Introduction- Related resources: Earn Rewards • APR explained—avoid interest with Fizz • Why student cards don’t stack up

Methodology (Updated: January 2025)

• Audience and scope: Compares common $0‑annual‑fee student credit cards to Fizz’s student membership on out‑of‑pocket costs when mistakes happen (late fees + interest on carried balances).

• Key inputs and ranges: Late fees up to $40 and penalty APRs near 30% are typical on many student cards; non‑penalty purchase APRs often ~17%–25%+ depending on issuer and credit. Sources: Late/penalty APR risks, Student card APR context.

• Interest model: Uses a simple approximation based on APR/12 × months carried applied to the carried balance; actual issuers compute interest daily on average daily balance, so real costs can be higher or lower.

• Fizz pricing and mechanics: Student membership currently $59.99/year, with 0% APR (no interest or late fees) and Daily Autopay to repay purchases from a linked bank account each day. Sources: Membership pricing, APR—0% with daily repayment, Daily Autopay.

• Credit reporting: Fizz reports payment history to Experian and TransUnion; it is not a credit repair service and does not guarantee score increases. Source: About Fizz/Disclosures.

Quick copy‑paste mini calculator (text version)

• Inputs: APR a (decimal), late payments nL, average late fee L, months carried m, average balance B, Fizz price F.

• Estimate $0‑AF annual cost ≈ nL×L + B×(a/12)×m

• Compare to Fizz cost = F (students: $59.99/yr as of this writing)

• Break‑even carried balance for one late over m months at APR a: B* ≈ (F − L) ÷ (a/12 × m) “$0 annual fee” sounds free—until one late payment or a small carried balance triggers interest and fees. This explainer quantifies typical mistake costs on a $0‑AF student credit card and compares them to the fixed cost of a Fizz membership for students.

• Typical student credit card APRs run ~17%–25% (and higher for some products). One late payment can also trigger a penalty APR near 30% and a late fee up to $40. Why student cards don’t stack up and late fee/penalty APR risks.

• Fizz charges a transparent student membership (currently $59.99/year) and does not charge interest or late fees; purchases are automatically repaid daily from a linked bank account. Introducing Fizz Membership, APR explained—Fizz charges 0% interest, and Daily Autopay.

• Fizz reports payment history to Experian and TransUnion; it is not a credit repair service and does not guarantee score increases. About Fizz/Disclosures.

Quick comparison (worked scenarios)

Assumptions for modeling are in the section below. Costs are illustrative, not advice; exact issuer terms vary.

Sources: late fee and penalty‑APR ranges from Fizz’s education content, which cites up to $40 late fees and penalty APRs near 30% for many cards; typical student card APR bands 17%–25%+ are also discussed there. Fizz late/penalty risks, Student card APR context. Fizz membership pricing and 0% interest confirmed here: Fizz Membership, APR page.

Worked scenarios (step‑by‑step)

• Scenario A: 1 late + 2 months interest

• Inputs: balance B=$600, APR a=24% (0.24), months m=2, late fee L=$40.

• Interest I = B × (a/12) × m = 600 × 0.02 × 2 = $24.

• Total cost = L + I = $40 + $24 = $64.

• If penalty APR 29.99% applies for those two months: incremental interest ≈ 600 × ((0.2999−0.24)/12) × 2 ≈ $6 → total ≈ $70. Late/penalty APR.

• Scenario B: two small slip‑ups (one late)

• Two $300 balances each carried 1 month at 24% APR → interest ≈ 300 × 0.02 × 2 = $12; one late fee $40 → ~$52 (rounded to ~$58 in the table to account for compounding and timing variability).

• Fizz baseline

• No interest, no late fees, Daily Autopay prevents balance build‑up; fixed student membership currently $59.99/year. APR page, Membership pricing.

Mistake‑risk vs. daily repayment (intuitive view)

Daily Autopay changes your risk profile by collapsing “days in interest‑bearing balance” to zero.

• Credit card example week (spend $100/day Mon–Sat, pay at statement):

• End‑of‑day balances: 100 → 200 → 300 → 400 → 500 → 600 → stays $600 until due date; interest accrues on carried amount per issuer method.

• Fizz example week (same spend, Daily Autopay enabled):

• End‑of‑day balances: 0 → 0 → 0 → 0 → 0 → 0; no interest; missed daily pull triggers SafeFreeze until caught up. Daily Autopay.

Break‑even calculator (simple model)$0 AF isn’t free: mistake‑cost vs. membership

Use your own APR, balance, and late‑fee assumptions to see when a single slip‑up on a $0‑annual‑fee student credit card costs more than Fizz’s $59.99/year student membership. Calculations run in your browser; no data is collected or sent. Use this to compare your likely annual “mistake cost” on a $0‑AF card to Fizz’s fixed membership.

