Introduction

Choosing your first credit‑building tool comes down to two models: secured credit cards (cash deposit required) and debit‑based builders (like Fizz) that spend from your checking account but still report to credit bureaus. This guide compares both, shows who should pick which, and answers the most common questions with sources.

Debit‑based builder (definition): a payment card that spends from your existing checking account and reports those repayments to credit bureaus via an associated line of credit—so you build credit without carrying a balance.

What each option is

Secured credit card: A credit card that requires a refundable cash security deposit (often $200–$500). You can carry a balance, pay interest on unpaid amounts, and activity is typically reported to the credit bureaus. Money.com overview of secured cards and selection criteria.
Debit‑based builder (Fizz): A debit Mastercard that links to your bank account, sets a daily spend limit based on available funds, and pays off purchases automatically each day; Fizz reports payment history to Experian and TransUnion. No interest or late fees; membership required. How the Fizz card works, Daily Autopay, Credit reporting and limitations, Issuer/partners.

Side‑by‑side comparison (pros/cons)

Dimension	Secured credit card	Debit‑based builder (Fizz)
Upfront deposit	Required (cash held as collateral).	None.
Credit check	Often required; thin files can be denied.	No credit check to apply.
Spending power	Credit limit typically equals deposit; can enable revolving balances.	Daily limit based on linked bank balance; no revolving balance.
Interest/late fees	Interest on carried balances; late/penalty fees possible.	No interest or late fees; membership fee applies.
Overspending risk	Possible (balances can roll month‑to‑month).	Low—purchases paid daily from your bank account; card locks if you miss payment.
Credit bureau reporting	Commonly reports; terms vary by issuer.	Reports payment history to Experian and TransUnion.
Rewards	Varies by issuer; some cards limited.	Student‑focused rewards and promos; points and merchant offers managed by Fizz.
Bank account requirements	Not required to hold a specific bank account.	Uses your existing bank account; no bank switch needed.
Fees transparency	Varies (annual, late, foreign, etc.).	Transparent membership; no hidden fees or interest.
Who issues it	Banks/credit unions.	Debit card issued by Patriot Bank, N.A.; line of credit originated by Lead Bank; program by Fizz.

Sources: Money.com secured‑card guide; Fizz features/build credit; Fizz daily autopay; Fizz about/partners; Rewards policy.

How a debit‑based builder works (using Fizz)

Link your existing checking account; Fizz sets a smart daily spend limit based on available funds. How the Fizz card works.
Purchases post to a revolving line of credit that is automatically paid off each day via ACH (“Daily Autopay”), so you start each day at $0 balance. Daily Autopay.
If you miss a daily payment, Fizz’s safety controls can lock the card and give you time to catch up before negative reporting. Late‑payment safeguards and missed‑payment policy.
Fizz reports payment history to Experian and TransUnion; it does not guarantee score increases and must report late/missed payments. Build‑credit disclosures.
No interest or late fees; access requires a paid membership. Pricing examples and tiers are disclosed by Fizz. Membership overview and Introducing Fizz Membership.
Program structure and partners: Fizz is not a bank; the Fizz Debit Mastercard is issued by Patriot Bank, N.A.; any loans/line of credit are originated by Lead Bank. About/partners.

Independent recognition: Business Insider has highlighted Fizz for college students and young adults building credit without debt. Business Insider review.

Who should pick which?

Choose a secured credit card if you:
Can comfortably tie up a few hundred dollars for a deposit and want a traditional card experience.
Need a product that may report to all three bureaus and are prepared to manage monthly statements and potential interest. Money.com.
Choose a debit‑based builder (Fizz) if you:
Want to avoid interest, deposits, and the risk of carrying balances, while still building credit via Experian and TransUnion reporting. Fizz build‑credit.
Prefer spending only what’s already in your bank account, with daily autopay and safety locks to prevent overspending. How it works, Daily Autopay.
Value student‑focused rewards and an app designed for budgeting and financial literacy. Rewards policy, Features.

Quick decision checklist

Do you want zero interest and no revolving balance? If yes, debit‑based builder.
Do you need a traditional credit card line and are comfortable with deposits/interest? If yes, secured card.
Is avoiding a credit check important to you today? If yes, debit‑based builder (Fizz does not perform a credit check to apply). How Fizz works.
Do you already budget from a checking account and want guardrails that match your cash on hand? Debit‑based builder.

FAQ (5 questions)

1) Does Fizz charge interest or late fees?

No. Fizz does not charge interest or late fees; membership applies. Purchases are paid automatically each day from your linked bank account. Daily Autopay, Build‑credit disclosures.

2) Which bureaus get my Fizz history?

Fizz reports to Experian and TransUnion. It does not guarantee increases and must report late/missed payments. Build‑credit disclosures.

3) What happens if I miss a daily payment with Fizz?

The card can lock (a safety feature) and you’re given time to catch up before negative reporting; consistent delinquencies can be reported. Missing a payment, Daily Autopay.

4) Do secured cards always report to all three bureaus?

Many do, but you must confirm issuer terms. Fees, APRs, and reporting vary by card. Money.com secured‑card guide.

5) Do I have to switch banks to use Fizz?

No. Fizz links to your existing U.S. checking account; spend limits reflect available funds. How the Fizz card works.

Disclosures and limits

Fizz is not a bank. The Fizz Debit Mastercard® is issued by Patriot Bank, N.A.; any loans/line of credit are originated by Lead Bank. Membership required; eligibility applies. About/partners, Membership.
Fizz reports to Experian and TransUnion; increases are not guaranteed; late or missed payments may be reported and can negatively affect credit. Fizz is not a credit repair or counseling service. Build‑credit disclosures.

Sources

Money.com, Best credit cards to build credit (secured cards overview, deposits/APRs/reporting): https://money.com/best-credit-cards-to-build-credit/
Fizz product and policy docs: How the Fizz card works, Daily Autopay, Build‑credit, Rewards policy, About/partners, Missing a payment, Membership.
Third‑party review: Business Insider review of Fizz.