Extra Debit Card Review – DIGIWIZ CENTRAL

Extra Debit Card Review

Our experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

A good credit score can help you snag a home or auto loan and even help you qualify for an apartment rental. However, building credit from scratch may seem impossible if you don’t qualify for a credit card or loan to begin with. 

That’s where the Extra Debit Card steps in. With this card, you can build credit without needing a credit history (spoiler: Extra Debit Card doesn’t perform credit checks.) or worry about the complexities of a credit card. However, the card is still far from the best credit builder account.

Extra Debit Card Overview

The Extra Card is a debit card that builds credit from purchases you’ve made from your bank account. You can link this card to over 10,000 banks across the US, so you won’t likely have to switch banks to use it. 

Extra has mostly positive reviews, receiving an average of 4.83 stars out of five over 66 reviews on its Better Business Bureau page. It also received an A- from the BBB. Reviews on its Trustpilot page has an average of 4.2 stars across 560 reviews.

The Rewards + Credit Building plan will give you access to rewards, up to 1% for everyday purchases. You can redeem points for products in the Extra Debit Card reward store. While rewards are a nice thing to have, it’s important to keep sight of the ultimate goal with credit builder accounts., which is to boost your credit score until you can qualify for a better card that doesn’t charge you a monthly or annual fee.

Furthermore, Extra doesn’t report any payments to TransUnion, one of the three major credit bureaus, which is a serious downside for a product designed to build credit. 

How the Extra Debit Card Works

Once your application gets approved, which doesn’t trigger a hard inquiry on your credit report, you must connect your bank account to your Extra account. Then, you’ll get “Spend Power” or a spending limit on your card based on the balance in your bank account. 

You build credit by making purchases with the card. Extra Debit Card will “loan” you credit when you buy something, then pay themselves back the following business day. So you’ll never have to worry about keeping up with your credit card payments or a delinquency on your credit report.

Extra Debit Card will report your activity to the bureaus as “credit-worthy transactions” at the end of each month. The downside is that they’ll only report activity to Equifax and Experian, not with TransUnion.

Extra Debit Card Plans and Fees 

Extra Debit Card offers monthly or annual subscriptions to their Credit Building and Rewards + Credit Building plan. The Credit Building plan helps you improve your credit and track your spending through the Extra app. You can purchase this plan for $20 per month or $149 per year. 

The Rewards + Credit Building plan offers the same perks as the standard package. Plus, you can earn rewards from purchases made with participating merchants. You can buy this plan for $25 per month or $199 per year. 

Extra Debit Card Pros and Cons

The Extra Debit Card has a lot to like, but also comes with serious downsides that prevent it from competing with top credit builder loans.

ProsConsNo upfront deposit  No credit check Rewards with upgraded planWell-rated appRecurring feesNot reported to TransUnion

How Extra Debit Card Compares to The Competition

Extra Debit Card vs. Credit Sesame 

Sesame Credit Builder – Product Name Only offers similar benefits as the Extra Debit Card, including no security deposits, credit checks, or interest charges. However, it’s slightly cheaper than the Extra Debit Card. At $9.99 per month, you can utilize Credit Sesame’s credit building features for more than half the price. 

On top of that, Credit Sesame may waive your fee if you spend more than $1,000 in a month, or deposit a minimum or $500 in your Sesame Cash account. Plus, it reports to all three credit bureaus, while Extra Debit Card doesn’t. 

However, Credit Sesame doesn’t offer reward building capabilities like the Extra Debit Card does. And, it’s a relatively new product in the credit industry, as Credit Sesame launched in August 2023

Extra Debit Card vs. Credit Cards

A credit card offers higher spending limits and is widely accepted. Consumers are drawn to credit cards because it allows them to earn lucrative rewards for their purchases. 

While credit cards are usually for people with good credit scores, the Extra Debit Card helps those with limited or poor credit build or improve their credit. Plus, since you’re using your bank account to build credit, you don’t have to worry about the risk of borrowing money, like spending above your limit or paying interest charges.

Extra Debit Card vs. Secured Card 

Like a credit card, a secured card helps you build your credit score. However, the latter requires a security deposit for collateral. Your spending limit is usually equivalent to the amount of your deposit. On top of the security deposit, a secured card may come with high fees and interest rates. A secured card may have higher upfront costs than the Extra Debit card costs. 

In contrast, a secured card offers a revolving line of credit, meaning you’ll have access to funds when the money in your bank account runs low. If secured credit cards are a better option for your situation, consider checking out our round-up of the best secured credit cards

Who Should Get The Extra Debit Card?

Those with little to no credit scores who can’t qualify for the standard credit card may turn to the Extra Debit Card to rebuild their scores. On top of that, the card helps you fix your credit with the money you already have. So, if you’re not credit card savvy, you can use a familiar tool — your bank account — to increase your credit score without the risk of missing a payment. 

Keep in mind there are free ways to build your credit score, like becoming an authorized user on someone else’s card or making payments on your student loan. There are also credit builder products very similar to the Extra Debit Card without the additional fees, such as the Fizz Credit Builder Card or the 

Extra Debit Card FAQs

Is the Extra Debit Card worth getting? 

It depends on your credit situation and your needs. If you have a decent credit score, an unsecured card may be preferable for its lucrative rewards. On the other hand, the Extra Debit Card doesn’t perform a credit check and lets you use your bank account to build your credit. Those features may be a selling point to those with little to no credit score or those who want to avoid managing a credit line.

Does the Extra Debit Card build credit?

Extra Debit Card helps you build your credit with Equifax and Experian — not TransUnion. 

How do I cancel my Extra Debit Card?

You must reach out to the customer support team to cancel your subscription. You can call them at 844-932-3955, email them at [email protected], or chat with a live representative through the Extra app. Remember that closing an account may decrease your credit age, negatively affecting your credit score.

Where can I find the Extra Debit Card application?

You can apply for the Extra Debit Card by visiting the Extra Debit Card homepage and selecting “Get Started.” 

Read the original article on Business Insider
Please follow and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *

RSS
Follow by Email
LinkedIn
Share