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Personal finance

Credit Cards vs. Debit-Linked Builders: What’s Safer for Students in 2025?

Credit Cards vs. Debit-Linked Builders: What’s Safer for Students in 2025?

Credit Cards vs. Debit-Linked Builders: What’s Safer for Students in 2025?

Confused between credit cards and debit-linked credit builders? Learn which option is safer for students in 2025 and how tools like Fizz help you build credit without the risk of debt.

Confused between credit cards and debit-linked credit builders? Learn which option is safer for students in 2025 and how tools like Fizz help you build credit without the risk of debt.

Confused between credit cards and debit-linked credit builders? Learn which option is safer for students in 2025 and how tools like Fizz help you build credit without the risk of debt.

Oct 8, 2025

Sam Lipscomb

3

min

If you’re a college student trying to build credit, you’ve probably been told that getting a credit card is the first step. But for many, that step can feel like a cliff, hidden fees, high interest, and the constant fear of debt.

Now, debit-linked credit builders like Fizz are changing the game. They promise a way to build credit safely without the pitfalls of traditional credit cards. But how do they actually compare? And which is safer for students?

Let’s break it down.

Why Building Credit Matters Early

Credit is your financial reputation; lenders, landlords, and even employers use it to decide how trustworthy you are with money.

A good credit score can help you:

  • Qualify for apartments without a co-signer

  • Get lower interest rates on car or student loans

  • Unlock better financial products after graduation

But starting young also comes with risk. Many students jump into credit cards without understanding interest or utilisation — and end up damaging their score before it even grows.

Credit Cards (and Their Risks)

How They Work

A credit card lets you borrow money up to a limit and pay it back later. Each month, you’re expected to make at least the minimum payment — but if you don’t pay in full, you’ll owe interest.

For responsible users, this system helps build credit by showing consistent on-time payments. But for students still learning to manage money, the line between “borrowing smart” and “borrowing too much” can blur fast.

The Pros

  • Builds credit if you pay on time

  • Offers rewards like cash back or travel points

  • Often includes fraud protection

The Cons

  • Debt risk: It’s easy to overspend and miss payments

  • Interest and late fees: High APRs (often 20%+) can add up fast

  • Hard credit checks: Can temporarily lower your score when you apply

Even one missed payment can hurt your credit score for years — not exactly a great start to your financial life.

Debit-Linked Credit Builders: The Safer Alternative

What They Are

Debit-linked builders (like Fizz) are a new category of credit card alternatives designed for students. Instead of letting you borrow money, they connect to your existing bank account and let you spend only what you already have — just like a debit card.

The twist? Every purchase you make and repay gets reported to major credit bureaus, helping you build credit without going into debt and overspending.

How They Work (Simple Breakdown)

  1. You use your card for everyday spending — things like groceries, coffee, Ubers, and whatever else you spend money on.

  2. The platform pays for the purchase, then automatically pulls the money from your bank account at the end of the day.

  3. Your activity is reported to credit bureaus like Equifax, Experian, and TransUnion, improving your credit history.

The Pros

  • No debt risk: You're stopped from spending more than you have.

  • No interest or late fees.

  • Automatic payments: No risk of forgetting to pay.

  • Credit reporting: Builds your credit score over time, safely and responsibly.

The Cons

  • No big sign-up bonuses or flashy travel rewards (but that’s fine for students just starting out).

  • Requires linking your checking account.

Credit Cards vs. Debit-Linked Builders: A Quick Comparison

Feature

Traditional Credit Card

Debit-Linked Builder (e.g. Fizz)

Spending Limit

Borrowed credit line

Your own balance

Interest Charges

Yes (15–25% typical APR)

None

Risk of Debt

High

None

Reports to Credit Bureaus

Yes

Yes

Requires Credit Check

Usually

No

Best For

Experienced users

Students & first-time builders

Why Fizz Is Built for Students

Most credit cards were never designed for college students — they were designed for adults with steady income and experience managing debt.

Fizz flips that logic.

  • It reports to two major credit bureaus — helping you build a strong score while you study.

  • There are no interest rates, credit checks, or hidden fees.

  • Daily Autopay ensures your balance is paid off automatically, so you’ll never forget a payment.

  • Tools like SafeFreeze keep you from missing payments and overspending.

Fizz is built around financial safety, not temptation. You’re still building credit — just without the traps.

When a Credit Card Might Still Make Sense

Once you’ve built a foundation with a debit-linked builder, a low-limit credit card can still be useful for:

  • Earning targeted rewards (like student cash-back cards)

  • Managing emergencies or travel holds

  • Expanding your credit mix for future loans

But you should only take that step after you’ve built discipline and understand how credit utilisation and payments affect your score.

Start safe, then scale up.

FAQs

1. Do debit-linked cards actually build credit?

Yes. Tools like Fizz report your payments to major credit bureaus, just like credit cards — helping you build credit safely without borrowing.

