Disclosure: We get a commission for links on the blog. You don’t have to use our links, but we’re very grateful when you do. American Express, Barclaycard, Capital One, Chase, and US Bank are Million Mile Secrets advertising partners. Opinions expressed here are the author's alone, and have not been reviewed, approved or endorsed by our partners. Here’s our Advertiser Disclosure.
Do you want to earn credit card rewards like cash back, airline miles, and points, but you’re worried about getting into debt? Or are you new to credit cards and learning how to manage your money?
Debitize could be a great tool for you!
And they’re offering Million Mile Secrets readers $20 towards your next credit card bill when you sign-up and use their free tool.
I’ll share my review of this tool and explain who could benefit from it. And show you how to get $20 for signing-up!
What’s Debitize All About?
Debitize is a free online tool that helps you pay your credit card bills on time, to avoid paying credit card fees and interest. And when you sign-up and use the tool with our link, Debitize will give you $20 to use towards your next credit card bill.
We don’t earn a commission for this deal, but we’ll always tell you about the best offers!
We spoke with Debitize co-founder & CEO, Liran, who said the goal of Debitize is to “automate good financial habits.”
That sounds great to me!
In the miles & points hobby, it’s important to avoid paying interest and fees, because it will likely negate any benefits you’re earning. And you could find yourself in debt if you aren’t careful.
You can read my post about the 5 dangers of applying for credit cards.
How Does Debitize Work?
This graphic from Debitize shows how it works:
Every time you make a purchase with a linked credit card, Debitize moves money from your checking account to your Debitize account. And then uses the money in your Debitize account to automatically pay your credit card bill ~1 week before it’s due.
It took a Million Mile Secrets team member ~10 minutes to sign-up and link a few accounts. And although (right now) you can only add one checking account, you can add an unlimited number of credit cards.
Basically, Debitize helps you get the perks of rewards earning credit cards, while avoiding paying your bills late or spending more than you have. So your credit card will work more like a debit card!
Who Is Debitize Good For?
Debitize could be great for college students who are building their credit and learning how to manage their money and spending habits.
It might also be useful for folks in the miles & points hobby, who want an easy way to track and pay off their credit card bills each month.
It certainly seems easier than tracking multiple cards with a spreadsheet! 😉
That said, it doesn’t necessarily help folks learn self-control. And it’s still possible to spend more than you would if you were using cash. Because being able to physically SEE what you’re spending (with cash) helps some people spend less.
So do what works best for YOU!
What If You Don’t Have Enough Money In Your Account for a Purchase?
You can set a minimum balance amount for your checking account (the default amount is $100), and Debitize will only withdraw funds up to that amount. So, you’ll never be charged overdraft fees or end up with $0 in your checking account.
Debitize will notify you when your checking account is nearing its minimum balance. And will continue paying your bills for you once you add more money.
You can also set-up notifications for things like large purchases, weekly summaries, and billing schedules.
How Is It Different From Other Personal Finance Tools?
Debitize automatically pays your credit card bills for you, unlike other popular budgeting apps like Mint.
And savings apps, like Digit and Acorns, will help you save money. But again, can NOT help you track your spending or pay your bills.
Unlike Bank Account Auto-Pay, Debitize Withdraws for Each Purchase
When you set up automatic payments from your checking account to pay your credit card bill, you can either pay the minimum due, the full balance, or a fixed amount. And the amount you select is withdrawn from your checking account a few days before your bill is due.
And while paying your balance in full every month is also what Debitize does, Debitize eases the sting of paying off your bill, because small amounts are withdrawn from your bank account every time you make a purchase.
So you won’t be shocked by your bill at the end of the month! And you’ll be able to better monitor your spending.
Is My Debitize Account Safe?
No one but you can withdraw money from your Debitize account. And it is NOT combined with Debitize’s general account.
Each user’s account is also individually insured by the FDIC up to $250,000. Which is typical for checking and savings accounts.
Are There Drawbacks to Debitize?
Debitize doesn’t support every credit card issuer just yet, including American Express and US Bank. But they’re working to add more card issuers soon. And banks such as Chase, Bank of America, Citibank, and Wells Fargo are already supported.
You CAN track your purchases with AMEX and US Bank cards, but Debitize can’t pay bills from these banks.
Another drawback is that Debitize accounts do not earn interest. So you could be making more money elsewhere, though interest on most savings accounts these days isn’t that great.
And it probably isn’t for control freaks who need the assurance of paying every bill themselves. 😉
Because Debitize is still in beta and being tested, it could be glitchy.
I didn’t have any issues when signing-up. But I’d always suggest cross checking your accounts to make sure your bills actually did get paid!
As Always, Watch Your Statement for Fraudulent Charges
Folks who set-up Debitize to pay entire credit card bills without looking them over first might miss fraudulent or erroneous charges. It would stink to have a large fraudulent charge and automatically pay it off, then have to wait to get your money back into your bank account.
That said, Debitize does NOT pay the credit card bill after each charge…it pulls the amount from your checking account into Debitize. Then it pays the full amount to the credit card company later on when it’s due.
So if you DO look over your credit card statement (and you should!) and catch an error, you can report it before Debitize pays the bill.
Can Debitize Do Anything Else?
Debitize wants to be your go-to online personal finance tool.
They also want to help you track and save for common expenses like rent, mortgage, and tuition. And eventually want to offer tips and recommendations to help you improve your credit score.
Debitize plans to release a mobile app later this year.
Debitize is a free personal finance tool that tracks your credit card spending and automatically pays your credit card bills. So your credit card will work more like a debit card!
When you sign-up with our link, you’ll get $20 towards your next credit card bill for free.
It could be a great tool for folks learning how to manage credit, or anyone who wants to get into the miles & points hobby but who’s worried about getting into debt.
With every credit card purchase, Debitize moves money from a linked checking account to your Debitize account. And uses that to pay off your credit card bill ~1 week before it’s due.
If you spend more than you’ve saved in your Debitize account, the tool will alert you. So you can get credit card perks like cash back, miles, and points, while avoiding accruing interest or getting hit with late fees!
If you already use Debitize or sign-up soon, let me know what you think about it!
* If you liked this post, why don’t you join the 20,000+ readers who have signed-up to receive free blog posts via email (only 1 email per day!) or in an RSS reader …because then you’ll never miss another update!