Will using debit card increase my credit score?
Some people don’t understand the difference between a Debit Card and a Credit Card and therefore they have the misconception that using a Debit Card can impact their Credit Score.
It is important to understand here that Credit Card is a spending tool and it is very much like a recurrent Personal Loan instrument which is unsecured in nature, therefore, delay in payment of the utilized amount or a high utilization ratio can negatively impact your Credit Score.
On the other hand, when you use the Debit Card, you can spend only whatever money is available in your bank account. So, a Debit Card or a prepaid card is not a credit instrument, therefore it doesn’t impact your Credit Score in anyway. Want to apply for a Credit Card? Click here.
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