GeoffM

I was prepared for having to use cheques for everything when I arrived, so I even took the option of buying cheque books (not free!). After 5 months I've written 10 cheques, half of those for rent, two cocked up. At this rate I'll use all my cheques by 2020!

snufkinette

This thread is quite relevant to our situation, as we hope to be moving over to the States in the next three or four months, but are worried about not having any credit history there.

My husband and I have a joint account with HSBC, and I've had a current account with them since 2006, so opening an account with them in the States is tempting simply for the credit history transfer. However, I never use the cards linked to my accounts, being a 'spend only what you have' kind of person. This is probably a silly question, but does this mean I have no credit history to transfer? I wondered if the fact that I'm a reliable customer who doesn't go into my overdraught, etc would play in my favour. Also, my statements show my monthly payments going out like clockwork. Any good in terms of establishing credit history? In that case, I wouldn't need to have a U.S. account, surely; I could just supply copies of my old statements.

Finally, there are no HSBC branches in the area where we intend to live: the Triangle in NC. Obviously, internet banking is useful, but again, only if the credit history transfer will help us.

Thanks in advance for any help!

jeffreyhy

What do you mean by "credit history transfer"?

HSBC in the USA may have access to your HSBC and perhaps other financial records from the UK, but the US credit reporting agencies only have what financial information is reported to them by financial entities in the USA about your US accounts. I do not believe that your opening of an HSBC account in the USA is going to cause HSBC to send your past financial history with HSBC to the US credit reporting agencies. Rather, HSBC will simply start sending information about your new US account.

Regards, JEff

snufkinette

I mean exactly what I say. See below extract from HSBC's website:

Relocating your current account
Whether you're emigrating, retiring, studying or working abroad, or just need an overseas account, we’ll help you open a new account in five easy steps.

Account set up in advance
If you’re moving abroad, you can open your new account before you leave so it’s all set up when you arrive
Free review
We’ll review your international needs to ensure your banking needs are covered
Over 45 countries
Open an account in over 45 countries including; Australia, France and Hong Kong
Credit history transfer
By transferring your HSBC credit history, you can continue your banking relationship with us (subject to qualifications, status and local country laws and regulations).

Taken from http://www.hsbc.co.uk/1/2/overseas-account-opening

kodokan

We opened US bank accounts with HSBC before we moved over. For some not quite clear reason (20 years' history with First Direct; hubby being a fairly high level exec with a well-known multinational) they gave us a credit card with a $15k limit before we even arrived, which was enormously useful.

This has allowed us to build up a FICO score in the US, with which we are currently applying for a mortgage. Apparently it's STILL a bit weird to only have one line of credit on your history, but it's been enough to tip us over the 700s after a year.

But no, they don't specifically port across a credit history - it's more that they will extend credit themselves, allowing you to start building one here more quickly and easily.

snufkinette

Thank you for your helpful reply. Sounds like you've done well out of it!

Actually, the explanation in your final paragraph does match the somewhat limited information I've read on their website. Makes sense. Perhaps opening an account with them would help us, as long as they don't close it for secret reasons, as they apparently did to a previous poster!

Cheers.

kodokan

If they'll give you a credit card of any kind or limit whatsoever, then it's well worth it, as you'll then be able to get to a 'good' credit rating within a year. Actually, it might be six months - we started getting a flurry of those pre-filled offers for credit cards after 6 months, so perhaps something ticks over then. Either way, it's a heck of a lot easier than working up through the pre-paid card system and meticulously never spending more than 50% of your available credit.

You don't have to have an outstanding balance to build history so you don't even need to take on actual debt/ pay interest; we pay ours off every month but it's still reported monthly to the agencies as a line of credit on which we are meeting the monthly minimum payments and not going into default.

We also have a local Chase bank account for paying utility bills, cash withdrawal and popping in to ask inane questions. You can open up one of these extremely easily once here; you don't need a SSN and I think we even used hubby's work address for the first month whilst in temporary accommodation (I think they delivered the cards to the branch, and we collected them there to avoid them getting sucked into a corporate mailroom).

jeffreyhy

Thanks for clarifying, this confirms what I thought - only HSBC will have your credit history.

This will not establish a credit history with the US credit reporting agencies that will allow financial institutions other than HSBC to extend you credit, except on the limited basis that they would extend credit to any person with no credit history, until you have built us a US credit history.

Regards, JEff

GeoffM

Given my thread of a couple of days ago, I'll tone this down: not having a local bank may well be a serious and expensive (in fuel/car costs) PITA. One can't do everything over the phone/internet with HSBC.

Steve2.0

Not sure if you are applying for the HSBC Premier or regular account, if it's for Premier then probably worth it, for starters there are no setup fees, I think it was £150 admin charge to setup a regular HSBC account before moving to the US, which to be honest makes the process less worthwhile.

Whist we received a credit card with a health limit it's the possibility of getting a mortgage through HSBC with a sensible rate that's the most appealing to us.

We have a branch nearby (Redmond WA) but it's important to note that your Premier account will be run out of NY state and therefore the local branch will be only good for basic stuff like cheque deposits.

I was the one who had the account shut down for no apparent reason - eventually it was reopened but no one was really sure why it got closed in the first place, doesn’t inspire confidence. If we find the mortgage options are no better than alternative lenders I think we’ll move to a more local bank.

In summary if it’s HSBC Premier the go for it, if not I would suggest setting up an account on arrival and work on your credit history using the methods explained in numerous other threads – number one point to remember it’s US credit history you are after and that only starts once you are in the system with a SSN.

Steve

snufkinette

Sounds like a good strategy. I see what you mean about not needing to have an outstanding balance and paying it off before building credit, but I never use the card in the first place, so there is nothing to pay off. I pay for everything with my debit card.

We thought about applying for AmEx credit cards, but unfortunately, we don't even meet the minimum income requirement now that I'm a stay at home mum. We have applied for AmEx charge cards instead in hope that they might enable us to build some credit. The three months or so of use we'd get out of them before moving, though, may not be enough. Worth a try, anyway.

I wonder whether it's helpful for us to have individual accounts as well as the joint one?

snufkinette

Absolutely. We were actually thinking we'd open a local account for this very reason! Thanks.

snufkinette

Okay, gotcha. We wouldn't be going for Premier; we don't earn enough!

I've got a social security number, so hopefully that will help. Thanks.

kodokan

For comparison, with our one year's credit history, we've gone through a broker recommended by our realtor, and are being quoted 3.625% for 30 year and 3.125% for 15 yr. This is without escrowing the insurance and taxes; that would've knocked the 15 yr down to a round 3%, but my control freakery wanted me to take care of it myself to be sure they were being done properly.

kodokan

Have you lived here before, then? Maybe you've got credit history from before..?