When it comes to the disadvantages of overdraft fees, there are thousands and one! Almost everyone has been impacted. The accumulated charges wind up being equal to, if not greater than, the draft itself. Overdraft fees cost Americans $34 billion in 2018. If I may say so, that is an obscene sum. This lowkey robbery by traditional banks inspired Chime’s SpotMe service as it helps avoid these overdraft fees while providing you with a worry-free shoulder to depend on when you’re in desperate need of cash. This post will provide you with a step-to-step guideline on all you need on how to use spot me on Chime plus all other relevant information.
What is Chime?
Chime, situated in San Francisco, is a startup bank. Chime, on the other hand, is not your standard bank. Chime is a digital bank, as opposed to traditional banks. Like any other bank, Chime offers checking and savings accounts and a credit card. Instead of having physical locations, Chime is entirely digital, with almost everything handled through the Chime app on your smartphone. If you prefer a more traditional banking experience, you may still interact with your money at 90,000 retail ATM locations around the United States.
Chime distinguishes itself from typical banks by providing consumers with only one checking account, savings account, and secured credit card. Other banks will want to tie you up in as many different accounts, cards, and other services as they can. Often, this is not in your best interests, but rather the banks’ attempt to extract as much income as possible from you. Chime is a terrific way to manage your money from the palm of your hand, with features like high-yield savings accounts, free mobile payments to friends and family, and a powerful savings function, all in an easy-to-use app.
While Chime is a terrific option for consumers who wish to reap the benefits of the new era of digital money, there are some disadvantages to using an online bank. Some are evident, such as a lack of in-person branch locations to assist you with major banking concerns that may be difficult to resolve over the phone or online. Furthermore, the nature of internet banks such as Chime means that they are not necessarily 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 have your spending account wobbling between negative and positive. Every day may consist of you monitoring your account balance and worrying over every minor transaction or payment you make. If you slip and don’t have enough money in your bank account when you make a transaction, your account will go negative, and your bank will charge you an overdraft fee. Depending on your bank and account, you might be penalized anywhere from $30 to $40 for turning negative. Overdraft your account is not only frustrating and aggravating, but it can also be quite costly!
Chime developed a solution called “SpotMe” to combat this. After receiving several requests from consumers, Chime decided to launch SpotMe in order to directly address its clients being charged costly overdraft fees.
SpotMe Chime, in a nutshell, provides you money to cover your account whenever you overdraft. To begin, Chime provides a $20 buffer to cover any overdraft fees. After a while, this can be increased to around $100. Assume you have a $5 balance in your account. Let’s imagine you pay $15 for an exorbitant cup of coffee and a muffin. Normally, your account balance would be $-10, indicating that you spent $10 you didn’t have to begin with.
You would be charged a high fee if you dipped into the negative with a traditional bank. SpotMe Chime, on the other hand, would advance you $20 to pay this purchase. Your account would no longer reflect $-10, but rather $0 or $10, depending on how much Chime decides to direct deposit to you. Depending on how much you borrowed from Chime, the amount will be deducted from your next payment into your account.
As you can see, Chime SpotMe may be an excellent tool for avoiding overdrafts. Because not every bank does this, utilizing Chime to protect yourself from overdraft fees might be a compelling incentive to switch to Chime. If you live paycheck to paycheck, SpotMe might save you a lot of money in the long run.
How Does SpotMe Work?
Chime SpotMe is only functional if you use Chime’s services. You will not be able to use Chime if you use a different bank account or credit card. SpotMe does not accept credit cards and requires you to have a Chime bank account as well as a Chime debit card.
As previously stated, if your Chime account goes negative due to a debit card purchase, Chime will spot you the money to a certain degree. If you go $10 negative, Chime will spot you the money, so you don’t overdraw your account and have to pay overdraft penalties. Because you must have a monthly deposit account in order to utilize SpotMe, Chime will deduct the cash advanced to you from your next direct deposit.
For example, if you were spotted $10, Chime will deduct $10 from your next paycheck or any direct deposit that goes into your account. Chime will initially only spot you for $20. While this may work for minor transactions, if you make a large purchase that overdraws your account or make a series of smaller purchases, you will be out of luck if the total amount drained surpasses $20. Overdraft fees will apply if you go beyond this limit.
