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The process of building credit is often described as a catch-22 because you already need credit to get approved for credit products like a credit card. Some credit products provide consumers with a way to insert themselves into this cycle by extending credit to people with bad or no credit. However, even the best credit cards for bad credit can be expensive, with high APRs and annual fees.

Fizz offers an interesting alternative geared toward college students with a free credit-building debit card. Included in our guide on the best credit-builder accounts, see if Fizz is right for you.

 Fizz Credit Builder Debit Card Review

It's always hard to argue with free services, and Fizz is no exception. With no fees or interest rates, the Fizz debit card offers a cost-effective method for building credit. Fizz's spend limits and SafeFreeze features also remove the risk that you may overspend and rack up debt, which can lower your credit score and defeat the entire purpose of using a credit-builder product. Additionally, Fizz offers cash-back reward programs with businesses often found on college campuses, offering some benefits for college students.

However, the security this card offers comes at the cost of some freedom. Its daily spend limit, while great for preventing debt from piling up, restricts its usage potential to the daily purchases you make here and there, like lunch or a coffee. While this card is great for people who are new to credit cards and building credit, its application beyond the college campus is limited. 

As a relatively new company, customer reviews of Fizz are scarce but generally positive. Reviews on its Apple app store page average 4.4 stars over 131 reviews. Trustpilot reviews average 4.6 stars out of five over 23 reviews.

If you have a good grip on budgeting and controlling your spending, a student credit card or a secured credit card may be a more practical option than Fizz. Not only do these cards offer greater freedom, but they also turn into regular credit cards after a certain period. However, the Fizz card fills the needs of a specific consumer and does so very well. 

Fizz Pros and Cons

Pros

Cons

  • No interest or monthly fees

  • Cash-back rewards for businesses around college campuses

  • SafeFreeze and daily spend limits remove the temptation to overspend

  • No credit checks

  • No security deposits

  • Spend limits confine usage to smaller, daily purchases

What is Fizz?

Fizz is a credit-building debit card that launched in January 2023. However, Fizz isn't exactly a debit card in that it draws money directly from your bank account when you use it. Instead, you actually borrow money with your Fizz card — banking services provided by Patriot Bank — that Fizz requires you to pay off daily. Fizz then reports these payments to the three major credit bureaus — Experian, Equifax, and TransUnion.

How Does Fizz Work?

The Fizz debit card operates on the Mastercard's network. As long as a business accepts Mastercard, you can make a purchase at that business using your Fizz card like you would any other card. Fizz can even be added to your Apple wallet.

When you use Fizz to make a purchase at certain businesses, usually businesses you find around campus, you can earn points. Ten points equate to one dollar. 

Fizz has a few unique features designed so that you don't overspend and rack up a large credit bill.

Spend limits

For one, users are given a daily spend limit calculated based on their bank account balance. This ensures that consumers only spend what they currently have. If your bank account balance gets too low, your card locks itself, so you can't spend additional money through Fizz.

SafeFreeze

Fizz also enforces daily payments through its SafeFreeze feature, which locks the card if you miss a daily payment. This way, you won't continue to incur additional debt if you can't pay off your current balance. Fizz encourages using its autopay feature, so you don't have to make these daily payments manually. Fizz reports your payment history to the major credit bureaus as you borrow money and make your daily payments.

By limiting the balance you can rack up, Fizz also limits the risk that you'll rack up an insurmountable debt. This can ultimately hurt your credit if you can't make your payments and they fall into delinquency. A large amount of debt may also damage your credit by raising your credit utilization ratio.

How to Get a Fizz Card

To get the Fizz card, you need to download the Fizz app from the Apple app store or the Google Play store. 

Like any credit-based product, you'll need to give Fizz your personal information, including your Social Security number, address, and birthday. Once Fizz confirms your identity and you link your bank account to your Fizz account, you can start using your card.

Fizz Debit Card Frequently Asked Questions (FAQ)

How Does Fizz Make Money?

Fizz makes money through interchange fees charged to the vendor when you use your Fizz card. When you make a purchase using your credit card, a percentage goes to the card network used, in this case, Mastercard. Fizz takes a percentage of that money.

How to Contact Fizz Customer Service

You can reach Fizz's customer service team via email at support@joinfizz.com. You can also message Fizz directly through the app.

How to Cancel My Fizz Card

You need to contact Fizz's support team to cancel your account. You must ensure you have paid all your debts before closing your account. Note that closing your account can affect your credit score by lowering your overall credit limit.

Read the original article on Business Insider