Traditional student credit cards are relatively common on college campuses. But if you’ve ever tried to get one, you’re likely familiar with the headache that is the approval process. On top of sky-high interest rates, student credit cards are confusing and don’t come with a manual. They encourage overspending, debt, and won’t help you get ahead with your personal finances. That’s where Fizz comes in.
How does a student credit card work?
A student credit card is much like a regular credit card. The main difference is that student credit cards are marketed towards college students and often leave people saddled with thousands of dollars in credit card debt. In theory, students have an easier time with the approval process, though that’s not always the case. Even if you’re a student, it can be difficult to be approved for a card without credit history - even if you have an on-campus job.
With a student credit card, you’ll be given an arbitrary credit line - often times more than you have in your bank account. You’ll get a bill once a month, and you’ll have to pay for all of your purchases by a certain date. If you miss that payment date, even by accident, your credit score will suffer. If you decide to only pay back a fraction of your bill, you'll be subject to sky-high interest rates and will end up owing far more than you ever spent. The worst part? These credit card companies actually encourage this kind of behavior. It’s how they make more money.
Why is Fizz different?
Despite the drawbacks of student credit cards, it is possible to use them to build your credit score. But why would you want to go through the hassle when a Fizz card is set up to help you get ahead every step of the way?
Fizz is different from a student credit card in a few ways. First, Fizz doesn’t check your credit score, so there’s no worrying about whether you’ll get approved. Once you’ve signed up, we connect to your existing bank account and give you a spend limit that reflects your account balance to keep you from spending more than you have. At Fizz, we want to help you build credit even if you don’t have credit. The signup process is extremely simple. All you need to do is enter some personal information and connect a bank account and you’ll be ready to go.
Second, Fizz is a debit card that builds credit - not a credit card. With features like daily Autopay and SafeFreeze, your purchases will be automatically paid off on a daily basis and we won’t let you keep building up a balance if you happen to miss a payment. Because Fizz is still an unsecured line of credit, you can make payments once per month if you want to - but daily Autopay and SafeFreeze are one-of-a-kind features that will help you stay on top of your finances. Other cards don’t even come close to that kind of help. And of course, Fizz doesn’t charge fees or interest rates.
The cherry on top? Fizz helps you earn some pretty sweet cash rewards from your spending. For example, Chipotle is one place where Fizz cardholders can earn rewards. Yes, you can literally get money in your pocket for buying a burrito. It’s really as simple as that. You can find offers on the Fizz app and then it’s off to the races. A lot of student credit cards don’t offer any rewards at all.
Fizz to the rescue
Fizz helps you establish a credit profile and build your credit - without the hassle and headache. But if the whole concept is a little foreign to you, that’s ok. We’ve developed resources to help you understand, because you’re not alone. The Fizz app also features a credit dashboard where you can track your score in real time and see what kinds of factors are affecting it.
The old ways of building credit and achieving financial freedom are gone. Whole generations have been subject to crappy credit cards, poor financial education, and debt. We want to change this dynamic and help guide you down the path towards financial freedom. And it all starts by building your credit with Fizz!