Extra Card Review – The First Debit Card for Building Credit
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Extra was created to give people a way to establish their credit without using a credit card. It also allows people to develop their credit without going through a credit check first.
8/10
Fees
7/10
Credit Building
10/10
Rewards
8/10
Accessibility
8/10
After graduating high school, my parents started talking to me about building a positive credit history. Back then, it seemed like something so abstract. I knew about the concept of credit reports but didn’t understand them much. The 18-year-old me didn’t have a particular interest in understanding, either! However, my credit became more important as I got older, especially after graduating college.
Fortunately, several financial products can help you build your credit. When I started, I used credit cards, but now, a debit card is an entirely new product that can help you build credit.
Jump To
What is Extra?
Extra is a debit card that can benefit users similarly to credit cards. It can be used to build your credit history, and you can also earn rewards points just as you would with a credit card. Traditionally, debit cards only give you access to the money available in your checking account. The Extra Card works similarly because it is connected to your bank account and gives you a spending limit based on your real-time account balance. It reports your purchases to some of the major credit bureaus as credit-worthy payments, which helps you establish and build your credit.
Extra was founded in 2020 by Max Hallerstein, Cyrus Summerlin, and Biren Shah. The founders wanted to give people a way to establish their credit without using a credit card and to develop their credit without going through a credit check first.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
How does the Extra card work?
To use the Extra Card, you first need to apply for it. You can start the process by visiting the Extra website and clicking the “Apply Now” button. To qualify for the card, you must be at least 18 years old and verify that you’re 18 or older before you begin.
The application process only takes a few minutes and requires basic personal information. The first pieces of information that you’ll need to supply are your name, phone number, email, and date of birth.
After you submit this information, Extra will text you a verification code. You need to enter that code to continue.
After verifying your phone number, you’ll move to the plan selection page. There are two options here — monthly or annual. You can review the plans and move on by clicking on the “Confirm” button once you choose.
I tend to choose the annual plan for everything if I can because it’s usually cheaper, so that’s what I did here. You’ll have another chance to confirm your selection before moving on. If you made a mistake or changed your mind, you can choose a different plan.
Since the Extra Card connects to your bank account, you’ll need to connect your bank account as part of the application process.
When connecting your bank account, you’ll select your bank and be directed to its website. Then, you’ll log into your bank account to authenticate the connection between your bank account and Extra. After completing these steps, you’ll be sent back to the Extra site.
How much does Extra cost?
Extra makes money through its monthly subscription rates, starting at $20 and going up to $25. You can elect to pay your subscription fee either monthly or annually. Unlike a credit card, no interest fees are associated with the Extra Card. The Extra Card can only be used in the United States, so there is no foreign transaction fee.
The only other costs to remember are those you might incur using your Extra Card. These other charges might come from some of your purchases if they charge fees for using a card. For example, some landlords charge an additional processing fee if you use a credit or debit card to pay your rent.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Extra Card features
The Extra Card offers several features that make it a no-brainer for people concerned about their credit. Whether you’re helping your college-aged child start building their credit or working on building your own, it’s a nice option to consider.
Credit building
Your credit can make a big difference in your life, for better or worse. Creditors and lenders use your credit report and credit score to judge your creditworthiness. This can help them decide whether to approve your loan or credit card application. It can also impact your interest rates and the loan money or credit card limits you qualify for. Sometimes, your employer or landlord may want to see your credit score when deciding whether to hire or rent.
The unfortunate thing is that we all start with nothing. No credit history is attached to your name if you’ve never opened a credit card or taken out a loan. This can make getting approved for a credit card, mortgage, or loan difficult. The Extra Card allows you to build credit without worrying about a credit card's interest rates and fees.
The Extra Card helps you build credit by reporting your purchases and activity using the card to both Equifax and Experian at the end of each month. You should see it on your credit report after the 15th of each month.
Rewards points
When you apply for the Extra Card, you can choose a plan that only allows you to build credit or one that will enable you to build credit and earn rewards. Extra’s rewards program allows you to earn 5 points for every $1 spent using the card. The points don’t add up to much, but they equate to 1% cash back on all of your purchases at the end of the day.
If you participate in the rewards program, you can use your rewards points in Extra’s rewards store. Points can be redeemed for various items, and the rewards store is accessible through the Extra mobile app.
Spend Power
Traditional debit cards allow you to access all the money in your checking account. Your bank might assign certain purchasing limits, but generally, you can spend as much as you’d like as long as you have the money in the bank. Alternatively, a traditional credit card approves you for a line of credit. You can use the credit card to make purchases until you hit your credit limit, and then you need to pay it off before you make purchases again.
The Extra Card does something that’s a little bit in between. With the Extra Card, you have something called Spend Power. The Spend Power is the amount you can spend using your Extra Card. Since your Extra Card is connected to your bank account, it will consider the current balance of your account when assigning your Spend Power. The length of time you’ve been an Extra member can also impact your Spend Power. Newer members start with lower Spend Power. As you make purchases using the card, you may be able to increase your Spend Power.
Who is the Extra Card best for?
Young adults
Building credit is an essential thing for young adults to think about. Taking out student loans (most likely with a cosigner) can help build your credit. You can also get a credit card. However, the extra card might be the safest way for young adults to build credit if they don’t want to be responsible for loans and credit cards. The Extra Card allows young adults to start building credit without risking debt. And since the Extra Card does not perform a credit check as part of its approval process, you can’t be denied for not having a credit history.
