Sproik

Have read the wiki and a few other posts on the topic. Have a specific question:

We have opened HSBC USA accounts using international banking. Our "HSBC Credit score" has been transferred to the US as part of this. Our rating is excellent (89/99). I have also saved PDF's and printed out our Experian credit reports which are also excellent (999/999).

Our plan is once our sale completes in the UK to use the equity to pay approximately 30% on a home and mortgage the remaining 70%. With the above information how likely is it we'll get an "excellent credit interest rate" on our mortgage?

chartreuse

The credit scores that you refer to mean nothing in the USA. It's FICO that counts and that (a) isn't out of 99 or 999 and (b) doesn't even exist until you have 6 months of credit history here.

You may still get a decent rate, if you can find a lender who understands expats (we used a small, local bank near a plant that employs expat engineers) and knows how to buy an international credit check from Equifax's New Jersey office. Your printout of your UK reports may serve some minor purpose there in giving them a definitive lists of your UK creditors, but they'll still need to call each one, in conference with you.

Best thing you can do to help your US score on arrival is AmEx Global Transfer (if you have an AmEx card).

Ob warning: It's often a mistake to buy a house immediately on getting here.

Sproik

Thanks. We've been told if we get a mortgage through HSBC we'll have full credit history but don't really want to be tied down to a single lender on the opposite side of the US...

Our plan is to rent for 3 months while our sale completes then go hunting. We know the area very well from previous visits and have family and friends already there We haev also researched school districts, house price trends, locations, facilities etc.

Bob

Visiting and living is quite different though and finding a rental for 3 months might be tough, usually a minimum of 6/12 month leases, unless it's a holiday hot spot in which case you could rent by the week.

And these days, 30% down, you might struggle to find a mortgage full stop.

Sproik

Rental's sorted. We move in 6 days Our realtor said with 30% down in the area we're going to they'll fall over to lend if the credit is good. No offence, but I'm interested in responses to applicability of credit history from the UK and if anyone has done this before.

sir_eccles

UK scores can be used as a sort of supplementary evidence, it depends on the bank/lender in question how they go about using it, they might have a secret address to which you can send such things (that's what I did when getting my first credit card). But as stated above, the only score that counts is FICO.

Duncan Roberts

Actually, it does play into it a massive amount. You will be on very shaky credit ground with most lenders and although they will all be biting your arm off when you say you have 30% down, when they run your credit and find you don't have any US history their interest will likely drop off a lot. 50% of your FICO score is payment history and length of credit history so as said, your history may transfer to HSBC but it won't to FICO or any of the other credit bureaus. Experian UK scores don't transfer to Experian US (different companies with different scoring procedure) or either of the other 2 credit bureaus, Trans Union and Equifax. Even if you do manage to get some actual scores, most lenders will require some US credit history in order to give you a loan that a) doesn't need a co-signer with good history and b) a decent rate.

celticgrid

A couple of thoughts...

This optimistic realtor....they'd be the one who need to keep you on the hook to be able to make money out of you? (That's just the cynic in me, having experienced the way they work here...)

You're employer is a university? Used to dealing with H1B employees? They may be able to offer help in finding a mortgage for someone in your credit position. My employer linked me up with a couple of the banks they use and a lack of US credit history suddenly disappeared as an issue.

N1cky

We managed to transfer across our credit score with HSBC too, it gave me a credit card, thats it.

We had an excellent score in the UK, and have built up an excellent score in the US, however after 2.5 years we have just been denied a new credit card because we don't have sufficient history. The score doesn't seem to mean anything without the history.

Good luck though, its crap starting your financial life again.

Sproik

Yes it is a University and they are very used to H1B visas. I know they have "preferred" insurance providers etc for exactly that. Will investigate mortgage possibilities. Thanks.

paul_79

[QUOTE=chartreuse;8700887]The credit scores that you refer to mean nothing in the USA. It's FICO that counts and that... . (b) doesn't even exist until you have 6 months of credit history here.
QUOTE]


Sorry just wanted to jump in here as this 2nd point isn't quite accurate. I moved over in May 09 and transferred my Amex card at the end of that month. When I went to get a car loan (with a co-signer) I had a score in the high 700s only 3 months later.

I still agree it will be tough to get a mortgage as it's credit history that seems to matter, not just score alone.

Sproik

I can imagine. We've never had a debt beyond our mortgage. We're ranked in the "UK's #1 Category" with experian here - I could take out 5 credit cards with a 5 figure limit tomorrow without them blinking an eye in the UK... :/

Sproik

Thanks Paul. I do have my full experian history which (although as some have highlighted isn't "accepted" as such in the US) shows an excellent track record of debt avoidance.

Duncan Roberts

The problem is you are not trying to convince the person sitting in front of you that you are worth of a loan, you are convincing a software program. Without the software pulling in numbers from the US system it will just spit you out as a bad investment.

N1cky

Computer says No