Debitize Review: Earn Credit Card Rewards Without the Debt
Some of the links in this post are from our sponsors. Read our disclosure to see how we make money.
Debitize was purchased by Ask Trim in early 2019. Trim has several of the same features as did Debitize, plus many more. Check out our Ask Trim review to learn more about their platform.
Free flights. Hotel rooms. Cash back. The perks that come with responsible credit card using are attractive. If you are like many people, you’d like to enjoy credit card perks but fear going into debt to get them. That may be what credit card companies are hoping for, but with Debitize, you don’t have to give in to them.
Credit cards can be super useful when it comes to helping you build your credit score, earn rewards and cash back on purchases, and have access to better purchase protection.
The huge underlying problem is that using a credit card tempts you to buy now and pay later which often results in accumulating debt because you spend more than you earn.
If you want to build your credit and eliminate that risk of blowing your budget and getting into debt, you can try Debitize. Debitize is a free tool that allows you to treat your credit card like a debit card and only spend the money you have on purchases.
How Debitize Works
Debitize is a company dedicated to helping you reach your financial goals through their automation tools. They specialize in making sure you have enough money in your account to pay your credit card in full each month because let’s be honest, the benefits of using a credit card aren’t worth it if you can’t pay your bill off each month.
Credit card interest rates are typically high, which will make it difficult for you to pay off your balances over time if you let them build up. Debitize links your credit card to your checking account; the process works like this:
- You make purchases on your credit card as you normally would
- Debitize deducts the amount from your checking account each day
- At the end of the month, they pay your credit card bill so your payment is always on time and in full
- Debitize seemingly eliminates the stress and worry that comes with not knowing how much you spent on your credit card and failing to pay off the bill on time and in full.
When I use credit cards, I always ask myself if I can afford to pay the charge off at the end of the month so I don’t carry a balance. That way, I can still earn credit card rewards without carrying debt.
I’m human and can make mistakes but Debitize eliminates any room for error and will make you think twice about overspending with your credit card.
Improve Your Credit Score
Debitize has recently rolled out a feature to help you improve your credit by keeping your overall credit card utilization low. It’s no secret that credit card usage is probably one of the best ways to build and maintain your credit score.
One of the most important factors that credit bureaus look at is your credit utilization (i.e. how much of your credit limit you use each month). Ideally, you want to keep your credit utilization at or below 30 percent of your limit. So if you have a limit of $10,000, you probably don’t want to spend more than $3,000 on your card.
Personally, I keep my utilization even lower at all times so it’s usually below 20 percent, but you never want to even get remotely close to maxing out your credit card limit.
If you have trouble keeping up with your utilization or just really want to focus on increasing your credit score, Debitize has a premium paid feature called the Credit Optimizer that helps you keep your credit card balance low.
Additional Features and Fine Print
When you use Debitize, you have 256-Bit Encryption bank-level security and their system is verified and monitored by Symantec. Once you sign up and link your account, you must remember your log in credentials since they are not stored in their system.
When making transfers, keep in mind that funds will only move between your checking account, your Debitize Reserve Account and your credit card. Debitize won’t make any other external transactions on your behalf.
Debitize’s deductions are made via ACH and it could take a few days for the transactions to clear so it’s important to realize that the money in your checking account won’t always be automatically pulled as if you were making a purchase with your actual debit card. Debitize is reportedly working on speeding this process up.
If you’re worried about overdrafting when you start using Debitize, you can set a minimum balance that you prefer to keep in your checking account to prevent that from happening. Debitize won’t withdraw any more money once you hit that minimum threshold.
If you wind up not having enough to pay your credit card in full, Debitize will automatically make transfers from your checking account when you have more money in the bank in an attempt to catch up on your payment before your bill is due.
You can also set up notifications with Debitize so they can send you alerts when your balance is low or if a large transaction has been paid along with weekly summaries and bill payment receipts. You can also unlink your account at any time if you wish to stop using the tool.
debitize review: our take
Debitize helps you avoid debt and stay on budget by treating your credit card purchases like debit card purchases. Their automation features also provide you with peace of mind knowing that your credit card bill will be paid in full and on time each month so you can boost your credit score and enjoy all your credit card perks like rewards, cash back, discounts and more.
If you know you struggle with using credit cards properly but want to build credit, this is a good tool to use. If you don’t have problems with overspending and use credit cards wisely each month, you may not need to use Debitize.
However, the tool is free, and at the very least it will help you become more mindful of your spending and only make purchases that you know you can afford. If you think you might get some value out of it or just want to check it out to see if it could benefit you, give Debitize a try today.
Do you use credit cards now to earn travel, cash back or other rewards? If not, why not? Are you concerned that you would go in to debt or forget to budget to pay off your balance each month? Do you have problems with overspending when you use credit cards?
Latest posts by Chonce (see all)
- 7 Simple Ways to Get Free Diapers and Wipes - June 17, 2019
- 6 Legit Ways to Get Free Walmart Samples and Discounts - June 5, 2019
- 9+ Best Jobs for Stay-at-Home Moms to Make Money - June 3, 2019