Extra Debit Card Review: Fast Credit Help but Temporary Fix
Saving money on extra debit card review does not have to be complicated. We rounded up the essentials so you can spend less and skip the guesswork.
Key Takeaways
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- Extra claims to be “the first debit card that helps build credit.” This Extra debit card review will dive into exactly what that means, who...
Extra claims to be “the first debit card that lets you build credit.” This Extra debit card review will dive into exactly what that means, who Extra is best for, and the alternatives worth considering.
4.2/5Extra acts like a credit card that automatically pays off your balance 24 hours after a purchase. Extra monitors your bank account balance and only allows you to spend what you can afford, so there's no interest or late fees. At the end of the month, Extra reports your total spending to Experian and Equifax, which can help you increase your credit score. Since you're limited to only making purchases you can pay off, Extra is a good fit for people who want to increase their credit score but have trouble controlling their spending or have yet to establish credit.
Pros:- No credit check required.
- Prevents overspending while building credit.
- Fast customer service response times.
- Your initial “Spend Power" limit is only provided after you sign up.
- Only reports to Equifax and Experian (not TransUnion).
- To earn reward points (Extra's version of cash-back), you have to opt for the $25 per month (or $199 per year if paid annually) premium plan.
Table of Contents
ToggleHow the Extra Debit Card Works
Extra is different from both a credit card and a debit card in a few key ways.
- Extra syncs with your bank account and only allows you to spend what it thinks you can afford. This is called your Spend Power. Transactions that Extra determines would put you over your Spend Power are declined.
- Purchases made with your Extra Card are deducted from your bank account the next day. Essentially, it acts like a debit card in this respect because you can’t spend more money than you have available.
- Your Spend Power is determined in part by your available checking balance. At first, it’s a small percentage of the funds in your account. Over time, Extra increases your Spend Power based on both your available funds and your transaction history. The more you spend with your Extra debit card, the more your Spend Power can increase.
- Extra reports your credit limit as the highest available Spend Power you achieved over the course of the preceding month.
- Your credit utilization resets daily. If you keep your daily spending to less than 30% of your highest available Spend Power, Extra will report a favorable credit utilization ratio each month.
- Extra reports to both Equifax and Experian at the end of the month. It doesn’t report to TransUnion.
- There’s an annual fee. Extra has two plans: “Credit Building” and “Credit Building + Rewards.” For $149 per year, the Credit Building plan gives you access to the Extra debit card. For $199 per year, you can also earn rewards on your purchases.
- Rewards can only be used at the Extra Store. For every $1 you spend with your Extra debit card, you earn five reward points worth roughly 1 cent each. Points can be redeemed for physical goods, gift cards and discounts at various merchants.
Key Facts About the Extra Debit Card
Here are answers to some of the most common questions about the Extra debit card.
Does Extra check your credit?
No credit check is pulled when opening an Extra account.
Can you get denied for the Extra debit card?
While you can’t get denied for the Extra card, there are some eligibility requirements. Specifically, you must be 18 years of age, have a valid Social Security or ITIN number, have a U.S. address, and have a U.S.-based bank account.
Is it a big deal that Extra doesn’t report to TransUnion?
It’s common for lenders to not report to all three major credit bureaus. In Extra’s case, they don’t report to TransUnion but do report to Experian and Equifax. Experian is the largest credit bureau, and where banks like Capital One and Chase frequently go first when pulling your credit report.
For lenders such as a landlord or auto dealership that may exclusively pull your credit report from TransUnion, this can be a problem. However, this is rare and can likely be resolved if you request your Equifax and Experian reports be pulled instead.
Also, remember that credit builder cards like the Extra debit card are not the best long-term solutions. While they’re helpful for building credit, you should work towards getting a quality credit card from one of the major banks, as these cards offer better rewards and frequently provide higher credit limits (which is better for your credit utilization ratio).
How is Extra different from secured credit cards?
A secured credit card requires you to place a deposit that serves as your credit limit, while Extra links to your bank account and sets your Spend Power based on your available funds.
Also, with a secured card, the amount of the security deposit you make is reported to the credit bureaus. Therefore, if you can only make a $200 deposit and you carry a $100 balance, you’re at a 50% credit utilization rate. This is above
Final Thoughts
Before you check out, double-check extra debit card review against current offers and any coupons you can stack. Small habits like this add up to real savings over a year.
Originally published at thewaystowealth.com.
R.J. Weiss
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