How much does Debitize cost?
Debitize is committed to offering our users a great experience so our service is free!
To keep the lights on however, we do offer a (totally optional) premium feature which pays your credit card bills more frequently with Credit Optimizer.
We also earn interest on some of the funds sitting in your Debitize account, and we may occasionally make recommendations for credit cards and other financial products.
What if I have an existing balance?
Debitize only covers new purchases automatically, but we give you options to pay off existing balances as well. Once you've linked a credit card, we take the initial balance and move it to your Uncovered Purchases balance. You can then decide whether you would like to pay all or a portion of your balance down immediately, pay it down over time with extra recurring withdrawals, or do nothing and leave Debitize to cover new purchases only.
How often do you pay my bill?
Your credit card bills are typically paid once a month about a week before your due date. We offer users a premium service (Credit Optimizer), which pays your credit card bill every week instead and can help you boost your credit score, in many cases by 30 points or more.
How does Debitize work?
Step 1: Connect your bank account and credit cards to Debitize.
Step 2: Use your credit cards as normal.
It's that easy! Debitize monitors your credit cards for new activity, and then automatically initiates a transfer out of your checking account into your Debitize Reserve Account whenever you make a charge.
When your credit card bill comes due, Debitize pays it for you - automatically and on time - with the funds from your Debitize Reserve Account. No more worrying about bills or late fees!
How can Debitize improve my credit score?
Credit reporting agencies look at a number of different factors in determining your credit score, the most important of which are payment history and the amounts owed on your credit lines. Using a credit card responsibly, and paying off the balance in full and on time, is the most effective way to improve your credit.
In fact, according to the entity that invented the FICO credit score, “Having credit cards...with a good payment history will raise your FICO Score. People with no credit cards tend to be viewed as a higher risk than people who have managed credit cards responsibly”. Read more here.
Our Credit Optimizer feature helps you build credit even faster by targeting your Amounts Owed. By making extra payments during the month, we keep your utilization low, which has helped many of our users increase their FICO scores by 30 points or more!
Does Debitize issue me a credit card?
No, Debitize works with whatever credit cards you already have.
- What if I don't have a credit card?
What does Debitize do to ensure the safety of my financial information?
The security of your accounts and information is our highest priority. Safety measures include, but are not limited to:
- 256 bit encryption
- Your bank credentials are never stored on our servers
- No external transfer capability - funds can only move between your checking account, your Debitize Reserve Account, and your credit card(s)
- Account safeguards such as automatic logout and ID verification
- Account alerts for any unusual activity
How do I know the funds in my Debitize Reserve Account are safe?
The funds in your Debitize Reserve Account are held on deposit with an established and regulated bank for safe-keeping. They will in no way be commingled with Debitize's general account, and there is no functionality to allow transfers to other users.
Can I access the funds in my Debitize Reserve Account?
We encourage you to treat those funds as money already spent to encourage good financial discipline. That being said, if you run into hardship or need the money, you can always request a transfer back to your checking account using our web app (under checking account settings).
How do I cancel a withdrawal?
You can cancel withdrawals up until about 3pm ET on the same day it is initiated. Typically withdrawals are initiated at 8am ET, and you’ll get an email and/or push notification. To cancel it, click on your Debitize balance from the main dashboard, and you’ll see a red cancel icon next to today’s withdrawal if it’s not too late.
I don’t want Debitize to cover a recent purchase – how do I stop it from getting including in an upcoming withdrawal?
We’re working on a new feature that will simplify this – stay tuned! In the meantime, just pause your credit card until the transaction posts to your credit card account. Then when you unpause the card, Debitize won’t go back and cover this purchase. Instead, you can schedule a one-off or recurring payments through your Debt Destroyer balance to pay down this purchase and any others that might have also gotten excluded.
What if I don't have enough funds to pay for my purchase?
Debitize will only withdraw funds up to the minimum balance in your checking account so you won't get overdrafted or have a $0 balance in your checking account. We'll notify you when this happens, and will transfer any purchases we can’t cover to your Uncovered Purchases (aka Debt Destroyer) balance so you can pay them off later.
What if I want to make sure I have enough money for an emergency?
Debitize lets you set a minimum balance for your checking account. If a charge would otherwise have taken you below this minimum balance, we will not debit the full amount. In addition, you will get a notification letting you know you are low on funds and are at risk of running a balance on your credit card.
What are my Uncovered Purchases? How do I pay them off?
