Do debit cards build history?
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I’ve opened a checking account with Capital One and go a debit card with it (Master Card). Along came an instruction letter, explaining that if I choose “Credit” instead of “Debit” then all of my purchase will be included in their points program.
Does this mean that it will also build my credit?
No
Debit cards are not extension of credit, and are not reported to the credit bureaus. Therefore, using your Debit Master Card will not build credit for you.
Do not confuse the debit card attached to your bank account with a credit card. That debit card has no line of credit. Selecting “credit” when using a debit card is just a method of processing the transaction.
If you choose “credit” then you can sign instead of using your PIN, and the transaction is processed thru the merchant’s credit card processing service.
Since the funds still come directly from your bank account and do not go to the credit card company, they are not reported to the credit bureaus and won’t build credit for you.
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