How a Debit Card Can Help You Get Your Credit Back on Track

Debit cards give you many of the same advantages of credit cards, but won’t put your credit score at risk.

3 min read

If your credit score isn’t what you wish it was, you’re not alone. About one out of every three Americans has a credit score of 699 or less. Ten percent of adults have no credit history at all, and many of them are younger people who simply haven’t had a chance to build up credit yet.

But even with less-than-perfect credit, you have plenty of options to get your finances back on track — like using a debit card. A debit card gives you many of the same perks of a credit card, but since it relies on money you already have, it won’t add to your debt or damage your credit score. With some responsible spending, you have the power to improve your credit and get your finances back in order, and we’re is here to show you how a debit card can help. 

Can I get a debit card with bad credit?

Yes. While having a low credit score may prevent you from getting a new credit card in some cases, you can still open a bank account while you work on rebuilding your credit score. Whether you have bad credit or just want to keep your score healthy, using a debit card is a smart idea to avoid getting into debt and nurture better financial habits. If your credit score has taken some hits in the past, here are some things you should keep in mind: 

  • Stay away from credit cards for a little while and use a checking account for your primary spending. Having a credit card in your wallet often makes it all too easy to buy things you can’t afford, and you may soon find yourself with even more debt. With a debit card, you can only spend money that you already have.

  • Find a debit card with no fees. Many checking accounts come with fees that can add up quickly and derail your finances, so making sure your debit card doesn’t hide a hefty list of fees is crucial for your financial wellbeing.

Do debit cards affect my credit score?

Your debit card does not directly affect your credit score. But using a debit card instead of credit can help you get your finances on track while you are recovering from a low credit score. If your credit history rules out having a credit card, you can use your debit card as a workaround for most purchases. Debit cards work very much the same way credit cards do, and can be used for recurring payments, online shopping, and other electronic and digital purchases. There are many advantages to using a debit card instead of a credit card including:

  • You can get a debit card even if you have bad credit.

  • You can get a debit card even if you have no credit history.

  • Your debit card information won’t show up on your credit report and does not affect your credit score.

  • Debit card approval processes are often much simpler than those of credit cards.

Rely on your N26 debit card while you build your credit score

A debit card gives you the convenience of a credit card without the risk of falling further into debt and damaging your credit score. It’s a great tool for staying on top of your finances while you work on improving or rebuilding your credit score.

With no fees and a five-minute sign-up process, the N26 debit card is a smart way to take control of your financial future. Get your N26 debit card today.

N26 does not manage external links, and is not responsible for the content, links, products or services of these websites. Further, N26's privacy and security policies do not apply to external linked websites. Please consult the disclosures of any external linked websites for further information.

The N26 account is offered by Axos Bank®, Member FDIC. N26 Inc. is a service provider of Axos Bank. All deposit accounts of the same ownership and/or vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and/or vesting at Axos Bank. The N26 Visa® Debit Card is issued by Axos Bank pursuant to a license by Visa U.S.A. Inc. The N26 Visa Debit Card may be used everywhere Visa debit cards are accepted.

By N26

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