SimonBelgium

38 minutes ago, ax1990 said:

Do not borrow or take a loan just to build your credit. Credit score will improve over time anyway as long as you are disciplined.

Yes and no. Without any loans or credit cards, your credit will NOT improve, and your ability to get a mortgage or car loan will be impacted greatly. That said, common sense and good judgement are key when it comes to financial decisions, therefore, signing up for a loan or line of credit should be done wisely, not just picking the first available or signing up for anything you can.

18 hours ago, cookiemonsta said:

Just curious, did you file whilst having a pending I751, and if so, did they request you to have your spouse present? I haven't received the mail letter, but I do have the letter online, and it mentions only myself, nothing about spouse.

 

 

Nope, I already divorced, so I went with the 5 year option.

6 minutes ago, Jay98 said:

Congrats...

I passed my interview also today, now waiting for the ceremony to be schedule. Luck to everyone.

The officer told me they're now doing 1-on-1 oaths for all "clear" cases. Only in case a review or missing evidence is needed, or perhaps running late in the day, will they schedule a new ceremony at a later date, with up to 5 people. This is for the Santa Ana, CA field office.

Filed DEC 26 2019, Interview JAN 26 2021, Oath JAN 26 2021 🙂 

All done 😉 

It seems officers will ask for people to speak up if they travelled outside of the US in the last 14 days, and will then reschedule your interview. Of course they can see your travel history when you arrive at the interview desk, so don't lie.

So if you're flying in to the US just for your interview, you'll need to come 15 days before the interview, and fly back the day after. You can still "work from home" while in quarantine though, if your job permits. And likely, your boss will let you take a few more unpaid leave days.

If you're in Germany though, make sure you're not over the 180 days abroad limit.

On 12/10/2020 at 8:25 PM, SimonBelgium said:

SoCal here, filed on DEC 26 2019, USCIS website still says "December 2020" as estimated completion...

Hope to hear something soon!

Got a notification the other day, interview scheduled JAN 26, 2021. Filed DEC 26, 2019.

SoCal here, filed on DEC 26 2019, USCIS website still says "December 2020" as estimated completion...

Hope to hear something soon!

Foreign credit history does not count in the US.

I had never even written a check before I moved here. The US banking system is horribly outdated, and the credit system is NOT in favor of the consumer at all.

The downside of any bank where you do not have the opportunity to talk to someone in charge, is that it's a computer system that will decide if you get a loan or not. And even if you've never missed a payment and make more than enough money, they computer algorithm for the credit rating will decide you're a huge risk, and you won't get a basic loan.

With a local CU, you can actually go into the local branch, and talk to the person in charge of loans. Once they understand you're a hardworking stand-up person, and you're just a new immigrant, they can sometimes make an exception against what the computer is telling the clerk what to do.

Any line of credit is fine, but there are rumors that the credit cards offered by stores will be counted less valuable, in the future. But the biggest thing you'll fight for the first 5 years at least, is "Average age of accounts".

4 hours ago, Bernardo Machado said:

Hi everyone and thanks a lot to Simon do expose all your knowlegde.

 

 

My doubt is about online/digital banks.

 

 

Any rule is different for this digital banks? Can I chose one of them, thinking first in fees?

 

Bernardo,

Online banks are fine if you want to use them. But a local Credit Union (CU) is often best, as you can build a personal relationship with the people there, especially in the financing department.

Most fees are irrelevant, as regular use is often free as long as you keep a certain amount in your accounts.

15 hours ago, Stark44 said:

Is there an expected ballpark range of what your credit score may look like after 6 months?  If you spend under 50% of your card allowance and pay it back immediately before your statement is due does this help build your credit score quicker ..is it the higher the spend and then paying it back immediately on the credit card that builds credit or is it more so having consecutives months of paying back on time that improves your credit score?

Make sure you carry less than 30% on each card. Ideally, less than 10%

There are a number of factors that make up your score, see the first post in this thread. The most important one is payment history.

But one card won't do it. Your score may be good, but lenders won't touch you, because you have no portfolio of credit, nor do you have a long history.

