Debitize is in beta, but you can sign up to be a beta tester right here!
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!
No, Debitize works with whatever credit cards you already have
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.
The security of your accounts and information is our highest priority. Safety measures include, but are not limited to:
Your credit card bills are typically paid about a week before your due date.
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.
You can apply for one, or contact us for help finding and applying for one that suits your preferences and spending habits.
If you have a large purchase you'd like to pay down over time, you track it over time with Debitize, and pay it off when you're ready!
Likewise, if you don't want to pay off your whole credit card balance each month, you can tell us how much to pay down over time. However, we encourage you to pay your balances in full if you can, since carrying a balance means paying interest!
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 monitor your checking account for deposits so we can continue making withdrawals.
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.
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.
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.
If you switch from a debit card to a credit card and use Debitize, you can earn cash back or rewards on all your spending while still staying financially responsible. For example, if you spend $25,000 a year on your cards, you could earn $500 in cash back, a free round-trip airline ticket, 5 free hotel nights, or a myriad of other benefits.