Consumer complaint received 2020-10-23
Company: Chime Financial Inc
State: AZ
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
I opened a credit builder account and the activated " safer credit building '' feature immediately. After reading information directly from the Chime website, I used the account as they advised. I made {$2400.00} in deposits and used it for everyday purchases. I charged up to the entire amount deposited and the money for each charge was deducted by Chime as the charge was made.After reading in Chime 's Credit Builder FAQs " with a typical credit card, using a high percentage of your credit  limit can negatively impact your credit score. You dont have to worry about that with credit builder. '' And " spending up to the amount you added will not show a high utilization card on your credit history, so use credit builder for your everyday purchases and let them count toward credit building! '' And " at the end of the month you can use the money in your secured account to pay off your charges. We will report your timely payments to the credit bureaus. '' I was shocked and devastated when Chime reported an " open balance '' of {$2400.00} and my revolving usage percentage shot up to 819 % because I have a {$300.00} credit limit from a different credit card ( chime does not report a credit limit and I have never used my other card ) my revolving usage prior to Chimes reporting was 0 %. My credit score dropped 23 points and I began receiving alerts that my debt had drastically increased from all 3 bureaus! I emailed Chime several times and they responded with condescending comments implying that I dont understand how credit scoring works and that maybe I had made late payments that caused my score to drop!! I assured them that I fully understand what had happened and I sent several screenshots from each bureau detailing the problem as well as the statements from their own website. They told me that although they had already taken my money for the charges I made, they hold it in a separate account and they report at the end of the month but they dont take the money from the separate account to pay my charges until a few days later at the beginning of the month ... then they report my timely payment at the end of the following month ... .WHAT???? So they take my money and they have my money at the time that they report my charges as an open balance due ( aka debt ) and I have to wait for a month for them to report my payment that they've had the whole time ... at which time, they also report a new months worth of debt ... .so the consumer is constantly showing a revolving debt that they've already paid ... .I asked them to report my payment immediately and they refused. They had my money when they reported this " debt '' but they refuse to report it until a month later. I had secured financing for a vehicle and am trying to get a home. My financing fell through because of this and Chime just keeps telling me to wait 30 days for them to report my payment. Unacceptable! I want my credit report to be accurate today! I also think Chime needs to re-evaluate its practice of taking consumers money and then reporting that they have a balance due then reporting their payments a month behind when then report a new round of supposed debt! This method of credit reporting leaves their consumers in a perpetual cycle of debt and high revolving usage on their credit report all the while, chime has their money sitting in a separate account!

Company response to consumer: Closed with explanation