snotmaster1

Hi

Does anyone have any tips on how a new US resident would get a good credit record? Perhaps actions to take like getting a new car on credit (if that is even possible) vs cash, and if there is any way to 'transfer' credit from the UK to the US.

Thanks.

scrubbedexpat091

Only way to build credit is to have credit. Buying a car with cash will do nothing to build credit.

You need a credit card or loan of some sort.

sherbert

Apply for as many credit cards as you can (most will reject you) and start spending (and paying off at the end of every month) on whichever card you get offered. Everyone rejected us except Discover. After about 6 months of controlled spending (dinners, flights etc) and *always* clearing the amount at the end of the month, we had a good credit score and are now constantly being bombarded with offers for cards

AlphaTangoMike

A good credit record will take time, as your credit history is very important. I.e. as a new arrival, there will be no record of you in any of the various systems. With no history, you're a credit risk.

I would recommend that you search the forum, there have been many similar threads before.

You might want to take a look at secured credit cards, where you deposit an amount and that is used as your line of credit.

If you're still in the UK, look at International Autosource for cars in the US (has to be done before you arrive). If you've already arrived, some of the car firms offer expat financing. (BMW, VW, Ford).

Guindalf

As already suggested, a secured credit card would help, but research carefully as there are many that have hidden fees and 'gotcha's attached.

Another thing that we did is to buy furniture from a 'six months same as cash' type of store, even though you can pay for it immediately. Make the payments on time and you'll see that it gets reported to the credit bureaus.

Store credit is often easier to get than a straight credit card and sometimes, the store card is actually a low limit VISA or MasterCard. Although it's changed now, this is what happened to me. I got a Sears card and very soon after, it was converted to a MC.

Ultimately, the best things for improving your credit are making regular payments and time.

snotmaster1

Thanks all.

Is there any point getting an American Express card in the UK then one in the US?

FlyingDutchman6666

The late FatBrit wrote an excellent Wiki article on how to build credit in the US.

Pulaski

That is terrible advice, because credit applications do hurt your credit, and hurt it quite badly!

It is not possible to transfer your British credit history thanks to the UK's Data Protection Act.

There's a sticky thread above on this forum (Fatbrit's guide to credit and finance) on the subject of establishing credit.

Beaverstate

True. If possible only apply for cards you are fairly certain you CAN qualify for. and only one or two of them.

Pulaski

If you've had a British American Express card for 12 months (or, I hear, sometimes a little less, then the US end of Amex will give you a card on the back of your UK card history.

scrubbedexpat091

They don't let people consent to having their data shared?

Pulaski

I think you can consent, but I believe the recipient of the data needs to treat the data with the same degree of "respect" as the European Onion requires, and no US financial institution in the US is going to uphold that standard.

Bob

There is a wiki entry here on BE. You could go look it up.

It's a good starting point.

Bob

Or bang all the applications in within a couple days of the first, that way you only get soft hits on the subsequent applications...but you're right, it is still better to limit the number of applications to those you are more likely to get.

tonrob

Best to bang them in on the same day - that way they tend not to see each other's inquiries.