Credit Help

[DaveyOntario 1]

Hi folks,

My wife applied for a Bank of America credit card with me as a secondary card holder back in August 2010 while I was still in Canada. One month ago I arrived as an LPR into the US. By doing this I now have an excellent credit score because I ran the card balance up to 60-75% of the limit and paid it off totally each month. I was able to arrange financing with Ford Credit by having them check my Ford Credit rating in Canada hence obtaining a new vehicle. I do not have a job however I am starting a business which is very difficult over here especially as an immigrant trying to obtain credit. I have gone to 6 banks and credit unions looking for assistance with little luck. What I was able to do was open a money market savings account then get a secured card, dollar for dollar by securing the MM account and collecting interest. Other places would do the same however wanted me to pay 6% to borrow my money...UM, no thanks. If you have some money to invest Merril Lynch can set you up where you can open a credit line against your investments however this does not affect your credit score, but it is good for doing a down payment on a home, etc. without using up cash flow.

Davey

[TheFantastics09 19]

Hi folks,

My wife applied for a Bank of America credit card with me as a secondary card holder back in August 2010 while I was still in Canada. One month ago I arrived as an LPR into the US. By doing this I now have an excellent credit score because I ran the card balance up to 60-75% of the limit and paid it off totally each month. I was able to arrange financing with Ford Credit by having them check my Ford Credit rating in Canada hence obtaining a new vehicle. I do not have a job however I am starting a business which is very difficult over here especially as an immigrant trying to obtain credit. I have gone to 6 banks and credit unions looking for assistance with little luck. What I was able to do was open a money market savings account then get a secured card, dollar for dollar by securing the MM account and collecting interest. Other places would do the same however wanted me to pay 6% to borrow my money...UM, no thanks. If you have some money to invest Merril Lynch can set you up where you can open a credit line against your investments however this does not affect your credit score, but it is good for doing a down payment on a home, etc. without using up cash flow.

Davey

This was some awesome info! Thank-You!!

[DaveyOntario 1]

This was some awesome info! Thank-You!!

You are very welcome. I learned a lot from this site and enjoy offering any help I can to others. The journey in and of itself is difficult enough let alone starting a credit rating.

[웃 910]

If you have some money to invest Merril Lynch can set you up where you can open a credit line against your investments however this does not affect your credit score, but it is good for doing a down payment on a home, etc. without using up cash flow.

Davey

You can do this with most trading firms. But it is not free money (obviously) and it needs to be paid back. So in other words you might as well drain your investment account to cover the expense (down payment on home), right?

How long do they give you to pay back the loan?

http://www.scottrade.com/investment_services/margin_accounts.asp

[DaveyOntario 1]

It is a line of credit where monthly payments can be made over a term of 5 years or arrainged term. These funds can be used for a second mortgage or a down payment, and secured against the investment and not against the home. Now, if you are buying a home and want a reasonable rate with reduced magic of compounding,and need funds not invested but held for example in a money market account for starting a new business it makes sense to go this way. My point is to save cash and leverage against the investment to reduce the cost of the home. Keep the cash in the money market account for business expenditures and growth. The home will unlikely give you returns like the business hence no cash outlay like you suggested, in my situation of course. Yours may differ.

[웃 910]

It is a line of credit where monthly payments can be made over a term of 5 years or arrainged term. These funds can be used for a second mortgage or a down payment, and secured against the investment and not against the home. Now, if you are buying a home and want a reasonable rate with reduced magic of compounding,and need funds not invested but held for example in a money market account for starting a new business it makes sense to go this way. My point is to save cash and leverage against the investment to reduce the cost of the home. Keep the cash in the money market account for business expenditures and growth. The home will unlikely give you returns like the business hence no cash outlay like you suggested, in my situation of course. Yours may differ.

That makes sense. Sounds interesting.

[rheanick 42]

Hi folks,

My wife applied for a Bank of America credit card with me as a secondary card holder back in August 2010 while I was still in Canada. One month ago I arrived as an LPR into the US. By doing this I now have an excellent credit score because I ran the card balance up to 60-75% of the limit and paid it off totally each month. I was able to arrange financing with Ford Credit by having them check my Ford Credit rating in Canada hence obtaining a new vehicle. I do not have a job however I am starting a business which is very difficult over here especially as an immigrant trying to obtain credit. I have gone to 6 banks and credit unions looking for assistance with little luck. What I was able to do was open a money market savings account then get a secured card, dollar for dollar by securing the MM account and collecting interest. Other places would do the same however wanted me to pay 6% to borrow my money...UM, no thanks. If you have some money to invest Merril Lynch can set you up where you can open a credit line against your investments however this does not affect your credit score, but it is good for doing a down payment on a home, etc. without using up cash flow.

Davey

Another source of fund without accumulating any interest is to reinvest your capital gains. If your wife has other investment, the capital gains from these investment can be used to fund your business and will be write off in your tax. I started my photography business with this method.

[Sweetcheeksss 91]

I have nothing to add to this thread, I just wanted to say "hey" Davey - looks like you are doing fantastic since moving and I am very happy to see that!

Take care my friend!

[DaveyOntario 1]

Hey Sweet,

I'm having a blast here! Just coined myself as a "Picker" hahahaha. Been hitting auction sales and setting up to flip stuff into Canada, etc..

I need to find some friends here for sure and my wife says they need to be crazy like me.

Hope all is well with you. Keep in touch!

Dave