Your Uncovered Purchases are purchases that won’t automatically be covered by your daily withdrawals – unless you activate recurring withdrawals as described below.
There are several ways this balance may grow:
1) Anytime you add a card, we’ll include that balance in your Uncovered Purchases.
2) Anytime you pause your card, the change in balance when you un-pause it will get added to your Uncovered Purchases.
3) Anytime we can’t make a withdrawal to cover a recent purchase. Most often this is due to hitting your checking account minimum balance or canceling withdrawals.
We want to make sure your automated daily withdrawals are predictable, so we’ll only include your most recent purchases. To pay down your Uncovered Purchases balance, you can:
1) Schedule a one-off withdrawal (from your Uncovered Purchases tab).
2) Schedule recurring (daily or weekly) payments to pay it down over time whenever you have sufficient funds available in your checking account. These are in addition to any new purchases that we will also cover.
3) Make a payment directly to your credit card – we’ll recognize the payment and adjust your Uncovered Purchases accordingly.
If you’d like to make sure Debitize always covers your entire credit card balance, you can activate recurring payments as described above and leave them on indefinitely. These extra withdrawals will only get initiated if you do have a Debt Destroyer balance – which means anytime we can’t cover a purchase at the time, this extra withdrawal will automatically kick in as soon you have enough funds or un-pause your credit card.
I just made a purchase. When will it get “Debitized”?
We initiate withdrawals once a day on weekday mornings. Typically it takes one more day to hit your checking account. So if you go to the movies on Tuesday night, we’ll initiate the withdrawal on Wednesday morning and you will see the funds out of your checking account by Thursday.
When will my credit card be paid?
To see when your next credit card payment is expected to get scheduled, just click on any card from the main dashboard.
Your credit card bills are typically paid once a month about a week before your due date. If you are a Credit Optimizer customer, we will pay your credit card balance every week. If you’d like us to pay your credit cards more frequently, see below about our Credit Optimizer feature. If you are new to Debitize, we offer a one month free trial for Credit Optimizer.
In either case, as long as you have enough money to cover your purchases, we’ll make sure your statement balance is covered in full and on time so you do not get hit with any interest or late fees.
What if I want my credit cards paid more frequently?
Sign up for our Credit Optimizer feature, and we’ll pay your credit cards once a week. Read more below.. Credit Optimizer requires a small monthly fee and you can cancel anytime.
What is Credit Optimizer, and how does it help my credit score?
Credit Optimizer is an optional feature that makes payments to your card once a week. By keeping your credit card balance limited throughout the month, we can lower your utilization (30% of your FICO score) which may help your credit score. Many of our Credit Optimizer users have seen increases in their FICO scores of 30 or more points.
As a new user you can try it out free for your first month!
How does Debitize treat refunds/returns?
If you have Uncovered Purchases, we’ll first apply any refund, return, or separate payment you make to your credit card to lower this balance to help you pay down any outstanding credit card balances.
If your Uncovered Purchase are zero, we’ll apply the funds to offset future purchases, so your next withdrawal(s) will be lower (or zero) until your new purchases exceed the amount of that refund.
In either case, if you prefer to transfer the amount of your refund back to your checking account, you are always free to do so. See “Can I access the funds in my Debitize Reserve Account” above.
What happens if I need to dispute a credit card transaction?
Go ahead and call the credit card company as you normally would. The credit card company should take the charge off your account until they can resolve the dispute. If we’ve already made the withdrawal, we’ll treat this the same as a refund – in no case will our withdrawal affect your ability to challenge a transaction with the credit card issuer or merchant.
What happens if my credit card is lost or has some fraudulent activity?
First, make sure to call your bank right away and report it so they can reverse any fraudulent charges. They'll likely cancel your current card and send you a new credit one.
The good news is you don't have to do anything with your Debitize account. We'll automatically pick up on the replacement card and continue tracking your transactions, and will send you a notification to update the credit card number once you get the new card so we can keep paying your bill.
How does Debitize make money?
Debitize is committed to offering our users a great experience, but we do need to keep the lights on here. While we plan to keep the basic service free, we do charge for our optional Credit Optimizer feature. We also earn interest on some of the funds sitting in your Debitize account, and we may occasionally make recommendations for credit cards and other financial products. Some of these offers will pay Debitize a commission if you click a link to sign up for the card, but we’ll only make recommendations that we would follow ourselves.
Is Debitize available to use outside the US?
Unfortunately right now Debitize is only compatible with US banks and credit cards, but we hope to expand to other countries in the future.