As time passes and Chime determines your account to be healthy through things like regular direct deposits and purchasing activity, they can extend this $20 limit up to $100, giving you a considerable buffer when it comes to preventing overdrafts.
Chime SpotMe Rules
According to the Chime Website, Chime SpotMe may only be purchased with a Chime Debit Card. It also includes cash withdrawals from ATMs and cash return transactions. Payments to friends, ACH transfers (including direct debits and services like Venmo or Square Cash), and Chime Checkbook transactions are not covered. Below are some of the requirements one must satisfy to be eligible for Chime SpotMe
- To be eligible to utilize Chime Spot Me, you must be at least 18 years old.
- You must have a Chime-managed demand deposit account in good standing in your name.
- Enrolling in Chime SpotMe does not necessitate a credit check.
- You can only overdraw an amount for approved transactions up to your Spot Me Limit.
- Chime might increase or lower your Spot Me Limit based on your account activities.
- To use the Chime Spot Me function, you must have a minimum single direct deposit of $200 or more in your Chime Account. The direct deposit must have been made within the previous 34 days.
- If you initially met the qualifying direct deposit requirement and then failed to satisfy such deposits, Chime may cancel or suspend your Spot Me access until you meet the criteria again.
- For additional information on the full terms and conditions of using Chime Spot Me, please visit the Chime website.
How to Use Spot Me on Chime
- In your Chime app, go to the Settings page to see if you’re qualified for the SpotMe feature (make sure you have the latest version of the app).
- Sign up for Chime Spot Me if you agree to the SpotMe Terms and Conditions.
- Use your Chime Debit Card to make a purchase that exceeds your balance but falls under your Chime Spot Me Limit.
- The transaction will be approved, and you will receive news that Chime covered the purchase via Spot Me, as well as a negative balance on your account.
- Your negative amount will be instantly applied to your next deposit, with no fees charged to you.
Where Does Chime Spot Me Work
Chime Spot Me may be used for most purchases or transactions that require the usage of a Chime Debit Card. Please remember that the transaction amount must be under your Chime Spot Me Limit to be cleared. Chime Spot Me can be used for the following purposes:
- Purchases made with a Chime Debit Card in physical locations like restaurants, fast food restaurants such as McDonald’s, and grocery stores. service stations for gasoline
- For ATM cash withdrawals
- For Uber trips utilizing the Chime Debit Card as a payment method
- To make purchases online.
- For Cash Back option at food stores such as Walmart, Dollar General, and others.
Pros of Spot Me
Using SpotMe is free of charge. Other firms that provide solutions comparable to Chime’s SpotMe may need a monthly subscription fee or a minimum payment to access a payday advance option like this. Fortunately, there is no additional charge for utilizing SpotMe with Chime. The only expense to you is the amount you must repay from the loan. However, this is the same as what you previously spent, so your net loss is nothing.
2. Saves you money
As we’ve stated, SpotMe can help you save a lot of money. Every year, Americans might pay hundreds of dollars in overdraft fees. If you manage to keep under your maximum SpotMe amount using Chime, you might save more money than you think. If you live paycheck to paycheck and find yourself frequently going negative or hanging around zero, Chime’s SpotMe can help you avoid paying irritating and expensive overdraft penalties.
3. Easier Qualification Requirements
Every product comparable to SpotMe has specific conditions that the consumer must complete if they wish to utilize that product. For example, the customer must demonstrate that they have a consistent input of cash each month in order to repay the cash loan. However, some of these firms have stringent criteria requiring the user to have $1,200 in direct payments per month. This is not always practicable for everyone, and Chime is aware of this. Instead, they simply demand $500 in direct payments every month, as well as other less stringent requirements than other organizations.
Cons of Spot Me
1. Only for debit cards
SpotMe is unique in that it can only be used for debit card purchases. Credit cards are becoming a wiser product to use than debit cards as their perks improve. Unfortunately, Chime SpotMe customers can only use debit cards to access SpotMe. Most likely, you will not use your debit card frequently enough to come close to overdrawing your account. However, you may still be overdrawing your account using your credit card. SpotMe does not cover such expenditure, and you will be charged the same high overdraft costs that you hoped to avoid by utilizing SpotMe.
