Does debit card build credit history?

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asked Feb 11, 2020 in Credit by 44fred (320 points)
Does debit card build credit history?

1 Answer

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answered Feb 11, 2020 by kipksakik (500 points)
No using a debit card does not build credit history like a credit card does.

When a debit card you're not being lent or loaned money so the banks do not report your debit card usage to the credit agencies.

So your credit score will not be affected by using a debit card with your bank.

That is because you're using your own money from your checking account to make purchases and not borrowing money through a credit card.

The debit card is different from credit card because the credit card is money you're borrowing and paying back so that gets reported to the credit agencies to help build your credit if you use the credit card properly and pay the bills on time.

But with a debit card it's just a card that allows you to make purchases from your checking account balance.

If you have no money in your checking account then the debit card won't work.

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