“You really want to get rid of that debit card for identity theft reasons, and get a credit card with a small credit limit. Pay it off monthly.”
A few things wrong with this…..you really don’t need to have a small limit unless you have small income. In fact, too small of a credit line may tell the credit bureaus that you can’t get more credit….Just take the line the card gives you…and NEVER lower your line, that also can negatively affect your score.
Also, using a credit card and paying off the card monthly could, and probably will, lead the credit bureaus to believe that you have more debt than you do, as well as lower your credit score due to having too high a % of unavailable credit left on the card.
Not wise….I only tell people that like this method or do it to get “points” from their card, to pay off the card immediately, or as soon as you can after making a purchase. The credit bureaus don’t do averages…so if you have a balance, they assume its debt, not revolving purchases getting paid off by cash flow.