Most of us strive to build and protect our credit, which is why it’s essential to monitor everything that could potentially impact our scores. So, when you consider all the plastic in your wallet, you may wonder…does my debit card affect my credit score and can I use it to build credit?

Debit cards and credit cards may look similar, but credit bureaus regard them differently. Generally speaking, debit card activity doesn’t show up on a credit check or impact your FICO score. However, using a debit card can indirectly affect your credit score in two ways.

First, if you choose to use a debit card only and avoid credit cards entirely, you’re missing the opportunity to create a solid history of credit card use. You could potentially be unable to get a score if you don’t have any credit history at all. Second, if you have credit cards but don’t ever use them they could get cancelled because of inactivity. Since a large part of your score is based on how reliably you use credit, showing no use on open accounts could actually drop your score.

Alternatively, by using a debit card instead of a credit card, you can avoid overspending and facing the potential negative impact on your credit report from late payments and outstanding balances. Not to mention high credit card interest rates.

For most of us, using a combination of both debit and credit allows flexibility in managing our finances. And understanding the difference between the two is a good place to start when working to establish or maintain good credit.

Here’s a quick review…

Debit Card Pros:
– A convenient way to pay with the money you have without carrying cash or check
– You’re less likely to overspend
– No interest on purchases

Debit Card Cons:
– Does not build credit
– Limited fraud protection

Credit Card Pros:
– Financial flexibility beyond the cash you have on hand
– Fraud protection
– Can help build or establish credit

Credit Card Cons:
– Risk slipping into credit card debt by overspending
– High interest charges on purchases

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I wanted to especially say thank you to you for all your hard work and negotiating settlements for those active accounts. I would gladly recommend National Credit Federation to anyone needing assistance in improving their credit scores. Again I just wanted to say thank and I appreciate all the hard work!”

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I will definitely be referring you to other people that might need services like yours. I just wanted to tell you again thank you and I appreciate your help.”

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Jennifer and Charles from Willis, TX:

“National Credit Federation has changed our lives tremendously. We’ve seen some amazing results and we really are very impressed with the results thus far. Thank you!”

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You guys are great. I lived with bad credit for so long and to be real honest with you it is a whole new world with good credit. Thank you guys very much.”

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I started in the 500’s and now in the 700’s. My case manager Monique helped me through the whole process and I referred my wife.”

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“Thank you Krista, this is David from Minnesota. I just want to say thanks for your help and for working on my credit and scores. Sicne I have been working with National Credit Federation Ihave had my scores increase so that I can breathe a little sigh of relief because I am not in the dangerous zone anymore. You have been friendly and responsive when I needed help. Thank you.”

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You guys cost a little bit more but you’re worth every penny!!! I am beyond satisfied, I had a repo. I had a foreclosure. I had collections and everything. You guys did a phenomenal job. My current score now is 745, I think when I came to you guys I was under 500. Now my goal is to be at 800 within another 4 months and I’ve been with you guys less than a year. So I went from under 500 to 745 credit in under 12 months.

I will definitely recommend you to any and everyone I meet and tell them you’ve got to use National Credit Federation if you’re serious about establishing good credit. It’s worth its weight in gold, it’s worth every penny. Thank you very much and I look forward to working with you guys and being a loyal customer.”

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Again I just wanted to say thanks and I appreciate all the hard work! Thanks so much to you guys.”

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“I started the program with NCF about a year ago with credit scores in the low 400’s and now have scores in the high 600’s.My biggest goal was to be able to trade out of my high interest rate car into a new BMW. I was just recently approved for a new car loan at 3.74%!

Never in my entire life had I received an interest rate that low. This was a result of working with National Credit Federation, Me doing my part and them doing their part. They were diligent about helping &  they were pleasant and professional to work with. If you are looking to boost your credit I would highly recommend National Credit Federation.”

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