Comments on: Is it better to use a credit card or a debit card to increase your credit score?

By: twv706

twv706 — Sun, 06 Dec 2009 11:13:41 +0000

When establishing credit you want to use your credit cards, but keep your balances at less than 50% of your credit line.

By: Lawrence R

Lawrence R — Fri, 04 Dec 2009 18:55:16 +0000

I would tell you that you should continue to not have any credit card debt. If you can manage it, don’t have any other type of debt either. Save your money and pay cash. It’s amazing what amount of “discount” you can get when you will pay cash.

If you move on to a home mortgage, some lenders can use manual underwriting to qualify you if you don’t have a “good” credit score. They will look at your income versus debt and not simply your FICO score.

By: KitKat

KitKat — Wed, 02 Dec 2009 00:53:29 +0000

Your debit card is just linked to your checking account and has no effect on your credit at all.

By: kemperk

kemperk — Sun, 29 Nov 2009 09:23:51 +0000

YOU have already answered the question. To affect your
credit score, do things with your credit. Regardless what you buy, whatever you owe in your statements each month,
make the minimum payment ON TIME. NEVER let one
payment slip.

DO NOT buy what you do not need. DO not buy what you cannot afford.

DO not use more than 2 credit cards.

And 2 other things I learned the HARD WAY;
and the credit bureaus do not like me saying this;

a; regardless what your score is today, for whatever reason,
in 7 years, if you make every payment perfect from
tomorrow on, your score will rise to 850 or as high as
it can go–AUTOMATICALLY.

if YOU MISS one payment deadline, the consequences are
horrible and your score can drop 100 points!

if you have no bankruptcy, your score will rise to its maximum in 5 years.

What you are doing is ideal. BUT remember, the lenders
who will lend to you in the future also want to see how you
invest your cash. YOU should buy some real estate and
invest in things that earn you safely, 15-50% annually.

The banks have an income -expenses ratio they use but
that is NOT related to your credit score.

Thanks for asking

By: kitty

kitty — Thu, 26 Nov 2009 10:28:34 +0000

IT’S BETTER TO USE YOU CREDIT CARD TO GET A BETTER SCORE DO THAT FOR 3 MONTHS AND MAKE 3 MONTHS OF PAYMENTS DON’T BE LATE THE PURCHASES DON’T HAVE TO BE LARGE KEEP IT SIMPLE PAY THE CARD OFF BEFORE THE MONTH IS OVER SO THE CC DOESN’T IF YOU DO ACCRUE INTEREST ON YOUR CARD THEN YOU CC WILL START TO LOOK GOOD NEVER CANCEL A CARD OR MISS A PAYMENT IT WILL TAKE 2 YRS OR MORE TO STRAIGHTEN OUT YOUR CREDIT IF YOU DON’T HAVE A GOOD STANDING (NAME) WHAT DO YOU HAVE

By: tryinthis2

tryinthis2 — Wed, 25 Nov 2009 19:40:29 +0000

debit card doesnt effect your fico score. it’s also not good to pay off your debt every month. if you never have a balance on your credit report then you arent deemed to be worthy of a large credit line because you have only shown the ability to pay what you charge each month.

By: fojimo

fojimo — Tue, 24 Nov 2009 11:38:02 +0000

your debit card does not affect your score as it comes from your banked money and not borrowed money. a credit card is a line of credit and when you repay it improves your good standing which is rated,giving you a credit score.