How To Use Debit Cards To Improve Your Credit

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Debit Cards: The most overlooked way of gaining or improving your credit

Did you know that some debit cards with the Visa or Mastercard Logo are actually good for more than just storing cash?  Some of them actually report to the credit bureaus.  Thats good news for people trying to rebuild theri credit.  There is NO WAY you can ever over draw this card, all you need to do is make timely payments and watch your credit score improve! 

 

Another thing to think about is that you control the credit amount.  So if you are trying to build credit, depending on the debit cards limit, you can make it look like you have a large unsecured credit line on your credit report. 

Benefits Of a Prepaid Debit Card 

This article will tackle the benefits of debit cards and why owning them is worth the choice. We'll also discuss the difference of prepaid debit cards and how they can be useful for people with bad credit.

The Beginning of Prepaid Debit Cards

Prepaid debit cards were introduced in the market beginning in the early 1990s particularly to cater people with bad credit. Since poor credit will not qualify an individual for a standard credit card, he can opt to have a prepaid debit card instead.

Read More: Benefits Of a Prepaid Debit Card

Prepaid Cards - A sign of being debt conscience 

Today I was getting a rental car for my nephew and I pulled out my prepaid debit card out of habit. The guy at the counter informed me they charge a bit extra for debit cards do I have a regular credit card. I was a bit surprised but as I took the card back he said "Yeah doesn't it suck having bad credit ?" I can only use a debit card too.

BIG MISTAKE

I then had to inform him that I have excellent credit and CHOOSE to use my credit card for emergencies only. I told him that using a prepaid credit helps me to stay on budget and I don't make impulse purchases the way I used to.

Read More: Prepaid Cards - A sign of being debt conscience

Advantages of Prepaid Debit Cards for Day-to-day Living 

Many people choose debit cards over credit cards for some good reasons. This article focuses on the practical advantages of prepaid debit cards for your day-to-day living.

1. Spend only the money that you have. Debit cards do not have credit lines so you are limited to only the amount of money deposited in your account. This limitation can actually be a great thing to help people exercise more control over their spending. If you don't have funds in your account, you won't be able to make purchases so you can avoid unplanned purchases.

Read More: Advantages of Prepaid Debit Cards for Day-to-day Living

What Is Right For You, Debit Cards or Credit Cards? 

If you were to choose between a debit card and a credit card, which one would you pick? Perhaps you may think that a credit card is always the better choice. However, debit cards can have advantages as well. In this article, let's talk about the basic differences of debit cards and credit cards so you can better decide which one is best.

The Difference Between Debit Cards and Credit Cards

Credit cards have long been used for making purchases. A credit card gives its holder the privilege to make advanced purchases and pay for them at a later time. Every credit card holder is given a credit line as well as the option to carry over balances from month to month.

Read More: What Is Right For You, Debit Cards or Credit Cards?

Free Credit Repair and Building ebook

I know you have seen Credit Repair books online selling for anything from $9.99 to $190.00.

I found a great ebook on credit repair that I used to take my credit score from a 616 to 742.
It is still for free so I encourage you to sign up for their free credit repair guide at this resource

Get Your Free Credit Repair and Building Ebook

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by financegirls

Hello, I'm a loan consultant and freelance writer.  My niche is in sub prime lending.  In other words I help people and companies with credi... (more)

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