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9 debit cards that build credit without charging interest

Explore cards that can help improve your credit score.

Debit cards are useful for making regular purchases, direct deposits and keeping track of your spending through online banking. But they don’t help improve your credit score. That’s where credit-building debit and secured cards prove valuable, offering a safe way to build a positive credit history.

Key takeaways

  • Credit-building debit cards offer a safe way to build positive credit history.
  • These cards don’t require credit checks or charge annual fees.
  • They’re ideal for young adults or new borrowers looking to build credit.
  • There’s a lower risk of accumulated debt compared to traditional credit cards.

How do credit-building debit cards work?

Credit-building debit cards, like the Extra debit card, are like a debit and credit card hybrid. They’re basically an alternative secured credit card but with a different security deposit and additional benefits.

Unlike traditional secured credit cards, which rely on a security deposit that sets your credit limit, credit-building debit cards are secured by a linked bank account, with the card’s credit limit determined by your account balance. When you use the card, the amount is borrowed and later paid back from your linked account balance. These payments are reported to the credit bureaus to help you build a positive credit history.

Most credit-debit cards don’t require a credit check and don’t charge annual fees or an APR like a traditional credit card. They might also come with extra perks like rewards or savings features.

Featured credit-building cards

Second-chance credit building

Chime® Credit Builder Secured Visa® Credit Card

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  • No annual fees
  • No credit check to apply, no interest and no minimum security deposit
  • Apply with a Chime Checking account and qualifying $200+ direct deposit

Credit building for young adults

Step Visa Card

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  • $0 monthly fee
  • No credit check, security deposit or interest charges
  • Up to 3% cashback
  • Earn 4% with $500+ in direct deposits
  • Build positive credit history before 18

Build credit & get up to 6% cashback

Varo Believe

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  • $0 monthly fees
  • No credit check or APR
  • Up to 6% cashback with select brands
  • Must have a Varo bank account to apply
  • $25 referral bonus

9 cards that build credit

1. Step Visa Card

Step Visa Card

4.7
★★★★★

Finder score

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APY4.00%
Fee$0 per month
Minimum deposit to open$0

2. Chime Credit Builder card

Chime® Credit Builder Secured Visa® Credit Card

5
★★★★★

Finder score

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Fee$0 per month
Minimum deposit to open$0
Chime is a financial technology company, not a bank. The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
*Out-of-network ATM withdrawal and OTC advance fees may apply. View the Bancorp agreement or Stride agreement for details; see back of card for issuer.

3. Current Build card

Current Credit Building Card

4
★★★★★

Finder score

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on Current's secure site
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APY4.00%
Fee$0 per month
Minimum deposit to open$0

4. Varo Believe card

Varo Believe

5
★★★★★

Finder score

Existing and new customers get a $25 referral bonus when signing up for a Varo Bank account. T&C apply.
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Fee$0 per month
Minimum deposit to open$0

5. Extra debit card

Extra debit card

4.3
★★★★★

Finder score

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FeeFrom $20 per month
Minimum deposit to open$0
The Extra Debit Card is issued by Evolve Bank & Trust or Patriot Bank N.A. (Member FDIC), pursuant to a license by Mastercard International. Line of credit provided by Lead Bank. Extra is responsible for credit reporting and reports on time and late payments, which may impact a credit bureau’s determination of your credit score. Rewards points only available with rewards plan.

6. Cleo Credit Builder Card

Cleo Credit Builder Card

4.4
★★★★★

Finder score

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Fee$14.99 per month
Minimum deposit to open$1

7. Fizz debit card

Fizz debit card

4.7
★★★★★

Finder score

Earn 1,000 points ($10 value) when you download the Fizz app and enter code FINDER.
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APYN/A
Fee$0 per month
Minimum deposit to open$150

8. Experian Smart Money Digital Checking Account and Debit Card

Experian Smart Money™ Debit Card

4.7
★★★★★

Finder score

Get a $50 bonus if you deposit at least $1,000 in direct deposits within 45 days of opening the account
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Fee$0 per month
Minimum deposit to open$0

9. Sesame Cash prepaid debit card

Sesame Cash

4.2
★★★★★

Finder score

Fee$9.99 per month
Minimum deposit to open$0

Benefits of credit building debit cards

One of the best benefits of credit-building cards is the opportunity to build a better credit history, and usually, that means fewer fees than traditional credit cards.

