Extra is a debit card that builds credit and allows you to earn rewards on purchases.5 Extra is not a credit card. Instead, the Extra card connects to your bank account and will enable you to get credit for purchases you make with the credit bureaus.
You can connect an existing bank account to Extra, which works with over 10,000 banks. Extra gives you a spending limit based on your bank balance and other factors. When you swipe your card, Extra “spots” you the money, then pays itself back from your bank account the next day. Extra reports these purchases and payments to the credit bureaus at the end of the month.
Here are some of the key features to know about the Extra debit card:
- Extra is a debit card that works with your bank; it’s not a secured credit card
- There is no credit check to apply for the Extra debit card
- Extra charges a flat monthly subscription fee ranging from $8 to $126
- Extra reports account activity to Experian and Equifax (but not TransUnion)6
- Cardholders pay no interest
- Upgraded membership includes additional benefits
The Extra debit card uses the money in your bank account to help you build credit. You won’t need an additional security deposit to open an account.
You can choose between a Credit Building account and a Rewards + Credit Building account. If you opt for rewards, you can earn up to 1% in points for everyday purchases. You can spend points on gift cards or merchandise in the Extra debit card rewards store.
While Extra charges on interest, you will pay a monthly fee to use the debit card to build credit. The fee for the Credit Building plan is $8 per month; for Rewards + Credit Building, it’s $12 per month.
Extra debit card pros and cons
The Extra debit card might appeal to you if you’re looking for a way to build credit without applying for a credit card. Extra can work with your existing bank account to help you build credit history based on your daily spending.
Here are some reasons why you might consider the Extra debit card:
- There’s no credit check to apply
- It’s not a credit card, so there’s no risk of creating debt
- Cardholders pay no interest
- You have an opportunity to earn rewards on purchases
- It’s possible to build credit with two out of the three major credit bureaus
Now, why might you think twice about the Extra debit card?
First, there’s the monthly fee to consider. If you’re paying $8 per month for the Credit Building plan, that adds up to $96 per year. That’s similar to what others might pay for an unsecured premium rewards credit card. The Rewards + Credit Building plan is even more expensive, at $144 per year.
Earning rewards back on what you spend can help to offset the fee. But it’s important to be realistic about how much you might be able to earn in reward points based on your typical spending habits.
Also, Extra determines your spending power with the card. So you might have much less purchasing power with this card compared to what you might get with a traditional secured credit card.
