Should I use credit or debit Spotify? If you have a credit card, use it for Spotify payments because it is safer than using a debit card. Credit card payments are safer than debit card payments because any fraudulent transaction made using your debit card leads to funds being deducted directly from your bank account.
Use a credit card for any recurring payments.
Any recurring payments you have such as subscription services that renew every month or year like Netflix, Amazon Prime, or Spotify are good to put on your credit card, especially an older one that you no longer use as much.
Key Takeaways. Credit cards give you access to a line of credit issued by a bank, while debit cards deduct money directly from your bank account. Credit cards offer better consumer protections against fraud compared with debit cards linked to a bank account.
Check your own Credit Rating
As things stand, having paid your Spotify bill last month won't influence your Credit Score, but the way you've managed any accounts that are actually reported definitely will.
Cable TV, phone, and other utility bills usually aren't reported to credit bureaus or reflected in your credit score. However, if you are seriously delinquent in paying your cable bill, that may show up on your credit report.
If you're careful with your spending habits and can make payments on time, monthly subscriptions can be a helpful way to build your credit score as they can be another way to show that you are responsible with your money and able to pay off your bills on time.
Using credit cards for everyday spending can help you build credit, earn rewards and give you additional protections that you'll miss out on if you pay with cash or a debit card.
If you're considering a big purchase or making a big purchase but you don't want to take the money out of your account all at once, this is when you might want to consider using your credit card. Putting the big purchase on your card may help you earn points, but also gives you some time to pay it back in full.
The bottom line
From a legal perspective, credit cards generally provide more protection against fraudulent activity. But, there are ways to mimic some of these protections with a debit or prepaid card. Deciding which is best for you will help protect your money whether you're spending online or swiping in store.
After you pay off your balance, make sure you also update any subscriptions and automatic payments to a new card. These payments won't be approved once your account is closed, and you may risk service interruption or fees from the billing company.
PayPal prioritizes enabling safe transactions to allow users to send and receive money electronically. Compared to a credit card, PayPal can be considered just as safe.
You should try to spend $90 or less on a credit card with a $300 limit, then pay the bill in full by the due date. The rule of thumb is to keep your credit utilization ratio below 30%, and credit utilization is calculated by dividing your statement balance by your credit limit and multiplying by 100.
You should use your secured credit card at least once per month in order to build credit as quickly as possible. You will build credit even if you don't use the card, yet making at least one purchase every month can accelerate the process, as long as it doesn't lead to missed due dates.
As long as you can afford to, though, you really should use your credit card every month. It's not a bad thing to have zero balance, but your credit score won't improve as quickly as it would if you make charges and pay them off. Don't feel forced to spend, but consider charging at least one small thing every month.
The bottom line
The lower your balances, the better your score — and a very low balance will keep your financial risks low. But the best way to maintain a high credit score is to pay your balances in full on time, every time.
If you're a long-time Netflix user, paying your Netflix account balance every month can count as an on-time payment on your credit report.
Their scores range from 0-999. A credit score of 721-880 is considered fair. A score of 881-960 is considered good. A score of 961-999 is considered excellent (reference: https://www.experian.co.uk/consumer/guides/good-credit-score.html).