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Verderacer

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Use a credit card to pay off a non-reporting loan to build credit
I have a motorcycle loan through HD and they have refused to report my payment history, which is good, since discharge 2 years ago. At this point my credit rating is horrible, or as I have been advised, does not exist. I went searching for a loan to pay off HD so i can establish some credit again and improve my score so I can purchase a house within the next year.

The loan i found through autopay quoted me over a $1000 in fees @ a 28+%, that have to be paid no matter what, and with $2k cash down financed the remainder of the loan for 36mo 20.5%. All told $9100 is borrowed but paid off loan amount is $13700, which more than $4k just for them being able to report the loan. Pretty hefty price and comported what I have left with HD I will pay off that unreported loan in 25mo. Other lenders are the same or worse.

My idea is that I have been approved for a Cap One card with a $3k limit at 22% that I can make my payment to HD with the card, carry the balance from month to month and make payments to establish and build credit. Good idea or bad??? Thoughts?

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Sounds better than the loan

If you have a CapOne card that you would use to make the payment monthly, Then by all means do that.  If you pay it off each month then you would owe no interest so your certainly not hurting yourself that way.  

The very high interest rates and fees they want to charge you are because of your thin file. A "Thin File" means that you have very little information in your file. So there is nothing to base your credit worthiness on.  You need to start building credit. That CapOne card can do that for you.  The articles here on CK and other sites can also teach you a lot. Your credit score is THE most important number in your financial life. It determines everything from the interest rates you pay, not only on Credit cards and loans, But insurances and the biggy, Mortgages, Where 1% difference can mean tens of Thousands of dollars over the life of a 30 years note.  

Good luck

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