does borrowing on a debit card help your credit rating

ppahppp

i am trying to increase my credit rating. Does borrowing from a debit card help your credit rating or is it only borrowing from a credit card

enfield_freddy

a debit card is your money stored in the bank , a credit card allows you to borrow money that you pay back monthly etc

Voyager2002

Will your borrowing involve paying interest? If so, the benefit to your credit rating is highly unlikely to be enough to compensate for the cost in interest payments... Standard advice is to get any kind of credit card (without an annual fee); use it for your usual spending; pay off the balance in full every month (set up a direct debit so you don't forget). That way there is no cost to you, and you are demonstrating responsible use of credit.

enfield_freddy

Voyager2002 wrote: »

Will your borrowing involve paying interest? If so, the benefit to your credit rating is highly unlikely to be enough to compensate for the cost in interest payments... Standard advice is to get any kind of credit card (without an annual fee); use it for your usual spending; pay off the balance in full every month (set up a direct debit so you don't forget). That way there is no cost to you, and you are demonstrating responsible use of credit.

"Does borrowing from a debit card "




a debit card does not offer credit

bsms1147

Are you talking about overdrafts?

enfield_freddy

am I missing something here , a credit card gives you credit , they even charge you interest for the privilege.


a debit card DOES NOT give you credit , it gives you access to your money in your account


nothing was mentioned about overdrafts etc

boo_star

enfield_freddy wrote: »

am I missing something here , a credit card gives you credit , they even charge you interest for the privilege.


a debit card DOES NOT give you credit , it gives you access to your money in your account


nothing was mentioned about overdrafts etc

I'd guess people are making the assumption that the OP is referring to using an overdraft in this situation.

Of course the method you use to go into an overdraft is irrelevant, it won't be reported to the CRAs, only the fact that you have an overdrawn balance.