So you want to make sure you open several accounts (2-3 credit cards, a car loan, a mortgage, maybe a personal loan, student loan, etc etc) to build a portfolio, and then just wait to build history. Under 2 years, most lenders won't like you much, but building a personal relationship with the senior loan person at your local bank or credit union, can do wonders.

23 hours ago, Stark44 said:

Hi all, since moving to the US I have not opened a credit card and I have what I believe is "ghost credit" as I do not have any credit yet. 

 

1- My plan is to get a credit card soon and spend less than 30% of the allowance on it monthly and make timely payments, by doing this what will my credit score start at and how quickly will my credit score increase each month roughly?

 

2.1- Additionally, is it wise to be added as an authorized user on my wife's credit card will this help increase my credit score at a quicker rate. 

 

2.2- When adding an authorized user does it ask in the process if the additional user is either a USC or permanent resident, as I note it asks this in a credit card application. 

Hopefully we are able to purchase a home next year, I want to use this upcoming year on building a good credit score.

1. Do it today, and open more than 1 if you can. Try opening up another line of credit as well, if possible. You need a diverse spread of lines of credit

2.1 There are rumors this will change, but I believe it's still a good option today, so do it now.

2.2 Depends on the financial institution I suppose. You should be fine if you're an LPR.

With just one year of credit history, buying a home could be an issue. But as you'd be buying with your spouse, her credit history will help out a lot for the "age of credit".

19 hours ago, kingnosa said:

Dear VJ Members

 

Greetings, in particular @SimonBelgium, I really want to thank you for your insights on this thread as well as other contributors. Regardless of your disclaimer that you are not a financial expert. Your wealth of experience is highly valuable to some of us.

 

I will be migrating with my family to US in barely a month from now and i am totally new to credit ratings etc. Regardless this thread have been helpful. Please I will need your opinion on how to go about getting a good credit rating in one year. this is my plan and objectives.

 

1. I will be staying temporarily with another family for 3 to 6 months in chicago before moving to houston, texas.

2. I will be coming with about $5K to the US.

 

The question is. 

1.What do i do once i hit the ground running by this I mean after getting my SSN and Driver licence.

2. which type of accounts do I open with bank/credit union.

3. How do i open three to four lines of credit as you suggested in order to get a high score. 

4. How can the credit score i gather after 6 months help me when I want to rent a house in texas?    

5. How do i utilise my $5k in this regards while waiting for me and my wife to get job?

 

Thanks and I will appreciate your advise and that of other contributors. 

 

Kingnosa

 

 

Getting your SSN and Driver's license may take a few weeks, so keep a close eye out so you know what to do when and where. I think you can go to the Social Security Office in your area with the stamped I-551 in your passport within 48h after arrival, to apply for SSN. Once you have that, you can get your driver's license (study for the test!), but you can also get an ID card, which may be faster (I did that). Once you have that, open a bank account and get a secured credit card. Whichever $ amount you can spare, $500 or so is enough if need be.

That would be your first line of credit.

You can also get a secured personal loan. For instance, deposit $2,000, and you get a $2,000 loan against it. You basically get your money back right away, but you pay off the secured deposit. You need to keep that loan for at least a year to be safe. So you could make it 12 installments or more, doesn't matter. That's your 2nd line of credit pretty much right away.

Usually, after a few months, you'll start to get pre-approval letters in the mail. Be selective, but it's OK to get a card with some benefits you'd actually use regularly. Don't open too many! 

A recent change allows you to report other types of revolving credit as well. Mostly utility bills or rent. They have to be in your name though!

If you're buying a car, it can be tough with no credit history. My local credit union did finance my first car here, but being able to go in and talk to an actual person to explain your situation, helps a lot. Big bank lenders won't touch you without a decent credit report.

To rent a place, they basically want to see your credit history is clean. No late payments, bankruptcy etc. Often, landlords want to see high credit scores, but an extra month's rent as a security deposit usually helps. If you go to an apartment complex, they are usually easier to work with, compared to individual landlords renting out a house.

$5,000 is NOT a lot of money. As soon as you have an SSN, go find a small job locally. The $5K will likely be barely enough to get your rent sorted once you move. So save up, because you'll need a car, insurance for car and house, rent, security deposits (also with little credit history, utility companies may ask for a security deposit), health insurance, food, gas, moving to Houston, etc... When you have a job, usually after 2 paychecks, you can use that to show income, which can help you with loan applications and rental applications.

