I have a young employee who wants to purchase a SO roll cab and make payments on it in order to start to establish credit. My question is, does SO corporate actually report positive feedback to credit agencies like Experian and Equifax? Or do they only pull your score to see if your worthy of their EC program?
Question about Snap On EC and credit reporting
- Thread starter F33Tony
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chadster1
Well-known member
Yes, they do report to the credit bureaus
warmpancakes
Well-known member
Yes they report my EC every month, Its counted like a credit card on your credit report,
bobcatdan
Well-known member
SO credit has one downfall with showing on your report. They do not publish your credit limit. This can scew your "credit capacity" which is a large % of your score. Say you have a $10,000 credit card and you have $3,000 sitting on it, you have used 30% of your available credit. With SO, you have a $5,000 loan with no stated credit limit, hard to do the math that way. His best bet is to use SO for any rebates and other kick backs he can get then go to his bank and take out a basic loan to pay it off. SO credit isn't really evil or bad, but you need to know how to play it.
MattPersman
Well-known member
They only look at the credit cards as % of utilization. My snap on account just showed up as a loan in the same category as a student loan.
i know from personal experience if its a good deal on the box and he makes the payments faithfully and pays a little extra he can build solid score with the snap on credit line . once its payed off he can buy more at a lower % rate unlike a credit card company that will just keep rate the same but up his credit limit plus tools make money and if he is doing his taxes as 1099 he can claim them . i turn in every receipt to my accountant in dec of each year if i dont have enough expeinces to balance out taxes i buy what i need last week of the year cause i would rather have tools in my box than a thankyou from uncle sam
It's called a secured loan. Go to the bank your checking and savings account is at, let them know you are trying to build your credit, and ask for secured loan. Works great.
pendragon1998
Well-known member
I think a kid starting out would have to be crazy to pay snap-on money for a box. HF is plenty for a kid to buy. If he starts making bank, let him upgrade in a few years. Bet he won't.
Bigblue&Goldie
Well-known member
Do you really think the kid has a few grand sitting in his bank account to "secure" the loan? If he does, he probably has the ability to get credit without it being "secured".
He doesn't need a few grand. A few hundred is plenty. Also let's be honest, he needs practice saving a more than he needs credit OR a SO box.
Bigblue&Goldie
Well-known member
I'll agree with you there.
dleonard1122
Well-known member
This worked great for me. At 18 none of the Visas, MC, Discover, etc... Would approve me. Went to my credit union and they gave me a secured visa credit card. Put 500 down and that have me a 500 limit. Used it to pay for gas mostly and paid off the balance in full each month. A year later and I got my 500 bucks back and dropped the "secure" part and had a regular visa. A few years later now and I'm 21, have a higher limit and a much lower APR.
I'd recommend doing the same path I took, And buying the HF 44' with the secured CC
Edit: after re-reading the quoted poster, we may be thinking of different things. Still I maintain a secure Credit Card was a great way to build credit and learn financial responsibility
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Lance-AR
Well-known member
+1 on a credit union. There should be a community credit union nearby he will be eligible to join. Much better rates and products these days plus he will have a history there when he needs more in the future.
NFH2740
Well-known member
Interesting. I was always under the impression that it was a revolving account rather then installment.