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Will my Visa Check Card affect my Credit Report


It’s important to keep a good relationship with your checking account

Dear Kim,

Last year I went to my local bank and opened a checking account. I got a Visa check card while I was there. It is attached to my bank account. I have been very careful with it, but when I pulled my credit report from annualcreditreport.com it wasn’t on the report and my score had not improved. I thought by having the Visa and using it wisely it would help improve my score and it would be reported. Should I call the bank and tell them to put it on my report?

Thanks,
John, NJ

 

Dear John,

I understand your frustration, but unfortunately that card will not be reported on your credit report. Your bank issued you this card as an extension of your checking account, not as a revolving credit card. A check (debit) card is a great tool, as it can be used where Visa is accepted without creating a balance or an interest charge. The money is coming directly out of the bank account.

It is important that you maintain a good relationship with your bank and an excellent history with your checking account. If you overdraw a bank account it can be very expensive. The bank will charge you fees, as can the merchant where you bounced the checks. Your account can be closed by the bank and your information mat be reported to ChexSystems,  which is a company that compiles data on the misuse of bank accounts and makes it visible for other banking institutions to view.

In summary, having a good banking history can be just as important as having a good credit history. If you are interested in establishing credit please give one of our Certified Credit Counselors a call at 800-992-4557, and we would be happy to discuss the most effective way to rebuild credit.

Best of Luck!
Kim


Kim headshot 3

Kim Cole is the Community Engagement Manager for Navicore Solutions. Kim provides financial education workshops and seminars to communities. Readers can submit general questions relating to personal finance, credit scoring, debt management, student loans, home finance or bankruptcy which may be highlighted in the next month’s edition. All identifying information will be kept anonymous.

Please send your questions via email to DearKim@navicoresolutions.org