Building Credit

[chrismorrison 96]

Hi everyone, I know this isn't UK specific, but I prefer the help I get in this forum because I've been posting here since Kas and I started the visa journey last year (I can't believe we just passed our NOA2 anniversary!)... anyway, so we have been having trouble getting Kas things... a phone, a credit card... anything. We tried to get a credit card as co-signers, but the bank didn't allow it because Kas didn't have a green card (so we are trying this again tomorrow)--today we tried to get him a new phone and were turned away.

My question is, what did you guys do in order to start building a credit history? We are planning on buying a home later on this year, and I can't use Kas as he has zero history in America (plus, if I did, we would qualify for less money).

Also, he bought himself a gun a few weeks ago, because 'Murica. So, it's absolutely crazy that he can buy a gun, but can't get a credit card. Makes perfect sense.

[Mrs.Hull210 24]

Hello

I am sorry that your husband has been having a hard time establishing credit. Before my husband received a GC, (his AOS was still pending) I was able to add him to bank account without any trouble, and since he is now a PR with a social security number, I have the option to add him to one of my long standing credit card accounts with Capital One. We also went into a car dealership that specializes in helping people with NO/BAD credit, and they approved him for a vehicle. Maybe that is an option for you to try.

Wishing you lots of luck!

[yuna628 9,680]

Hey you two

I have heard that ''secured'' credit cards from Wells Fargo (specifically mentions LPRs) or BOA or possibly a card from a department store is the way to go. As for phones, I'm going to assume you want a contract phone.. my husband and I went to our local ATT. They didn't seem like they would have a problem giving him a contract phone, but he decided to go with a pay as you go phone. They had no problem with that at all for sure, and that's all linked up to our joint account. I think we're going to look into getting a secured card soon.

Amazing how easy you can obtain a gun but can't obtain other things... crazy..

Edited February 1, 2016 by yuna628

[Boiler 45,663]

I mainly use my Debit Card, obviously you do not have to buy something with a credit card, be it a gun or a phone.

[Nich-Nick 3,354]

There is a pinned thread in the Tax and Finance forum all about building credit you can read through. Lots of info. Well I haven't actually ever read it.

Anyway, I will tell you just some personal experiences. In the beginning, I did everything in my name. I added him as an authorized user to MasterCard, and a couple of others. That's different than it being his own account, but having a credit card is the goal. I added him to my bank account and got him an ATM card. He didn't want to be on my Verizon plan. He went with a pay as you go. (stubborn.) Within the first year we decided to move and bought a new house. I applied for the mortgage on my own for the same reasons you said.

So now we are into the beginning of year two.His first card was in Target one night when they said "Want to open a Target account and get 10% off this iPad? It only takes five minutes," I told him, sure try it. So he gave his info including unemployed, and was authorized for $500. We made a point of using that card whenever In Target so it had activity.

Next was T-Mobile when he decided to get their month to month plan. (still stubborn about the cost of my Verizon). So they ran a credit check and we asked the guy, "so exactly what did that say when you ran it". He told us he had the highest rating. Interesting.... At home we did a mycreditreport.com free thing and lo and behold, all my cards that he used had also been reporting to his name and SSN. He had a credit ranking of excellent without really trying. When he applied on his own for his first big card...VISA, he got approved instantly for $8000. That wasn't as good as my $25k or more that I have on my MasterCard with my years of good credit, but it's pretty darn good for basically inheriting a score by being an authorized user.

So that's my story. Oh forgot to add, he finally talked me into divorcing Verizon and now I'm on his T-Mobile family plan.

Edited February 1, 2016 by Nich-Nick

[Anna Grant 169]

While we were going through the K1 visa process, my husband and I opened up a checking account with US Bank on one of my visits to the US - my husband had a savings account with them. After I moved to the US and we got married, I got a charge card with US Bank. They would only allow me a College charge card with a $500 credit limit but it was a start.

We recently bought a new motorhome (we are full-timers RVers) and got a joint loan for around $25K without any problem. So it's possible to build a decent credit rating from little acorns.