2. Is Fizz a debit card or a credit card?

Fizz runs on debit rails but works like a secured credit builder. You spend your own money, but your payments are reported as credit activity.

3. Will using Fizz hurt my credit score?

No. There’s no hard credit check when you sign up, and Fizz helps improve your score with consistent on-time payments.

4. What if I already have a credit card?

You can use both — your Fizz activity adds positive payment history, which can improve your credit mix and strengthen your score.

5. Is Fizz free to use?

Yes. Fizz has no interest, no late fees, and no hidden charges — only an optional membership plan for extra benefits. 

Sam Lipscomb

Author bio

Sam is a Kenyon College alum and is head of content at Fizz. He's been a go to personal finance resource among his peers since getting his first credit card during his sophomore year of college. He hails from Washington, DC, loves all things aviation, and currently lives in Los Angeles.

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ShoulderTap Technologies, Inc. d/b/a Fizz © 2024.


450 Broadway, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.

ShoulderTap Technologies, Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.


All activities conducted by Fizz as program manager in connection with the Fizz Card and the corresponding line of credit are conducted by Fizz Technologies, Inc. (NMLS: 2522542).


Membership is subject to a periodic, recurring subscription fee. Fizz Members may choose to apply for a Fizz Card, but are not required to. Fizz Membership does not guarantee access to a Fizz Card. Application and eligibility restrictions apply. ¹Over $300 in annual value of Fizz Card based on cash value available to Fizz Card users assuming half of all available rewards and promotions are used. Actual results may vary. To opt out of future recurring subscription charges, Members may cancel their Membership through the app at any time prior to their next billing date. Cardholders who cancel their Membership will lose access to their Fizz Card and line of credit at the end of their subscription term. Closing a line of credit may negatively impact your credit score.


Fizz cardholders: Fizz reports your payment history on the revolving, open-end line of credit accessed by your Fizz Card. Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, missed payments, or other defaults on your account, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®  and Transunion® .


For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.


Selected customers reviews above describe individual experiences or results. Individuals in TikTok videos featured above are paid spokespeople. Selected customer reviews above describe individual experiences or results. Actual results may vary. App Store rating as of January 2025.


²Credit score sliding scale feature is for informational purposes only. Credit score ranges based on information available on RentSpree. Car loan figures assume a loan value of $30,000 over 72 months and based on information available on CNN. Student loan figures assumes a $35,000 private student loan with a 10-year term and based on information available on CNBC, NerdWallet and Credible. Apartment approval based on information available on BI and RentSpree.


Fizz is not a credit repair tool and does not offer any form of credit counselling services. Fizz makes no representation or promise that it will improve your credit score, history, or profile or provide you with any assistance in that regard. None of Fizz’s services, including your ability to check your credit report and/or score through the Fizz App, is offered or provided with respect to the extension of credit by third parties. Fizz and its affiliates are not credit repair organizations or credit services organizations, and are not offering to sell, provide or perform any service to you for the express or implied purpose of either improving your credit record, credit history or credit rating, obtaining an extension of credit for you, or providing advice or assistance to you with regard to improving your credit record, credit history or credit rating.


For people with disabilities, including those who are visually impaired, deaf, or hard of hearing, we accept messages via our in-app chat, emails at [email protected], and calls on our answering machine at (940) 260-2704. If you leave us a voicemail, please leave your name and number and a member of our customer support team will return your call.

ShoulderTap Technologies, Inc. d/b/a Fizz © 2024.


450 Broadway, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.

ShoulderTap Technologies, Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.


All activities conducted by Fizz as program manager in connection with the Fizz Card and the corresponding line of credit are conducted by Fizz Technologies, Inc. (NMLS: 2522542).


Membership is subject to a periodic, recurring subscription fee. Fizz Members may choose to apply for a Fizz Card, but are not required to. Fizz Membership does not guarantee access to a Fizz Card. Application and eligibility restrictions apply. ¹Over $300 in annual value of Fizz Card based on cash value available to Fizz Card users assuming half of all available rewards and promotions are used. Actual results may vary. To opt out of future recurring subscription charges, Members may cancel their Membership through the app at any time prior to their next billing date. Cardholders who cancel their Membership will lose access to their Fizz Card and line of credit at the end of their subscription term. Closing a line of credit may negatively impact your credit score.


Fizz cardholders: Fizz reports your payment history on the revolving, open-end line of credit accessed by your Fizz Card. Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, missed payments, or other defaults on your account, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®  and Transunion® .


For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.


Selected customers reviews above describe individual experiences or results. Individuals in TikTok videos featured above are paid spokespeople. Selected customer reviews above describe individual experiences or results. Actual results may vary. App Store rating as of January 2025.


