Debitize | FAQ

Frequently Asked Questions

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!
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.

Additional features planned for Debitize include tools to help you automatically optimize your amounts owed that are reported, as well as other tips and recommendations to help you improve your credit score.
No, Debitize works with whatever credit cards you already have
You can apply for one, or contact us for help finding and applying for one that suits your preferences and spending habits.
The security of your accounts and information is our highest priority. Safety measures include, but are not limited to:
  • 256 bit encryption (verified and monitored by Symantec)
  • 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
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 comingled with Debitize's general account, and there is no functionality to allow withdrawals or transfers to another account.
We encourage you to treat those funds as money already spent. That encourages 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).
You can cancel withdrawals up until about 3pm EST on the same day it is initiated. Typically withdrawals are initiated at 8am, 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.
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.
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.
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.
Your Uncovered Purchases (aka Debt Destroyer balance) are purchases that won’t automatically be covered by your daily withdrawals – unless you activate Debt Destroyer payments as described below.

There are several ways this balance may grow:

1) Anytime you add a card, we’ll include that balance in your Debt Destroyer account
2) Anytime you pause your card, the change in balance when you un-pause it will get added to Debt Destroyer
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 Debt Destroyer balance, you can

1) Schedule a one-off withdrawal (from your Debt Destroyer tab)
2) Schedule recurring (daily) payments to pay it down over time whenever you have funds available.
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.
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 on Thursday.
Debitize currently pays your cards every two weeks but will be moving back to a monthly frequency in the next few months. 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.

To see when your next credit card payment is expected to get scheduled, just click on any card from the main dashboard.

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’ll start you out on Credit Optimizer for free for your first month on Debitize.
Sign up for our Credit Optimizer feature, and we’ll pay your credit cards once a week, which keeps your utilization (30% of your FICO score) low throughout the month. Credit Optimizer requires a small monthly fee and you can cancel anytime.
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 so you can 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.
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.
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, setting aside funds to cover new purchases, and paying your bill.
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 may charge for optional features, and we expect to roll out targeted offers later in 2017 where Debitize would get paid an affiliate fee - or eventually offer our own products. Not to worry, per our privacy policy, we will not sell your information to 3rd parties. We're currently not earning any interest on the funds sitting in your Debitize account, but may do so in the future as well.
Unfortunately right now Debitize is only compatible with US banks and credit cards, but we hope to expand to other countries in the future.

Let us help you take control of your credit cards! Signup is fast, easy and free.