Despite how it sounds, you can’t technically use your debit card as a credit card — but you can choose whether a merchant processes the transaction as debit or credit. If you enter your PIN, the transaction is processed through a debit network, and the funds are immediately drawn from your checking account. On the other hand, selecting credit means the transaction is run through a credit network like Visa.
That said, even if the purchase is processed as a credit transaction, the money is still withdrawn from your linked checking account. It just settles a few days later.
What Happens When You Use a Debit Card as Credit?
When you use a debit card to make a purchase and choose not to enter a PIN, the merchant processes the card as a credit transaction. Instead of the funds being immediately withdrawn from your checking account, it often takes a few days to be deducted.
“It is much safer to select credit when paying with a debit card,” says Phillip Parker, founder of CardPaymentOptions.com, an educational and consumer protection resource for businesses. “Transactions that are routed through Visa and Mastercard are covered under their fraud liability protections, meaning that you aren’t on the hook for any fraud that could occur from the transaction. Interlink has no protections for fraud, meaning that you will have to deal with your bank’s specific policies.”
[Read: Best Starter Credit Cards for Building Credit.]
Can You Build Credit With a Debit Card?
Using a debit card doesn’t help you establish credit. “From the bank’s perspective, choosing credit is simply a request to clear the transaction through a different switch,” says Bob Wolfe, certified financial planner and founder of HealthyFP. “No credit line is created, and nothing is reported to the bureaus.”
By comparison, using a credit card helps you build credit as long as you make on-time payments. Your credit card issuer should report your payments to the three major credit bureaus — Equifax, Experian and TransUnion.
How to Build Credit
Although using a debit card as debit or credit won’t help you strengthen your credit file, there are various strategies to consider. Most of them involve responsibly using a credit product, such as a credit card or personal loan.
— Open a credit card. When you make payments with a credit card, issuers generally report your payments to the credit bureaus. Paying at least the minimum monthly balance on time can help you build credit.
— Get a secured credit card. Unlike a traditional credit card, a secured credit card requires you to make a cash deposit, which helps establish your credit limit. If you miss a payment, a credit card issuer can seize your collateral to satisfy your outstanding balance.
— Take out a credit-builder loan. Another secured option is a credit-builder loan. Unlike a traditional personal loan, this type of loan requires you to make monthly payments without receiving the funds until you pay off the debt. After you repay the loan, you receive the loan amount requested, minus any interest and fees.
— Become an authorized user. One way to build credit without getting your own credit card is to ask a family member or friend with good credit to add you as an authorized user. However, keep in mind that if the primary cardholder misses a payment, it could harm your credit.
[READ: Best Credit Cards for Students]
How to Decide Between Debit and Credit
Some experts only recommend selecting credit at checkout with a debit card for safety purposes. “Using a debit card and PIN at the point of sale exposes consumers to considerably more risk of financial headaches if the data from the transaction is somehow stolen,” Parker says.
However, it’s really up to you. “Whichever rail you pick at the register, enable real-time alerts from your bank, check your statements promptly and report suspicious activity without delay,” says Wolfe. “Those simple habits, together with the chip technology already embedded in modern cards, do more for your safety than the debit-vs.-credit button ever will.”
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Can a Debit Card Be Used as a Credit Card? originally appeared on usnews.com
Update 07/31/25: This story was previously published at an earlier date and has been updated with new information.
