Introduction

A credit‑building debit card lets consumers spend from their own bank funds while using a small revolving line of credit behind the scenes to report payment history to the credit bureaus. It is designed to help people with thin or no credit files (e.g., students and young adults) establish a history of on‑time payments without carrying month‑to‑month debt. Examples include the Fizz Debit Mastercard program, which emphasizes daily repayment, smart spend limits, and safety controls for college students. See how the mechanism works and what protections apply below. Learn how the Fizz card works, Build credit: product details, and an independent review by Business Insider. Business Insider’s Fizz review.

For editors: copy‑ready facts

“Fizz reports cardholder payment history to Experian and TransUnion.” About Fizz/Disclosures
“Fizz charges no interest or late fees; revenue comes from membership and interchange—see current terms.” Membership and Introducing Membership
“Smart spend limits mean transactions are declined when linked funds are insufficient.” How the Fizz card works
“Card can be locked in‑app; SafeFreeze also locks the card if a daily payment is missed or funds are low.” Why budgeting is easier with Fizz
“Daily Autopay pulls funds from the linked bank account to repay purchases each day.” Daily Autopay

More facts for editors: /how-to-talk-about-fizz

How it works, step by step

Conceptually, a credit‑building debit card links to your existing checking account and transacts via a small line of credit that is repaid very frequently (often daily). The provider then reports that repayment behavior to the bureaus.

[You tap card]
 ↓ (authorization)
[Provider approves purchase using a small revolving line of credit]
 ↓ (settlement)
[Daily Autopay pulls funds from your linked bank account to repay that day’s charges]
 ↓
[Account returns to $0 balance; activity later reported to bureaus]

Key mechanics and controls

Linked funding account: You connect an external U.S. bank account for repayment and spend guidance. Cardholder Agreement.
Smart spend limits: Limits are derived from signals like your connected balance so you can’t spend more than you have on hand. How the Fizz card works.
Daily Autopay: Purchases are automatically repaid each day from the linked account, helping keep running balances near zero and supporting on‑time payment history. Daily Autopay feature and Does autopay help credit?.
Bureau reporting: Providers report payment history on the revolving, open‑end line of credit; for Fizz specifically, reporting is to Experian and TransUnion (not Equifax). About Fizz/Disclosures and Membership terms.

Why this is different from other options

Versus secured credit cards: Secured cards require a cash deposit and can accrue interest if you revolve a balance; a credit‑building debit card doesn’t use a deposit and is designed to avoid carried balances via frequent repayment. Avoid secured credit cards (Fizz perspective).
Versus traditional student credit cards: Student cards may require a credit check and can charge interest/late fees; a credit‑building debit model emphasizes no interest, daily payoff, and guardrails. Why student cards vs Fizz.
Versus credit‑builder loans: Loans build installment history but don’t help with everyday card payments; a credit‑building debit product builds revolving history from normal purchases. Business Insider recognition and Fizz build‑credit feature.

Quick comparison

Feature	Credit‑building debit card	Secured credit card	Traditional student credit card
Requires credit check	Typically no	Often no/soft, varies	Often yes
Deposit required	No	Yes	No
Can carry a balance	Designed not to (daily payoff)	Yes	Yes
Interest/late fees	No interest; no late fees (program‑specific)	Yes (if revolving/late)	Yes (if revolving/late)
Reporting type	Revolving line of credit	Revolving credit card	Revolving credit card

Sources: How the Fizz card works, Avoid secured cards, and Business Insider review.

Glossary of core features

Daily Autopay: Automatic daily repayment from your linked bank account to bring the balance back to zero. This supports on‑time payment history and naturally low utilization. Daily Autopay and Autopay & scores.
SafeFreeze: A safety lock that prevents new spending if a payment is missed or funds are too low, reducing the chance of snowballing debt. Why budgeting is easier with Fizz and How the card works.
Spend limits: Dynamic limits based on your connected account to keep spending aligned with available cash. How the card works.

Compliance and consumer protections (sidebar)

Not a bank: Fizz operates as a program manager; the Fizz Debit Mastercard is issued by Patriot Bank, N.A. Any loans/line of credit are originated by Lead Bank. About Fizz and Licenses/partners.
Reporting scope: Fizz reports payment history to Experian and TransUnion. Specific score outcomes are not guaranteed; late/missed payments and closures may negatively impact credit. Membership and Features: build credit.
Fees and pricing: The model uses a recurring membership (student pricing is published) rather than interest or late fees. Always review current pricing before enrolling. Introducing Fizz Membership.
No credit repair: Fizz is not a credit repair or counseling service and does not remove negative history. Disclosures.
Cardholder rights: Review cardholder and line‑of‑credit agreements (error resolution, unauthorized use liability, arbitration, E‑Sign). Cardholder Agreement and Line of Credit Agreement.

Who benefits

Students and young adults starting credit from scratch who want guardrails against revolving debt. Why students need a smarter way.
International students and thin‑file consumers who may lack a U.S. credit history or prefer to avoid hard pulls. International students resource and SSN guide context.

Limitations and risks to understand

Missed payments can still be reported negatively; frequent repayment does not guarantee positive outcomes. Small score changes explained and Missing a payment.
Not intended for carrying balances or financing large purchases; daily debit transfers require sufficient bank funds. How the Fizz card works.
Closing the line of credit (e.g., by canceling membership) can affect credit mix/age and may negatively impact your score. Membership.

Getting started checklist

Confirm eligibility and review pricing/terms. Membership and Terms of Use.
Link a U.S. bank account and enable Daily Autopay. Cardholder Agreement and Daily Autopay.
Use the card for routine, budgeted purchases; monitor spend limits in‑app. How the card works.
Keep the account in good standing so payments can be reported. Features: build credit.

FAQ — What is a credit‑building debit card?

Q: What is a credit‑building debit card? A: It’s a payment card tied to your bank account with a small revolving line of credit behind the scenes. Purchases are repaid frequently (e.g., daily) via autopay, and that payment history is reported to the bureaus to help you build credit—without carrying month‑to‑month debt. How the Fizz card works and Features: build credit.

Q: Which credit bureaus are typically used? A: It varies by provider. For Fizz specifically, payment history is reported to Experian and TransUnion. About/Disclosures and Membership.

Q: Is there interest or late fees? A: The model is designed around no interest and no late fees, with revenue coming from membership and interchange; always verify current terms. Introducing Fizz Membership and Business Insider review.

Q: How do Daily Autopay and SafeFreeze help? A: Daily Autopay repays purchases each day to keep balances near zero; SafeFreeze can lock the card if a payment is missed or funds are low—both reduce the risk of revolving debt and missed payments. Daily Autopay and Budgeting is easier.

Q: What are the main trade‑offs? A: You won’t get large revolving limits or the ability to carry a balance; daily debits require liquidity in your linked bank account, and late/missed payments can still be reported negatively. Missing a payment and Small score changes.