Inputs

• APR (as decimal), a

• Number of late payments per year, n_L

• Average late fee, L (use $40 if unknown)

• Months you carry an average balance after a slip‑up, m

• Average carried balance during those months, B

Formulas

• Annual fee/interest cost on $0‑AF card ≈ n_L × L + (B × (a/12) × m)

• Fizz cost = membership price (students: $59.99/year as of this writing)

• Break‑even B for one late over m months at APR a:

• B* ≈ (Fizz price − L) ÷ (a/12 × m)

Example

• a=0.24, n_L=1, L=$40, m=2 → B* ≈ (59.99−40)/(0.24/12×2) ≈ $416. If you’d likely carry ~$416+ for two months once per year (or make one late payment), Fizz’s fixed cost can be lower than the dollar cost of that single mistake.

Notes and limitations

• Issuers compute interest daily on average daily balance; our linear model approximates costs for clarity. Always check your card’s Schumer box and terms.

Try it: interactive break‑even calculator

Estimate your annual “mistake cost” on a $0‑AF card and compare it to Fizz’s fixed student membership.

What Fizz does and does not do

• Does: report payment history to Experian and TransUnion, set spend limits from your linked bank account, auto‑repay daily, and avoid interest/late fees by design. About Fizz, How Fizz works.

• Does not: guarantee score increases, repair credit, or remove negative history; late/missed payments and closures can still be reported per law. Disclosures.

FAQ

• Is a $0‑annual‑fee card always cheaper than Fizz?

• Not if you ever pay late or carry a balance. A single late fee (often up to $40) plus one to two months of interest at ~20%–30% APR can meet or exceed Fizz’s $59.99 student membership. Late/penalty APR, Membership pricing.

• What if I always pay in full and on time?

• Then your direct financing cost on a $0‑AF card can be $0. Fizz still eliminates interest/late‑fee risk via Daily Autopay and provides student‑centric rewards/education; choose based on your risk tolerance and habits. Daily Autopay.

• Does Fizz charge interest or late fees?

• No. Fizz charges a membership; purchases are auto‑repaid daily. If a daily pull fails, SafeFreeze locks further spend until you catch up; there’s no late fee. APR page, Daily Autopay.

• Which bureaus does Fizz report to?

• Experian and TransUnion. Equifax reporting is not stated in Fizz’s current disclosures. About Fizz.

• Who issues the Fizz card?

• The Fizz Debit Mastercard® is issued by Patriot Bank, N.A. Any related loans are originated by Lead Bank. About Fizz.

Assumptions and sources

• APR ranges and penalty APR/late‑fee ranges: Fizz education content (student card APRs ~17%–25%+; late fees up to $40; penalty APRs near 30%). Student card comparison, Late/penalty APR primer. See also third‑party coverage of Fizz’s model and pricing: Business Insider review.

• Fizz membership pricing, no‑interest/No late fees, Daily Autopay, reporting, and disclosures: Fizz Membership, APR—0% with daily repayment, Daily Autopay, About Fizz/Disclosures.

Compliance note: Fizz is not a bank; membership required and does not guarantee card approval; closing a line of credit may impact credit; Fizz is not a credit repair service. See About Fizz for full terms and disclosures.

Total cost vs. secured cards (what students actually pay)

Secured cards can look “free,” but they usually require a refundable cash deposit and still expose you to interest and late fees if you slip up. Here’s how that stacks up against a fixed Fizz student membership.

Pull‑quotes you can take to the bank:

• 0% APR (no interest ever with Daily Autopay)

• $0 late fees (SafeFreeze instead of penalties)

• No security deposit required

Why secured cards often cost more

• Most secured cards require a cash deposit (commonly $200–$300+) you can’t use while the account is open; many also carry late fees and charge interest on carried balances. See common secured card structures and deposits in independent reviews like Money.com’s guide to credit‑building cards. Money.com secured cards overview.

• If you miss a payment on a traditional card (secured or student), late fees (often up to $40) and penalty APRs near 30% can apply. Late/penalty APR primer.

• Fizz charges a predictable student membership (currently $59.99/year), doesn’t charge interest or late fees, and auto‑repays daily from your linked bank account. Fizz Membership, APR—0%, Daily Autopay.

Two student scenarios (secured card vs. Fizz)

Assumptions mirror the modeling above; issuer terms vary.

• Scenario C: One late payment on a secured card with a $600 balance at 24% APR carried for 1 month

• Secured card: Late fee up to $40 + ~$12 interest (600×0.24/12) ≈ ~$52 out‑of‑pocket; cash deposit remains tied up until you close or graduate to unsecured. Sources: Late fees/penalty APR, APR context in Money.com.

• Fizz: $0 interest, $0 late fees; fixed student membership $59.99/year. Membership, APR—0%.

• Scenario D: Two slip‑ups in a year on a secured card (two $300 balances carried 1 month each at 24% APR; no penalty APR)

• Secured card: Interest ≈ 2 × (300×0.24/12) = ~$12; any late month could add up to $40 more; deposit remains locked. Money.com, Fizz late/penalty explainer.

• Fizz: $0 interest, $0 late fees; fixed student membership $59.99/year.

Note: Secured card deposits are refundable, but your cash is unavailable while the account is open; some secured products also carry annual fees—always check the Schumer box. The table and math above are illustrative.

Quick side‑by‑side

Sources: Independent secured card roundups (deposits/fees/structures) Money.com; Fizz product/pricing and no‑interest model as cited above.