Posts tagged "happens"

What happens when credit is used for a debit card?

Question by CGYN3: What happens when credit is used for a debit card?
Meaning, if I’m at a store and I’m using my debit card, and the cashier says “Debit or Credit?”
And I say/push credit even though I’m using my debit card what will happen?

Best answer:

Answer by HumptyMomma
Other than the obvious…you will sign the receipt instead of entering your pin number…

Specifying ‘credit’ is always more secure. I’m not 100% on the reason why that is, but I know that it is most often the truth.

Also…many banks offer extra ‘rewards’ when you swipe it as credit versus debit. You are encouraged to do so.

…yet, it is habit for me to always say ‘debit’. Unless I’m usin my husbands card…which I always forget the pin number to…so I say ‘credit’ and sign.

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3 comments - What do you think?
Posted by Trevor - March 12, 2013 at 1:32 pm

Categories: Credit Score Questions   Tags: , , , , , ,

what happens if you settle your debt will it affect credit score?

Question by h.p: what happens if you settle your debt will it affect credit score?

how bad it will be?

Best answer:

Answer by victor c

A debt settlement will actually improve your credit. Having a lot of debt typically hurts most people’s credit because it gives them an exceptionally high debt-to-income ratio and debt-to-credit ratio. Inversely, a debt settlement, which manifests in a debt elimination, lowers and brings both the debt-to-income ratio and debt-to-credit ratio to a positive standing.

According to Fair Isaac corporation, which created the FICO credit scoring model, the “debt-to-credit” ratio makes up roughly 30 percent of the consumer credit score. So, obviously a debt settlement (a.k.a. debt negotiation) will improve your credit.

In addition to being able to improve your physical credit score, hiring a debt negotiation specialist to settle your debt can give you added credit benefits. It also makes you look more creditworthy than previously showing a whopping sum of debt and high debt to credit balances. Keep in mind that creditors are more concerned about debtors that owe a lot and can’t seem to reasonably pay off their debts than if you’re presently debt-free, yet had a checkered credit history.

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Posted by Trevor - February 6, 2013 at 1:21 pm

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Q&A: What happens to your credit score if you pay off all your debt and never get another credit card?

Question by nickolasname: What happens to your credit score if you pay off all your debt and never get another credit card?
I have a tremendous amount of bad debt. Almost 2000 dollars. If I were to pay it all off to 0 would it raise my score or just keep it from getting lower? I have no intention to EVER EVER EVER have another credit card. my credit score is in the low 500s what will happen if I pay off all debt and do nothing to raise my score?

Best answer:

Answer by Kathy P
It would raise your credit score to pay off your accounts. But don’t close the accounts. Just cut up the cards if you don’t want to use them. Or use them once in a while, and pay it off right away. One of the things they use to figure your score is how long you have had your accounts. So keep the accounts open, as that will help increase your score.

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Posted by Trevor - August 15, 2012 at 1:22 pm

Categories: Credit Score Questions   Tags: , , , , , ,