Building credit
#1
Forum Regular
Thread Starter
Joined: Oct 2012
Posts: 294
Building credit
Hi what is the best way to build credit when arriving in the USA?
#2
Re: Building credit
So far i've been here 4 months and with 1 secured credit card I have built a "Good" nearly "Very good" credit rating with Trans Union and Equifax. I use Discover.
I have a measly $500 limit, but what I do is pay off the balance every couple days. The reason for this is that credit card utilization for each statement will affect your credit rating.
This month I spent $550 on my credit card, but the balance is now $0 ready for my statement on the 23rd. When reported to the bureau it will look like i'm fantastic with managing credit and I still get all of the cashback.
As soon as I get my imminently awaited EAD and can start my job I will go ahead and get them to change it to an unsecured card.
An auto loan may also help. I considered purchasing a Nissan and they said that as long as I earned $75k+ a year then they wouldn't need to credit check and would immediately offer best rate.
I have a measly $500 limit, but what I do is pay off the balance every couple days. The reason for this is that credit card utilization for each statement will affect your credit rating.
This month I spent $550 on my credit card, but the balance is now $0 ready for my statement on the 23rd. When reported to the bureau it will look like i'm fantastic with managing credit and I still get all of the cashback.
As soon as I get my imminently awaited EAD and can start my job I will go ahead and get them to change it to an unsecured card.
An auto loan may also help. I considered purchasing a Nissan and they said that as long as I earned $75k+ a year then they wouldn't need to credit check and would immediately offer best rate.
#5
Re: Building credit
If you need a car, and one of you has a job in the US ready, waiting for you, a car through International Autosource will get you onto the credit reporting system immediately with a regular installment loan.
Even if you could pay cash for a car, borrow a little through IA (IA is an agent for the auto manufacturers credit units (my Mustang bought through IA was financed through Ford Motor Credit), and pay it off over 12 months and it will kick-start your credit, and means you don't have to worry about buying a car when you have so many other things to do after you arrive.
Even if you could pay cash for a car, borrow a little through IA (IA is an agent for the auto manufacturers credit units (my Mustang bought through IA was financed through Ford Motor Credit), and pay it off over 12 months and it will kick-start your credit, and means you don't have to worry about buying a car when you have so many other things to do after you arrive.
#6
Forum Regular
Joined: Mar 2013
Location: Walsall, UK to Centerville, TN
Posts: 103
Re: Building credit
My background: Crossed border K-1 ... Married Oct 2013. Green Card delayed til July 2014, Social that September. Searching for job Sept/Oct got Job November 2014.
Turned down for apartment October 2014 ... No credit and actually my report stated fellony crimes in Kentucky 1999. Thanks America, thanks! Appeal to Texas while onboarding at new job and looking for place to live.
No ability to drive so can't do car credit. Clearing the false fellony also helped a lot.
Journey:
- Secured Credit $300
- After a year JC PENNEY denined
- Waited a bit, kept the $300 the balance under $150
- Approved Kroger Rewards, $5,000 limit
- Kept that balance below $2,500
- Always made payments on time (auto pay)
- Kept using the credit and churning through payments, mainly did that by loading Student Loan payments on Credit (Brexit helped exchange rate).
Score went through the roof based on, never missing payments, using the credit, keeping balances low, number of total lines of credit low and waiting for average age to tick over a year before making new applications.
Turned down for apartment October 2014 ... No credit and actually my report stated fellony crimes in Kentucky 1999. Thanks America, thanks! Appeal to Texas while onboarding at new job and looking for place to live.
No ability to drive so can't do car credit. Clearing the false fellony also helped a lot.
Journey:
- Secured Credit $300
- After a year JC PENNEY denined
- Waited a bit, kept the $300 the balance under $150
- Approved Kroger Rewards, $5,000 limit
- Kept that balance below $2,500
- Always made payments on time (auto pay)
- Kept using the credit and churning through payments, mainly did that by loading Student Loan payments on Credit (Brexit helped exchange rate).
Score went through the roof based on, never missing payments, using the credit, keeping balances low, number of total lines of credit low and waiting for average age to tick over a year before making new applications.
Last edited by tennesseestud; Nov 15th 2017 at 3:59 am.
#7
BE Enthusiast
Joined: Jun 2016
Posts: 502
Re: Building credit
This month I spent $550 on my credit card, but the balance is now $0 ready for my statement on the 23rd. When reported to the bureau it will look like i'm fantastic with managing credit and I still get all of the cashback.
As soon as I get my imminently awaited EAD and can start my job I will go ahead and get them to change it to an unsecured card.
As soon as I get my imminently awaited EAD and can start my job I will go ahead and get them to change it to an unsecured card.
i.e. the ideal credit card balance when they pull your statement is $1.
I don't know if that's true though. But it's what I heard.
