehensive Banking App

You control and manage your Chime account exclusively online, and the main tool for doing so is the Chime mobile app. Along with giving you a birds-eye view of your account, the Chime app also gives you daily balance notifications and instant transaction notifications any time your card is used. You can also use the app to instantaneously block your card if its lost or stolen or order a replacement.

The Chime app also includes a built-in transfer option called Pay Friends that makes it easy for you to send money to others who also hold Chime accounts, and its suite of online tools includes an option for writing a paper check, should you need to.

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What Is Needed To Apply

To apply for an ITIN you need to submit IRS form W-7 to either the IRS or an acceptance agent. The form asks for some basic identification information, such as your name, place of birth, and address.

Along with the form, you will need to submit the original document of a form of ID. You cannot submit a copy. The original be returned once your application is reviewed.

Valid forms of ID for an ITIN application include:

  • USCIS photo ID
  • Foreign voters registration card
  • Foreign national ID card (must include name, photo, address, date of birth, and expiration
  • Visa issued by the US Department of State

ITINs expire after three years of non-use, so if you do not file your taxes for three years, youll have to apply for a new ITIN.

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There are banks that dont require a Social Security number, so if youre undocumented, its still very possible to open an account.

Heres how to open a bank account without an SSN and why doing so can make you safer and save you money.

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Check Fees And Account Features

If you have managed to find more than one bank that offers the accounts you want and accepts the documentation you have, this step is essential.

If you only managed to find one bank, this step is still important as it will allow you to plan your budgets and help you understand how you can use the account.

Many bank accounts come with different fees. Some fees are easily avoidable, while others will require more work.

ATM fees, along with monthly or annual fees, are some of the most notorious fees that you might want to consider.

If you would like to have access to online banking or a credit card and a debit card, now is the time to check if the bank offers this.

What Kind Of Accounts Can You Open With Chime

Chime offers a checking account, savings account, debit card service, and a secured credit card known as the Credit Builder. Every account holder is eligible to get one of each. It prides itself on the simplicity of its approach and all-in-one mobile app, so it keeps all of its accounts as simple as possible. Joint accounts and small business accounts are not available.

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