I recently enrolled in Credit Karma’s Credit Builder for $500 to build my credit. Will I see my $500 when I finish filling my account to $500, or is it a scam? I’m a little worried and trying to improve my credit score since I’m fairly new to credit scores and don’t have many options to improve my score due to my limited credit history. 
Not a scam, but still useless.
Dev said:
Not a scam, but still useless.
In what way? Sorry, I’m new to credit, and I don’t have many options for building my credit due to my limited history, so this was the first option I made.
@FALEH
It probably won’t get you as far into the credit game as you might think.
I’m assuming you have zero credit to your name. At that point, consider secured, student, or entry-level cards as a starting place over this.
@Dev
Ok, thank you for helping me out. I do have a Capital One card with a $300 limit so far and a 658 Equifax score that I received 3 days after enrolling in the Credit Builder.
FALEH said:
@Dev
Ok, thank you for helping me out. I do have a Capital One card with a $300 limit so far and a 658 Equifax score that I received 3 days after enrolling in the Credit Builder.
The only thing that will truly advance your credit is paying your monthly statement on time and in full.
Raising your limits and diversifying your credit along the way will help you.
@Dev
Thank you for the advice! I will take that into consideration. Raising my credit spending limit will be my next goal.
@Dev
Also, what do you mean by diversifying my credit? I didn’t quite understand.
FALEH said:
@Dev
Also, what do you mean by diversifying my credit? I didn’t quite understand.
There are different types of credit: car loans, home loans, credit accounts.
Having paid off car loans adds a lot to your credit profile, as does having multiple aged credit cards.
Also, credit is updated monthly, so I don’t think your opening the Credit Builder 3 days prior resulted in you getting a score.
@Dev
Oooooh, ok now I understand what you mean. Thank you for the explanation.
FALEH said:
@Dev
Oooooh, ok now I understand what you mean. Thank you for the explanation.
Note,
Do not open up loans or other credit to chase a better credit score. You can reach the high 700s with just 1 card.
Paying for a better credit score is always useless. Unless your credit is sub 500, you have no active cards, and no lender will give you a card.
Time is your one and only savior.
Of course, make sure you pay off any outstanding balances in your name if you have any, as these hold your credit back as well.
Did you consider a secured Discover card first?
Products marketed as ‘credit builder’ are gimmicks because they don’t ‘build’ credit any better than real credit products like credit cards, and they usually cost money. These gimmick products prey on the ignorance of those looking to build credit… either those just starting out who don’t know any better or those that are desperate due to having trashed credit and looking for a quick fix. Stay away from these products.
@Zaid
Ok, thank you for the input. My main concern was whether my $500 would return to me once I’m done paying it into my Credit Builder account. 