Debitize Links Your Credit Card to Your Bank Account so You Can Earn Rewards Responsibly
Using a credit card has advantages over a debit card , but there can be problems when budgeting with a credit card. One waste of money or a miscalculation and you may end up paying off your debt is not the smartest move. Debitize, available for Web / ioS, allows you to earn rewards without this risk .
Personally, I love credit cards for their many benefits: free travel, price protection, credit monitoring, and so on. I put almost everything on my card to earn as many rewards as possible – this is how I have paid for my travel over the past few years . Placing everything on my card, however, makes budgeting difficult. My general rule of thumb is to never have more in my bank account than on my card, and this works, but since I have other expenses that do come from my bank account, this process is far from perfect. In short, it’s so hard to keep track of spending.
When I spoke to Liran Amrani, co-founder of Debitize, he said that this is the main reason he launched the service.
“I found it was pretty wide. There are so many reasons to use credit cards, but there is no reason to use debit cards. And this is troubling. We allow you to connect any credit card to your checking account, so you can use any credit card, such as a debit card. You get paid without worrying about interest on debt or late fees. I don’t think being good at understanding money should be that difficult. ”
Debitize links your credit card to your bank account, so every time you swipe your card, the same amount you spent is automatically debited from your bank account. Debitize stores cash for you in a “debit reserve account” until it is time to pay your bill. This way, you can control your spending while still receiving rewards and enjoying all the other benefits of a credit card.
The funds held in your debit reserve account are FDIC insured “with a trusted regulated bank,” the website says. They will pay your credit card bill on your behalf one week before the due date. You can also set a minimum balance in your checking account so that there is always enough funds on it for other expenses (or overdraft protection).
If you already have a credit card balance, you’ll want to pay off it in full before using the service, just to start from scratch and keep everything in order. However, if you are in debt, you can use their Debt Breaker feature. You basically set up your Debitize account to pay off your debt over time (or right away). Just tell him to pay a certain amount every month and he will still charge your transactions, but then pay that additional amount as well.
In terms of security, they do not store (or sell) your information and use 256-bit encryption to keep your data safe. According to Amrani, if someone hacks into your Debitize account, worst of all they will be able to see what you spent your money on. They don’t actually have access to your account numbers and information, only your transactions.
So how does Debitize make money if they don’t sell your data? While they plan to keep the basic service free, they do implement various paid features. For example, you can sign up for their Credit Optimizer service for $ 3 a month and they will pay you the balance every week to use your credit at a low rate. Check out the tool yourself using the links below.
Debit (Internet)
Debit (Apple Store)