It starts off innocently enough, you put something on your card and tell yourself you’ll pay the balance the following month. But even with the best of intentions, it never seems to happen. Other expenses pop up and that pesky credit card balance gets pushed aside.
Before you know it your credit card balance has accrued interest and you’re going farther into debt.
But what if there was a way to use your credit card much like you would a debit card while reaping all the benefits credit cards provide? That’s what Debitize aims to do for you (get it? Debit-ize…like turning your credit card into a debit card)
Here’s how it works.
How Debitize Works
Debitize is a company with a mission of helping you reach your financial goals through automation. Their specialty is ensuring that you have enough cash set aside each and every month to pay off your credit card bill.
When you open a Debitize account you’ll link up your credit card and checking account information. When you make a purchase using your credit card Debitize will then automatically withdraw money from your checking to cover your purchase. Then, each month when your credit card bill is due, Debitize will use the money it has set aside to pay the bill for you.
You can sign up with Debitize in four easy steps:
- Sign up and link your accounts (Special Note: You may be asked to upload or email a recent credit card statement to Debitize.)
- Use your credit card as you normally do
- Funds are automatically transferred from your bank account to your Debitize account after every purchase
- Your credit card bill is paid using your Debitize funds
Once you sign up and link all of your accounts you have nothing more to do each month. Debitize will save your money and pay your bills for you.
Your role will be to treat your credit card purchases exactly like you would with a debit card. Be sure to record all of your purchases and deduct them from your bank balance as necessary. This system allows you to reap the benefits of building your credit and earning credit card rewards without ever having to pay interest or late fees.
And Debitize is completely free for you to use.
What If You Don’t Have Enough Money In Your Bank Account?
One of the biggest problems in using credit cards is not having enough money to pay them off every month (which is why Debitize was created.) But what if you don’t have enough money in your bank account to cover your credit card purchases when using Debitize?
Here’s what happens: In your Debitize account you can set a minimum balance that you want to keep in your bank account. Debitize will NOT draw money below the minimum that you set. And even if you don’t set a minimum they will not overdraw your checking account.
In the event that you don’t have enough money to cover your credit card bill, they will keep making transfers from your checking to your Debitize account to try and catch you up before your bill is due.
You can also set up multiple notifications in your Debitize account including low balance, large transactions, weekly summaries, and bill payments.
Your best bet in making Debitize work to your advantage is to treat your credit card spending EXACTLY like you do your debit card spending.
Why I Like Debitize – Keep Your Credit Card Balance Low And Your Credit Score High
Debitize is another example of how powerful automation is and how it prevents you from needing to muscle up willpower. If you don’t want to be part of the $115 billion a year spent in interest and fees I encourage you to give Debitize a try.
Remember, just two weeks ago I had a Facebook Live 15 Minute Money Bootcamp on the subject of why debit cards are bad. I hate using debit cards because:
- They don't build your credit
- They don't have as-good fraud protection as credit cards
- They don't offer rewards (typically)
However, the biggest complain I have from individuals in the “debit card camp” is that it's tough to manage their spending – they like the balance in their checking account to go down (versus a credit card going up). When it gets to $0, they've hit their limit.
Debitize bridges that gap between credit cards and debit cards – it makes your credit card act like a debit card. You just use your credit card normally, and Debitize takes it out of your checking account like a debit card normally would. But even better – they have features like checking account minimums so you can always keep a safe balance in your account, and if you'r falling short on making your payment, they will alert you until you take action.
Finally, it's not like Debitize “takes your money” and puts it in an account you can't access. If you need it, you can always transfer your Debitize account back to your checking account (even though I can't see a reason you'd do that).
I think you should check Debitize out. You can sign up for Debitize for free here.
This post was created in partnership with Debitize. All opinions are my own.
Photo Credit: juveline / 123RF Stock Photo