Extra debit card review – Extra card
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The Extra Debit Card was the first debit card created specifically to aid with credit building. Extra, like a lender, records the transactions you make on their card to credit bureaus, which helps you improve your credit score by increasing your payment history.
However, because obtaining a credit card frequently necessitates a high credit score, it might be difficult to begin developing credit. Fintech companies, on the other hand, have been developing creative solutions to assist you to raise your credit score outside of the usual channels.
Extra Card has developed a debit card that allows users to build credit without having to undergo a credit check or have a high credit score.
According to Max Hellerstein, Co-Founder, and CEO of Extra Card, the company is in talks with Transunion about having its information added to Transunion’s credit reports.
Because the Extra Card reports cardholder payments to Equifax and Experian, it can improve your credit score as reported by those two bureaus. Because you must pay off your balance every day, the Extra Card has no APR or interest. Extra, unlike a credit card, will not allow you to spend more than your bank account balance, so you won’t have to worry about overspending and maybe falling into debt.
Advantages of having an extra debit card
- There will be no credit check.
- Simple to use
- Obtain credit from two different credit bureaus.
Disadvantages of having a second debit card
- Monthly or yearly fees are excessive.
- Customer service is suspect.
- TransUnion is not notified.
What is the purpose of the Extra bill Debit Card?
To improve your credit score, you must typically open a credit account and appropriately use it. The most reliable strategies to demonstrate your creditworthiness are to make on-time payments and keep your debt balances low.
You can avoid these problems while still building your credit with the Extra Debit Card. Extra discloses the transactions you make on their card to credit bureaus as creditworthy payments, unlike most debit cards, which do nothing for your credit score.
You don’t need a credit score to qualify because it’s not a credit account. When you apply, there is no credit check, so you won’t have to add a hard inquiry to your file. You also don’t need a credit score to be eligible for an Extra Card.
Extra does not conduct credit checks, however, prospective cardholders must meet the following criteria:
- Applicants must be at least 18 years old.
- You must have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
- Applicants must have a US address where their Extra Card can be delivered (P.O. boxes are not valid).
- Have a checking account with one of the 10,000 banks in the United States.
- Have an iOS (iPhone or iPad) or Android (version 10 or later) device.
When cardholders sign up for Extra, they’re given a spending limit based on the current amount of the bank account they’ve chosen to link.
What is the Value of the Extra Debit Card?
From the standpoint of the user, the Extra Debit Card functions similarly to any other debit card. Extra automatically records your payments, and you don’t need to do anything unusual to establish credit with the account.
How to Terminate the Extra Debit Card
You can’t cancel the Extra Debit Card online, unfortunately. To close your account and cancel your subscription, call 833-984-2291 or the number on the back of your debit card.
Alternatives to the extra Debit Card
Extra costs might add up quickly while attempting to improve your credit score. Consider a secured credit card, which asks you to put down a deposit that serves as collateral if you don’t pay your payments on time. Your credit line is typically equal to the amount of your deposit.
If you have weak or no credit, secured cards are significantly easier to get approved for.
Extra claims to be the first debit card of its kind, although there are lots of other options available today. Sequin and Credit Sesame both provide credit-building debit cards.
Sequin’s card is designed in the same way as Extra’s. It connects to your bank account and reports all of your purchases to credit bureaus. Sequin has no fees and solely reports to Experian, which is the most significant difference between the two.
The Sesame Cash debit card, which is a credit Sesame card, works a little differently. Each month, you allocate a certain amount of money to the card, which they utilize to construct a virtual protected credit card.
The virtual credit card’s credit utilization limit is then set. When you use your debit card to make transactions, Sesame charges your virtual secured card until you reach your targeted utilization ratio, then pays off the debt with your cash.
If you don’t want to put down a deposit, the Petal® 1 “No Annual Fee” Visa® Credit Card is a good option. It’s designed for people with bad credit who wish to repair their credit.
The Petal 1 Card has no annual fee and no sign-up bonus, but it does earn 2% to 10% cashback at select shops. If you use the Petal 1 Card, you must make all of your monthly payments on time or you may be charged interest.
The Petal 1 Card, unlike the Extra, reports to all three credit agencies and has no yearly or foreign transaction fees (unlike Extra, the Petal 1 can be used abroad).
Furthermore, unlike the Extra Card, the Petal 1 Card is a credit card, which means you’ll have a month to pay off your balance.
Is it Worth It to Have an Extra Debit Card?
You’d pay $84 per year even if you choose Extra’s cheapest option. The popular Chase Sapphire Preferred credit card, for example, has a $95 annual fee. In November 2021, you’ll have:
- 5x points on travel, 3x points on dining, and 2x points on all travel purchases made through their rewards program
- An introductory offer of 60,000 points after spending $4,000 in the first three months, which is about $750 in travel.
- Benefits include a $50 annual hotel credit, a year of free DoorDash delivery, automatic trip cancellation insurance, and more.
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