Improve your credit with a debit card

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For many, having a good credit score is essential to achieving many financial milestones in life, whether it is securing a lower interest rate on a loan or getting a higher credit limit on your credit card. Credit cards are one way for people to boost their credit score with their daily purchases.

However, qualifying for a credit card often requires a good credit score, so it can be difficult to get started on your credit card. However, fintech companies are working on innovative solutions to help you build your credit score beyond traditional methods.

Extra card has created a debit card that allows users to create credit without credit check or high credit score to qualify. Below, Select examines how the Extra Card works and the different features it offers.

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How Can Extra Be A Debit Card That Improves Your Credit Score?

Furthermore was founded by Max Hellerstein, Cyrus Summerlin and Biren Shah in 2020. Extra works like a debit card. With a free card, cardholders can not bring balance from month to month and are required to pay their balances in full after a period of time, usually every 30 days.

With Extra, cardholders make a purchase and Extra pays the merchant at the time of the transaction. However, Extra is linked to your bank account, so one day after a purchase is made, Extra withdraws money from your bank account for that transaction.

At the end of the month, Extra then reports your credit card transactions to Equifax and Experian credit bureaus. Furthermore currently not listed in Transunion.

Extra is in contact with Transunion about its information being added to Transunion credit reports, says Max Hellerstein, Co-Founder and CEO of Extra Card.

By reporting the cardholder’s payments to Equifax and Experian, the Extra card can have a positive impact on your credit score as reported by these two agencies.

Extra card

  • Rewards

    5 reward points for every $ 1 you spend

  • Welcome Bonus

  • Annual subscription

    $ 8 per month or $ 84 in advance for the year.

  • End of transaction abroad

    N / A – can not be used internationally

  • Credit required


  • It does not require a security deposit like other credit cards to build credit
  • No credit check or minimum credit score required


  • It costs $ 84 per year
  • It only lists two credit bureaus, Equifax and Experian

Using one Extra card may also affect the credit utilization rate. Credit utilization ratio is the ratio of credit you use to the total amount of credit extended to you. The credit utilization rate affects the “amount due” category of the FICO score. The “amount due” category includes 30% of your credit score. Experts recommend keeping the credit usage rate below 30%, or even 10% if you can.

Since the card is repaid daily, the credit usage index will reset every day, says Hellerstein. When your credit score is often restored, you are more likely to have a low credit score. Having a low utilization rate also has a positive effect on your credit score.

The Extra Card does not charge APR or interest because you have to pay your balance daily. And unlike a credit card, Extra will not allow you to spend more than you have in your bank account, so you will not have to worry about overspending and potential debt.

To qualify for one Extra card, you do not even need a credit score. Extra does not perform credit checks, but potential cardholders must meet these requirements:

  • Applicants must be 18 years of age or older
  • You must have an SSN or ITIN number
  • Applicants must have a US address where you can receive your extra card (mailboxes are invalid)
  • Have a checking account at one of the 10,000 selected US banks
  • Do you have an iOS device (iPhone or iPad) or an Android device with version 10 or later

According to Hellerstein, 99% of applicants are approved for the card because all transactions on the card are backed by cash. When cardholders sign up for Extra, they are given a spending limit based on the real-time balance of the bank account they choose to sign in to, says Hellerstein.

Remuneration and rewards

Furthermore charges either an annual or a monthly fee for cardholders. For the Extra Credit Building you will pay $ 8 per month, but if you are willing to pay for the whole year in advance, you will receive a small discount and pay $ 84. For additional credit creation and rewards you will pay $ 12 per month or $ 108 for the whole year.

For the highest price, you will have access to the Extra Rewards program. Cardholders will earn 5 reward points for every $ 1 they spend. Five reward points are worth up to 1 cent, so the redemption value is only 0.2 cents per point. You get virtually 1% return on all purchases if you redeem your points for maximum value.

Extra has a rewards store through the Extra app, but in-store offers vary. According to Hellerstein, recently popular items in the store include electric toothbrushes, card games, gift cards and AirPods. Since Extra is a credit card-focused debit card, it comes as no surprise that it offers few rewards and little flexibility in how cardholders can redeem their points.

The Extra Card can not be used internationally, so there is no transaction fee abroad.

Alternatives for the Extra Card

Extra charges can be quite expensive to try to increase your credit score. You can consider alternatives such as a secured credit card, which requires you to make a deposit that works as a guarantee if you do not pay your bills. Usually, your credit line is equal to the amount of your deposit. Insured cards are much easier to approve if you have poor or no credit.

When Select analyzed various secure cards to determine which cards were best for people without credit or bad credit and who wanted to improve their rating, it ranked Discover it® Secured Credit Card as a winner.

With the Discover it® Secured Credit Card, cardholders only need to deposit a minimum deposit of $ 200 for a credit limit equal to this amount. Seven months after opening your account, Discover will evaluate your credit card account to determine if you can access an unsecured credit line.

If you do not want to make a deposit, you can consider it Petal® 1 “No annual charge” Visa® Credit Cardwhich is aimed at people with non-prime credit who want to improve their ratings.

Petal® 1 “No annual charge” Visa® Credit Card

  • Rewards

    Cash return 2% to 10% to selected traders

  • Welcome Bonus

  • Annual subscription

  • Enter APR

  • Normal APR

  • Balance transfer fee

  • End of transaction abroad

  • Credit required

The Petal 1 card has no annual charge, no welcome bonus and earns from 2% to 10% cash back on selected merchants. With the Horseshoe 1 card, you will have to make your monthly payments each month in full, otherwise you risk paying interest. Unlike the Extra card, the Petal 1 card refers to all three credit bureaus, it does not have an annual charge or a transaction fee abroad (unlike the Extra, the Petal 1 can be used abroad).

In addition, unlike the Extra Card, the Horseshoe 1 card is a credit card, so you will have a whole month to pay off your bill.


The Extra card can be a useful tool for people who do not qualify for most credit cards but want to boost their credit scores. However, the card has a monthly charge of $ 8 or an annual charge of $ 84, so it may be best to get a secure credit card with no annual charge to generate your credit.

Secure cards will require a security deposit, but you will usually receive your deposit back and be entitled to an unsecured card once you have made your payments on time and in full for a few months. The Extra Card also has its drawbacks: Your card history does not apply to all three credit bureaus and can not be used in foreign countries.

Correction: Excerpts from Extra CEO Max Hellerstein were incorrectly attributed to Extra Communication Director Sloane Wimberly in an earlier version of the story.

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The Petal 1 Visa credit card is issued by WebBank, a member of FDIC.

Click on Discover it® Secured Credit Card Rates and Charges here.

Editorial Note: The opinions, analyzes, reviews or recommendations expressed in this article are those of Select publishers only and have not been reviewed, approved or otherwise endorsed by any third party.

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