2. Tipping can make it expensive
While SpotMe is free, Chime, like other similar products, includes a “tipping” component. Instead of charging a charge or interest on your SpotMe paycheck advance, Chime will ask if you want to tip them in appreciation for their support with overdraft protection. Although there is no duty to do so, users tend to tip Chime out of goodwill. While this is certainly the ethically superior choice, it might make your SpotMe cash loan rather pricey. Again, there is no requirement to pay Chime, but doing so may result in a greater APR on your cash loan than you may 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, does not cover ATM withdrawals and fees, money transfers from applications such as Venmo, or Chime “checkbook” transactions. If one of these payments puts you in the red, Chime will not cover it with SpotMe, and you will have to pay the overdraft fee yourself.
Is SpotMe Right for Me?
Simply utilizing Chime and having a bank account with them does not entitle you to use their SpotMe function. However, it is not tough to qualify for, and chances are you fulfill most or all of the requirements to use SpotMe.
To use SpotMe, you must have a Chime bank account and a Chime debit card, as previously stated. This Chime account must get $500 or more per month. Anything less does not entitle you to utilize SpotMe. Aside from that, there aren’t many more prerequisites.
Once again, your SpotMe limit will start at $20. After Chime has analyzed your buying behaviors and direct deposit trends, your SpotMe limit can be increased to $100.
Chime SpotMe Review
Banks are so sophisticated, and there are so many transactions and accounts that see activity every day that there is always a slew of problems. Even though Chime is not your conventional bank, some of the same difficulties arise. While Chime and SpotMe have received positive feedback, they are not without criticism.
Chime has received mixed reviews overall. Some users appreciate Chime’s straightforward and contemporary approach to banking. On the other side, some consumers are outraged about Chime because of account issues and bad customer support.
SpotMe, on the other hand, has received mostly positive feedback. Users consider it to be a fantastic product that continuously saves them money over time.
How To Use Chime Spot Me On Cash App
SpotMe funds cannot be transferred to other applications such as Venmo/Cash App/PayPal. You may fill these accounts with your normal Chime amount, but you cannot borrow cash from your SpotMe balance.
To transfer money straight from Chime to Cash App, you must first link your Chime account or card with the Cash App from within the Cash App. This implies you should only do this if it’s your own Cash App account because otherwise, the Cash App owner would get your Chime login information, which is bad. Follow the guidelines below to transfer money straight from Chime to Cash App.
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
Is it possible to withdraw money from your Chime account without a card? Perhaps you’ve misplaced your card, left it at home, or just don’t have it with you? While it is not an easy process, it is feasible to withdraw money from Chime without a card if you have a buddy who uses a Chime card or another bank account to which you may transfer money and withdraw.
Unfortunately, as of December 2021, it is difficult to withdraw money from Chime without a card because the platform does not presently support cardless withdrawals.
How To Use Spot Me Boost On Chime
Chime Spot Me Boost is a $5 boost in Chime Spot Me Limit. Chime users may send up to four SpotMe Boosts to friends or other individuals they know who have a Chime account each month. The individual with whom you share your Chime Spot Me Boost will have their Spot Me Limit momentarily increased by $5. At the same time, the receiver is given the opportunity to ‘Boost You Back’ in order to repay the favor.
What’s even better is that giving Boost to your buddies has no effect on your personal Spot Me Limit. It is just a means for you to assist others at no expense to yourself.
While the sum is little, it can make a difference. 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.
Simultaneously, if you want to temporarily enhance your Spot Me Limit, you will need your friends to share Chime Spot Me Boost with you. When you send someone a Chime Spot Me Boost, they have the opportunity to “Boost You Back” and return the favor.
So, the more Chime pals you have, the more you can Boost or share with. You may also share your Boosts with your partner, boyfriend, girlfriend, best friends, and so on. However, keep in mind that there is a maximum of four boosts every month, which might enable you to overdraw an additional $20 per month.
And each month, you’ll receive a fresh batch of Spot Me Boosts (4) to distribute. As a result, Chime refreshes your ability to accomplish more and benefit others on a monthly basis.
How to Use Chime Spot Me Boost
- Launch the Chime App. Select the Friends tab; then the SpotMe Boosts section.
- Choose a contact from your contacts to whom you wish to deliver a boost.
- Next, tap the “Send $5 Boost” button next to their name.
- Your buddy will get the boost and will be given the opportunity to “Boost you Back” if they choose to reciprocate.