Are Debit Cards Connected to Funds in Your Bank Account? (Feb. 2024)

Are Debit Cards Connected To Funds In Your Bank Account

Debit and credit cards can look the same, but they’re very different in how they work. Knowing how to use a debit card wisely can save you many headaches if you’re used to using that other common piece of plastic in your wallet or purse: a credit card. So, are debit cards connected to funds in your bank account?

How Debit Cards Work | Debit Cards Vs. Credit Cards | Debit Cards Vs. Prepaid Cards

Here’s a breakdown of how debit cards work:

Yes, Debit Cards Are Connected to Funds in Your Account

A debit card is connected to a bank account and works like an electronic check. Once a debit card is run by a cashier through a scanner, for example, the payment is deducted directly from a checking or savings account. The bank will electronically verify that the money is available and will approve the transaction.

Debit Card Pros: Fast & Easy to Use, No Interest, Safer Than Cash

A debit card can be easier and faster to use than writing a paper check and safer than carrying around cash, even though you can use a debit card to get cash from your bank account when it’s used to make a store purchase. Also, interest isn’t charged for using a debit card.

Debit Card Cons: Can Lead to Overdraft Fees

You must remember that an approved transaction could still lead to the account being overdrawn if there isn’t enough money in it, just as a bounced check can lead to a fee.

Debit cards can incur overdraft fees if there's not enough money in the account to cover spending.

Debit cards can incur overdraft fees if there’s not enough money in the account to cover spending.

A debit card purchase is posted within 24 hours, but the bank may not know what other withdrawals a debit card holder made that day until it settles all transactions later on in the same day. Even if you only have $100 in your bank account and you use a debit card for a $200 purchase, the bank may still approve the $200 purchase and assess an overdraft fee for that transaction and subsequent ones until a deposit is made to cover the withdrawals.

Using a debit card can be a smart decision for consumers who want to stay out of debt by only buying what they can immediately afford, but there are some instances when the benefits of a credit card are worthwhile.

Debit Cards Vs. Credit Cards

The other most commonly-used form of plastic is credit cards, which allow users to borrow money at the point of sale and pay the balance up to a month later without interest.

Credit Card Pros: Can Improve Credit Score, Funds Available Immediately

Credit cards are accepted by almost all businesses around the world, and using them wisely (i.e., paying them off in full each month before interest charges take effect) can help make purchases easier and improve your credit score. Thirty-five percent of your FICO credit score is determined by payment history, so making payments on time can have a huge impact.

Pros for Poor Credit: You Can Still Apply & Work to Rebuild Your Credit

A credit card can be especially handy to cover certain expenses when funds are tight, and you don’t necessarily need good credit to get approved for one. Best of all, they can help you rebuild your credit when used responsibly.

Below are our top expert-reviewed credit cards for consumers with low credit scores.

  • No credit check to apply
  • Adjustable credit limit based on what you transfer from your Chime Checking Account to the secured account
  • No interest* or annual fees
  • Chime Checking Account and qualifying direct deposit of $200 or more required to apply. See official application, terms, and details link below.
  • The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
  • *Out-of-network ATM withdrawal fees may apply. See here for details.
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 minutes N/A Yes 9.5
  • $400 credit limit doubles to $800! (Simply make your first 6 monthly minimum payments on time)
  • All credit types welcome to apply
  • Monthly reporting to the three major credit bureaus
  • Initial Credit Limit of $400.00 (Subject to available credit)
  • Fast and easy application process; results in seconds
  • Use your card at locations everywhere Mastercard® is accepted
  • Access to your Vantage 3.0 score from Experian (When you sign up for e-statements)
  • Checking Account Required
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
10 minutes 29.99% Yes 7.5/10
  • Earn 3% Cash Back Rewards* on Gas, Groceries and Utility Bill Payments
  • Earn 1% Cash Back Rewards* on all other eligible purchases
  • Up to $1,000 credit limit subject to credit approval
  • Prequalify** without affecting your credit score
  • No security deposit
  • Free access to your VantageScore 4.0 score from TransUnion®†
    *See Program Terms for important information about the cash back rewards program.
    ** Prequalify means that you authorize us to make a soft inquiry (that will not affect your credit) to create an offer. If you accept an offer a hard inquiry will be made. Final approval is not guaranteed if you do not meet all applicable criteria (including adequate proof of ability to repay). Income verification through access to your bank account information may be required.
    † Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
7 minutes 29.99% or 36% Fixed Yes 8.0/10

Credit Card Cons: Can Lead to Debt

But if you can’t control your spending, a credit card may not be your safest option.

It’s not a secret that credit cards lead some people into debt. If you spend excessively and are unable to pay your balance in full each month, that remaining balance will continue to accrue interest until it is paid. That’s how credit card companies make money — your interest payments. And with today’s technology making it easier than ever to use credit cards, via online shopping, it’s also easier to rack up debt.

If you’re worried about overspending with a credit card or not having enough money in your bank account to pay a debit card transaction, then another option is a prepaid card.

Debit Cards Vs. Prepaid Cards

A prepaid card works like a debit card, though money isn’t withdrawn from a connected bank account. Instead, prepaid cardholders load money onto a card through direct deposit or with cash, among other methods, and can spend up to the loaded amount on the prepaid card.

Prepaid Card Pros: No Interest, Safer Than Cash, No Bank Account Required

Prepaid cards are safer than carrying cash and don’t require a credit check or bank account to apply. They’re typically accepted any place that takes credit or debit cards. Prepaid cards don’t have a credit line or interest rate, as credit cards do, and they aren’t tied to bank accounts, as debit cards are.


These expert-reviewed prepaid cards come with 100% approval, $0 monthly fee, and no credit check required.


Prepaid Card Cons: Will Not Help Credit

For people who don’t have access to or don’t want to use credit cards or banks, prepaid cards can be a good solution. They don’t, however, help build credit. Without good credit, consumers could end up with higher interest rates on loans they take out in the future.

Final Thoughts

The best solution for people starting to build their financial lives may be to have all three cards: debit, prepaid and credit. From there, they can develop good credit behavior by paying credit bills on time and in full each month, not spending more money than they have in the bank, and following a monthly budget.

Photo Credits: Consumerreports.org

Advertiser Disclosure

BadCredit.org is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free for users, we receive advertising compensation from the financial products listed on this page. Along with key review factors, this compensation may impact how and where products appear on the page (including, for example, the order in which they appear). BadCredit.org does not include listings for all financial products.

Our Editorial Review Policy

Our site is committed to publishing independent, accurate content guided by strict editorial guidelines. Before articles and reviews are published on our site, they undergo a thorough review process performed by a team of independent editors and subject-matter experts to ensure the content’s accuracy, timeliness, and impartiality. Our editorial team is separate and independent of our site’s advertisers, and the opinions they express on our site are their own. To read more about our team members and their editorial backgrounds, please visit our site’s About page.