Wouldn’t it be great if rewards debit cards existed? While this might not be possible in most cases, a new app called Debx is designed to help users treat their credit cards just like debit cards through the innovative strategy of daily payments synced with your banking accounts.
Although Debx is one of many financial technologies currently available to smartphone users, it’s arguably one of the most useful personal finance apps created recently. If you’re ready to make real progress paying off your debts, then here are some ways Debx can help you achieve your debt-free goals:
Daily Credit Card Payments
With Debx, your credit cards are treated like debit cards. This means the app will pay off your purchases each day and adjust your bank account balances in real time. This means you won’t have to worry about spending money you don’t have without giving up the awesome benefits that credit cards offer. You don’t even have to worry about checking your credit cards through their separate websites or apps because Debx does all the work for you in one simple place.
Once you sync your credit card accounts and banking accounts in the Debx app, set up an auto-pay limit and establish a shut-off balance, you’ll be able to pay off your purchases without worrying about overdraft fees on your banking accounts (Debx disables automatic payments if your account balance falls below a minimum threshold). It’s important to note that Debx only pays off posted transactions, not pending transactions.
The auto-pay limit is designed to help you make large purchases without automatically deducting the funds from your checking account – for instance, if you want to purchase a TV and make payments on it, you could set up an auto-pay limit of $600-800 to avoid draining your available cash on a big-ticket purchase.If you’re ready to make real progress paying off your debts, then here are some ways Debx can help you achieve your debt free goals.Click To Tweet
Improve Your Credit Score
Although debit cards are useful for controlling your spending habits, there are also many downsides to debit cards. For instance, you can’t build or improve your credit score with a debit card, which means you’re financially stable but missing out on valuable opportunities to increase your creditworthiness.
If you go long periods without using any forms of credit, then the credit reporting bureaus can’t determine whether you should qualify for a loan or other line of credit in the future. Even if you do qualify, you might not get the best rate due to lack of responsible credit usage in your recent financial records.
Debx is an optimal solution for anyone who wants the accountability of a debit card with the credit-building capacity of a credit card. To improve your credit score, making payments on time (and preferably more than the minimum amount due) is a major factor in credit score analyses. Since Debx makes all your credit card payments for you as soon as a transaction posts to your account, you’ll be well on your way to building a solid history of consistent payments on your credit cards.
Get the Most Out of Your Rewards Card
Another downside to exclusively relying on debit cards for purchases is that you miss out on opportunities to accrue miles, points or cash-back rewards that credit cards offer. Since rewards credit cards typically have higher interest rates, it’s important to pay off balances on those cards as quickly as possible, which is where Debx comes in.
By treating your rewards credit card like a debit card, Debx allows you to continue using your favorite credit cards without the negative repercussions of high-interest debt piling up. This means you can accumulate points and miles without worrying about the trade-off between rewards earned and interest paid.
Is Debx Safe?
After the massive Equifax hack in 2017 and countless smaller hacks of companies that hold consumers’ private information, it’s smart to be concerned about personal identity theft nowadays. Fortunately, Debx has several top-notch security measures in place for its users, including 256-bit encryption, bank-grade security through AWS, credentialed verification requirements, and much more.
Perhaps best of all, Debx doesn’t ask for your Social Security number (something many other personal finance apps do!). You also don’t need to sign up for a new bank account with Debx (though only the biggest 10 banks in the U.S. are supported by the Debx app, so if you use a smaller bank or credit union, then you might need another account to use Debx).
Additionally, if any overdraft fees mistakenly occur as a result of a Debx error (e.g., shut-off balance set but not followed by the app), then Debx will reimburse you for an accidental overdraft fee. This kind of security is almost unparalleled among Debx’s competitors, so don’t downplay the value of top-tier security when it comes to deciding which personal finance apps are best for your lifestyle and budgetary needs.
Should You Download the Debx App?
There are no fees associated with using Debx – it’s completely free! Ultimately, the Debx app is ideal for any iPhone users (no Android compatibility yet) who want to take control of their finances without sacrificing the freedom and flexibility of using credit cards. If you’re prone to blowing your budget or racking up more credit card debt than expected, then Debx is designed to help you stabilize your financial situation and improve your credit score with minimal effort.