Using a credit card just like a debit card?

Question

If I make a purchase for 100$ and I turn around and write a check or pay it online in full with my debit card a) will there be any interest charged at all? and b) will this still help improve my credit?

Answer 1

No interest will be charged so you are safe there.

Lenders would rather see running balances that are being paid on monthly (like $2,000 balance being paid off in installments).  I would not recommend keeping a balance if you don't have to though.  

What you are doing will help keep the card active and which will add a positive account to your credit history.  The more history and more positive accounts your credit file has will help your score.

Get a few of these cards and do the same thing for them and in a year or two you should see a good score.  If you really want to get your score up you could take out a low interest installment loan from your bank and pay monthly on it.  

Once you get a good score just don't do what has gotten the rest of America in a mess.  Don't buy more than you can afford!  Remember -the debtor is a slave to their creditor.

Good luck!

Answer 2

1.  Whether or not there will be any interest depends on the individual credit card.  Some charge interest from the day the charge occurs.  Others give you a lag period.  Either read your credit card agreement, or easier, try what you have in mind and see if you get charged interest.

Keep in mind that some companies charge you a fee regardless of how soon you pay the charges.

2.  Yes, this can improve your credit.

Answer 3

Unless you have 0% APR then you will pay interest on the credit card, regardless of full payment. It will in fact help you with your credit. Dont ever be late on paying credit cards or your credit score will drop.