Have a check card (visa backed check card) ..

[TheVrolok]

I always thought not, basically because it's nothing more than a plastic version of a check .. BUT, since it is backed by Visa, my friend is telling me that by using it I do indeed gain a credit rating .. does anyone know this for fact?

 

[NikPreviousAcct]

I have a debit card with a visa logo. I never had a credit card until recently and I've been building credit. I guess the visa logo builds credit if you use it. 😕

 

[TheVrolok]

Originally posted by: FFMCobalt
I have a debit card with a visa logo. I never had a credit card until recently and I've been building credit. I guess the visa logo builds credit if you use it. 😕

Good deal then I suppose .. seeing as I never really use it for more than 20 or 30 bucks, and given that it's linked to my checking account .. it's always paid off. 🙂

 

[krunchykrome]

Originally posted by: TheVrolok
I always thought not, basically because it's nothing more than a plastic version of a check .. BUT, since it is backed by Visa, my friend is telling me that by using it I do indeed gain a credit rating .. does anyone know this for fact?

No. Your debit card can be used as "credit" or "debit" at merchants, but the only difference is that by selecting the debit feature, your bank will charge you a service fee where as if you select the credit feature, no fee is charged. Either way, your debit card has no affect on your credit. However, if you abuse your debit card use, it will be recorded in CHEX systems which will affect your personally banking credit and relationships.

 

[krunchykrome]

Originally posted by: FFMCobalt
I have a debit card with a visa logo. I never had a credit card until recently and I've been building credit. I guess the visa logo builds credit if you use it. 😕

Your not building credit with your debit card.

 

[SilentZero]

Nope.

 

[TheVrolok]

Originally posted by: krunchykrome

Originally posted by: TheVrolok
I always thought not, basically because it's nothing more than a plastic version of a check .. BUT, since it is backed by Visa, my friend is telling me that by using it I do indeed gain a credit rating .. does anyone know this for fact?

No. Your debit card can be used as "credit" or "debit" at merchants, but the only difference is that by selecting the debit feature, your bank will charge you a service fee where as if you select the credit feature, no fee is charged. Either way, your debit card has no affect on your credit. However, if you abuse your debit card use, it will be recorded in CHEX systems which will affect your personally banking credit and relationships.

How does one 'abuse' a debit card? Can you really spend more than you have if it's just drawing from a checking/savings account? Would this just merely be the same as over drawing by writing a check that bounces?

 

[cronos]

no, i don't think so.

 

[krunchykrome]

Originally posted by: TheVrolok

Originally posted by: krunchykrome

Originally posted by: TheVrolok
I always thought not, basically because it's nothing more than a plastic version of a check .. BUT, since it is backed by Visa, my friend is telling me that by using it I do indeed gain a credit rating .. does anyone know this for fact?

No. Your debit card can be used as "credit" or "debit" at merchants, but the only difference is that by selecting the debit feature, your bank will charge you a service fee where as if you select the credit feature, no fee is charged. Either way, your debit card has no affect on your credit. However, if you abuse your debit card use, it will be recorded in CHEX systems which will affect your personally banking credit and relationships.

How does one 'abuse' a debit card? Can you really spend more than you have if it's just drawing from a checking/savings account? Would this just merely be the same as over drawing by writing a check that bounces?

At many major banks, they have a "cushion" on your debit card. Meaning, that if you charge something say $100, but you have only $90 in the account, the transaction will still go through, and evntually, after the transaction clears your account in a few days, you will be charged a service fee for overdrawing your account. Your card use can be abused this way. Many people dont balance their checkbooks and depend on their online banking statements to check balances. The problem with this is that in many cases, the transactions and new balances arent posted for another few days, misleading people into thinking they have more money than they actually have. So, people will spend more money, and eventually, they will overdraw their account.

 

[Chebago]

Originally posted by: krunchykrome


At many major banks, they have a "cushion" on your debit card. Meaning, that if you charge something say $100, but you have only $90 in the account, the transaction will still go through, and evntually, after the transaction clears your account in a few days, you will be charged a service fee for overdrawing your account. Your card use can be abused this way. Many people dont balance their checkbooks and depend on their online banking statements to check balances. The problem with this is that in many cases, the transactions and new balances arent posted for another few days, misleading people into thinking they have more money than they actually have. So, people will spend more money, and eventually, they will overdraw their account.

My bank gives me an overdraft that works like normal credit, I only get fined if I overdraw that, as for choosing Debit over Credit in the machine, I have never once been charged for that.

 

[bunker]

Originally posted by: krunchykrome

Originally posted by: TheVrolok
I always thought not, basically because it's nothing more than a plastic version of a check .. BUT, since it is backed by Visa, my friend is telling me that by using it I do indeed gain a credit rating .. does anyone know this for fact?

No. Your debit card can be used as "credit" or "debit" at merchants, but the only difference is that by selecting the debit feature, your bank will charge you a service fee where as if you select the credit feature, no fee is charged. Either way, your debit card has no affect on your credit. However, if you abuse your debit card use, it will be recorded in CHEX systems which will affect your personally banking credit and relationships.

Then you need to find a new bank. I've been with 3 different banks and have never been charged a service fee for using my card as a debit card.

 

[IndieSnob]

Originally posted by: krunchykrome

Originally posted by: TheVrolok
I always thought not, basically because it's nothing more than a plastic version of a check .. BUT, since it is backed by Visa, my friend is telling me that by using it I do indeed gain a credit rating .. does anyone know this for fact?

No. Your debit card can be used as "credit" or "debit" at merchants, but the only difference is that by selecting the debit feature, your bank will charge you a service fee where as if you select the credit feature, no fee is charged. Either way, your debit card has no affect on your credit. However, if you abuse your debit card use, it will be recorded in CHEX systems which will affect your personally banking credit and relationships.

You must bank at the 'First national rip me off bank' then. The difference between debit and credit is this:

Run debit card as debit = money is deducted from your account at the instant you make that purchase.
Run debit card as credit = money is not deducted, and instead can take anywhere up to a couple of weeks to be deducted from your account.

As to the OP's original question. No, using a debit card does nothing for your credit. If you really want to build your credit, get a secured line of credit at your bank, say start with $200. It works by giving them $200, as you charge things to that credit card, it goes against that money you have in the account.

 

[krunchykrome]

Sorry, I should have been more clear. I was generally speaking about banks. Not all banks have the same policies regarding service charges. So you guys are right, but every bank does in fact have service charges.

And the debit/credit explanation is incorrect.
You can choose the DEBIT feature and the money will take the same amount of time as if you would select credit.

 

[Zombie]

I doubt it.

 

[DT4K]

Originally posted by: IndieSnob
Run debit card as debit = money is deducted from your account at the instant you make that purchase.
Run debit card as credit = money is not deducted, and instead can take anywhere up to a couple of weeks to be deducted from your account.

Maybe this is just something weird about your bank, but I've never had this be true. I can run my card as credit and the funds come out the same day. Same as if I run it as a debit.

And no, your check card does NOT affect your credit rating because it isn't credit. Nobody is loaning you any money. You can only spend what you have in the bank. Having the Visa logo just makes it possible to use it at places that take Visa.

 

[TheBDB]

I thought the difference between choosing credit and debit was debit asks for your PIN number whereas credit you have to sign the receipt.