²Credit score sliding scale feature is for informational purposes only. Credit score ranges based on information available on RentSpree. Car loan figures assume a loan value of $30,000 over 72 months and based on information available on CNN. Student loan figures assumes a $35,000 private student loan with a 10-year term and based on information available on CNBC, NerdWallet and Credible. Apartment approval based on information available on BI and RentSpree.


Fizz is not a credit repair tool and does not offer any form of credit counselling services. Fizz makes no representation or promise that it will improve your credit score, history, or profile or provide you with any assistance in that regard. None of Fizz’s services, including your ability to check your credit report and/or score through the Fizz App, is offered or provided with respect to the extension of credit by third parties. Fizz and its affiliates are not credit repair organizations or credit services organizations, and are not offering to sell, provide or perform any service to you for the express or implied purpose of either improving your credit record, credit history or credit rating, obtaining an extension of credit for you, or providing advice or assistance to you with regard to improving your credit record, credit history or credit rating.


For people with disabilities, including those who are visually impaired, deaf, or hard of hearing, we accept messages via our in-app chat, emails at [email protected], and calls on our answering machine at (940) 260-2704. If you leave us a voicemail, please leave your name and number and a member of our customer support team will return your call.

ShoulderTap Technologies, Inc. d/b/a Fizz © 2024.


450 Broadway, Level 2, New York, NY 10013. All rights reserved. FIZZ® is registered in the U.S. Patent and Trademark Office.

ShoulderTap Technologies, Inc. d/b/a Fizz (“Fizz”) is not a bank. The Fizz Debit Mastercard® (“Fizz Card”) is issued by Patriot Bank, N.A., Member FDIC, pursuant to a license from Mastercard® and may be used everywhere Mastercard® debit cards are accepted. Any loans you may be offered in connection with your use of the Fizz Card are originated by Lead Bank, a Missouri state-chartered bank. Any promotions or rewards you may be offered in connection with your use of the Fizz Card are offered and managed by Fizz, not our bank partners.


All activities conducted by Fizz as program manager in connection with the Fizz Card and the corresponding line of credit are conducted by Fizz Technologies, Inc. (NMLS: 2522542).


Membership is subject to a periodic, recurring subscription fee. Fizz Members may choose to apply for a Fizz Card, but are not required to. Fizz Membership does not guarantee access to a Fizz Card. Application and eligibility restrictions apply. ¹Over $300 in annual value of Fizz Card based on cash value available to Fizz Card users assuming half of all available rewards and promotions are used. Actual results may vary. To opt out of future recurring subscription charges, Members may cancel their Membership through the app at any time prior to their next billing date. Cardholders who cancel their Membership will lose access to their Fizz Card and line of credit at the end of their subscription term. Closing a line of credit may negatively impact your credit score.


Fizz cardholders: Fizz reports your payment history on the revolving, open-end line of credit accessed by your Fizz Card. Increases or specific changes to your credit score are not guaranteed. Impact on your credit score may vary depending on your use. Fizz is required to report late payments, missed payments, or other defaults on your account, which may negatively impact your credit score. Credit scores are independently determined by credit bureaus based on a number of factors, including your activity with other creditors. The Fizz Card and related services will not remove negative credit history from your credit report. Fizz, on behalf of Lead Bank, will report your activities to Experian®  and Transunion® .


For additional information, terms and conditions applicable to your use of Fizz’s services, please consult Fizz’s Terms of Use and Privacy Policy, the Cardholder Agreement, any Line of Credit Agreement in effect between you and Lead Bank and any and all other applicable terms, policies and guidelines made available to you through the Fizz services.


Selected customers reviews above describe individual experiences or results. Individuals in TikTok videos featured above are paid spokespeople. Selected customer reviews above describe individual experiences or results. Actual results may vary. App Store rating as of January 2025.


²Credit score sliding scale feature is for informational purposes only. Credit score ranges based on information available on RentSpree. Car loan figures assume a loan value of $30,000 over 72 months and based on information available on CNN. Student loan figures assumes a $35,000 private student loan with a 10-year term and based on information available on CNBC, NerdWallet and Credible. Apartment approval based on information available on BI and RentSpree.


Fizz is not a credit repair tool and does not offer any form of credit counselling services. Fizz makes no representation or promise that it will improve your credit score, history, or profile or provide you with any assistance in that regard. None of Fizz’s services, including your ability to check your credit report and/or score through the Fizz App, is offered or provided with respect to the extension of credit by third parties. Fizz and its affiliates are not credit repair organizations or credit services organizations, and are not offering to sell, provide or perform any service to you for the express or implied purpose of either improving your credit record, credit history or credit rating, obtaining an extension of credit for you, or providing advice or assistance to you with regard to improving your credit record, credit history or credit rating.


For people with disabilities, including those who are visually impaired, deaf, or hard of hearing, we accept messages via our in-app chat, emails at [email protected], and calls on our answering machine at (940) 260-2704. If you leave us a voicemail, please leave your name and number and a member of our customer support team will return your call.