5 Best Debit Cards to Build Credit

A good credit score is helpful because it can unlock substantial savings when financing big purchases. For most people, credit cards are the main way they build or improve their scores.

But what if you don’t want to risk the temptation of a credit card? The good news is that debit cards are now specifically designed to help you build credit.

If you want to improve your credit without the risks of a credit card, we’ve found the best debit cards to build credit.

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Top Debit Cards to Build Credit

A debit card that can help you build credit is a relatively unique find. To streamline your research process, we’ve scoured the market for the top products that will show up on your credit report.

Each card below offers a streamlined way to build your credit history while using a debit card. Plus, they come without the risk of a traditional credit card.

In alphabetical order, here’s a look at the best debit cards to build your credit.

1. Extra

Unlike a traditional debit card, the Extra Debit Card allows you to improve your credit history by spending money that is already in your bank account.

This platform regularly reports your payments to two major credit bureaus: Experian and Equifax. However, unlike a regular credit card issuer, the service won’t report your payments to TransUnion.

You won’t need to sign up for a separate bank account when working with the Extra Debit Card. Instead, the service connects to your existing financial institution. Over 10,000 banks are compatible with the platform.

As you spend your funds, Extra covers the cost. The next day, you’ll automatically pay Extra back. These on-time payments will build a positive credit history. Since payment history represents 35% of your FICO score, having a record of on-time payments will push your score in the right direction.

As you build your credit, you’ll also earn points on your spending. Extra offers 1% in points on your purchases.

Learn more: Extra Debit Card Review

Pros

No credit check
Earn 1% rewards
No security deposit

Cons

Doesn’t report to TransUnion
Restricted reward redemption options

2. Sesame Cash

Sesame Cash is a credit-building opportunity provided by Credit Sesame. It’s a digital debit account with a Credit Builder feature built right in.

To get the card, you must open a Sesame Cash account. Even without the credit-building feature, this FDIC-insured account has plenty of worthwhile features.

A few benefits include:

No minimum balance requirement
Zero monthly maintenance fees
No foreign transaction fees
Cash back on your purchases

The Credit Builder perk is one of the many features of the Sesame Cash account. To start building credit, you must request a Credit Builder account. Then, you’ll set aside some money for credit-building purposes.

You can think of these funds as a security that determines your credit limit. From there, you only have to use your Sesame Cash debit card. As you make purchases, Sesame Credit Builder will report those transactions as on-time payments that show up on your credit report and improve your credit history.

This credit-building option is free, and you can earn money for working with Credit Sesame. If your credit score increases by 100 points in a 30-day cycle, you’ll receive $100.

Pros

Cash back on purchases
Free to use
Rewards for improving credit
Reports to credit bureaus

Cons

Upfront deposit required
Need a Credit Builder account

Learn more: Sesame Cash Review

Best Secured Credit Cards

The cards we’re sharing next function as secured cards, which means you have to put down a cash deposit which determines your credit limit.

However, they still offer you the ability to build or rebuild your credit score.

3. Chime

Chime is a banking fintech that offers a checking account, a debit card, and a Credit Builder account.

The Chime Credit Builder account is attached to your Chime checking account. The account comes with a secured card that you can choose the limit for.

The limit is based on how much money you’ve chosen to put in your Credit Builder account.

The Credit Builder account functions as a secured credit card, which is different from traditional secured credit cards because:

There’s no credit check when you apply
The Chime app shows you how much you have available to spend
There are no annual fees
You won’t pay interest
There’s no minimum deposit amount for the account

You can put as little as you want in your Credit Builder account. Then use the Credit Builder card to spend money on things you’d normally buy, such as groceries.

You can pay off your Credit Builder card at the end of the month. Your payments are reported to credit bureaus. On-time payments help you build credit.

See our full Chime review here.

Pros

No annual or monthly fee
Choose your deposit amount
No credit check

Cons

Out-of-network ATM fee

4. Sable ONE Secured Card

The Sable ONE secured card is also a secured credit card that partners with the Sable free checking account. Sable offers a checking account with no monthly fees or minimum balance requirement. You can also get a free Sable debit card and a free Credit Builder card.

You choose the limit for your Credit Builder card, and the funds are transferred from your Sable checking account. As you use and pay the card off each month, your activity is reported to major credit bureaus.

There is no credit check done when you apply for your Sable ONE Mastercard. You will pay interest on unpaid balances that carry over from month to month.

Bonus: Sable pays cash back rewards on purchases made with the card.

See our full Sable review here.

Pros

No monthly fees
Zero minimum balance requirement
No minimum deposit for secured card
No credit check performed

Cons

Interest accrues on unpaid balances

5. Bank of America Customized Cash Rewards Card

The Bank of America Customized Cash Rewards card offers two primary benefits to those looking to build credit:

You’ll earn rewards on every purchase
You can choose a category in which you’ll get paid double the standard rewards

This secured card allows you to choose your spending limit, anywhere from $200 to $5000.

You get 3% cash back in the category of your choice. And you’ll get 2% cash back at grocery stores and wholesale clubs.

All other purchases will earn 1% cash back. Also, this card allows you access to your monthly updated FICO score for free.

How Much Does the Bank of America Customized Card Cost?

There are no annual fees associated with the Bank of America Customized card.

You will pay interest on unpaid balances on the card.

Pros

Cash back on all purchases
Customizable rewards percentages
Free monthly FICO score access

Cons

Interest charges on unpaid balances

Frequently Asked Questions

If you are still deciding whether to sign up for a debit card to improve your credit score, these answers to commonly asked questions can help you decide if this type of product is a good fit.

What are the benefits of using a debit card to build credit?

When using a debit card, there is no risk of going into debt. This is because your available funds typically determine your credit limit.

Without the higher credit line associated with most credit cards, you’ll need to stick to spending only money you have available in your checking account.

Plus, if you have a limited credit history, it can be hard to get approved for a card from regular credit card companies. It’s much easier to get a debit card to improve your credit score.

Are there any downsides to using a debit card to build your credit history?

The downside of using a debit card to improve your credit score is that not just any debit card will work. Most traditional debit cards won’t help you build credit.

Instead, you’ll need to use a debit card specifically designed to help you build credit. These cards will report your payments to the major credit bureaus.

Does using a debit card as a credit card build credit?

It depends. If you want to build credit with a debit card, you’ll need a specific card since a traditional debit card doesn’t report payments like credit cards do.

Debit cards that build credit will provide an opportunity to build credit while using the debit card.

Can you build credit with a traditional credit card?

Yes. Using a credit card to make purchases can help you build credit. However, it can also hurt your credit if you don’t use the card responsibly.

You’ll need to consistently make on-time payments and keep your balance to a minimum to build credit with a regular credit card.

Summary

Good credit is worth pursuing. Good credit scores are extremely valuable for those who want to finance major purchases. An excellent credit score will help you save thousands over the loan term.

A credit-building debit card is an excellent solution to build or improve your credit. It allows you to build credit by making everyday purchases since your payments are reported to the credit bureaus.

The best part is that you won’t need to risk spiraling into credit card debt. This is a safe solution to help ensure your credit health is the best it can be.

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