[Wooderz 314]

I added Daniel as an authorized user on my credit cards as soon as he had a SSN (Discover let me add him without an SSN). Good standing with those cards shows up on his credit like Nich mentioned. I don't think it carries the full weight of having your own card, but it's something. Daniel also has pretty good credit already, without trying. If you're not interested in that because you want to keep finances separate, get a secured credit card like yuna mentioned.

We just bought a second car and were able to add him to the loan as a co-signer. Only after we did that did I read on vj that a lot of people have trouble with that because of the restriction with the SSN and no credit history. I guess we got lucky? The interest rate is a smidge higher with him on it, but we put a lot down so we aren't paying much interest anyway.

I say get a secured credit card and in a few months, go to best buy or a furniture store and buy something (assuming you'll need additional furniture when you buy the house) and let Kas finance it on one of those 0% interest offers they're always advertising. Pay it off as scheduled, not early, to build payment history.

Edited February 1, 2016 by Wooderz

[Unlockable 7,315]

There are plenty of financial institutions have Secured Credit Cards. I always advise friends or family who need help with credit to start with Secured then go for store cards (Walmart, Zale's are a couple of the easiest) afterwards. Also, if you are able to, become an authorized user on a card with a loooong credit history (very important).

It won't be long before you have a established credit.

After you've established some good credit finance a car to round out your credit file. I always advise this to be done last because it will be the biggest debt.

Good luck

[chrismorrison 96]

Wow, everyone! Thank you so much for sharing all of your stories and experiences. It is so comforting to be in this community and know that you'll get answers quickly and also not feel so alone.

I have a friend who works at Key Bank, and while we got denied the first time (Kas was still unemployed and we still were waiting for 'The Interview'), we got approved today for 15k! So, it's basically a co-signed credit card where my credit history does most of the 'heavy lifting.' She also suggested that Kas look into something called Loan Assist as that will also help him establish credit history.

But anyway, long story short - he has a credit card now that will help him start building credit. I told him to use it for small things that can be paid off quickly. Groceries, etc. Manageable items.

Edited February 2, 2016 by chrismorrison

[bariki 71]

Something for HSBC and Amex UK customers to consider:

As a long time customer of theirs, I got HSBC to open me an account in the US before I left the UK. It was a bit of a faff as I got caught up in the new FATCA rules that came into full force in 2015 but it was worth it, as their International Banking Center hooked me up with a checking account, debit card, check book and lines of credit (credit card and an overdraft) based on my UK history.

I also had good credit with American Express in the UK, and used their 'Global Transfer' process to get a US card based on my UK credit.

[simonschus 58]

Hi there,

I'm directing this mostly at bariki or anybody with experience of AMEX's Global Transfer.

I'm going to be using AMEX's Global Transfer on one of my cards, moving it from the UK to the US. Does this new, transferred card inherit the credit history of the previous card from the UK? Or is this basically starting a credit history in the US with none of the UK credit history transferring over?

Simon.

[bariki 71]

Hi there,

I'm directing this mostly at bariki or anybody with experience of AMEX's Global Transfer.

I'm going to be using AMEX's Global Transfer on one of my cards, moving it from the UK to the US. Does this new, transferred card inherit the credit history of the previous card from the UK? Or is this basically starting a credit history in the US with none of the UK credit history transferring over?

Simon.

You're starting over with none of the UK history. Creditworthiness (at the macro level) isn't portable between countries. Indeed, it isn't really being ported in the Amex case - you're just using one company's (incredibly useful) springboard to get a better start on building your new, US credit. Same with the HSBC thing I mentioned above: they now have a snapshot of my UK customer history inside HSBC US and that helps me to do business with them specifically, but that has no bearing on my wider creditworthiness here in the US.

You're getting a leg up with Amex as you get to bypass the local credit decisioning process as it's based on your old, UK history. This big credit building sticky also claims that the opening date of the new card here will reflect the opening of your transferred card back in the UK, which helps towards building a better FICO score once Amex start reporting on your new card to the US consumer reporting agencies.

Hope that helps.