Expert: Gary Lambert - 10/22/2009

Question
QUESTION: I have a Mastercard and a Visa card.  Even though the Visa card looks just like a credit card, it is considered a "check card" and is through my bank- whenever I charge something on it, usually small amounts, my checking account is debited (it took the place of me having to write checks years ago). Is this card considered to be an actual credit card? But more importantly, does my use of this card, and the small purchases I make with it, play a part in contributing to my credit rating even though it's a check card? Thanks

ANSWER: Hi Lee,

The answers are no and no.  A credit card will charge interest and allow you to pay back amounts smaller than the amount borrowed over time.  

Your Visa is just a bank card, and does not build your credit.  When taking the choice of "credit" over "debit" there may be a small delay of a day, but the money is gone from your bank account nonetheless.

Thanks for the question!  I hope this answers your question in full.  If not, please contact me again.

Gary Lambert

---------- FOLLOW-UP ----------

QUESTION: Ok, thanks. That means I only have one credit card, Mastercard. I've had it many years and have good credit (I don't know my exact score). But I am 58 years old and never owned a house and paid off my car many years ago. Althought my credit report shows me in good standing, I just wonder that if I ever need to make a major purchase, is just one good credit card enough to show I have good credit or do I need or should I get another one to bolster it? Thanks

Answer
Hi Lee,

Well, I also have 15 years experience in the mortgage industry.  I can tell you that we automatically look for at least three active credit lines with good payment history.  That can include another mortgage, car loans, credit cards, etc.  

If you have a desire to own a home, now is a great time to buy.  Are you from the USA?  What State do you live in?  What are your financial goals?  I ask these questions because what I could do for you would be to review your financial situation, suggest moves to increase/correct your credit situation and put you in a position whereby you can qualify for a home loan...

I do not use this venue to develop my business, but if I can help you then I am willing to offer my time and expertise.  Let me know and I will send you my private contact info as the communication would be much easier.  Gary