Chime vs. Current vs. Varo: Which Digital Bank Is Right for You in 2025?

Digital banks are reshaping how Americans manage money. Let’s compare three of the biggest names: Chime, Current, and Varo.

Bank	Monthly Fees	Early Direct Deposit	Mobile App	Credit Builder
Chime	$0	Yes	⭐ 4.8	Yes
Current	$0–$4.99	Yes	⭐ 4.7	No
Varo	$0	Yes	⭐ 4.6	Yes

Chime

Known for no fees and a great credit builder card, Chime is ideal for users starting out or rebuilding credit.

Current

Offers strong mobile tools, instant spending notifications, and early payday, but lacks a credit builder feature.

Varo

Fully licensed bank with savings options, a credit builder card, and a strong app—making it a complete solution.

1. Start With the Right Credit Card

If you’re just getting started, applying for a traditional credit card might lead to rejection. Instead, consider options specifically designed for beginners. Starter credit cards—including secured credit cards, student cards, or cards for immigrants—are your best bet.

A secured card requires a refundable deposit that serves as your credit limit. For example, if you deposit $300, your spending limit will be $300. This allows you to build credit responsibly. One excellent option is the Capital One Platinum Secured Card, which reports to all three major credit bureaus.

Alternatively, if you’re a student, consider cards like the Discover it® Student Cash Back, which offers cashback rewards and no annual fee.

2. Make Every Payment On Time

Payment history makes up the largest portion of your credit score—about 35%. That means making on-time payments is non-negotiable. Even a single late payment can remain on your credit report for up to seven years.

Set up automatic payments or calendar reminders to stay on track. If possible, pay your full balance each month to avoid interest. This not only improves your credit score but also builds good financial habits.

Unsure how payment history affects you? Check out our detailed article on how to understand your credit score.

3. Keep Your Credit Utilization Below 30%

Credit utilization refers to how much of your available credit you’re using. For example, if your limit is $1,000 and your current balance is $500, your utilization is 50%. Experts recommend staying under 30%, and the lower, the better.

A good strategy is to pay down your balances before the statement date, not just the due date. This way, the reported balance to credit bureaus will be lower.

Some banks even allow early payments through their apps. Learn more by visiting consumerfinance.gov, a government resource for financial education.

4. Monitor Your Credit Regularly

You are entitled to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. You can request them at AnnualCreditReport.com.

Reviewing your credit report helps you detect fraud, spot errors, and understand what lenders see. If you find something incorrect, you have the right to dispute it.

5. Apply for New Credit Sparingly

Each time you apply for credit, a hard inquiry is added to your credit report. Too many hard inquiries within a short period can lower your score and signal risk to lenders.

Be selective. Apply only for cards or loans that truly match your financial goals. Use online tools to check if you’re likely to be approved before applying.

We keep an up-to-date list of the best credit cards for beginners, including approval odds and minimum requirements.

Building credit doesn’t have to be confusing. By following these five essential tips, you’ll be setting yourself up for long-term success. If you’re just beginning, we recommend visiting our Tips section regularly for fresh insights and updates.

Ready to take action? Check out our top-rated credit cards.