Don't forget to file your change of address when you do move out of your friend's place.

You can transfer money from your foreign account into your new US account using Transferwise, link is in my signature below.

Don't forget to keep credit card utilization below 30% of available credit, but ideally between 1 and 10%.

In short, 2 lines of credit can happen quick. Whenever you buy a car, finance at least part of it and make sure the lender reports into the credit bureaus (Some of the "No credit, bad credit, everyone is approved" places don't report loans). 

When the pre-approvals come in, pick one that will give you a benefit you use often, for example Costco if you shop there regularly. PayPal is actually a pretty good one to get as well (PayPal Credit and/or PayPal MasterCard), but again, wait a few months.

Use CreditKarma to start tracking your credit score. It will appear high pretty much right away, but it will drop once you get real credit on there. Over time, it will go back up to over 700.

2 minutes ago, Sartre said:

Santa Ana, unfortunately, is one of the slowest in the country.  However, under Congressional pressure, USCIS is trying to process all applicants at a rate that is faster than the current glacial speed that we are witnessing at Santa Ana and other USCIS sites.  Don't be surprised if your case is transferred to another site for processing (this is a new mandate started a few months back to take care of the backlog at places like Santa Ana).  They will do your biometrics at Santa Ana but your interview could be at another center in California or even out of state.  The travel expense to another site would be borne by you and your spouse. 🙁

 

Best...

I guess they want lots of new citizens for the upcoming elections 🙂 

2 hours ago, Sartre said:

Assuming you are in Irvine it will probably be  the Santa Ana field office.

Click on the link below and go to the Service Area for Santa Ana and see if you see your zip code and or city.

Best...

https://www.uscis.gov/about-us/find-uscis-office/field-offices/california-santa-ana-field-office

Thanks,

It seems processing times for N-400 at the Santa Ana office is 12.5 - 15.5 months... 🙁

Just filed today (DEC 26), online 🙂

Now let the wait begin...

How do I know which center will process my N-400?

1 hour ago, jeaniecz said:

My fiancee recently informed at her bank (Chase): the bank allows her to get me a credit card (authorised user) without SSN. They told her they will report my credit score to the credit bureaus based on my name and address, not SSN. I certainly hope that is true. Does anybody have similar experience with Chase?

 

Another question: When I become authorised user, does it make sense for me to get my own credit card as soon as possible? I did some reseach online and would probably go with Discover Secured. Or should I just use the CC I got through my fiancee, wait till my score is decent (how long??) and then get myself an unsecured CC?

Open your own CC as soon as possible. Then add more cards over time, but do it at a time where you're fairly certain you won't need to open another line of credit for 3-4 months (such as mortgage, car loan, ...). 

If you're planning to get a car, finance it (even if you can pay it in cash), just to get the line of credit on your report. Let it report in for 6-8 months, then you can liquidate it if you like. You don't have to finance the whole purchase amount either, by the way, you likely get a better rate if you put 50% cash down and only finance 50% of the car, for example. I think with "lower" credit, most lenders will give you a break on the rate when you put down more than 30% in cash.

3 hours ago, jeaniecz said:

Thank you! 

 

I didn't know what IDs I need to open a bank account, so it's definitely helpful to hear I need SSN and DL. (I already started researching how to get a DL, because my EU one will not be just turned into an American, unfortunately. So I got the VA manual and have been studying - I must honestly say that I have already driven quite a bit, during my visits in the US- so that I can apply for my theory exam and road skills test ASAP)

 

Now I'm used to having one (I guess it's an equivalent to a checking account) bank account for everything. From what you are saying I understand I will need several accounts - at least 2, a checking account and a savings account. 

To which of those accounts is the credit card linked? Or does it not matter, as long as I pay my credit balance? What's a typical credit period? 

What do you mean that I should use the credit card between 1 and 30%? So if I have a credit card with a limit of 1000 USD, I should use it monthly to spend maximum of 333 USD?

