Some new debit cards have the ability to build credit.
Debit card activity isn't typically reported to major credit bureaus, but a new crop of debit cards geared toward younger consumers appear to be able to build credit, according to money.com.
Among them:
* The Extra Card (Evolve Bank & Trust or Patriot Bank, N.A.) $20 per month fee. Transactions are reported to two credit bureaus. An Extra study found overall average credit score increase of 48 points.
*Seasame Cash, a credit building checking account with a prepaid Mastercard debit card. Activity reported to all three credit bureaus monthly. Credit Sesame reported in 2021 users saw an increase of 35 points on average.
* Fizz, an mobile app available only on iOS, connects to your checking account and sets a spending limit. Users build their credit without fees or interest charges. Financial literacy resources also provided.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
