Chime SpotMe is an overdraft alternative that lends you a helping hand if you’ve overdrawn up to $100. Some may think that there is no way fees can get that high, well you’ll be surprised. Overspending on a small coffee can cost you an overdraft fee of up to $36 at some banks. Continue reading to learn more about Chime SpotMe overdraft coverage.

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Who Is Eligible for SpotMe?

Almost anyone is eligible for SpotMe, all you have to do is have a bank account with Chime. Once you have applied and have been accepted there isn’t much else to do to be eligible for SpotMe. Once you start receiving direct deposits of $500 or more per month, you’re eligible.

How Does SpotMe Work on Chime?

When you start receiving at least $500 a month in direct deposits, Chime will send you a notification inviting you to enroll in their SpotMe service. The overdraft coverage limit will start at $20 at first but can be increased to a maximum of $100.

Once you’ve enrolled, any debit card purchase that would go over your current bank balance will trigger SpotMe to cover the amount (within the limit). The next time you receive a deposit, Chime will automatically deduct what you owe.

Is There a Fee for Using Chime SpotMe Overdraft?

The best part about using this service is that Chime doesn’t charge any fees. Also, if you’re pleased with their service, you can even leave a tip to pay it forward.

How Many Times Can You Overdraft With Chime?

Chime doesn’t have a set number of times you can overdraft. The bank uses a total dollar amount limit instead. So, as long as you don’t go over your specified limit, whether it be $20 or $100, you are good.

To help you keep on track, you can monitor your limit through the mobile app. Any transactions above your remaining limit will be declined.

How Do You Increase SpotMe on Chime?

As mentioned above, you will start off with a limit of $20, but you will have the opportunity to increase it to $100. It is all based on your direct deposit history and the amount you receive, your spending and according to Chime, other “risk-based” factors.

The process is automatic, so you can’t just increase your limit by contacting member services. If you do have your limit increased, you will receive a notification through the Chime mobile app.

What Can Chime SpotMe Overdraft Be Used For?

You’ve probably thought up a couple of scenarios already where Chime SpotMe can work in your favor. For example, if you’re simply buying a cup of coffee but don’t have enough spending money, your card might get declined, even if you’re only $1 short. This is where SpotMe comes in handy. On top of that, you can potentially avoid the massive overdraft fee associated with some banks.

With all this in mind, keep in mind that Chime SpotMe only works for debit card overdrafts. So, if you’re short on your rent payment, SpotMe can’t help you there. Also, if you need to withdraw $20, but only have $10 in your account, it won’t kick in either.

What’s the Difference Between Chime SpotMe and Overdraft Protection?

Chime’s SpotMe service is similar to overdraft protection. You’ll need to opt-in for overdraft protection and Chime SpotMe. Here’s how the two overdraft services compare:

Compare	Chime SpotMe Overdraft	Overdraft Protection
Fees	No fee	As high as $38 Possible fees of up to $12 to transfer coverage amount Possible annual fee of up to $50 to maintain open overdraft line of credit
Overdraft amount	$20 to $100 monthly overdraft coverage amount	Overdraft protection as high as $10,000
Number of overdrafts allowed	Unlimited free overdrafts (as long as you remain within the monthly limit amount)	Up to 7 overdraft fees or $259 per day
Second linked account required	No	Yes (unless you opt for overdraft line of credit)
Credit check required	No	No (unless you opt for overdraft line of credit)
Types of overdrafts allowed	Debit card only	Any checking account transaction exceeding your balance
Repayment	On the next deposit received, with no additional fees	ASAP — or additional amount up to $35 may apply every five business days if account remains overdrawn.