How to get a credit history?
 

Hi! I will be relocating to the US at the end of the year and have read a lot about needing a credit history - even to just get a mobile phone! What is the best way of establishing a credit history?

Minty

Re: How to get a credit history?
 

It's very difficult! You can't get a credit rating until you have had something on credit and you can't have something on credit until you have a credit rating...........
We worked with an American company who sold us a brand new car for a reduced price but we had to agree to it and sign for it while we still lived in England (sounds dodgy eh?) But that gave us a small credit rating. You may find that someone like HSBC will give you a credit card through their American branches (of which there is not many) and that will help.
Basically, its a case of going very carefully on what you apply for as each refusal goes on your credit record - Therefore worse credit rating. What a bitch eh?
We were advised that the best thing to raise your credit rating is to buy a house. There are a limited amount of mortgage brokers who will give you a mortgage with no credit rating but the rates are not great.
Hope that helps a bit!

Re: How to get a credit history?
 

Do a search in this forum for threads on gaining credit. They should give you a good idea on how to go about it. I've been here over a year and still have 0 credit. But I haven't actively set about trying to gain one until just recently.

Re: How to get a credit history?
 

I actually just paid $12 on myfico.com to get a credit report......i have been here for just under a year and the only type of credit agreement i have is with our car financer, who i went in on with my wife. I was shocked to find that my rating is just under 700. I 'll give it a few more months and see what it is like. I was expecting it to be under 600!!!

Re: How to get a credit history?
 

A few ideas:

1- Get a secured credit card thru Providian, Cross Country, Orchard Bank or similar. You'll have to pay a fee- ie $120 plus the deposit for the line of credit you think appropiate- maybe $500. Use the card and try to use most of the limit up- BUT make sure you pay it off monthly, the full balance!! This will avoid intrest, but give you a history of on time payments.

2- Get as many bills as possible in your name- ie Telephone, Cable, Elec/Gas, water etc. Again, make sure each is paid in full and on time.

3- Savings account and Checking account in your name at the bank/credit union.

4- Do not apply for every credit offer that comes your way. Each time you do, a credit check is ran, and entered. Too many applications looks bad, especially when denied.

5- After 6-8 mo. of paying all the above on time, apply for a Target or other Dept. Store credit card. Typically they'll give beginners a $200-300 line of credit. Use it, and pay on time.

6- After a year of all the above apply for a car loan. I'd suggest a 3 year loan for a $5000-6000 car. Make all payments ON TIME! Car dealers can get financing for anyone, but the rate of intrest may be higher than for Mr Joe American with great credit.

By this time, the credit card offers should be coming in for Non-secured cards, and gasoline cards. Get one- hopefully with no or minimal annual fee and drop the secured card. Keep using it, and paying it off IN FULL each mo.

After a couple of years or three, a mortgage for a house is not out of the question.

Remember- no credit is almost as bad as bad credit. Expect higher intrest rate credit cards- but if you pay them off each month, you don't ever pay intrest. Having credit cards and not using them does you very little good- they are looking for a payment history.

Re: How to get a credit history?
 

Dozens of UKers get mortgages every week in Florida and they don't even live in the country.. thats the easiest one to get ..

Re: How to get a credit history?
 

I agree with all of Ironporer's points except the mortgage one. We applied for a mortgage after only 9 months here and, with a 10% deposit, secured a 30-year 80/10/10 mortgage at exactly the same interest rate as a USC with excellent credit. In many ways credit cards are more difficult to get than mortgages, because with a mortgage they look at many aspects of your financial situation OTHER than just credit score and history. In our case the fact that we had a 10% downpayment, my employment details and the fact that we had owned a house in the UK were all regarded as more important than our (at the time) mediocre credit history.

Re: How to get a credit history?
 

Sorry – don’t go with the first three of these ideas at all!

1) Don’t get a secured card from any of these folks at all. I would also add to this group Capital One. They are sub-prime lenders! Therefore, you become a sub-prime borrower. Get yourself down the big boys or local credit union to open the secured card. Will cost you a lot less or nothing in fees and now you’re a prime borrower.

2) Won’t increase your credit score at all. May decrease it if accounts go into default.

3) Won’t increase your credit score at all.

Re: How to get a credit history?
 

...as long as you've got a reasonable deposit. Unsurpising really, as the collateral ain't going to be going anywhere!

Re: How to get a credit history?
 

