Re: Quickest way to increase credit score
 

this all seems very interesting, I am moving to California in December/January. I have a Morgan Stanley card, does anybody happen to know if this will work? If not do you think it would be a good idea to get an Amex card here before I go even if I don't intend to use it?

Re: Quickest way to increase credit score
 

Not sure about Morgan Stanley, but if you have good credit in the UK, I would certainly get an Amex - what have you got to lose? Not sure how long you would need to keep it before they allow you to switch it over, but if my memory serves me right I am sure I have seen somebody say they did this almost immediately - certainly within a few months.

That way you should get a couple of months head start on your credit history, worst case you have an Amex in the US to start you off. The alternative if you want to get credit is getting a secured credit card, which means tying up some money for a while. Obviously the Amex would be better then this - and would probably look better if somebody actually looked at your credit report.

There doesn't seem to be one answer on the use of it though, but if you are using it to build credit, the general view on credit boards seems to be to use it regularly - putting between 1 and 10% of the credit limit on it and then paying it off in full.

If you don't want to think about that all the time perhaps put a monthly subscription on it for roughly that amount, and then hide it away in a drawer somewhere, and setup bill pay via the bank to make sure it is paid on time each month.

Re: Quickest way to increase credit score
 

thats good, i have already filled out my application!! thanks!!

Re: Quickest way to increase credit score
 

I don't understand why everyone you have to get a secured credit card???
Before I 'realised' this is what I 'had' to get, I applied for normal credit cards and got two.
What's the difference?

Re: Quickest way to increase credit score
 

Most people who don't have a credit history in the US will not be approved for unsecured credit cards. In the past there were cards that people said to go for as you could get them with no history, but I was not aware there were people still willing to do this.

I do know of some people who got them via credit unions with supporting letters from work, and also know you can get the ones which rip you off with large annual/application fees, but I am surprised you got credit cards without any history. Did you apply with someone else who had a history or just by yourself?

Re: Quickest way to increase credit score
 

I got an Amex card in the UK expressly for this purpose about 4 or 5 months before coming here. Transferred across once I got a SSN no problems, same limit.

Alien UK - A secured credit card, as I understand it, never having had one - generally works like a debit card, i.e. you pay money into your credit account then can draw on that limit. Difference over a debit card is it helps you build a score.

If you've got two credit cards without having to do this, then that's great.

The biggest advantage of having an Amex in the UK is that you can generally get a higher limit off the bat (normally what you had in the UK converted to dollars) than you would with your first unsecured card here.

Re: Quickest way to increase credit score
 

Got my social security number in July and applied for a Macy`s card in August, limit $100.
Then applied for the Amazon/Chase card in September, limit $500.
Applied for the Gap credit card and JC Penney`s store card in October and was approved,$1000 limit on Gap and $300 on JC Penneys.
All cards were applied for in just my name.
The only joint financial agreement so far is a car loan taken out 3 weeks AFTER applying for the Gap card....
I do have an Amex but not sure it`s worth transferring here, so that wasn`t a factor....

Re: Quickest way to increase credit score
 

Wow sounds like you were very lucky in getting those cards as I don't believe this is the norm.

Re: Quickest way to increase credit score
 

Actually, I have heard of a few people qualify for the low limt/horrendous loan shark interest rate store cards - and that being the case, they are an alternate way to get started on the credit ladder to secured cards, even if you pay them off in full each month to avoid getting stiffed on interest.

But AlienUK - your cards have very small limits - thats where an Amex one could come in if you had a high limit in the UK, they would likely give you that here. Mine for instance, was 6000 pounds in the UK - they gave me a $10k credit line here with no history. Not that I've ever used it much really, as I'm joint with the wife on her cards - but thats why its useful, especially for people without a US spouse.

Re: Quickest way to increase credit score
 

Yeah can see that, but don't these normally have a large application and annual fee, you would be better off with a secured credit card then that. I remember getting a few in the post before I had a score - offering a limit of about $200, but it would have cost about $200 to get it, and even if I didn't it would have cost about $100. At least with the secured card you eventually get the money back.

Getting something like the Amazon Chase card is pretty good going with no score - no matter what limit they give you

Re: Quickest way to increase credit score
 

just as long as you dont' get too many store cards, because that'll have a negative effect on your credit score too....

Re: Quickest way to increase credit score
 

Hence my bewilderment lol....My husband has more than enough borrowing power, so the limits don't matter, the score is the important thing....But useful for other UK expats to know!

Re: Quickest way to increase credit score
 

Hello good folks from UK

I have been reading this forum for the last couple of weeks and thought I would share some of my knowledge to help some people out here.

About Store Credit Card:

This is a good way to start your credit history, most of the store credit cards are issued by GEMB (General Electric Money Bank) which includes GAP, Banana Republic, Dillards, JC Penny, Old Navy, and the best GEMB card is Brooks Brothers (high Limit). It is good to get Brooks Brothers card since after 6 months they will convert it to the Brooks Brothers Master card or the Dillards card which can be converted to Dillards Amex. The easiest store cards are Target and Walmart. Hard to get store card is Nordstrom, they are their own Bank.

Credit Card:

HSBC has a card selector in their website, when you apply through that they will tell you what kind of card you can get approved for, they will do a soft inquiry on your credit report (others won't see this inquiry).

The easiest credit cards are Capital One and HSBC, but avoid their annual fee cards they like to push those to new comers. Don't sell yourself short but falling for these high annual fee credit cards. High interest cards are not a problem for new comers since you are using them to build credit but don't let them use you, payoff in full to avoid interest charge.

Barclays Bank (formerly Juniper Bank) has a list of credit cards which are easy to get, The U.S. Airways master card issued by Barclays is also an easy card to get and so is the Carnival Master card.

State Farm Visa:

If you have State Farm insurance or are thinking of buying State Farm insurance then tell the agent that you want to apply for their Visa card also. Tell the agent that the only reason you want to buy their insurance is because you want to establish credit and you need a credit card limit soesn't matter. Otherwise you will get your insurance from GEICO since they are offering you much cheaper. State Farm will bend the rules to earn your business with a small limit ($500), If you are already a member then tell them you would like to get a Visa and if they do not approve you tell them you will move your insurance to GEICO.

Secured Card:

If you cannot get any credit card and the secured is the only option then I would strongly advise you to get "National City Bank Secured Card", their annual fee is low and it is a Prime Bank not one of those bottom feeders. They do not report the word "Secured" in their credit reporting which is a good thing.

Re: Quickest way to increase credit score
 

I have a question. I'm not sure if it's a reallly stupid idea or not really, but here goes. Can you just take out a small loan, say $3-5K, keep the money and just pay it right back within a few months with the interest to give your credit a boost. I know that it will cost you the interest but it seems a very quick way to get your score up. Stupid idea?

Re: Quickest way to increase credit score
 

Nope, good idea apparently!!
You need to keep it for at least 6 months though for it to make a difference.....