Edited by Michelle TipswordCan You Build Credit With a Debit Card?
Edited by Michelle Tipsword
Quick Answer
Unlike credit cards, most debit cards do not help you build credit because your account activity isn’t reported to the major credit bureaus. However, there are some credit-building debit cards out there that work a little differently.
Using your debit card responsibly can help you stay on budget and avoid overdrawing your bank account, but most debit cards won't help you build credit. That's because checking account activity typically isn't reported to the credit bureaus. However, there are a few exceptions—and using a debit card that builds credit might make it easier to improve your credit score. You could also look into other simple ways to establish a strong credit history.
Does a Debit Card Build Credit?
Debit cards aren't typically used to build credit. When you swipe a debit card, the transaction amount is automatically withdrawn from your checking account—but your account activity usually isn't reported to the three major credit bureaus (Experian, TransUnion and Equifax).
Since you aren't borrowing or repaying money, these transactions won't help you establish or maintain your credit history.
When using your debit card, you might be given the option to select "credit" during checkout. This won't help build your credit either. It simply changes the way the transaction is processed with the merchant. The funds will still come out of your checking account like they would normally.
That said, there are some debit cards that build credit. We'll unpack these shortly.
Learn more: What Is a Debit Card and How Does It Work?
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Debit Card vs. Credit Card
Credit cards and debit cards work differently. When you make a purchase with a credit card, you're borrowing money that you'll repay later. The amount you can borrow, also known as your credit limit, is determined by the card issuer. Once a month, they'll tally up all your transactions from the previous billing cycle and send you a bill. If you pay it in full every month, your balance will go back down to zero and you won't owe any interest.
But carrying a balance will result in interest charges. As of the fourth quarter of 2025, the average credit card annual percentage rate (APR) was 22.30%, according to the Federal Reserve.
Creditors typically report your account balances and payment history to the credit bureaus, and that will impact your credit health—for better or worse. Each credit bureau maintains its own credit report in your name. The information on your credit reports is what determines your credit score.
Debit cards, on the other hand, don't have a credit limit: You're only limited by the balance of your bank account. And you don't pay interest when you use a debit card for a purchase because the amount is immediately debited from your account. Rather than borrowing money and paying it back later, you're using the money in your bank account to pay now.
Learn more: How to Build Credit: A Comprehensive Guide
How to Build Credit
Whether you're establishing credit for the first time or looking to improve your credit score, there are multiple ways to build credit. Consider the following strategies.
1. Try a Credit-Building Debit Card
There are several debit cards that help build credit. Credit-building debit cards are essentially charge cards that are linked to your checking account. Every time you use it, the issuer covers the purchase before automatically collecting repayment from your account. Your account balance determines your spending limit, and your positive payment history is reported to the credit bureaus
The Experian Smart Money™ Digital Checking Account & Debit Card can help you build credit without debt by linking to Experian Boost®ø, which gives you credit for eligible bill payments after three months of payments. You'll also pay no monthly fees¶ and have access to more than 55,000 fee-free ATMs worldwide**. See terms at experian.com/legal.
Learn more: How Debit-Credit Hybrid Cards Can Help You Build Credit
2. Become an Authorized User
Another way to build credit is to become an authorized user on a friend's or family member's credit card. You'll receive a card in your name, and their account will be added to your credit report if the credit card issuer reports authorized-user accounts to the credit bureaus.
You won't be responsible for making payments (that will fall to the primary account holder), but you can, and should, reimburse them directly for any purchases you make. If they consistently pay their bill on time and are mindful of their credit utilization rate, that could help build your credit.
Learn more: Does Being an Authorized User Affect Mortgage Approval?
3. Open a Credit Card
It can be difficult to qualify for a traditional credit card if you have a thin credit file or negative credit history. A secured credit card can be a good alternative. After making a refundable deposit, which typically determines your credit limit, you can use the card like any other credit card account. Your payment history and account balance will appear on your credit reports, as long as the card issuer reports your payment history to the credit bureaus.
After six to 12 months of using the card responsibly, the card issuer might automatically upgrade you to an unsecured credit card. Even if they don't, your credit may be strong enough at that point to qualify for a new card on your own.
Learn more: An Essential Guide to Your First Credit Card
4. Consider a Credit-Builder Loan
With a traditional loan, you receive the funds upfront and then repay it over time with interest. A credit-builder loan works in reverse.
You'll make fixed monthly payments for a predetermined amount of time, usually six to 24 months. That can help build your credit if the lender reports your payment history to the credit bureaus. Once the loan term is up, you'll receive your money back, which may include interest. A credit-builder loan is one option for those who lack credit history or have poor credit.
Learn more: How to Build Credit Without a Credit Card
5. Get Credit for Paying Rent
Experian Boost allows you to get credit for qualifying residential rental payments you're already making. Rent payments aren't normally reported to the credit bureaus, but Experian Boost can add them to your Experian credit file. That can be a simple way to increase your FICO® ScoreΘ based on Experian data. Your residential rent may qualify for Experian Boost if:
- You make online payments to a qualifying landlord or property management company.
- You've made at least three rent payments within the past six months (including one over the past three months).
- Your rent amount is high enough to qualify.
- You don't already have a mortgage that is reported to Experian.
The Bottom Line
It's always a good idea to use your debit card responsibly—and in some cases, doing so might help you build your credit. If this isn't an option, there are other simple ways to establish a healthy credit history and strong credit score. To see where you stand, get your FICO® Score and credit report for free from Experian.
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About the author
Marianne Hayes
Marianne Hayes is a longtime freelance writer who's been covering personal finance for nearly a decade. She specializes in everything from debt management and budgeting to investing and saving. Marianne has written for CNBC, Redbook, Cosmopolitan, Good Housekeeping and more.
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