When you use a debit card and choose "credit" at checkout, the transaction is processed through the credit card network (like Visa or Mastercard), and you sign instead of entering your PIN. However, the money still comes directly from your bank account, not a line of credit.
While debit cards are typically linked to your checking account, they can be used like a credit card in certain situations—but is it the best choice?
Understanding the nuances of debit vs. credit usage can help you make smarter choices when it comes to using a debit card as credit. In this article, we'll walk you through when to use your debit card as a credit card, the potential risks, and, most importantly, best practices to keep your finances safe.
When you use a debit card as a credit card, the transaction is processed through the credit card network (like Visa or Mastercard) instead of your bank’s debit system. You’ll select “credit” at the payment terminal and usually sign for the purchase instead of entering your PIN.
However, the money still comes directly from your bank account—not a credit line—so there are no interest charges or debt involved.
The main difference is in the processing and protections. Credit transactions may offer additional fraud protection and can take a bit longer to process, giving you a short delay before the funds leave your account. However, this doesn’t affect your credit score or help you build credit.
Debit vs Credit Card Comparison
| Debit Card |
Credit Card |
|---|---|
| Directly from your bank account |
Borrowed from the credit card issuer |
| No impact on credit score |
Can help build or hurt your credit score |
| Limited to your account balance |
Limited to your credit limit |
| Limited, depends on the bank |
Strong protections under federal law |
| No interest, as funds come directly from your account |
Charged if the balance isn’t paid in full |
| Rare, but some banks offer cashback or discounts on select purchases |
Often includes cashback, points, or miles |
| Everyday purchases and budgeting |
Building credit and earning rewards |
Using a debit card as credit will not impact your credit score because no borrowing or credit is involved. The funds are still pulled directly from your checking account, meaning there’s no line of credit extended to you.
Unlike a traditional credit card, which reports to the credit bureaus and influences your credit score based on your usage and payments, a debit card doesn’t affect your credit history.
Choosing between when to use ‘credit’ or ‘debit’ largely depends on the transaction type, your goals, and the level of protection you need. Here are some key considerations:
Use debit card when:
Use credit card when:
No, you cannot run your debit card as credit if you have no money in your account. Debit cards are linked to your checking account, and any purchase made will be deducted directly from your available balance. If you don't have enough funds, the transaction will likely be declined unless you have an overdraft protection or linked credit account.
Running a debit card as credit simply uses the credit card network for processing, but it doesn't change the fact that the funds need to be available in your account to complete the transaction.
Using your debit card responsibly is key to protecting your hard-earned money. With the right precautions, you can reduce the risk of fraud and unauthorized charges. Here are some simple yet effective practices to help keep your account safe:
To make the most of your debit and credit card choices, keep track of your overall financial health, including your credit score. Regularly reviewing your credit report can help you identify areas for improvement and ensure that you're on the right path to financial success.
If you’re unsure of where you stand, you can check yourcredit score and get your free credit report card from Credit.com to get a clearer picture of your financial situation.