Extra Debit Card vs. GO2Bank’s Debit Card
Historically, debit cards would not help you improve your credit ratings, but that changed after some innovative financial institutions decided to change the paradigm. Here’s how one of the pioneers in the industry explains the process in 3 simple steps:
Sign up by connecting your bank account, and we give you a spending limit based on your bank balance with no credit check.
When you swipe your Extra Card, we spot you for that purchase and automatically pay ourselves back the next business day.
Finally, at the end of he month, we total up all of your transactions and report them to the credit bureaus as credit worth payments.
CNBC summarized it as:
With Extra, cardholders make a purchase and Extra pays off the merchant at the time of transaction. However, Extra connects to your checking account, so one day after you make a purchase, Extra takes the money from your bank account for that transaction.
At the end of the month, Extra then reports your card transactions to the credit bureaus Equifax and Experian. Extra does not currently report to Transunion.
Extra is in communication with Transunion about its information being added to Transunion’s credit reporting, says Max Hellerstein, Co-Founder and CEO of Extra Card.
By reporting cardholder’s payments to Equifax and Experian, the Extra Card can have a positive impact on your credit score as reported by those two bureaus.
Is Extra’s Debit Card Better than the Alternatives?
First off, you don’t need credit to get a card, but these are some requirements to get one:
- 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
- Have a checking account at one of 10,000 select U.S. banks
- Have an iOS device (iPhone or iPad & Requires iOS 13.0 or later) or an Android device (using version 10 or later)
Benefits of the Extra Debit Card that Builds Credit
- Obviously, you can build credit for a small fee
- You build credit with 2 credit bureaus (Experian and Equifax)
- There’s no credit check
- It’s easy to use
- For a higher priced version, you can access their Extra Rewards program
- You don’t have to be a U.S. citizen
- Extra uses several 3rd party sources to ensure your money & data is safe
- It has an app that’s available in both iOS and Android devices
Before we get into the cons of Extra, let’s talk about one major competitor: GO2bank’s Secured Credit Card
What is the GO2bank Secured Credit Card?
Here’s what the bank says:
The GO2bank Secured Credit Card is designed for people who are looking to build or rebuild their credit with responsible use over time. Like a traditional credit card, you have a credit limit and make monthly payments. The big difference is that you make a refundable security deposit (starting as low as $100) which will be returned back to you after paying off any outstanding balance, interest and(or) fees that are owed on the account after the account has been closed.
Your ability to make the minimum payment determines the credit limit range, and your security deposit sets the limit within that range. Your credit amount will equal the amount of this security deposit.
Your activity is reported to the three major credit bureaus every month. Complete, on-time payments and other good behaviors like keeping your balance low (ideally under 50% of your total credit limit) can help build a positive credit file over time. Conversely, not making your payments in full or on time each month, and other negative behaviors like consistently spending to (or over) the credit limit can damage your credit.
How does GO2bank Secured Credit Card work?
Set up direct deposit on your GO2bank account.
Receive direct deposits totaling at least $100 in the past 30 days.
Easily apply for a GO2bank Secured Visa Credit Card within the app or online.*
Activate your card and transfer at least $100 from your GO2bank account to make your security deposit and set your credit limit.
How do you build credit with the GO2bank card?
- Use your card anywhere online or in a store
- Keep your monthly balance low — below 50% your credit limit is good
- Make your payment on time each month
- GO2Bank reports the payment history to 3 credit bureas
- And you should see your credit build over time
Basically, it’s similar to many other secured credit cards. So, it doesn’t necessarily have many advantages over Extra. However, if you think about it, these are:
The pros of the GO2bank Secured Credit Card
- Credit limits start at $100
- No credit check
So, what are the cons of Extra’s Debit Card?
- Higher monthly/annual fees
- Only reports to 2 out of the 3 credit bureaus
- Not usable outside the US
And how about GO2bank Secured Credit Card’s cons?
- Other rates and fees apply
- No upgrade options
- No rewards
- High regular APR
- Foreign Fee
- Requires security deposit
What’s the verdict? Which card is better? 
The Extra Debit Card is the first debit card that actually builds credit and earns rewards points.
It’s great for:
- Young Gen Zs who are starting out their financial journey
- People who have no or poor credit history
- Or anyone who wants to build credit and earn reward points
- It gets 5 star ratings from many sites including Benzinga and more!
We think the small monthly or annual cost is worth it for the ease in getting the card and starting your process for building up your credit and financial success.
If you agree, go ahead and click here to apply for a great debit card that builds credit.
We’ll explore many more debit cards that build credit and their competitors in the future including:
- Chime’s secured credit card
- Zoro’s Debit Card
- Prepaid Capital One Quicksilver
- Capital One Platinum Secured
- Discover it Secured
- BofA Customized Cash Rewards Secured
- Citi Secured Mastercard
- Opensky Secured Visa
- Savings Secured Platinum Rewards
- Sequin’s Debit Card
- Sesame Cash’s Debit Card
- Grain’s alternative to credit cards
- Sable ONE Debit Card
- SeedFi
- Self Visa Secured