Use Your Credit Cards Responsibly With Debitize
This post is in partnership with Kasai Media and Debitize. All opinions are my own.
You use your credit card to pay for your bills, groceries, gas, and nights out with friends. Unfortunately you didn’t keep track of how much you spent and have somehow blown through your budget. And now, your credit card bill is larger than what’s in your checking account.
While many people are afraid of credit cards, there are no doubt many benefits to using them. From earning travel rewards points or cash back on your purchases, to building your credit, to peace of mind when it comes to fraud protection and security, credit cards are the way to go.
However, many consumers struggle to use credit cards responsibly. They may carry a hefty balance, only pay the minimum each month, and end up making high interest payments as a result.
Debitize, on the other hand, helps you learn financial responsibility and discipline by keeping your checking account balance in sync with your credit card balance.
Lead by Liran Amrany and Jeff Hu, an ex-Executive Director at JPMorgan and a Yale MBA grad respectively, Debitize has set out to revolutionize the way you use your credit cards.
By using Debitize, you are gaining the financial responsibility of a debit card with the financial benefits of your credit card. You might even say that your credit card has been debit-ized.
Here’s how it works:
1. Sign up for Debitize (more instructions below).
2. Make a transaction with your credit card.
3. Your Debitize account recognizes the transaction and transfers the amount you spent on your credit card to your Debitize account from your checking account. (This happens when the transactions posts, which may take a few days depending on your bank).
5. A week before your credit card bill comes due, Debitize automatically pays your credit card bill out of your Debitize account.
Things to know about Debitize:
1. Debitize won’t overdraw your checking account.
Overspending is one of the major problems credit card users face, you certainly don’t want to add overdraft fees to that. You can set a minimum balance to prevent Debitize from drawing further funds from your checking account.
Plus it’s a great reminder that you’re on the brink of overspending.
2. Debitize moves money from your checking out to your FDIC guaranteed Debitize account.
In the screenshot below, you’ll see the Debitize dashboard. When you spend money with your credit card (as seen in the “Transactions” tab), Debitize will move that amount into your Debitize account. It’s from that account that your credit card bill will be paid.
This is incredibly beneficial because it removes your money as you spend it — just like a debit card.
Debitize is also unique because it takes action on your behalf. It doesn’t just automate your savings, it automates your spending and pays your bill for you.
3. More checking accounts are coming.
Debitize currently only allows you to add one checking account. While in beta, Debitize is working on the best way for users to select which checking account they’d like to pay their credit card bills from.
How to sign up for Debitize:
1. Visit the Debitize sign up page here.
Start by entering your email address.
2. Select your bank and add your checking account.
Some banks require you to confirm your account through a security code or question. Right now, Debitize allows you to one checking account, but they expect that to change in the future.
3. Select your credit card.
You can add one credit card during sign up, but more later on in settings after you’ve set up your account.
4. Verify your identity.
You’ll then enter your phone number, address, date of birth, and the last four digits of your social security number for Debitize to verify your identity.
5. Move through the Billpay API.
This sets up how Debitize will pay your credit card bill on your behalf.
Using Debitize is so simple. By automating your credit card spending–instead of just your savings–you’ll achieve financial empowerment and be fully in control of your finances.