No, debit cards do not directly affect your credit score. However, not paying debit card overdrafts can harm your credit score, and only using a debit card can lead you to not building a credit history.

Credit scores can be complicated and there is much confusion related to them. One such confusion is, does debit card affect credit score?

Well, You will find it in detail shortly. Because in this post, I am explaining do debit cards affect credit score? and if so then in which situations, can debit cards affect credit scores at all and all the related queries. So, stick here till the end.  

Does Debit Card Affect Credit Score?

No, debit cards do not affect your credit score as you are just using money from your checking account with debit cards not borrowing or loaning from anywhere.

When you use a debit card, you are just using your own money. As it does not involve any lender so it is not a form of credit. 

However, with a credit card, you borrow from a financial institution or credit grantor and pay the amount later. It is a form of credit and your borrowing behavior will be reported to the credit bureaus.

Normally the below things get reported to the credit bureaus and they use these to build your credit score

• Paying dues on time
• A long history of borrowing 
• Trying out different types of loans 
• Borrowing reasonably 
• Not taking a lot of debts in a short period of time. 

These factors directly affect your credit score. But using a debit card you can do none of these.

However, if you only use a debit card and do not use a credit card then you won’t have a credit history. 

As a result, the credit bureaus will not find anything to report and lenders won’t be able to judge your creditworthiness. Therefore, you will have a hard time getting a loan or mortgage. 

Now that we know debit cards do not impact your credit score. So, does debit card declined affect credit score?

Does Debit Card Declined Affect Credit Score?

No, a debit card decline does not affect your credit score. Because when a debit card is declined it means you do not have enough money in your checking account to pay the amount needed. It does not indicate anything about your borrowing behavior.  

When debit cards get declined, you are not borrowing from the bank and not crossing your usage limit. You just don’t have enough funds in your checking account. It does not demonstrate any uncreditworthy behaviors. So, a declined debit card is not reported to the credit bureaus and it can not affect your credit score. 

But sometimes your checking account runs out of balance and your bank gives you smaller loan amounts to cover the expenses. It’s known as an overdraft. 

When your debit card is in overdraft then your checking account has a negative balance. So, do debit card overdrafts affect your credit score?

Do Debit Card Overdrafts Affect Your Credit Score?

No, usually debit card overdrafts do not affect your credit score if you pay your bank the extra amounts in time. However, if the overdraft amount with fees and interest remains unpaid then can affect your credit score.

The smaller amounts your bank pays for you are kind of like smaller loans with smaller interest. When you do not pay the overdraft timely the interest on the money starts piling up and the amount starts to rise. And if you don’t pay the overdraft then it gets sent to the collection agencies and reported to the credit bureaus. 

In that case, debit card overdrafts hurt your credit score. 

Now let’s look at whether having multiple debit cards hurt your credit score. 

Does Having Multiple Debit Cards Affect Credit Score? 

Having multiple debit cards does not affect your credit score.

Debit cards are just plastic cards that are used to withdraw or pay money from your checking account. They are not involved in any sort of borrowing. So, you can have as many debit cards as you want and it won’t influence your credit score in any way. 

But having multiple overdrafts on different debit cards and not paying any of them for a long time can cripple your credit score. So, can debit cards affect credit score at all?

Does Using A Debit Card Affect Your Credit Score?

No, using debit cards does not affect your credit score. But only using debit cards won’t let you build a credit score at all.

Debit cards are great for shopping and all. But only using them can hamper you. Because if you do not borrow then you don’t have borrowing behavior. Without a borrowing history or behavior, credit bureaus can not judge you and provide a credit score. As a result, without a credit score, you will not get a loan or mortgage.

By this time let’s look at if you can build credit with a debit card.

Will Using A Debit Card Increase Your Credit Score? 

Using a debit card won’t increase your credit score in any way. Because credit scores are based on your borrowing behavior. So, your debit card statements do not get reported to the credit bureaus. 

Normally, using a debit card does not increase your credit rating. Though some new debit card companies use the credit builder loan method to build credit using a debit card. They are quite new. So, they are less known and might not be much effective. 

On the other hand, credit cards help you build credit by letting you borrow money. But can you have a credit score without a credit card? 

Let’s find out. 

Do You Have A Credit Score Without A Credit Card? 

Yes, it’s possible to have a credit score without a credit card.

Here is how to do it

• Take some sort of loan like a student loan, car loan
• Pay rent or utility bills 
• Be an Authorized user of a credit card  

So, if you have any of the above then you might have a credit score without a credit card. These are also some ways to build credit history. 

Taking a car loan or student loan can be easy. Moreover, there are credit builder loans to build a credit score. 

But paying up rent might not help. Because most homeowners do not report to credit bureaus. Lastly, paying bills and being an authorized user can also help you to have a credit score without a credit card. 

Now, let’s look at can you use both debit and credit cards at the same time? 

Can I Have Both Credit And Debit Card? 

Yes, you can have both debit and credit cards at the same time and it’s a good practice. 

Because having and using only a debit card can put you at risk of not getting a loan. On the other hand, using only a credit card will increase your chance of being in debt, and credit card debt is not good debt. So, using both credit and debit cards is a good financial decision. 

In Summary

Debit cards or debit card is not a measuring factor of credit score. So, using them will not have any positive or negative effect on your credit score.

I hope I have simply answered Does debit card affect credit score? If you have any confusion do let me know in the comments. I’ll try my best to help. 

Please share this post if you like it.