Traditionally, debit cards can’t help you improve or build credit score. But that does not mean the usage of debit cards is irrelevant. Your credit card transactions and payments show up on your credit report and impact your credit score. Some new-generation debit cards can play a key role in maintaining a healthy financial life while helping improve your credit score.
How to Build Credit Score?
Having a positive credit history is one of the best ways to increase a credit score. Everything from Student loans, Home loans, Mortgages, Credit Cards, or any lending institution providing you with a set amount of funds you need to pay back with time are examples of credit.
When you purchase with your credit card, the card issuer pays the merchant on your behalf. Then it is your responsibility to pay off to the issuer in installments or lump sums. With any delay in the payment, you will have to pay high interest to the credit card issuer. You can use Credit Cards to Build Credit over time by making frequent purchases and paying the complete balance for your card each month. A Positive Credit History can effectively boost your credit score.
How to Build Credit with a Debit Card?
The relatively new debit cards have revolutionized the use of both credit cards and debit cards. They provide you with an innovative way to build credit without taking any debt and all the associated risks of overspending that tend to increase your credit utilization ratio and thus hurt your credit score.
So if you are thinking of Building Credit with Debit Card, you most certainly can! Under this unique approach, the card issuer links your debit card with your bank account. All your purchases are credited where the issuer pays for those by pulling cash from your account. It is the most effective and safe way of building credit while managing your finances.
Best Credit Building Debit Cards
If you are looking for a Debit Card that Builds Credit, you must know of the following cards:
 |
Extra Debit Card (Best Overall)
|
Fees: $8-12/month |
 |
Sequin Debit Card (Best for Women)
|
Fees: $0 (Only a deposit is required) |
 |
Sesame Cash Debit Card
|
Fees: $0 (minimum account balance of $25) |
 |
Zoro Card
|
Fees: $3/month |
|
Extra Debit Card (Best Overall)
|
Fees: $8-12/month |
|
Sequin Debit Card (Best for Women)
|
Fees: $0 (Only a deposit is required) |
|
Sesame Cash Debit Card
|
Fees: $0 (minimum account balance of $25) |
|
Zoro Card
|
Fees: $3/month |
Many people don’t have or purposely opt for a credit card. If you are a part of the clan, these Credit Building Debit Cards offer the most realistic way to enhance your credit score safely and allow you to access the best rates on loans or mortgages.
Another convenient way to earn maximum rewards while building an excellent credit score would be using your best credit cards with the free Uthrive App. It can help you maximize your debit and credit card rewards on your daily purchases. It also provides personalized recommendations by using your set priorities and spending habits.
