Building credit is one of the most important steps you’ll take on your journey towards a brighter financial future. A good credit score can unlock tons of opportunities for you while saving you tons of money along the way. Whether you’re trying to rent an apartment, qualify for a car loan, get a new credit card, or even get a new job, your credit score can have a huge effect. A good credit score can also save you thousands of dollars on your mortgage if you ever decide to buy a house.
Fizz is here to help you on your credit building journey. But how exactly does Fizz help you build credit? And what do you have to do to get started? The good news is that it’s easier than you might think. Let’s take a look at how building credit with Fizz actually works – and how you can get started.
How does Fizz actually build credit?
At the end of the day, Fizz builds your credit the same way any credit card does – by reporting your data directly to the credit bureaus. It’s really that simple! There isn’t any special button you need to press or lever you need to pull to start building credit.
Now, it’s also important to remember that you’ll also need to keep your card paid off in full and on time for any line of credit to have a positive effect on your score. That’s why Fizz makes it easier than ever to stay on top of things. With Fizz’s smart spending limit that adjusts based on your bank account balance and daily Autopay that keeps your balances paid off automatically on a daily basis, there’s not much keeping you from building an awesome credit score.
The nuts and bolts
That’s the general overview of how Fizz can build your credit, but let’s take a look at how things work behind the scenes.
When you sign up, we give you a line of credit. You use that line of credit to make purchases. We then report your spending habits to the credit bureaus. If you’ve paid off all your purchases and haven’t missed any payments, your score should increase over time. If you don’t pay off your purchases, then your credit score will drop. But Fizz makes it easy to keep your purchases paid off, and ultimately, you’re in complete control over what gets reported to the credit bureaus.
This is how any line of credit works. You borrow money with the understanding that you’ll pay it back. If you do pay it back, your score will increase over time and your reputation as a borrower will be favorable. If not, your score will go down and others will be less likely to give you money, rent you apartments, or give you jobs.
Why Fizz is a better way to build credit
At the end of the day, any unsecured line of credit is going to have a similar effect on your credit (secured lines of credit and authorized user accounts don’t have a very strong effect on your credit, and you should generally avoid them if you can). Whether you’re using a Discover card or a Fizz card, you’re getting an unsecured line of credit that can help you achieve your credit building goals. So what makes Fizz better?
It all comes down to how we at Fizz take care of our users. Normal cards from Discover and Bank of America charge fees and interest rates. They encourage you to go into debt. And they gatekeep their credit building cards behind a wall of credit checks and red tape. And even cards like Extra, that claim to take care of their users, charge usage fees and keep you spending money that you don’t have to.
Fizz, on the other hand, makes your life easier. We don’t check your credit. We don’t charge interest rates. We don’t have fees. And we keep you from overspending and going into debt by keeping your purchases paid off – instead of letting them pile up. It’s the smarter, safer, and better way to build credit. And now you know exactly how it works, so download the app and get started building your credit with Fizz today!
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.