You may still get rejected by the underwriter for insufficient history or insufficient lines, despite the good FICO. Probably time to start building what you've got, even if it results in a temporary decrease in your actual FICO score. Most underwriters will base their decision on more than the FICO score.

Re: How to get a credit history?
 

Wells Fargo have approved us for a shit load of money for a mortgage and they have some rates for particular companies who employ expats. We have only been here 10 months

Re: How to get a credit history?
 

For a Mortgage they will do an International Credit Report, but for some reason it takes time. You would have thought they could use the UK arm of the same Credit reference agencies.

I was told a month and as you can close on a house pretty quick then it can be an issue.

Re: How to get a credit history?
 

I have had an HSBC account for over 20 years and I see they have some branches in the US. Would it be helpful ig I got them to issue me with a card? Would my credit history from the UK help?

Minty

Re: How to get a credit history?
 

Does anybody know if a Corporate Amex card in your name will help to improve your credit score?

Re: How to get a credit history?
 

one of my friends got one of these when he move over and it didn't show on his reports...

get a secured card with bank of america/citibank or chase and/or a secured loan

regarding the other posters comments about sub-prime lenders liike providian, cap one, yes they are not that great, but they serve their purpose as a rung on the ladder to getting a prime credit card and a are a worthwhile step up from a secured card

the whole utility bills thing is a common misconception - they don't report on your report as they are not a revolving or installment line of credit.

Re: How to get a credit history?
 

In my opinion the best thing to do is ask Minty. When we moved over here to the US (hubs is British, I'm American) we hit a stone wall because neither of us had credit here. Luckily I had kept my credit union account open. It will take us awhile to rebuild credit, hopefully we'll have some of our savings intact to buy a house.....but that doesn't look like it will happen for awhile.

Good luck.

Re: How to get a credit history?
 

Wee, whooppee-dooo. I finally exist!!!

I have a credit record and my own dinky-winky-doo credit card - as of today!

Lots of good advice on here. Thought I'd add my experience 'cos when I'm dealing with this sort of stuff, I always feel helped by hearing someone else's journey.

Arrived from England December 2002 - new immigrant - zero rating. Couldn't get a secured bus ticket :P To make matters worse my USC husband had never even bothered to get a bank account before we met, so he had no credit either, and only a very new checking account at the Credit Union. Took 6 months to get me added to the account because they wouldn't do it till I had an SSN.

So - 6 months to get on a checking account with a debit card.

Around that time Garth applied for and got a Target guest card and a Providian unsecured card - both with credit limits of just $500. But here's the surprising thing. I just got my history from Experian and it shows ME as having that Providian card too, even though I was only a second user. It was NOT a joint account - but it WAS building me history, which I didn't expect.

Couple months ago we applied jointly for a car loan, which we got, even though I couldn't get a credit card of my own at the time. Think about the credit unions - ours gave us the loan at 4%, which is pretty damn good considering our lack of history. I think the thing about cars and houses is, they can be easier to apply for because the lender has something they can get back if you default. Anyway....

This week I have finally been approved for a credit card of my very own. WOOHOO! I have arrived! To celebrate I applied for - and got - my own Target card too. WAHAAAAAY!!!

;)

Crazy isn't it. After building a decent life, you have to go back to the start when you come here. You claw your way back inch by inch.... But oh the rush at each little victory - an SSN, a Green Card, a JOB, a car, and now.....

A CREDIT CARD!!!!

:beer:

Regards
-=-
Scarlett

Re: How to get a credit history?
 

I did the much publicised on these forums - Swap UK Amex card for US Amex card trick for a start. They even gave me a decent credit limit ($5000) from the off. Thereafter, just use your card for most things and pay it off, your score goes up reasonably quickly

Re: How to get a credit history?
 

Me too - I had a Blue amex card with a good limit within three weeks of arriving here, by making two phone calls and signing one form.

Re: How to get a credit history?
 

My spouse has one and it does not show up on his credit report because it is issued to his employer, not him individually.

That's why a corporate credit card will not impact on one's own personal credit rating/history.

Re: How to get a credit history?
 

I got my first pre-approved credit card application through Saturday...next stop - debt, despair and ruin!

Re: How to get a credit history?
 

Cheers! :beer: Its the American way!

Re: How to get a credit history?
 

is this a no-questions-asked swap or do amex look at things like your job in the US etc before agreeing to the swap?

Re: How to get a credit history?
 

I have to agree with 2 and 3. We have been here a year, paid all our bills on time and had an account with Bank of America and just applied for a car loan. My husband found out that he has no credit history at all (the only credit card we have is his company one and no loans).