  • Usually no APR. Most credit-debit cards don’t charge interest.
  • Fewer fees. Unlike credit cards, most credit-building debit cards don’t charge annual fees — and many don’t charge monthly maintenance fees either.
  • The account is secured. Most have some type of security, whether it be a linked bank account or a security deposit, making them a safer way to borrow due to the lower risk of accumulated debt you can’t repay.
  • No credit check. The majority don’t require a hard credit pull, and if they do, the requirements are easier to meet than traditional credit cards or loans.
  • Credit-building loans create a nest egg. These products are like savings accounts that you’re required to contribute to, and once the term is up, you get access to the funds.

What to watch out for

Credit-building products are considered safer than traditional borrowing methods, but with that safety comes some downsides.

  • Low spending limits. Because these credit-building debit cards often require a security or deposit, the spending limits are typically much lower than traditional credit cards.
  • Often requires linked bank accounts. Most require you to link an existing bank account, and most require you to open a specific checking account to qualify.
  • Check where they report. Some credit-building products don’t report to all three credit bureaus. For example, Affirm only reports payments to Experian.
  • Credit building loans take time. Unlike traditional installment loans, credit-building cards with loan installments won’t let you access funds until the term is over.

Who are credit-building cards best for?

Credit-building debit cards are best for anyone who wants to start improving their credit history, and many are often designed for college students or young people who are new to borrowing. Most of these debit-credit cards don’t require a hard credit pull, so your credit history isn’t a factor during the application process.

But you’ll need a security deposit or a linked bank account that’s funded for credit-building debit cards to actually work. They won’t build credit on their own — you have to use the card so that repayments get reported to the credit bureaus.

These cards aren’t designed for large purchases, earning cashback rewards or emergencies. They’re not made for seasoned borrowers who already have regular credit cards, either. If you’re a student in need of a regular credit line, but your credit score isn’t up to par, consider looking at student credit cards instead as they tend to have more lax credit score requirements than regular credit cards.

How credit-building cards compare to traditional cards

Both can help you build a credit history, but overall, debit-credit cards are likely to have fewer fees.

Type of cardCredit checkCharges interestAnnual feeLate fees
Credit-building debit cardsRarelyNoRarelyRarely
Secured credit cardsYesYesUsuallyUsually
Unsecured credit cardsYesYesUsuallyUsually

What’s the catch?

There aren’t many downsides to debit-credit cards. Many of them lack interest charges, late fees and hard credit pulls. Credit-building debit cards are worth it if you want to build your credit score.

But just like other borrowing options, credit-building credit cards could still harm your credit. While they don’t usually charge late fees, a late payment can be reported to the credit bureaus and harm your credit score. While they’re called credit building products, it’s up to you to maintain a positive payment history to actually improve your credit score.

Building credit takes time — often years of hard work. While credit-debit cards can help push you in the right direction, they’re also not the only way to boost your credit history — see more tips on how to build your credit.

How to build credit for free

Most methods of credit-building involve taking on credit — personal loans, credit cards, auto loans and so on — and those tend to include interest charges. If you want to build credit for free, there are a few secured cards with no monthly or annual fees, and some free rent reporting services.

  • Secured credit cards. There are a few free credit-building debit cards like the Step card and the Fizz card. Neither charge monthly fees, annual fees or interest charges. If you go with a traditional secured card that is backed by a security deposit, you can choose one that has no annual fees and just be sure to pay your owed balance off each billing cycle to avoid APR.
  • Rent reporting. Some rent-reporting services charge monthly fees, but a few like Self and Experian Boost don’t charge anything to report your rent payments.
  • Subscription reporting. While most subscription reporting services do have some sort of monthly fee, there’s one that stands out for its very long trial period: Grow Credit. This service can report your subscription payments and its base plan called Build is free for 12 months and you can report up to $17 a month in subscriptions.

Frequently asked questions

Can I use a prepaid card to build credit?

No, prepaid debit cards don’t build credit history, and neither do traditional debit cards. Prepaid and debit cards aren’t a form of credit so they’re not added to credit reports. However, debit-credit cards are similar to debit and prepaid cards in that you can only spend what you’ve deposited in the linked account. Debit-credit cards are also a form of credit, so payments can be reported to the major credit bureaus to build credit history.

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To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
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Written by

Editor, Banking

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

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