Page 54 - Book6E

46
Using Debit, Check and ATM Cards
Q: If you use a debit card to pay your bills (car payment, rent, credit cards, etc .), do you get credit for having “good credit” on your credit report? What about if you have automatic withdrawal from your checking account? Does it show up as good credit?
A: A debit card does not affect your credit report like a credit card. Therefore, your debit card purchases do not enable you to build up positive credit. However, by using your debit card instead of your credit card, you can avoid running up a costly tab and facing the potential negative impact on your credit report from late payments and outstanding balances, not to mention, high credit card interest rate payments.
Q: I use my debit card like a credit card; I do not punch in my PIN number . They always ask if it is debit or credit . I tell them credit . Is there any type of charge for this? Also, if I do use my debit PIN, can I ask if there is a charge to whomever I am purchasing from? Or will it only appear in my bank statement?
A: Normally, there is not a charge for using your debit card like a credit card and simply signing for the purchase. However, it is important to review your monthly bank statement to determine if you are being charged for any of your debit card purchases. As for asking the retailer about any charges, all fees are dependent on your financial institution and are not determined by the individual retailer so the clerk will not know. As such, it is important you call your bank or carefully review your statement.
Q: I often use my debit card as a credit card when making online purchases . Is that wise? Also, does a debit card cost appear as a line item on a bank statement or is it added in to the amount of the debit?