Is a loan debt the same as credit card debt?

[Anonymous]

I got a loan back in 2019 and unfortunately I wasn't able to pay off on time and the company sold it to a debt collector that debt collector ended up suing me. After 5 years I finally was able to pay it off and I contacted him and payed it off. I'm really trying to get my credit up , I never had a credit card but I have heard that bad record stays for 7 years. should I apply for a credit card? how can I get a good credit after I payed off my debt

[WindAtMyBack]

I don't know which is worse for your credit. My guess is that defaulting on a loan is worse.

To start building your credit, try getting a secured credit card. For example you put $1000 in the account. That secures the card. You can't touch the $1000 in the account, but you can use the card for that much. That is no risk for the card company. So you can use the card to pay for groceries or whatever, and slowly build your credit back up.

[exitseven]

All credit card debts are loan debt but not all loan debt are credit card debt.

[exitseven]

Thanks for the MHO😎

[NaultD]

secured credit card is probably the way to go at first.

[jamesgoldman]

All debt is bad, that's why I have none