About Company
Extra is a financial platform that offers a range of services aimed at helping individuals build and manage their credit. One notable feature is the Extra Debit Card, which functions as a secured credit card. Users can make everyday purchases using this card, and the spending limit is based on a security deposit. This approach allows individuals to build positive credit history without the risk of overspending. Extra reports to the two major credit bureaus—Experian and Equifax (not TransUnion) contributing to the user's credit building plan.
Key Features
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Extra Debit Card. The Extra Debit Cards function as secured cards, allowing users to make everyday purchases. The spending limit is based on a bank account balance, providing a controlled way to manage expenses.
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Credit Building. Extra is focused on helping users build credit safely through responsible financial practices. Reports credit information to the major credit bureaus—Experian and Equifax—contributing to users' credit scores.
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Rewards Program. Users earn rewards points for their spending with the Extra Debit Card. Rewards points can be redeemed at the Extra Rewards Store, providing an incentive for responsible financial behavior.
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Credit Monitoring and Reporting. Extra offers insights into users' credit journeys, allowing them to track and monitor their credit history and progress. Regular credit reporting to major credit bureaus helps users understand and improve their credit scores.
Pros and Cons
Pros
Cons
Reliability
Extra's reliability is supported by its partnerships with reputable financial institutions. The Extra Debit Card is issued by Evolve Bank & Trust or Patriot Bank N.A., both of which are members of the Federal Deposit Insurance Corporation (FDIC). This affiliation ensures that the funds associated with the Extra Debit Card are protected up to the FDIC-insured limits, providing users with a level of financial security.
Additionally, the line of credit for Extra is provided by Lead Bank, adding another layer of credibility to the platform. Lead Bank's involvement in facilitating the line of credit contributes to the overall reliability of Extra's financial services.
Products
Extra Debit Card
The Extra Debit Card plays a crucial role in credit building, impacting your credit utilization ratio. The credit utilization ratio, a key factor in the 'amount owed' category of your FICO score, measures the credit you're using relative to the total credit extended to you. Experts recommend keeping this ratio under 30%, or ideally 10%, for optimal credit health. All you need is to connect your existing bank account and Extra will provide you with a line of credit (Spend Power) based on your bank balance and other factors.
Extra charges cardholders either an annual or monthly fee, depending on the plan they choose. For Extra Credit Building, the monthly fee is $20, or users can opt for an annual payment of $149, offering a slight discount. The Extra Credit Building and Rewards plan comes with a $25 monthly fee or a discounted $199 for the entire year.
Opting for the higher-priced plan grants access to the Extra Rewards program, where cardholders earn 5 rewards points for every $1 spent. While each point is worth up to 1 cent, the redemption value is 0.2 cents per point, translating to a 1% return on all purchases when redeemed for the maximum value.
The Extra Rewards program has a dedicated store accessible through the Extra App. However, the offerings in the store may vary. Recent popular items include an electric toothbrush, card games, gift cards, and AirPods. It's important to note that Extra, primarily a debit card focused on credit building, offers limited rewards and flexibility in point redemption compared to traditional rewards credit cards.
Extra emphasizes the positive impact on credit scores, citing an average increase of 48 points for members who regularly use the Extra Debit Card and practice good credit habits. This underscores the platform's commitment to helping users build credit history responsibly while providing some additional perks through its rewards program.
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Conditions and Requirements
Conditions
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Credit Building Plan. The Credit Building plan with Extra costs $20 per month. Users have the option to pay annually, reducing the cost to $149 per year.
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Rewards + Credit Building Plan. The Rewards + Credit Building plan is priced at $25 per month. An annual payment option is available, costing $199 for the entire year.
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Annual Payment Discounts. Users opting for the annual payment option receive a discounted rate of $149 per year for the Credit Building plan and $199 per year for the Rewards + Credit Building plan.
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Rewards Program. Members of the Rewards program can earn up to 1% back on purchases made with the Extra Debit Card.
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Rewards Redemption Considerations. To break even on the extra fees associated with the Rewards + Credit Building plan, users would need to spend a minimum of $5000 on their debit card in a year. The "up to 1%" back on purchases means that the actual rewards earned may vary, and some purchases might earn lower rewards. This variability should be considered when estimating the break-even point.
Requirements
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Age Requirement. Applicants must be 18 years of age or older.
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Identification Number. Applicants must have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
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US Address. Applicants must have a valid U.S. address where they can receive their Extra Card. P.O. boxes are not accepted.
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Checking Account. Applicants must have a checking account at one of the 10,000 select U.S. banks. This account is likely to be linked to the Extra Card for transactions and fund management.
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Device Requirements. Applicants must have an iOS device (iPhone or iPad) or an Android device running version 10 or later. This ensures compatibility with the Extra App, which is likely essential for managing the Extra Card and accessing related features.
Network of ATMs
Regrettably, the Extra Card's accessibility is constrained when it comes to cash-related services and international transactions. The platform does not support money orders, ATM withdrawals, direct deposits to the Extra Card, person-to-person transactions, or any form of cash transfers. This limitation underscores Extra's emphasis on electronic transactions and credit-building, discouraging traditional cash-based activities. Users should be mindful of these restrictions, recognizing that the Extra Card is designed for a specific financial focus and may not be suitable for those seeking a broader range of cash-related services or international transactions.
Alternatives
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Fizz offers a digital banking platform with features that may align with individuals looking for alternatives to traditional banking. It includes options for spending, saving, and building credit.
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Current Build Card is designed to help users build or rebuild credit. It operates as a secured credit card, providing individuals with an opportunity to establish or improve their credit history.
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Chime, known for its online banking services, offers a Credit Builder card that aims to assist users in building their good credit score responsibly. The card is linked to a Chime Spending Account and includes features tailored for credit-building purposes.
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Step Card is another alternative that focuses on financial well-being, especially for younger individuals. It provides a Visa-branded card with features designed to help users manage their finances and build credit.
Editorial Opinion
Important
Methodology
At Finanso, we've carried out a comprehensive analysis of over 50 neo banks, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.
In each category, we carefully considered the most critical factors in selecting a neo bank. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.
At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.
Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.
Additional Resources
- Full Extra Account Review
- Extra Mobile App
- Extra Reviews
