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March 27, 2022
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Finance

Why regular student credit cards don't stack up against Fizz

When it comes to building your credit as a college student, student credit cards with high interest rates and confusing terms used to be the only way. Here's why Fizz is a way better option.

Traditional student credit cards are relatively common on college campuses. But if you’ve ever tried to get one, you’re likely familiar with the headache that is the approval process. On top of sky-high interest rates, student credit cards are confusing and don’t come with a manual. That’s where Fizz comes in.

How does a student credit card work?

A student credit card is much like a regular credit card. The main difference is that student credit cards are marketed towards college students and often leave people saddled with thousands of dollars in credit card debt. In theory, students have an easier time with the approval process, though that’s not always the case. Even if you’re a student, it can be difficult to be approved for a card without credit history - even if you have an on-campus job.

With a student credit card, you’ll be given an arbitrary credit line - often times more than you have in your bank account. You’ll get a bill once a month, and you’ll have to pay for all of your purchases by a certain date. If you miss that payment date, even by accident, your credit score will suffer. If you decide to only pay back a fraction of your bill, you'll be subject to sky-high interest rates and will end up owing far more than you ever spent.

Why is Fizz different?

Despite the drawbacks of student credit cards, it is possible to use them to build your credit score. But why would you want to go through the hassle when the Fizz card can do it all for you?

Fizz is different from a student credit card in a few ways. First is that Fizz doesn’t check your credit score, so there’s no worrying about whether you’ll get approved. We connect to your existing bank account and we won’t let you spend more than you have. At Fizz, we want to help you build credit even if you don’t have credit. The signup process is strikingly simple. All you need to do is enter some personal information and connect a bank account and you’ll be ready to go.

Second, Fizz is a debit card that builds credit - not a credit card. Instead of just giving you a card and sending you a bill once a month, we connect to your existing checking account and grant you a daily line of credit that reflects your balance. That way, we won’t let you spend more than you have. We’ll spot you for your purchases every day and then pay ourselves back from your connected account the next day. No remembering to pay your bill at the end of the month, no racking up charges you forget about, and no debt, interest rates, or fees to be afraid of.

Table comparing the Fizz card to the Discover it® Student Cash Back Card Both cards allow you to build credit and earn cash back Fizz requires no credit check or hard pull. Discover requires a credit check. Fizz won't let you overspend. Discover will let you over spend. Fizz has no interest. Discover has up to 22.24% APR. Fizz has no fees. Discover has late fees, advance fees, and transfer fees.

The cherry on top? Fizz helps you earn some pretty sweet cash rewards from your spending. For example, Chipotle is one place where Fizz cardholders can earn rewards. Yes, you can literally get money in your pocket for buying a burrito. It’s really as simple as that. You can find offers on the Fizz app and then it’s off to the races. A lot of student credit cards don’t offer any rewards at all.

Fizz to the rescue

Fizz helps you establish a credit profile and build your credit - without the hassle and headache. But if the whole concept is a little foreign to you, that’s ok. We’ve developed resources to help you understand, because you’re not alone. The Fizz app also features a credit dashboard where you can track your score in real time and see what kinds of factors are affecting it.

The old ways of building credit and achieving financial freedom are gone. Whole generations have been subject to crappy credit cards, poor financial education, and debt. We want to change this paradigm and help guide you down the path towards financial freedom. And it all starts by building your credit with Fizz!

Join Fizz, the debit card for college students
bio

Sam Lipscomb

Sam is a Kenyon College alum and is head of content at Fizz. He's been a go to personal finance resource among his peers since getting his first credit card during his sophomore year of college. He hails from Washington, DC, loves all things aviation, and currently lives in Los Angeles.

Back
March 27, 2022
Finance

Why regular student credit cards don't stack up against Fizz

Fizz is the credit card for college students

When it comes to building your credit as a college student, student credit cards with high interest rates and confusing terms used to be the only way. Here's why Fizz is a way better option.

Traditional student credit cards are relatively common on college campuses. But if you’ve ever tried to get one, you’re likely familiar with the headache that is the approval process. On top of sky-high interest rates, student credit cards are confusing and don’t come with a manual. That’s where Fizz comes in.

How does a student credit card work?

A student credit card is much like a regular credit card. The main difference is that student credit cards are marketed towards college students and often leave people saddled with thousands of dollars in credit card debt. In theory, students have an easier time with the approval process, though that’s not always the case. Even if you’re a student, it can be difficult to be approved for a card without credit history - even if you have an on-campus job.

With a student credit card, you’ll be given an arbitrary credit line - often times more than you have in your bank account. You’ll get a bill once a month, and you’ll have to pay for all of your purchases by a certain date. If you miss that payment date, even by accident, your credit score will suffer. If you decide to only pay back a fraction of your bill, you'll be subject to sky-high interest rates and will end up owing far more than you ever spent.

Why is Fizz different?

Despite the drawbacks of student credit cards, it is possible to use them to build your credit score. But why would you want to go through the hassle when the Fizz card can do it all for you?

Fizz is different from a student credit card in a few ways. First is that Fizz doesn’t check your credit score, so there’s no worrying about whether you’ll get approved. We connect to your existing bank account and we won’t let you spend more than you have. At Fizz, we want to help you build credit even if you don’t have credit. The signup process is strikingly simple. All you need to do is enter some personal information and connect a bank account and you’ll be ready to go.

Second, Fizz is a debit card that builds credit - not a credit card. Instead of just giving you a card and sending you a bill once a month, we connect to your existing checking account and grant you a daily line of credit that reflects your balance. That way, we won’t let you spend more than you have. We’ll spot you for your purchases every day and then pay ourselves back from your connected account the next day. No remembering to pay your bill at the end of the month, no racking up charges you forget about, and no debt, interest rates, or fees to be afraid of.

Table comparing the Fizz card to the Discover it® Student Cash Back Card Both cards allow you to build credit and earn cash back Fizz requires no credit check or hard pull. Discover requires a credit check. Fizz won't let you overspend. Discover will let you over spend. Fizz has no interest. Discover has up to 22.24% APR. Fizz has no fees. Discover has late fees, advance fees, and transfer fees.

The cherry on top? Fizz helps you earn some pretty sweet cash rewards from your spending. For example, Chipotle is one place where Fizz cardholders can earn rewards. Yes, you can literally get money in your pocket for buying a burrito. It’s really as simple as that. You can find offers on the Fizz app and then it’s off to the races. A lot of student credit cards don’t offer any rewards at all.

Fizz to the rescue

Fizz helps you establish a credit profile and build your credit - without the hassle and headache. But if the whole concept is a little foreign to you, that’s ok. We’ve developed resources to help you understand, because you’re not alone. The Fizz app also features a credit dashboard where you can track your score in real time and see what kinds of factors are affecting it.

The old ways of building credit and achieving financial freedom are gone. Whole generations have been subject to crappy credit cards, poor financial education, and debt. We want to change this paradigm and help guide you down the path towards financial freedom. And it all starts by building your credit with Fizz!

Join Fizz, the debit card for college students
bio

Sam Lipscomb

Sam is a Kenyon College alum and is head of content at Fizz. He's been a go to personal finance resource among his peers since getting his first credit card during his sophomore year of college. He hails from Washington, DC, loves all things aviation, and currently lives in Los Angeles.

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