How To build credit with a Debit Card?

If you had always insisted on using a debit card the entire time he went through high school and college. I never understood his obsession of avoiding a credit charge. Many times that we would go places and he couldn’t use the debit cards because the company only accepted credit charges.

At times like this, I was often the one who had to pay. I used my credit card to pay and he would pay me back the next day. He always paid me without fail. I always made an online payment as soon as he paid me. I knew he was afraid of bad credit because our parents had that problem and it took them almost 14 years to rebuild their credit.

The weird thing was that when he decided to buy a car, he had trouble getting approval. When he questioned the salesperson, he found that he didn’t have bad credit but that he had no credit history, which was almost as bad. Since he never used any credit cards , he never built any real credit history.

The dealer worked out a loan agreement but the interest rate was too high for my brother’s taste. Just for fun, I asked the salesperson to run my credit and see if I could co-sign for him. To our surprise, the salesperson said I could have any car on the lot right now and at the lowest interest rate. Apparently, all the payments I had made on my credit cards over the last few years had given me a great credit history.

My brother allowed me to co-sign and he no longer pays everything by debit card. He does what I did. He makes a charge, then goes home, and makes an online payment immediately. My brother didn’t build his credit with a debit card, but I sure did!