If I use my debit card as credit will it help me build credit to get a credit card?

Im wanting to get a credit card. Im young and have no credit history. Just wondering if using my debit card as a credit instead of debit would help me build credit so it would be easier to apply for credit card.


Thanks!|||Nope. Credit and debit are to different things. Debit is tied to your bank account and credit is just that, credit.|||nope debit and credit are totally different things. debit comes from your checking acct, credit cards have no backing|||Who Needs to Build Credit?





Anybody without a history of using credit needs to build credit. You never know when the need for a loan will arise, and it is a lot easier to get a loan with a solid credit history. Young adults who are just starting to learn about financial responsibilities need to build credit, and recent immigrants to the U.S. also find themselves without a credit history.





Ways to Build Credit





It is actually pretty easy to build credit. Try one of the following ideas:





Ask your bank or credit union about a secured credit card. You can make a deposit to your account and have a credit limit in the amount of your deposit. The bank takes little risk and you build credit slowly.


Use a co-signer on your first few credit accounts. Lenders will consider the co-signer’s existing credit. The co-signer essentially ‘vouches’ for you while you build credit. Note that this is a big responsibility – you can cause major headaches for the co-signer if you don’t pay as agreed (see our page on How Co-Signing Works for details).


Use retailer programs for modestly large purchases like furniture. For example, you may buy a television on the “$40/Month Payment Plan”. Gas station cards may work as well. These programs can be easier to qualify for and they certainly help you build credit. Be sure that the retailer will report your loan to the major credit reporting companies.


Get a credit card with any reputable institution that will give you one. Again, you have to make sure they’ll report your timely payments to the credit reporting companies. Of course, you have to always pay at least the minimum before the due date.


How Credit Bureaus Work


Risks of Building Credit





Remember that credit can be a useful tool, but it can also get you in trouble. After you build credit, you may be inundated with offers. Banks, credit card companies, and others will want to loan you money because they'll know you're a good borrower. Don't take them up on every offer -- only borrow money when it truly benefits you.





After you build credit, you need to continually monitor it. The US Government requires the credit bureaus to provide a free credit report to you annually, and you should take advantage of that right.





|||Using your debit card as a credit transaction is not credit. It is a method of process the transaction. A debit transaction requires your PIN; a credit transaction only needs your signature and is process thru a merchant account like real credit cards. But every time you use the debit card, the funds come directly from your bank account. This is not an extension of real credit.





Credit cards extend a line of credit. When you use the card, the charges show up on a monthly statement and you make payments.





You might try applying for a credit card at your bank since you already have a history with them. You might have to start with a secured credit card -- you deposit $x which is held as collateral for the line of credit. Use the credit card and pay it in full every month. This will give you a good payment history, avoid paying interest, and keep you out of debt.