Extra Debit Card Review (2021)

Though there are different choices now, the Extra Debit Card was the primary debit card designed to assist construct credit score. Extra experiences the purchases you make on their card to the credit score bureaus like a lender would, which helps you enhance your rating by enhancing your cost historical past.

In most different respects, the Extra Debit Card features like another debit card. There’s no credit score verify to use, you may join it to your present checking account, and there’s by no means curiosity in your purchases.

Here’s our complete Extra Debit Card evaluation that will help you determine whether or not it’s the best choice for constructing credit score.

Extra Debit Card Review and Ratings

The Extra Debit Card permits you to construct credit score with out hurdling a lot of the conventional obstacles. There’s no credit score verify to use, you don’t have to put down a safety deposit, and it’s a lot more durable to harm your credit score by misusing the account.

On the draw back, it’s a must to pay a month-to-month or annual subscription charge, and a few buyer critiques counsel that the shopper help programs would possibly want enchancment.

Pros

Build credit score with two credit score bureaus

Cons

High month-to-month or annual charges

Questionable buyer help
Doesn’t report back to TransUnion

To construct your credit score rating, you normally have to use for a credit score account and use it responsibly. Making well timed funds and maintaining your debt balances low are essentially the most dependable methods to reveal your creditworthiness.

There are a couple of points with that method:

  • Having no credit score rating makes it onerous to qualify for many credit score accounts.
  • Applying for a credit score account hurts your rating by including a tough inquiry to your credit score report.
  • If you don’t handle a credit score account nicely, you’ll harm your rating, and it’s possible you’ll incur further curiosity or charges.

The Extra Debit Card permits you to sidestep these points and nonetheless construct your credit score. Most debit playing cards do nothing in your credit score rating, however Extra experiences the purchases you make on their card to credit score bureaus as creditworthy funds.

Because it’s not a credit score account, you don’t want a rating to qualify.
There’s no credit score verify whenever you apply, which suggests you don’t have so as to add a tough inquiry to your file.

👉 For a couple of further {dollars} a month, Extra’s premium plan permits you to earn rewards in your purchases like a bank card, too. You can earn factors equal to roughly 1% cashback, although you may solely use these factors within the Extra retailer.

From a consumer’s perspective, the Extra Debit Card works nearly the identical manner as another debit card. Extra experiences your funds robotically, and there’s nothing particular it’s a must to do to construct your credit score with the account.

Here’s an in-depth information to Extra’s card, together with the whole lot from signing up for the account to canceling it.

How to Sign Up for the Extra Debit Card

Signing up for the additional debit card is a comparatively easy course of. There’s no credit score verify concerned. To qualify, you should:

  • Be 18 years of age or older.
  • Have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
  • Live within the United States with an handle the place you may obtain your bodily card (they don’t settle for P.O. bins).
  • Have a checking account within the United States or Canada.

👉 You can apply on-line in simply a few minutes. They’ll ask you for traditional account utility data like your telephone quantity, electronic mail, handle, and SSN or ITIN.

If Extra can’t confirm your id, they might strive various strategies that require you to supply further private particulars.

How to Use the Extra Debit Card

Once you qualify for the Extra Debit Card, it’s a must to join it to your checking account earlier than utilizing it. Extra can connect with over 10,000 banks, so that you shouldn’t must open a brand new account only for the cardboard.

Once you’ve related to your funding supply, Extra assigns you a spending restrict. It will at all times be at the very least barely under your real-time checking account stability.

Whenever you purchase one thing with the cardboard, Extra “spots you” and pays for the transaction. Within a couple of days, they pay themselves again utilizing the money in your funding supply.

The mechanism is much like a credit score transaction. It’s as if Extra offers you a credit score line equal to every buy quantity after which has you repay the stability utilizing the money within the checking account they monitor. 

That’s why Extra can report the purchases as credit-worthy transactions. It additionally implies that utilizing the Extra Debit Card doesn’t have a lot impression in your credit score utilization since they wipe out your debt stability after every transaction.

👉 At the tip of every month, Extra tallies up all your purchases and experiences them to Experian and Equifax, which ought to enhance your rating over time.

If you pay further for his or her rewards program, your purchases generate factors you may spend within the Extra retailer. They’re not clear about what you should purchase within the retailer, however they point out present playing cards and Airpods as examples.

