 | Is the credit symbol from a debit card really credit? I.E Visa logo on a Bank of America debit card.? |
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Question: Is the credit symbol from a debit card really credit? I.E Visa logo on a Bank of America debit card.?A friend of mine is arguing that the credit symbol (Visa) on my debit card doesn't actually "build" my credit. I'm telling her it does. That I can use my debit card like a credit and pay the money back. The money is drawn from my bank account because i have the money and im in debt to the bank. She's saying it's my money to begin with. If I didn't have the money in my bank acount i'm overdrawn; being in debt to the bank anyway. She also argues that when u are in bad standing with a bank, it DOES NOT go on your credit; decreasing your credit score, giving bad credit. Correct me if i'm wrong, i'm only 17, still things about credit I don't know, but i know i'm right on this.
Answer: -Debit cards only build credit with YOUR bank. If you want to build real credit get a credit card with no annual fees and freeze it in a bucket of water in your freezer. That way you don;t get in debt but at least you are building credit with time. -I agree with your friend! However, over time, it MAY help to boost you credit rating -There's NO SUCH THING as a credit rating! You can build up a credit 'score' with your bank, and new banks will 'score' you based on what you tell them. Only bad debt goes on a database for banks to make credit decisions. As far as your card goes, if it says 'credit card' you will get a bill every month stating how much you owe etc. If it says 'debit card' then the money comes straight from your account. I fully recommend you speak to your bank if you are unsure - if you leave it too late tou will muck up your finances and get into trouble. Please listen to a bank, not your friends.
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