They will give us the car loan at a very high interest but he has to produce bank statements, copy of visa and a letter from his employer to secure it and that's with a down payment of 7k!

Credit cards seem to be the best way to get a credit history.

Also be prepared to have to put down a deposit for your utilities or they may not connect you.

Emm.

Re: How to get a credit history?
 

yeah - i had heard that utilities would count towards a credit score - so i gave the local gas co a fat deposit to get my name on the bill. 1 year later - no record - however - they are giving me a 6% return on my money!

even if your partner is a USC and you are an authorised user on their card - this is worth jack sh1t until you get credit in your own name

Re: How to get a credit history?
 

From my personal experience I would say

After you get your SSN (everything is tied to this)
1) open a bank account with a major bank or a credit union
2) Immediately apply for a secured card or secured loan with that bank, ensure that the bank reports to all 3 credit agencies
3) Ensure that you always make the paymets on time
4) For a credit card - pay the full amount every month
5) Do not max out the credit card every month
6) Do not apply for too much credit, every enquiry is recorded in your credit file and stays there for 2 years

Alternatively, if you have a UK AMEX card or MBNA card you can usually get the USA equivilent, but you need to explain this clearly to them when you apply.

I was told (by Equifax) that you will not get any FICO credit score until you have had revolving credit (credit card) or recurring credit (loan) reported to your credit file for six months. It takes about 18-24 months to actually have a sound credit history.

Also the utilities (power, water, mobile phone etc.) do NOT appear on your credit report at all if you pay them on time every month, so will not help your credit rating in any way (AFAIK)

Hope this helps

Re: How to get a credit history?
 

No harm in asking -- other posts would seem to suggest so! Remember, however, that the first drone you speak to at the bank isn't likely to know the answer. Persevere and don't take no for an answer until you've heard it at least half a dozen times from increasingly more powerful Jedi in the relevant department.

Re: How to get a credit history?
 

We had HSBC account in the UK and opened a USA HSBC account easily. We can't visit a branch as there aren't any in our area but we do everything online, through post and over the phone and it works great. We applied when we were over here and they contacted the UK branch to confirm everything. Arrange a short meeting with your UK local branch customer services manager before you come over and tell them what you are planning to do and get their direct phone number so you can contact direct for assistance.

One of the main advantages of this was we were able to open the HSBC bank account before we got our SSN (which was taking forever) - the normal USA banks would not allow us to open a bank account without the SSN. When you call HSBC USA speak to the international banking department.

Also, apply to get an American Express card whilst you are still in the UK (where you have a history so should be relatively easy) you can then easily transfer it to a USA card when you get over here. We'd had an American Express card for years and so was really easy to get a USA Amex card.

Re: How to get a credit history?
 

Thats great. I had hoped that my 20 years with HSBC would count for something. I don't have an American Express Card now but have a HSBC Platinum card. SHould I still go for the American Express card?

Minty

Re: How to get a credit history?
 

I think I would do, means you have a couple of sources of credit and you're building credit from a couple of sources - can't hurt!! Just spend a little on your Amex each month - but as everyone has said, make sure you pay it off each month to help build good credit.

Re: How to get a credit history?
 

Suggestion for the owner of this website. Would it not be good if you could get some of these banks representatives in one room and tell them about this site and explain to them that the are missing out on so many future customers that are expats that need to establish credit?

Re: How to get a credit history?
 

Not true. I had heard this but experience has proved otherwise. I got my credit report yesterday and was shocked to discover it showed me (only a second card user on my hubbie's Providian card) as having revolving credit in the amount on his card with Providian. It's been reported ever since he got the account - it was all their in my credit report and helped give me a decent credit score.

Regards
-=-
Scarlett

Re: How to get a credit history?
 

I think the problem is that the numbers involved are not significant in US terms.

And as so much is done on a state by state basis the numbers become even smaller.

There is a tendancy also to lump all Immigrants into the 'latino' category, I was reading, the bits I could, a newspaper in Spanish in the local Doctors waiting room and there are services, credit unions etc targeted in Colorado at this community. But we are talking about a million or so (in Colorado) potential customers.

If you watch Little Britain, we fall more into the Daffyd category.

When it comes down to it it is just a question of time for the majority to be assimilated by the system.