Related: Best Credit Cards for Students
People who need help building credit
Sometimes, we get into a bind, and our credit takes a hit. Bad credit can make it more difficult to get approved for many things that could help us rebuild credit, such as loans and credit cards. People in this situation can use the Extra Card to help build their credit and improve their chances of getting approved for other financial products.
People who don’t like credit cards
Credit cards can be beneficial in many ways, but that doesn’t mean everybody wants one. The Extra Card offers a great alternative because it allows you to build credit and earn rewards while only spending money that you actually have.
Who shouldn’t use the Extra Card?
Anyone who doesn’t want to connect to their bank account
The Extra Card requires that you connect it to your bank account. If you’re uncomfortable with that, the Extra Card isn’t a good fit for you.
People who already have good credit
You don’t need the Extra Card if you already have good credit. There’s nothing wrong with using the Extra Card, but it probably isn’t worthwhile. The Extra Card offers some rewards, but with good credit, you can likely qualify for credit cards with better rewards and more ways to use them. There’s also no use in paying the monthly fee for the Extra Card if you don’t need it to help build your credit.
People who don’t use a bank account
The Extra Card makes it easier for people to qualify for something that can help build their credit. However, that doesn’t mean anyone can benefit from an Extra Card. If you don’t have a bank account or your bank doesn’t participate with Extra, you can’t get approved for an Extra Card.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Pros and cons
Pros
- The Extra Card does not perform a hard inquiry on your credit so it won’t affect your credit score.
- You can check if your bank can connect with Extra before you apply.
- The Extra Card provides an easy way to build your credit without taking on a lot of risk.
Cons
- Extra does not report your Extra Card transactions to TransUnion, a major credit bureau.
- You have to pay either a monthly or annual fee for the card.
- Though the Extra Card can help you build credit, it does not raise your credit utilization on your credit report.
Extra vs. competitors
Card | Type | Monthly/Annual Fee | Credit Inquiry? |
|---|---|---|---|
Extra Card | Debit card | Start at $20/mo or $149/yr | No |
Petal 2 "Cash Back, No Fees” Visa Credit Card | Unsecured credit card | $0 | Yes |
Chime Credit Builder Secured Visa Credit Card | Secured credit card | $0 | No |
Petal 2 “Cash Back, No Fees” Visa Credit Card
Petal 2
Card Name
Petal 2
APR
18.24% – 32.24%
Recommended Credit Score
None
Annual Fee
$0
Rewards Rate
You can earn up to 1.5 percent cash back on eligible purchases (with 12 on-time payments).
Why We Like It
- No credit history need; build your credit
- No annual fees
- No late payment or returned payment fees
Card Details
Credit limit of $300 to $10,000
Chime Credit Builder Secured Visa Credit Card
Chime® Credit Builder Secured Credit Builder Visa® Card
Card Name
Chime® Credit Builder Secured Credit Builder Visa® Card
APR
29.99%
Recommended Credit Score
N/A
Annual Fee
$0
Rewards Rate
Credit Builder is a secured credit card. The money you move to the Credit Builder secured account is how much you can spend with the card. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account.
Why We Like It
- No annual fee or interest
- No credit check to apply
- No minimum security deposit required
FAQs
Is there an Extra Credit Card?
No, Extra does not offer a credit card. The only product currently offered by Extra is the Extra Debit Card, otherwise known as the Extra Card.
Where can I use the Extra Card?
The Extra Card can be used for online or in-person purchases. In-person purchases can only take place within the United States, but you can make online purchases from vendors anywhere. You can use your Extra Card for everyday purchases anywhere that Mastercard is accepted.
What if I don’t qualify for the Extra Card?
If you want to build your credit but don’t qualify for the Extra Card because you cannot connect your bank account, there may be alternative options. One of the most common alternatives is a secured credit card. Secured credit cards require you to put down a security deposit as collateral. Then if you don’t make payments on your credit card, the financial institution can pull the money from your deposit. Most secured credit cards require a deposit equal to the credit limit that it approves you for. You can use money from your savings or checking account to make your security deposit for a secured credit card.
Better banking is here.
- No account fees
- Earn up to 4.50% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
The bottom line
The Extra Card is the first debit card on the market that can help you build credit. This unique product can be important for anyone setting up a personal finance plan that includes building credit. Unlike traditional debit cards, the Extra Card reports your account activity to two major credit bureaus. As you’re building credit, you’re only using money that Extra knows you have in your banking account, so there is no risk of going in the hole as you work on building credit.
The perks of the Extra Card include a rewards program and the ability to build your credit. The rewards program does not offer as much earning potential or flexibility as most traditional credit cards, but it can be a good way to earn cash back on everyday purchases. Consider the subscription cost when considering whether the Extra Card is right for you. While the Extra Card does provide many benefits, other products on the market may be able to help you build credit without the fees.
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JoyWallet has partnered with CardRatings for our coverage of credit card products. JoyWallet and CardRatings may receive a commission from card issuers.
Writer
Ashley Hart is a lead copywriter and digital marketing expert covering finance, law, real estate, music, entertainment, health and wellness.
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