seawaternow

When I first started working for one of the Big Four audit companies they told me they'd run credit check. I made sure they understood that while I had SSN for 6 yrs at that time they wouldn't find any credit info as I didn't go into any credits while I was a student for a year. Also made sure they knew I just got into the country 2 months earlier. Had no issues getting the job without any credit.

BritishGuy36

Yes you do have debt. You just told us that you actively use two credit cards. That's debt. Just because you clear off the balance every month doesn't mean you aren't going into debt for a month each time.

That's what's keeping your credit score up.

I guarantee you - if you have NO debt, your credit rating quickly diminishes to zero. And yes it is the ONLY way to maintain a credit score. End of story.

It seems like your view of what is considered 'debt' is different to that of the rest of us - including the banking/credit system. Perhaps you did not misunderstand me - but you certainly misunderstood how the credit score system works, I think.

I got a 740 credit score with 3 years of using two or three credit cards, which I paid off in full every month. That score just got me my first car loan at 2.75%. That car loan in itself will make my score go even higher.

I never said anything about going 'heavily' into debt - just that the more debt you pay off on time, the higher your score will be. I stand by that statement.

Bob

Don't need to use it at all, you just need the card....as the potential debt is what counts, hence why having lots of cards can also be very bad.

What most people here probably piggy backed off a spouse or someone else to get a run on a score and history. That doesn't work now.

Bob

Aye, having a credit card is having potential debt, which builds history. Not having a card is not having that potential and doesn't build you history.

The missus had some chap looking for a small loan, $75K mortgage as he was putting $500K down in cash. Got declined for no credit history. He was strictly a cash user, brings in $30-45K a month in salary, but pays everything off through his business and personally only used cash, so had no actual personal credit history.

That must have been an amusing conversion to explain that one

tonrob

Our company has been on a bit of a hiring spree for a few years now, and does a credit check on every new applicant before hiring. We don't filter out based upon credit score - we're only looking for bankruptcy, defaults and the like which - even then - would only be considered as part of a bigger picture when deciding whether to take someone on. I don't know whether we are in the minority or the majority, however, but hopefully you can take some solace on the fact that this issue isn't an absolute. Mrs tonrob was also hired (albeit back in 2005) by a different, major company when she had no credit history whatsoever.

AddyLaddy

We've been in the USA for just 1 year now and I have finally dared to start applying for credit. I initially tried to get a $50 pm plan with cell phone company after about 3m here, but got rejected, so I gave up and waited.

I opened a WF account last year soon after arrival and they offered me a secured CC. I gave them $1000 and then they now lend it back to me via the Visa card.
After almost 1 year of doing this they wrote to me saying my limit had been raised to $1500 - wow, $500 credit and they still have my $1000!

But since then I've applied for an Amex and a Target card and both have gone through without issue. So I guess I now have a credit score, but I've no idea what it is.

Before I left the UK I got an Amex International Dollar Card (IDC). It was great as I could have a big limit and pay it off in $ direct from my US account. But when I tried to transfer it over to the USA, they said the IDC was not eligible. So that has not earned me any credit history at all.

WF now say I will graduate to a "real" CC on the anniversary of my application and get my $1000 back.

Hope this helps.

BritishGuy36

Huh?

Not using the cards at all will do very little if anything for your credit score, since you have no debt. You have to leverage the debt and pay it back for the score to rise.

Having a low debt to credit limit ratio is good for your score though.

AddyLaddy

I used my Secured CC every month and made sure I never went above 75% of the limit. Paid it off every month on time too (I didn't want to be charged interest for borrowing back my own money!)

Bob

It's makes dick for difference.

BritishGuy36

I'd be interested in how you came to that conclusion.

Bob

Using it makes no difference because use of the card doesn't get reported.

What gets reported is you having the card, the limit and when you had it issued.

Other stuff that gets reported is late payment, not on time payment.

So it makes no difference is you use it every day or not at all to your credit history.

silicon valley girl

My husband and I bank with HSBC Premier and they had our accounts opened for us before we arrived and we were able to get a credit card each and overdraft (they call it select credit.) We use the credit cards for all daily things, shopping etc then pay off in full every month and we are now inundated with offers of credit.

We also got two cars through VW expat program, one on lease and one on finance (1% APR) and goal is to have that paid off after 18 months.

Hope that helps.

tonrob

I always thought that balances got reported too. I've been playing the credit cards-for-miles game for the last couple of years and I'd picked this snippet of info up from Flyertalk. I also read there that there are some issuers, however, that simply report your limit as your balance, although I can't recall which or exactly where I read that to check back - so don't quote me on this one.

A search on the subject brought up this, although there was more out there that seemed to agree.

Mummy in the foothills

I believe they do report even if there are no late payments or balance carried over from month to month, we pay off every month yet I just got out credit report and it shows under our CC the highest amount we charged in one month $3,000 even though I paid it off when the bill came. It showed closed CC and mortgages that were already paid off when we re fied the house. None had late payments on.

Bob

It might depend on who is issuing the credit card then....but one of the big players only reports the info if you've been 30 days late on a payment, other wise they just do a 6 month report on the limit of the card and then only a balance if it is within x percent of the limit or over, can't remember which, 10% or less? Something like that.