How to Raise Your Credit Score Using Your Debit Card

The level of your credit dictates not only if you can get a loan, but how much the loan will cost you through the amount of interest applied. The higher your credit score, the lower the amount of interest. You can help to raise your credit score by using your debit card efficiently. Remember that this is not a credit transaction. The amount you can use the debit card is limited to the amount of money in your checking account.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Checking Account
• Debit Card

1. If you don’t have a debit card, contact the bank through which you have your checking account to see if you can get one. Odds are great that you can get a debit card through your current checking account. If not, open an account with a bank that does offer a debit card while at the same time does not charge checking account fees
2. Another alternative to obtaining a debit card is to use Bank of America’s “Secure Card”. Through that card program, you deposit anywhere from $300 to $10,000 in a Bank of America security deposit account. You can then get a debit card to that amount. There is an annual fee for the card. Bank of America specifically mentions on their site that this debit card can “build or reestablish your credit.”
3. Use your card instead of paying cash so you will gain a track record through your card.
4. When you purchase something using your debit card, tell the merchant that it is a charge (not a debit). The amount will be debited, but it registers as a charge. You pay the charge instantly, so your payment history for the card is perfect.
5. Many utility bills, like electric, cell phone. land line, heating oil, etc., can be paid online. Your debit card is perfect to use for that purpose. You do not need to worry about mail delays, and it saves you the cost of a stamp.