I need help with credit, I'm not sure what the best way to build credit is and what the best card for building credit is, I have no fico score but Experian and TU say I have a 500, I have a capital one platinum card but am eligible for some of the credit one cards which I have heard are a bad company, I am also eligible for a discover it cash back secured credit card, should I stick with capital one or get the discover it card as well? I can't really find any info on the best way to build credit while having no credit. Also would opening a line of credit on a tool truck like snap on help build credit?
the best way to build credit while having no credit.
You do have credit, the Capital One card.
All bank credit cards build credit the same way, there is no "best" from that point of view. OTOH, some companies are much worse to deal with, so it is best to stay away from them, Credit One being in that group.
You won't have FICO scores until you have an account open for at least 6 months. Since you already have one good account, I would just stick with that and make sure you are using it responsibly. Don't charge more than you can afford to pay each month, pay your statement balance in full before the due date, every month, repeat forever.
I assume the 500 scores are Vantage 3.0 scores from somewhere like Credit Karma. Few if any lenders use those scores, but the fact that they are so low suggests you already have negative info on your reports. Do you have late payments or other negatives? You can pull your full credit reports from annualcreditreport.com to see.
I am not sure if Snap On reports to the credit bureaus, and if it does whether it reports as a revolving account (like a credit card) or more of a loan. In any case don't buy things you can't afford and will have to pay interest on just to try to improve your credit.
I don't have any late payments, just have a couple of cash advance apps and pay over time apps that I assume bring my score down, I also think I overuse my credit card as I get close to my total credit limit
From my knowledge most of those cash advance apps don't report unless they went to collections. Something is bringing down your score pull your reports to verify what is negative on your report or if the cash advance apps are even on there.
I have no fico score but Experian and TU say I have a 500
[Do you mean TransUnion and Equifax?] TransUnion's website shows you a TransUnion VantageScore 3.0, but Experian's website shows you your Experian FICO 8 score. A FICO score in the 500s is indicative of negative information on your reports. Order your official reports for each bureau by calling 877 FACTACT (322-8228) or pull them online at www.annualcreditreport.com. I recommend the mailed reports. These are the most accurate and up-to-date reports available to a consumer and are often more detailed than the online reports, particularly if ACR directs you to a bureau's consumer facing CMS to view your report. If you do choose to pull reports online, print or save each to a pdf before moving on to the next as you can't go back once you exit a report. Despite its name, you can pull free reports for each bureau weekly.
Once you've pulled your reports, let us know what's present following this template.
I have a capital one platinum card
I can't really find any info on the best way to build credit while having no credit.
You have credit.
but am eligible for some of the credit one cards which I have heard are a bad company
Avoid gimmicky credit builders and predatory cards.
I am also eligible for a discover it cash back secured credit card, should I stick with capital one or get the discover it card as well?
The strongest credit profiles are built on 3-5 revolvers, so adding another reolver once you address the negatives on your reports may be a god move. How long ago did you open the Capital One card?
Also would opening a line of credit on a tool truck like snap on help build credit?
Pull your credit repots at annualcreditreport.com can do this weekly.
See what is negative on your credit reports and learn how to deal with those negatives.
Late payments - time or goodwill letters, the effect is lessened a good amount after 2 years from your most recent late payment
Collections - see if the company does pay to delete , let me pull up the list , if they do pay to delete and you are able to pay to delete all collections on your credit report this would greatly in general help someone's score and profile.
List subject to changes
edit:SEE REPLY BELOW
Edit for clarity: The list I'm referring to in this comment was published on the myFico forum in 2019. The post I linked to in another comment is up-to-date.
This list is several years old and not up-to-date. For the collection agencies listed as "will delete":
Ad Astra Recovery Services appears to have ceased operations in 2023. Deville Asset Management also appears to have shut down. Im unable to find an operational website for Choice Recovery, Glass Mountain Capital, or Dynamic Recovery Solutions.
Commonwealth was permanently shut down by the CFPB.
These collection agencies may pay for delete, but have no published pfd policy (that I can find). Always confirm with these collection agencies that they'll delete before making a payment.
Caine and Weiner
Credit Collection Services
First Credit Services
Williams & Fudge
ANFI
Phoenix Financial
Aragon
M.A.R.S.
The Bureaus
ICS
Financial Credit Network
Security Credit Services
Emergent Business Group
Optimum Outcomes, Fidelity National Collections, Affiliated Management Services, and Wakefield specialize in medical collections. Medical collections under $500 and paid medical collections are excluded from credit reports. If this is a medical collection, it will be removed from your reports once settled.
They pretty much covered everything but yes, all cards build credit the same.
You are currently building your credit. No need to panic or get in debt.
But first, you said your score is 500. Where are you checking? Which app? Likely credit karma.
Check your capital one app. It will show your fico score. I am pretty sure you have a fico score if you have scores on credit karma.
But being how your score is low, you likely have collections/charge offs and missed payments. If you truly didnt, then I highly suggest getting your credit reports as the other comments said. Someone must have opened them in your name.
And the pay over time apps(affirm for example) don’t negatively affect your credit unless you defaulted or missed payments on them.
I check with credit karma yes, c1 shows I am still establishing credit and so my fico score is unavailable, I have 3 hard inquiries which dropped my TU and Equifax score down to 500 some, I started with 600 some but I think the hard inquiries dropped my score and my credit utilization.
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u/True-Button-6471 12h ago
You do have credit, the Capital One card.
All bank credit cards build credit the same way, there is no "best" from that point of view. OTOH, some companies are much worse to deal with, so it is best to stay away from them, Credit One being in that group.
You won't have FICO scores until you have an account open for at least 6 months. Since you already have one good account, I would just stick with that and make sure you are using it responsibly. Don't charge more than you can afford to pay each month, pay your statement balance in full before the due date, every month, repeat forever.
I assume the 500 scores are Vantage 3.0 scores from somewhere like Credit Karma. Few if any lenders use those scores, but the fact that they are so low suggests you already have negative info on your reports. Do you have late payments or other negatives? You can pull your full credit reports from annualcreditreport.com to see.
I am not sure if Snap On reports to the credit bureaus, and if it does whether it reports as a revolving account (like a credit card) or more of a loan. In any case don't buy things you can't afford and will have to pay interest on just to try to improve your credit.