Bernardo Machado

On 9/24/2020 at 12:21 AM, Fr8dog said:

Like most I had no credit when I came here. As I did not really needed credit and we were wondering how long it would take to get credit. I decided to start an experiment without using the Mrs. credit.

 

I got a checking account and a secured $300,= credit card. I used the card whenever possible and than paying of the balance in full at the end of the week. It took 3 months for a credit score to show up. After 1 year I was able to transfer the secured card to an unsecured card. At the same time I applied for another card and was approved. ($3000,= limit). I started using that card and again paid the balance in full again every week. After 2 years my score went from 0 to about 700. After 3 years I got a car loan and another card.

I'm almost 4 years in now. My score is around +750. I still pay my balance of in full every time (if only to avoid the interest) and make sure to use all my cards about once every 6 months just to keep them active.

 

So you can go from 0 to 750 in 4 years without any help.

Hello There!

How % you used from this credit cards in this past 3 years? Was always 10%, more then 30%, what you did?

On 9/17/2020 at 1:55 PM, SimonBelgium said:

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.

Hi Simon,

thanks again for the advices.

In Brazil this digital system of bank is widespread a long time ago, and I'm used to get only things is automatically offer by bank's algoritms. What kind of advantage this personal relationship in local CU's can give us?

And credit cards offer digitally by mega store, like Amazon card by Discover flag, is it count in the same way of phisical store or bank credit cards?

I'm already a costumer of this store, even living in Brazil. At this time outside US,  until my process become "current date" (maybe in next few years), anything of this credit hystory could be availed?

Tks agains.

On 1/3/2020 at 7:51 PM, SimonBelgium said:

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.

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?