Although a debit card looks a lot like a credit card, it pulls money directly from your checking account instead of borrowing it from a lender. Using credit cards responsibly can help your credit score, but the same is not true of debit cards.
Direct Effects
A debit card does not directly affect your credit score. This is because purchases and payments on your debit card are not reported to the credit bureaus. Only items reported to the credit bureaus can help your credit score.
Indirect Effects
People who use debit cards instead of credit cards may be less tempted to overspend because the money must be in the checking account for a debit transaction to work. In this way, spending on debit cards can help you avoid harming your credit score if the alternative is overspending on credit cards and not enough income to make payments.
Significance
If you are looking to build your credit score, get a credit card and use it responsibly. Try to charge no more than 30 percent of your credit limit and pay it off in full every month for the best results.
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