Self Secured Visa vs Extra Debit Card

2 Different Rebuilder Cards

Self and Extra are two completely different cards. While Self is a secured credit card and Extra is a debit card, they both report to credit bureaus and help you build or rebuild your credit. And both might have a place in your rebuilding portfolio. In this comparison, we will look more closely into the differences of the two cards and see if one comes out on top of the other.

The Basics

Let us know look at how these two cards work.

Self Secured Visa Basics

The Self Secured Visa is a secured credit card that is suitable for those who have trouble at the moment coming up with a security deposit for a secured card. What they offer is a credit builder loan where you can build up your savings until you have enough to fund a deposit for a secured credit card. Unlike a traditional loan, with a credit builder loan from Self, the loan amount does not go into your checking account. Instead, you simply pay back the loan with interest and whatevery you have paid back into the credit builder account is yours. Your monthly payments are reported to all three major credit bureaus so you can build or rebuild your credit while you "save" or your security deposit. There are no credit checks when you apply for a credit builder so you will definitely be approved.

Rather than choose a loan amount, you simply choose an amount you want to pay month for 24 months (min is $25 a month) and the loan amount will be worked out for you. Once you have $100 in your credit builder and account and you have made at least 3 payments, you can create a "secured account" and fund it with the money from your credit builder account. The minimum amount you can fund your secured credit card is $100. The security deposit becomes your credit limit. The only thing you have to be aware of is that Self only allow you to transfer your security deposit only once and cannot add additional deposits so you have to be sure of the credit limit that you want.

The Self Secured Visa has no annual fee and once again, there are no credit checks so you will definitely be approved.

Extra Debit Card Basic

The Extra Debit Card is one of the rare debit cards that reports to major credit bureaus and actually help you build or rebuild your credit. When you apply for Extra, they do not check your credit. Instead, you need to give them permission to access your bank account (which they will do via PLAID). Your cash flow will be analyzed and the amount you can charge your card will depend on this analysis. Extra Debit Card claims to have a 99% approval rate.

Extra reports to Experian and Equifax and has a $7/month fee.

Similarities

• No Credit Checks - Both Self and Extra do not perform any credit checks. However, Extra requires access to your banking account to determine a credit limit.

Differences

• Secured vs Debit - The major difference between these two cards is that one is secured credit card while the other is a debit card.


• Fees - The Self Secured Visa has no annual fee while the Extra Debit Card has a $7/month fee.


• Ability to carry a balance - You can carry a balance with the Self Secured Visa while funds will be withdrawn from your checking account almost immediately when you use your Extra Debit Card.

Which is better?

It is really hard to say which is the better card because they are both different and it is like comparing apples to oranges. Self Secured Visa is a typical secured credit cards that is available to those who set up a credit builder loan account with Self. You would do that if you want to save up for your security deposit.

However, if you already have a healthy bank balance and just want to card that forces you to pay in full every month, the Extra Debit Card would be something to consider because it is a debit card that actually reports to credit bureaus. Unlike the Self Secured Visa (which has no annual fee), Extra charge a $7/month fee. But that is actually a very reasonable fee compared to other rebuilder subprime credit cards. And you run no risk of getting into more debt.

To sum up, both of these are good cards for rebuilders. Self will appeal to those who need to save for their security deposit for a secured credit card whereas Extra is for those who want a card that forces them to pay in full and not carry a balance but still reports to credit bureaus1.