codyVA

I would appreciate any tips for my questions regarding H1B:
-can I get a credit card?
-can I have a car financed?

BritGuyTN

in context that you are moving here on your own, and don;t have a US spouse with established credit:

get a secured credit card (or 2) and/or a secured loan to build up history

you will not be able to get a 'normal' credit card yet

you should be able to get a car loan, but at an extortionate rate - if you have to get a car on credit do this and then refinance in a years time when you have a decent score

NEVER pay a creditor late

Bob

If you can get away with not using a credit card and getting by on the debit/visa cards, would be alot better....

BritGuyTN

i personally agree for a conceptual point, but the reality is that america is a borrow and spend society - and if you want to buy a house with a mortgage or a car with an auto loan then not showing the ability to manage revolving lines of credit will cost you - in terms of higher monthy payments due to a less favourable interest rate....

Bob

That's true...i'm keeping a redundant credit card, and the one's from back home, useful to have, but best avoided...can always save up for now

Ben

If you go for a car through international autosource it will build you your credit history in the USA and if you go for an american car you will get the benefits of any low interest offers that are on at the minute. We got a Ford on 0.9%. When we changed our GMC lease car for a GMC car with a loan we got the same deal through the garage because of our good payments on our lease.


We came over on an H1 visa and this is what we did. 6 months later we were able to get a credit card. A year later we got a store card. 18 months later we had a mortgage. I know some people have mentioned that they brought 2 years of credit proof from the UK with them which helped them get a mortgage. We didn't know about this so our mortgage was totally on US credit.

codyVA

Thanks for all of the answers. It's very helpful. I just want to mention that over a year ago I opened a bank account on turist visa. During my stay the bank was keep sending me credit cards applications. I didn't do anything about it cause I knew I wouldn't qualify. I still have this account even that I'm not there. Now I'm coming back to US with H1B visa. Do you think that having a history with the bank (but not credit history) will help me with credit card?
Another thing, I'm not planning to get a new car. I'm rather thinking to get a car at carmax. I would pay a half and would like to have second half financed. I don't believe it's through the bank then, more through carmax. Am I right? And is it possible? Thanks again

Bob

I can't say for sure, but I'd guess that carmax would finance through a bank themselves....as for the credit history, I don't know, I just brought over all my banking stuff from the UK...

dbj1000

Try to join a Credit Union or local bank where they actually know you and you can talk to someone with authority about your situation. We joined my company's Credit Union as soon as we arrived on an H1B, and they immediately gave us a $5k limit credit card and financed my car. Later they helped us arrange our mortgage, and already after a year we have excellent credit.

On the subject of Carmax, I bought my used car from there, and they insisted on putting in an application for car finance even though I already had a loan arranged with my Credit Union - the Carmax loan was refused because I didin't have a state drivers license and my credit wasn't good enough. The point is, Carmax are like any other credit organization, but less personal, so you're actually less likely to get credit through Carmax when you first arrive.

NC Penguin

Simply having a US based bank account does not help you in getting a credit card, even one issued by the bank.

Owning a bank account does not give any indication of your credit worthiness. Loans or any kind of borrowing (such as a store card) would assit in showing credit worthiness and would contribute to your US credit history.

The subject of creating and developing credit in the US has been covered in this forum many times. You will probably find it helpful to search for past similar threads for information.