Since I just recently paid off all my credit card debt, I would rather not use a credit card. Although I know that eventually, if I don%26#039;t have any type of credit transactions after awhile, my credit score is negatively affected. I do have a debit card that takes the money directly from my account, and I know that I could say %26quot;credit%26quot; at check out, and the funds would still be taken out of my account. The only difference is that I sign instead of enter a PIN. Would this help my credit? I already have a really good score, and I would like to keep it that way! Thanks for any input.
Tim
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
No, making %26quot;credit%26quot; transactions with your debit card won%26#039;t improve your score. Your debit card is linked to a checking account which is a deposit account, instead of a revolving credit account that reports to the 3 credit bureaus. The only difference in using credit or debit when you make a purchase is that debit transactions require you to use a PIN and the transaction usually posts immediately. Using credit requires a signature and it takes a little longer for the transaction to post to your account.
The only way to maintain and improve your score is to use your credit cards lightly by making small purchases that can be paid off on time every month to show activity.
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
The debit card that acts like a credit card does not affect your credit. You have the credit card%26#039;s logo just so your card can be accepted more places.
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
when you use a debit card as a credit card it still comes directly out of your account. When you use it as jusrt a debit card sometimes there are hidden fees from either the store, your bank, or both. They don%26#039;t tell you, but when you use it as credit there areno hidden fees. I always use mine as credit. Hope this helps!
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
A debit card is generally connected to a checking or savings account. The transactions you do under credit do not affect your credit score (since you are not using an actual credit card with a credit limit for the transaction). You are using an ATM card which is not a credit line (reporting information to the credit bureaus).
A little note - at some stores you are charged a transaction fee if you use your ATM card as a debit instead of credit (the store should post the information on their card machine).
If you want to improve your credit score - register here, it%26#039;s free and it will usually improve your score by 10 points in less than 30 days:
https://www.optoutprescreen.com/?rf=t
Go to the bottom of the page - Click the button to opt out - mark the box (Opt out Electronically for 5 years). I originate mortgage loans and have my customers register here to help improve the credit score to qualify them.
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
There really is two parts here. The debt card will not change your credit score in any way, even if you say credit. You will however save yourself fees. When you are asked to put in a %26#039;pin%26#039; number your are being charged by the bank. The only time you should use the card as a debt card is at an atm (cause there is no choice).
Having credit cards that are paid off and open will actually help raise your credit score over time. It use to be that when you paid off all your cards that you were told to close them all. It is actually worth keeping 4 tradelines (accounts) open. A house payment, car payment, and 2 other accounts like a credit card. If you are not a home owner, any installment type loan like furniture or student loans.
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
It doesn%26#039;t make any difference, since you are spending your own money - it doesn%26#039;t go on your credit report. Some people feel more secure signing their name (using %26quot;credit%26quot;) vs. entering their PIN (%26quot;debit%26quot;) because of hackers.
What most people don%26#039;t realize is that merchants prefer you to choose %26quot;debit%26quot; (which is why that is usually the default when you slide your card). When you process your transaction through %26quot;debit%26quot; - the merchant gets paid an interchange fee by your bank. On the flip side, the Bank profits when you process your transaction through %26quot;credit%26quot; (usually Visa or Mastercard) - the merchant pays the fee to the credit processor, who in turn shares a portion with your bank. (This is why some gas stations have reinstituted the old practice of charging a few cents more per gallon for people who use a credit card - so they maintain their profit margin.)
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
A debit card is NOT a credit card, and you don%26#039;t get any positive benefit (to your credit score) from using a debit card. You can say credit, rather than debit, but the bottom line is that it isn%26#039;t a credit card.
You can get negative benefit from using a debit card if you use it when you don%26#039;t have the funds to cover your purchases, but that%26#039;s the ONLY way a debit card is going to affect your credit score.
Not using your credit cards won%26#039;t adversely impact your credit score. But if you%26#039;re worried about it, use your credit card once every couple of months for something small, and then pay it off when the statement comes.
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
When they ask you %26quot;credit%26quot; or %26quot;debit%26quot; it just refers to what network the merchant uses to process your card payment. ATM networks are %26quot;STAR%26quot; or %26quot;PLUS%26quot; or %26quot;Cirrus%26quot;. Credit card networks are VISA and MC, etc. The merchant has to pay a percentage of your purchase to the credit card company as a cost of doing business. Usually credit card companies charge a higher fee than ATM networks but this makes no difference to you. ATM networks also process in %26quot;real time%26quot; so the charge shows up immediately on your bank account where credit card transactions can take days to post.
Doesn%26#039;t build credit either way.
Would saying %26quot;credit%26quot; when asked %26quot;credit or debit?%26quot; when I use my debit card improve my credit score?
No way. You misunderstand what credit is..
Banks lend money to people because they can make money off the interest. In a situation where a bank agrees to lend money to a person and that person does not pay the bank back, the bank loses a lot of money -- for this reason banks developed the credit score system to classify people based on their creditworthiness -- the likelihood that they will pay the bank back the money and on time.
Your credit score, more commonly known as your MyFico Score is managed by Fair Isaac %26amp; Co that%26#039;s where they get the name FICO from. These guys are the authorities on Credit Score rankings and are used most prominently throughout the banking and loan industry to determine the creditworthiness of a business or an individual. Your best bet is to go with the company that manages credit scores, Experian, TransUnion and Equifax only keep track of your credit report and credit inquiries.
Let me share with you my tips that you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year -- :
# Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score tracking listed below. It really helped my get my score up.)
# Never Miss a Payment, Starting Today
# Never use more than 20% of your Available Credit
# Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
# Extend Your Credit Limit on Cards You Already Have before You Get New Ones
# Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
# Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
# If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
# Take out a Small Personal Loan and Repay it Over a Year
# Ask Someone With Good Credit if They will Account Shadow you
Read more here:
10-Ways to Boost Your MyFico Score
http://millionster.com/articles/debt/inc...
When you%26#039;re trying to build a solid credit score it%26#039;s important to get a comprehensive view of what is actually effecting it...
Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:
35% - Payment History
30% - Credit to Debt Ratio
15% - Credit History
10% - New Credit
10% - Credit Types in Use
If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score
Best of luck to you, I hope this info helps you figure your credit situation out!
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