Can You Use a Debit Card to Build Credit?

No.

Using a debit card does not build credit in Canada, because debit payments use money you already have and they are not reported to credit bureaus as a credit account.

KOHO Essential

If you want something you can use for everyday spending while you work on your credit habits, with KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Why Debit Doesn’t Build Credit

Your credit report is built from credit accounts (like credit cards, loans, or lines of credit) that lenders report to credit bureaus.

Debit card spending is not borrowing, so it usually won’t show up on your credit file.

Also, prepaid cards generally don’t build credit either, because usage is not reported like a credit card.

What Actually Builds Credit Instead

These are common ways to start building credit in Canada:

• A credit card, used responsibly

• A secured credit card if you can’t get approved for a regular one

• Paying on time every month (late payments can hurt)

• Keeping your balance low compared to your limit (a common guideline is under 30%)

Quick Tip

Debit is still useful. It can help you avoid debt while you learn budgeting.

It just won’t move your credit score on its own.