 

So opening a Secured Loan (does that mean yet another account? with the same bank where I have my checking and savings accounts? or should I use a different bank?) means the bank lends me money I don't really need, but instead of paying it back right away I spend months (does it matter over which period of time I pay the loan back? Being the kind of person I am, I would love to pay it back ASAP) doing so, I pay them interest for that loan and by doing all this I earn my credit score points? (Wow, what a complicated construction.)

 

Once I managed to build up a decent credit score, do I need to maintain it? And how? Is using my credit card for my bills and daily groceries etc enough? Or do I need to take those "loans" every now and then? 

 

I'm sorry for bombing you with questions, but as you can see, I have no idea how it works and am trying to understand. I very much appreciate your help!!!

Yes, the US credit system is beyond stupid.

Checking account is the same as a debit account. Typically, there is 0.0% interest on those, so just keep a minimal amount of money on there.

Savings account is where you can get some interest, but you can only transfer money out of it a certain number of times per month (I think it's 5 transfers out)

The minimum you want to keep accounts open, is 6 reporting periods on your credit report. To be safe, that's 8 months after you've opened the loan, so pay it for 9 at least, then you can pay it off.

For credit cards, NEVER close those accounts, especially not your oldest one.

You can pay anything you want on your credit card. Use between 1 and 30%. So if your electricity bill is $100 a month, and they accept credit card payments, use that. 30% of $1000 is $300, by the way.

Over time, you'll want to open more credit lines. If you want to buy a house at some point, you'll need a strong credit history. 

There are lots of small tips and tricks in this thread, so look around and use them as you can.

For some lines of credit (loans, mortgage, etc) you may need prior history to build up to a certain value. e.g. for a car loan, you may need to start with a $10,000 loan before the bank will give you a $25,000 loan for your next car. 

You do not need to stay with the same bank for all your credit lines. Avoid using credit cards linked to a store, unless it comes with a specific benefit to you, such as extra discount, or loyalty credits at that store you are sure to use a lot. Popular good choices are airlines (research which airline one you'd most likely use), and then use that card to get free airmiles, so you can fly back to Europe in Business Class for "free".

You need to keep a clean credit history forever. If you miss a payment or are evicted from your rental home, it stays on your credit file for at least 7 years, and will make your life very hard. But on the other hand, a diligent use of your credit will raise your score, and you'll get very good rates for when you do need credit, e.g. to buy a car or a home. The rates may be so good that it's even cheaper than paying cash (inflation and savings account interest).

You only need one secured loan. After 6-7 months or so, you should see a nice increase in your score. Perhaps you want to buy a new TV or washer/dryer, so use the 0% interest some stores have to buy it. That's another loan on your report that will increase your score over time.

Little formal disclaimer though: I am not a tax advisor nor financial expert, my suggestions here stem from personal research and experience, and should in no shape or form be construed as being applicable to your situation etc etc etc. Seek professional help to get the most accurate information for your personal situation.

8 hours ago, jeaniecz said:

Thank you. 

 

So let me see...how do I do this? I have some savings, so can I just walk into a bank, ask them to open a (debit) bank account and also a credit account?

 

And, let me turn the question around: Do I actually need a debit account?

Practically:

Go to a bank or Credit Union (CU's usually have better rates) and open a checking account and savings account. You'll typically get a debit card and checks. Use TransferWise (https://transferwise.com/u/b6f15) to transfer money to your new US account. Then use some of that money to get a "secured credit card". They'll take your money, put it in a blocked account, and use it as collateral against the credit they grant you on that credit card. Make sure to use the card monthly, between 1 and 30%, for optimal results.

I also opened a personal loan using the same principle. Secured Loan. You put some of your savings in an account, they block it as collateral against your loan, and you pay off the loan. You're pretty much just paying the bank interest, but it's a great way to build credit. Say you put $5000 in a loan like that, you get $5000 back right away, and as you pay off the loan over the next year or 2, you get your original $5000 back as you pay off the principal.

Yes, get a debit card. Several utilities providers only accept debit, ARCO gas stations only accept debit cards, and so on. If you're near a Target grocery store, and like their offering, you can get a Target RedCard (Debit card) and get 5% off.

