According to a recent Bankrate survey, about two thirds of millennials don’t own a credit card. Personally, I’ve always been a fan of credit cards, because they offer so many benefits when used responsibly. However, they’re incredibly dangerous when not. Misuse of credit is the 3rd leading cause of bankruptcy in the US and costs consumers $115 billion a year in interest and late fees.
Why Debit Cards?
Debit card users, most vocal among them Dave Ramsey, argue that debit cards help you avoid these dangers.
But what if there was a way to get the peace of mind and convenience of a debit card without giving up all the benefits of credit cards?
What if you could use your credit card, and the amount you spent was automatically pulled from your checking account? Then you could earn rewards and build credit without worrying about interest and late fees.
I remember that “a-ha” moment well. I was working at JPMorgan, and thinking of what I wanted to do next. Even though I liked the team I was working with, and my day to day was still intellectually stimulating, I wanted to make more of an impact. I had several friends that recently switched from credit to debit, and during conversations with one of them, when we went into his thought process in more detail, is when the idea struck. After doing some more customer and market research, I realized we had a real opportunity to help people. And we’d be solving two problems – by making it easy to use credit cards responsibly, we could help debit card users build credit and earn rewards, and we could help credit card users stay on top of their spending and stay out of debt.
Combining Credit and Debit Card Strategies
Debitize is compatible with any credit card and works by automatically setting aside the funds from your checking account every time you make a purchase. At the end of the month, when your bill comes due – the funds are already there, so we pay it for you, automatically and on time.
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With Debitize, you get the combined benefits of both credit and debit, which includes:
- Building credit: Credit card activity gets reported to the credit agencies, whereas debit card usage does not. Using a credit card responsibly is hands down the simplest and best way to improve your credit score.
- Rewards and other perks: In addition to cash back, airline miles, or other rewards, many credit cards also offer perks like extended warranties, purchase protection, price rewind, rental car insurance, trip protection, and more.
- Better security safeguards: When a credit card is stolen, it’s the bank’s money. When a debit card is stolen, it’s your money and you won’t have access to your funds until the bank rectifies the situation.
- Access to your funds: Most gas stations, hotels, and car rental agencies put a hold on your account for more than just your purchase. If you use debit, those are funds you won’t have access to until the hold clears, often not for a few days.
- Stay on budget: Funds come out of your checking account every day, so no surprises will pop up at the end of the month.
- No bills to pay: No bills means less hassle, and also no accidental late fees.
Using Debitize To De-Stress Your Life
We know you might not trust credit card companies, but at Debitize, we understand them really well. We help you play by their rules, beat the banks at their own game, and feel better about your money. Wouldn’t it be nice to use credit cards without the worry?
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