Today, there are over 100 million Americans who don’t want, or can’t get a credit card. Yet there are very few alternatives for establishing credit other than with a risky Credit Card. Extra’s mission is to make credit building safer and more accessible for everyone with the first debit card that builds credit history and earns reward points.
In this article, we will review Extra and its debit card in-depth, exploring how it works, its features, benefits, and potential drawbacks. By the end of this article, you'll have a clear understanding of whether Extra and its debit card are the right fit for your financial goals and needs.
What is Extra?
Extra Debit Card is a fintech product that aims to help users build credit while still using a debit card. The Extra Debit Card is linked to the user's Extra account, which is a free online checking account that also offers savings and investment options. The Extra Debit Card is designed to work like a regular debit card, but with the added benefit of helping users build credit over time.
How It Works
Sign up by connecting your bank account, and Extra gives you a spending limit based on your real-time balance with no credit check.
When you swipe your Extra Card, Extra spots you for that purchase and automatically pay itself back the next business day.
At the end of the month, Extra totals up all of your purchases and report them to credit bureaus as credit worthy payments.
The Perks
Earn points everywhere - Instantly earn points for every purchase made. Get points for rideshare, coffee, or even paying phone bill. The Extra Card pays for itself.
Build your credit history - Turn every day purchases into credit worthy payments.
Rewards you actually want - Find your new favorite thing in our expertly curated, members-only rewards store.
Keep your bank - Extra is compatible with most banks across the United States, so you can keep your money where you want, while you spend smarter with Extra.
No credit check - Your connected bank balance becomes your available spending limit, so there’s no need for a credit check.
No interest rates - Because Extra charges a flat monthly membership fee, you’ll never have to worry about predatory interest rates which can lead to debt.
Pros
One of the main benefits of Extra Debit Card is that it allows users to build credit without taking on any debt. Unlike credit cards, which can be easy to overspend on and can quickly accumulate high interest charges, Extra Debit Card simply reports the user's payment history to credit bureaus, helping to establish a positive credit history. This can be especially beneficial for users who are just starting to build credit or who are looking to rebuild their credit after a period of financial difficulty.
Another advantage of Extra Debit Card is that it offers cashback rewards for certain types of purchases. Users can earn up to 1% cashback on qualifying purchases, which can be a nice perk for those who use their debit card frequently.
Extra Debit Card also comes with a number of features designed to make banking and managing money more convenient. The Extra app allows users to easily transfer funds, deposit checks, and track their spending. The app also offers budgeting tools and financial education resources to help users stay on top of their finances.
Cons
One potential downside of Extra Debit Card is that it may not be as widely accepted as a traditional credit card. While debit cards are generally accepted at most merchants that accept credit cards, there may be some instances where users may have to use cash or another form of payment.
Additionally, it's worth noting that while Extra Debit Card can help users build credit, it may not be the fastest or most effective way to do so. Other credit-building strategies, such as taking out a secured credit card or being added as an authorized user on someone else's credit card, may be more effective in certain situations.
Pricing
Extra comes with 2 pricing options, and on monthly or yearly plans.
Monthly Pricing
Annual Pricing
Conclusion
Overall, Extra Debit Card can be a great option for users who want to build credit without taking on debt or using a traditional credit card. The cashback rewards and convenient banking features are also nice perks.
However, users should keep in mind that there may be some limitations to using a debit card to build credit and that other credit-building strategies may be more effective in certain situations.
To apply for Extra Debit Card, users can visit the Extra website and follow the application instructions.
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