Please note, you may not be able to open accounts in the US until you have your US Driver's license (or at least an ID card). So when you arrive stateside, go to your local Social Security Office, and when you have your SSN, go to the DMV to get an ID card (fastest) or schedule a driving test for your driver's license (you should study for that, lots of little things are different from EU). You'll need a state-issued ID card with SSN to open a bank account in most cases, and for sure, to have them report into your credit report (which is based on SSN).

SSN = Social Security Number

On 6/6/2018 at 5:04 PM, O.C said:

We are looking to buy a house in the next year or so I'd say, but what other things can I open up if i don't necessarily need anything just yet? I have 2 creditors reporting to my credit report in the U.S now according to TransUnion. 

Open a few lines of credit for sure. You need a good mix, plus average age of accounts is important. With your partner's older record (you should be on the oldest accounts), yours should look a lot better really soon!

8 hours ago, jeaniecz said:

First of all, @SimonAndKimberly thank you for this thread!

 

I am about to immigrate to the US from Europe and I am almost absolutely unfamiliar with the US credit scores and "reputation" matters. Back in my home country, as well as in the Netherlands, where I live at the moment, I never needed to have any credit score. Since my teen age I have owned a debit bank account and a debit card which I have been using to pay for everything - grocery shopping, eating out, paying my rent and all other bills, my vacations, making online purchases etc etc. I have owned a credit card (Mastercard) only because some online purchases or hotel bookings required to be paid by Mastercard. However, using the Mastercard doesn't build me any score. 

So I'm trying to understand how this whole thing works in the US.

I am the kind of person who prefers to pay everything right away, I do not like to take a loan unless I absolutely cannot afford to pay right away. 

So what I wonder about is if I actually NEED to build a credit score in the US. Imagine I do not plan to take a mortgage or take a loan to buy a car....imagine I have income, so that there's money in my bank account which allows me to pay my bills and to do my shopping etc. Why would I need to worry about building up a credit? 

To answer your main question, wether you NEED to build credit? YES YES YES YES YES !

Everything here works on that dumb credit score. Want to lease a house? You need good credit. Want a job? Let's check your credit report. Want to get a license for something? Credit score OK? 

Even getting your utilities connected requires a good credit score, or you'll pay through your nose to get that done. 

So yes, get several lines of credit, and then use your good habits to pay everything on time, and you'll lead a comfortable life, and will have access to loans if you ever DO need it.

2 hours ago, sasho said:

Your I-751 is at which NBC ?  Lee summit Missouri? Or other national benefits center?

I think it went from CSC to Nebraska and back to CSC, but I could be wrong

Got a TXT message from USCIS that my case was updated. 

One of the sites has nothing new, the other one said "Date of Birth updated" as entry, but the "banner" on top says "New Card Produced".

Seems this nightmare may be over...

No emails by the way, which is weird as I usually get an email too

Also got a transfer notice this morning... *SIGH*

2 hours ago, thatangela said:

Has anyone stuck in California processing received a second extension letter yet?

There's no such thing. 

When your extension letter expires, you can make an InfoPass appointment to get a stamp in your passport, which then allows you to travel normally.

21 minutes ago, Orit.d said:

Thanks for the advice! 

 

I have also gone back home to Canada as well and changed my name to my now married name, so my creditors could report that to the credit bureau in Canada.  I have some Canadian friends who had trouble purchasing a house in the US as they were trying to cross reference her by her maiden name in Canada. So that's taken care of as well.

 

We are looking to buy a house in the next year or so I'd say, but what other things can I open up if i don't necessarily need anything just yet? I have 2 creditors reporting to my credit report in the U.S now according to TransUnion. 

2 is by far not enough.

Open a secured loan. In short, you put (e.g. $1200) on a secured account, the bank gives you back $1200, and you pay back your $1200 loan over the course of a year. Will cost you like a dollar or 2 per month in interest, but quite worth it. Make sure it's all in your name.

Maybe you guys want a new TV or something, so instead of buying cash, see if they have a finance option, but ALWAYS ask if their lender reports into your credit report. If not, it's no use. Often, there is a 0% finance option, so that's great too.

You should try to get to 6 or more credit lines, and they all should report in for more than 6 months.

If you have a car, you could turn in the title to your bank (or credit union) and finance part of it again, if they'll do that.

Just be creative, and explain to your finance person that you're just trying to create a credit history, because the US credit rating system is not that great