Also, how will you get them to change to an unsecured card. I'm in the exact same boat as you, I've got a secured Discover with a $500 credit limit which I've had for 4 months. But I'm already working. I didn't think they'd graduate you to an unsecured card until you hit 8 months of credit history.
#8
Forum Regular
Joined: Mar 2013
Location: Walsall, UK to Centerville, TN
Posts: 103
Re: Building credit
Yes keep your balance in the 20 to 30% utilization area and don't go down to zero balance. Try not to go above 50% too. I aim to be in the 15 to 30% zone in case any emergency comes up.
Like I had to fly home for a funeral with little time to plan and well it was in June and that was expensive.
Like I had to fly home for a funeral with little time to plan and well it was in June and that was expensive.
#9
Re: Building credit
Word of warning, I heard it's better to have some balance than no balance for the purposes of building credit.
i.e. the ideal credit card balance when they pull your statement is $1.
I don't know if that's true though. But it's what I heard.
Also, how will you get them to change to an unsecured card. I'm in the exact same boat as you, I've got a secured Discover with a $500 credit limit which I've had for 4 months. But I'm already working. I didn't think they'd graduate you to an unsecured card until you hit 8 months of credit history.
i.e. the ideal credit card balance when they pull your statement is $1.
I don't know if that's true though. But it's what I heard.
Also, how will you get them to change to an unsecured card. I'm in the exact same boat as you, I've got a secured Discover with a $500 credit limit which I've had for 4 months. But I'm already working. I didn't think they'd graduate you to an unsecured card until you hit 8 months of credit history.
#10
Re: Building credit
I'd agree with Tom. I always ensured my balance was $0.
I've since graduated from my secured card with a $300 limit. To an unsecured card with a $500 limit and it just recently got upgraded to $1000. The entire time I've ensured the balance was paid in full down to $0 and not used more than 30% of my credit allowance.
I've since graduated from my secured card with a $300 limit. To an unsecured card with a $500 limit and it just recently got upgraded to $1000. The entire time I've ensured the balance was paid in full down to $0 and not used more than 30% of my credit allowance.
#11
Forum Regular
Joined: Mar 2013
Location: Walsall, UK to Centerville, TN
Posts: 103
Re: Building credit
The average age of all combined lines of credit also factors in. Don't open too many lines but if you have to try to get them all within that year so the age at the same time ... Keeping the average age up.
That's what I'm struggling against, if I can get my average credit age up that's the only thing left I can do.
That's what I'm struggling against, if I can get my average credit age up that's the only thing left I can do.
#12
BE Forum Addict
Joined: Aug 2013
Location: Athens GA
Posts: 2,134
Re: Building credit
The average age of all combined lines of credit also factors in. Don't open too many lines but if you have to try to get them all within that year so the age at the same time ... Keeping the average age up.
That's what I'm struggling against, if I can get my average credit age up that's the only thing left I can do.
That's what I'm struggling against, if I can get my average credit age up that's the only thing left I can do.
#13
Forum Regular
Joined: Jul 2017
Posts: 79
Re: Building credit
What credit checking bureau is recommended? I'm staying away from Equifax after the gigantic breach.
HSBC gave me a credit card based on my salary, so I had a $10,000 limit off the bat with 0% for a year. We ended up hitting it pretty hard due to the enormous cost of setting up an apartment from nothing, but I'm trying to pay it down as rapidly as possible now that we've almost got everything we need.
It would be good to check after Christmas once I've been here for a full quarter.
HSBC gave me a credit card based on my salary, so I had a $10,000 limit off the bat with 0% for a year. We ended up hitting it pretty hard due to the enormous cost of setting up an apartment from nothing, but I'm trying to pay it down as rapidly as possible now that we've almost got everything we need.
It would be good to check after Christmas once I've been here for a full quarter.
#14
Re: Building credit
What credit checking bureau is recommended? I'm staying away from Equifax after the gigantic breach.
HSBC gave me a credit card based on my salary, so I had a $10,000 limit off the bat with 0% for a year. We ended up hitting it pretty hard due to the enormous cost of setting up an apartment from nothing, but I'm trying to pay it down as rapidly as possible now that we've almost got everything we need.
It would be good to check after Christmas once I've been here for a full quarter.
HSBC gave me a credit card based on my salary, so I had a $10,000 limit off the bat with 0% for a year. We ended up hitting it pretty hard due to the enormous cost of setting up an apartment from nothing, but I'm trying to pay it down as rapidly as possible now that we've almost got everything we need.
It would be good to check after Christmas once I've been here for a full quarter.
I use CreditKarma on my iOS device and I also use Experian from time to time.
#15
BE Forum Addict
Joined: Aug 2013
Location: Athens GA
Posts: 2,134
Re: Building credit
Even if you don't use Equifax for credit checking, they will still hold information on you.