Can you build credit with a debit card?
Answers:
A secured credit card requires that you deposit money with the issuing bank, and the bank will issue a credit card in the same amount for your use. Secured cards are guaranteed to be approved, because the bank has your deposit money in case you do not pay your balance. A secured credit card for bad credit operates much like a regular credit card. You receive a monthly statement, and you pay your minimum monthly payment or the balance in full each month. You are charged an interest rate, annual fee and possibly other fees for a secured credit card account.
Be aware that with a secured credit card for bad credit, your charges are not deducted from the deposit you have with the issuing bank. The bank is simply holding your deposit in the case that you default on your credit card balance. You must pay your monthly payments, and owe the bank the balance that you have charged on the credit card. You cannot refuse to pay simply because the bank is holding a deposit without further damaging your credit. Read more about it at: http://www.credit-card-gallery.com/secur...
no, thats your own money from your checking account. it has nothing to do with credit
no, debit card is your money, so using that does not help credit. if you want credit apply for a credit card and use it once and a while, but when you get the bill pay it off as soon as you get the bill.
No since it doesn' t actually show how well (or poorly) you deal with money that is loaned to you.
What will however help build your credit is a secured credit card. One way to get one is to check with your bank, often they will put a freeze on some of your money in a savings account. This way whatever amount is in your savings will be your credit limit.
Debit cannot determine your credit score. But if you would like to establish credit here's a little tip. I first got a credit card at the end of my senior year in highschool I didnt even touch it for 2 years. By the time I got my own cell phone in my name I had great credit because i activated it from my bank, never used it, my credit limit went up a thousand bucks and now i have perfect credit! Easiest way!!
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