The New Debx App is Taking the Fear out of Credit Cards

By Victoria Robertson on May 1, 2018

College students are more than used to hearing about debt. We have plenty of it.

Debx is more than familiar with the problem and has launched a new, personal finance app that helps students build a credit history without resulting in debt, according to a recent press release.

The Washington DC-based startup plans to combine credit card perks with the security and ease of a debit card in order to help millions of graduating students in avoiding racking up debt.

via Pexels.com

Essentially, this free app targets college graduates and millennials and pays off their everyday credit card purchases by linking existing credit cards with checking accounts. This means these individuals are using credit cards like a debit card, which means they reap all the benefits (i.e. rewards and credit building) without the insecurity involved in owning a credit card.

As a college student, if you haven’t already, you’ll soon learn the importance of a good credit history. These are important when it comes time to leasing or purchasing a car, renting an apartment or even buying a house.

That being said, more and more students are shying away from credit card applications for fear of digging a hole they can’t get out of. According to a recent survey mentioned in the press release, 33% of millennials are afraid of credit card debt. This is shocking given the 20% responding their greatest fear was death.

And they aren’t wrong in this fear. Over $1.02 trillion of debt was reached in 2017, with the average American consumer holding $5,290 in credit card balances.

This all being said, credit cards are a necessary evil, especially when it comes to building credit. Plus, there are other perks to consider such as reward points, cashback and protection from theft.

According to Ben Psillas, the founder of Debx, “When college students graduate, they are often unsure how to build their credit or manage their personal finances, and are maybe even a little intimidated. They leave school with tons of student loans, and they want to avoid getting deeper in debt. But, they need to start building their credit history, and credit cards are one of the best ways to establish that.”

The free Debx app allows several options for avoiding the typical, credit card pitfalls.

For instance, one big change is the Auto-Pay option, which automatically pays off purchases below a certain amount. In addition, the Shutoff Balance will automatically stop auto-payments when the balance in a user’s checking account is below a set limit. These two tools entirely automate the credit card process, making it rather difficult to find yourself in debt so long as you’re responsible enough to set these amounts accurately in the first place.

In this way, they are reaping all the benefits, the points and cashback, without the risk of overspending.

Plus, this app is promoting good spending habits, helping you to track your spending in a way that’s less stressful, but still helpful in terms of learning how to maintain good credit.

According to Psillas, “College grads should feel confident when using credit, and by letting them stay on top of their balances, avoid debt and reap all the rewards that credit cards have to offer – while practically on auto-pilot – Debx will help them build that confidence and feel good about how they spend their money.”

So, if this sounds like you and you want to download the app to help build that credit without the hassle, you can download the app from iOS in the iTunes Store for free. (The enrollment process will take you about 90 seconds and the app links with most major credit card lenders.)

Victoria is a dedicated writer who graduated from the University of Illinois with a Bachelor of Arts in English. She currently writes freelance pieces for various sites and works in Marketing for Myndbee Inc., promoting their current mobile app, Picpal.

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