How to Cancel the Extra Debit Card

Unfortunately, you may’t cancel the Extra Debit Card on-line. You’ll must name them at 833-984-2291 or the quantity on the again of your debit card to shut your account and finish your subscription.

Credit Building Only Credit Building and Rewards
Monthly Price $8 monthly (works out to $96 per 12 months) $12 monthly (works out to $144 per 12 months)
Annual Price $84 per 12 months (works out to $7 monthly) $108 per 12 months (works out to $9 monthly)

Extra has two plans for buy, and you’ll pay for them in both month-to-month or annual installments. There’s a reduction in case you pay yearly.

Extra was based in 2019, so it’s a comparatively new firm. As a consequence, there aren’t many sources for buyer critiques on-line.

The platform with essentially the most critiques for the cardboard is the App Store, and a lot of the feedback are optimistic. Extra will get a mean score of 4.6 out of 5 stars on roughly 1,200 rankings.

Unfortunately, it’s powerful to discern the professional critiques from the pretend ones on websites like these, and there are sufficient unfavourable critiques to make you query the validity of the remaining.

For instance:

There are additionally a number of first-hand accounts on the non-public finance and bank card subreddits from Extra clients. Some are optimistic and report that the cardboard does what it claims to do.

Unfortunately, most of them are from accounts which might be probably pretend. For instance, the profile that posted the remark under was created that very same day, and it hasn’t had any exercise since.

Many of the opposite critiques on Reddit categorical frustration over Extra’s lack of effectiveness and poor customer support, similar to the pictured evaluation from the App Store.

Reviews are inclined to skew unfavourable as a result of persons are extra prone to complain than share optimistic tales, however it’s nonetheless vital that there are few verified optimistic critiques of Extra.

Extra claims their debit card is the primary of its form, however there are many alternate options available on the market at this time. Sequin and Credit Sesame additionally supply debit playing cards that construct credit score.

Sequin’s card follows the identical mannequin as Extra’s. It connects to your checking account, after which they report all of your purchases to the credit score bureaus. The most vital distinction between the 2 is that Sequin has no charges and solely experiences to Experian.

Credit Sesame’s card, the Sesame Cash debit card, works a bit otherwise. You allocate a portion of your money to the cardboard every month, which they use to create a digital secured bank card.

You then set a credit score utilization restrict for the digital bank card. When you make purchases with the debit card, Sesame expenses the digital secured card till you hit your required utilization ratio, then makes use of your money to repay the stability.

👉 If you’re open to utilizing accounts apart from debit playing cards, you should utilize a standard secured bank card like Citi’s Secured Mastercard or a credit score builder card like Chime’s and get related outcomes.

In some methods, the Extra Debit Card is extra handy than a bank card for constructing credit score. You don’t must endure a credit score verify whenever you apply or put down a deposit to qualify such as you would with a secured card.

The Extra Debit Card additionally reduces the danger of overspending and hurting your rating. Because you may’t carry over a stability, you’ll by no means face curiosity expenses, both.

That mentioned, it’s not with out its drawbacks. Most considerably, it’s a must to pay a month-to-month or annual charge. I’ve at all times disliked the thought of paying cash to construct credit score. The level of constructing credit score is to economize, and there are such a lot of methods to enhance your rating free of charge.

Even in case you take Extra’s most cost-effective choice, you’d pay $84 per 12 months. For comparability, the favored Chase Sapphire Preferred bank card has a $95 annual charge. In November 2021, that will get you:

  • 5x factors on journey bought by means of their rewards program, 3x factors on eating, and 2x factors on all journey purchases
  • An introductory supply of 60,000 factors whenever you spend $4,000 within the first three months, which is value roughly $750 of journey
  • Bonuses like a $50 annual lodge credit score, a 12 months of $0 supply charges with DoorDash, automated journey cancellation insurance coverage, and extra

👉 My level is in case you’re going to pay such a excessive annual charge for a card, you must attempt to get greater than a debit card that solely improves your cost historical past and nets you 1% cashback.

If I needed to rebuild my credit score from scratch, I’d keep on with a secured bank card as an alternative of utilizing Extra. Most secured playing cards require a credit score verify, however their deposits are refundable, they normally don’t have charges, and their potential enhance to your credit score is larger.