BTW my 20 year old step son said his FICO was something like 670, I had assumed that he would be down in single numbers with me and the Dog. Seems like not defaulting on Student loans also helps, well he has little else in his name other than a Credit Union account. That is after 18 months, he finished his schooling in the UK before coming here for Uni. :beer:

PS I may be being unfair to the Dog, she is US born, USD?, and 11 years old so probably has a much higher score than me.

Re: How to get a credit history?
 

Try: WWW.CITIBANK.COM

choose United Kingdom in country dropdown.

This is a very large US bank, but seems to operate in the UK too
(you can get a UK credit card from them).

Maybe they will just transfer the UK card to a US card when you move to the USA.

I believe you need a SSN in the US before you can get credit as everthing is based on your SSN.

Re: How to get a credit history?
 

Did you have ANY other credit in your own name? - If yes, then what I said is completely true. If that providian card is the ONLY account of any kind on your report then I will gadly accept your correction

Re: How to get a credit history?
 

Hi,

I do have other credit NOW but I didn't up to 2 months ago. This is the first time I've looked at my report, but it says it has tracked 14 months of Providian, and I've only had the auto loan for two months. I got approved for a credit card this week, but obviously that's not showing yet. Before two months ago, no other credit.

So are you saying before I got the auto loan, the Providian thing wouldn't have shown up? I guess it's possible, but they do show it as having been tracked for much longer than we've had the auto loan. And also, under credit record it shows me as having a record for 14 months. That should say 2 months if being a second user on my husband's card didn't count.

The whole thing's weird to me. But it obviously has done something for my credit history, even if that something is simply extending the history by a year when I finally got credit of my own - something which affects the FICO score and the interest rates you're offered. All I'm saying is, it seems like it was worth it for me. It doesn't cost anything.

Also, I just found out with Providian, you can see your FICO score online on their site anytime for free. I don't work for them - I PROMISE!

:beer:

Regards
-=-
Scarlett

Re: How to get a credit history?
 

Providian Rip Off Reports 2004

Providian Sucks

I Hate Providian Financial

Re: How to get a credit history?
 

:)

Thats exactly what i'm saying - your husbands card doesn't track on your account - it tracks on his... but as soon as you get credit in your own name - you get ALL of his history on the relavent card

for example - i was an authorised user on my wifes card for six months and my credit report was either unable to be pulled or blank (depending on the bureau)

as soon as i got a secured card the it magically appeared, along with 3 years of history (despite being in the country for only 6 months)

it is weird, and getting on as an authorised user is very cool if you are in the position to be able to - it will very positivey impact your fico score.

two things to bear in mind though

1) if the primary card holder goes above 40-50% utilisaton on that account and you have limited other revolving accounts then your fico score will take a massive hit (until the money is repaid)

2) with applications that are manually reviewed, athough the score will be high, there is a strong likelihood of being rejected as credit in your own name will be of a limited duration - for example disocver and mbna rejected me despite a fico of 730 for this reason


BTW i have a providian card and have had no problems.... they have been the first lender to give me a card with a reasonable limit (greater than $1000) and their on-line stuff is cool

Re: How to get a credit history?
 

I came to the US in March 2004. First I had to get a SSN before I could open any bank account and all your credit is tied to that number, so you can't apply for credit until you have it.

One phonecall plus signing a form was all it took for me to get a US AMEX card equivalent to my UK AMEX card. If you're about to move to the US from the UK it's well worth getting an AMEX card before you leave the UK so you can do this.

I first opened a bank account at Citibank but I've now realised my error as they have got my address wrong twice on my credit report (It seems that every time you open a new account your address is updated on your credit report) and they activated my debit card before I even received it.

So now I've moved to Washington Mutual, they offered me a secured credit card but I turned it down for the time being as I have already got a US AMEX and I bought a car on finance from CarMax.

A word of warning if you're going to buy a car, don't bother explaining your situation to the sales people, they don't understand what is required for an immigrant to get credit, they will always tell you not to worry about it. It's true you'll get credit but it will be some ridiculous APR.

After visiting a few new car dealers I decided it wasn't worth paying anywhere between 7-11% on a new $25000 car, so I went to CarMax and bought a six month old Mitsubishi Galant for $11000. The APR was still high at just under 13% ( :scared: ) but I'll refinance in 6 to 12 months to get a better rate. CarMax know what is required for an immigrant to get finance, in fact they have a specific 'Immigrant Loan' from CarMax Finance.

-tom

Re: How to get a credit history?
 

Ouch, just a thought but it might be better to get a loan whilst still in the UK, there is the currency risk on the repayments but not too much of an issue for something you are going to pay off quickly.