Building up credit history

[Fandango 1,439]

Would your credit rating from your home country not have any impact at all? What if I were to bring previous credit card statements etc? Bank statements don't look all that great as have just finished four years of uni but!!!

Also what are the chances of getting a mortgage together? I'm confident we can save the money for a downpayment but I don't know how much credit history will impact on this..

Your credit history in another country will probably be no help at all. You may be able to get a mortgage. I know of a couple who did this last year - they were not considered to be permanent residents at the time, however their local bank offered them a mortgage at a slightly higher interest rate. They had developed a relationship with their bank though - so that's important too.

Also - with regard to credit - as Texanadian mentioned in an earlier post, we have had a few conversations about this in the Canada forum and one thing mentioned is that if you have an American Express card you may be able to transfer it to a U.S. American Express card.

It's no problem for Canadians and I think they offer this to persons from the U.K. as well - you can check it out on their site here:

http://www.americanexpress.com/globaltrans...ansfer_en.shtml

Jeraly....US credit is attached to your SS#...since your UK banks are not reporting to bureaus with your US SS#, no US credit.

Trailmix...foreign nationals can get loans at higher rates, but usually it's with 30% down. You cannot get a non-foreign nat'l loan without a social.

[pushbrk 12,883]

American Express Cardholders in good standing can get US cards but historically, they don't report to the credit bureau like a bank card does. So, they don't build your credit rating, just your relationship with Amex.

Well, that won't be very helpful then, i've never heard of a credit card not reporting to a credit bureau. Can you give me a link to your info on this pushbrk, I would like to ask Am Ex about it.

Thanks

Call AMEX customer service and ask them or just look at your own credit report. I think some of the AMEX card types might be reported now because they've allowed some banks to be card issuers. If you've got the kind of card that carries a revolving balance, it may well be reported.

[Jeraly 4]

Does seem a bit odd that if you build up a great credit rating in the UK you would have to start over in the US... Ok - I've been living at home all my life and I am 25, have completed 4 years at uni etc but I have had three credit cards, paid them off in full each month etc... ok so my student loan could be overlooked and my overdraft keeps taking a battering from visa/wedding stuff but still...

What about those people who have had mortgages, paid them off, had cars, credit cards... all on credit - they all have to start from scratch?! It seems a little silly... then again... from what my OH has told me about banks etc in the US maybe I shouldnt be surprised

[Fandango 1,439]

Does seem a bit odd that if you build up a great credit rating in the UK you would have to start over in the US... Ok - I've been living at home all my life and I am 25, have completed 4 years at uni etc but I have had three credit cards, paid them off in full each month etc... ok so my student loan could be overlooked and my overdraft keeps taking a battering from visa/wedding stuff but still...

What about those people who have had mortgages, paid them off, had cars, credit cards... all on credit - they all have to start from scratch?! It seems a little silly... then again... from what my OH has told me about banks etc in the US maybe I shouldnt be surprised

Why's it odd? My credit score doesn't carry over if I choose to move to China.

[Jeraly 4]

I just think that if you have proved yourself trustworthy/capable of using credit wisely then it should have some bearing in any country... of course - if you are starting from scratch - no job, no job, no capital, then I can kinda understand why people wouldn't want to lend you money. But at the same time you would have thought that it would have demonstrated good sense in dealing with money...

[trailmix 77]

Jeraly....US credit is attached to your SS#...since your UK banks are not reporting to bureaus with your US SS#, no US credit.

Trailmix...foreign nationals can get loans at higher rates, but usually it's with 30% down. You cannot get a non-foreign nat'l loan without a social.

Yes, he does have a SSN. I didn't mean to imply that any old 'foreigner' can go to the bank and get a loan, just that they were not permanent residents at the time (work visa) Plus they had no U.S. credit cards, so basically almost nil on the credit report, which is why having a relationship with a personal banker, in that situation, can perhaps help when going to apply for a mortgage.

And with the American Express, while I don't know that it will help your credit rating at all initially, I was just thinking that rather than having a say, $500 limit card you can at least have a decent credit card if you want to use it for travelling etc then (if they do report) you could be building up a credit rating.

I will email them pushbrk, I see what you mean vs bank card.

Edited December 30, 2007 by trailmix

[Kazan' Tiger 1]

In theory, it should. However, issuing standards and rules are different all over the world. There is no international credit score. Further, it would be difficult to collect from someone if they left and returned to their home country. In Russia, on 1 January, they are starting a new law regarding the issuing of internatonal passports and credit. From what I've heard, if you are behind (and the creditor has reported it), no passport. Imagine if all American's could not leave the country if they were a payment behind!

I just think that if you have proved yourself trustworthy/capable of using credit wisely then it should have some bearing in any country... of course - if you are starting from scratch - no job, no job, no capital, then I can kinda understand why people wouldn't want to lend you money. But at the same time you would have thought that it would have demonstrated good sense in dealing with money...

[Jeraly 4]

Lol - love the new hats

It wouldn't make sense for companies to not allow people to leave countries if they were a payment behind... I mean - they make their money from people paying interest It's one of the reasons I pay in full each month

[Kazan' Tiger 1]

Thanks!

Well, I think with the Russian situation, they are worried about people maxing out and then moving away, never to pay it back. That's what the passport office told my fiancée.

Lol - love the new hats

It wouldn't make sense for companies to not allow people to leave countries if they were a payment behind... I mean - they make their money from people paying interest It's one of the reasons I pay in full each month

[pushbrk 12,883]

I just think that if you have proved yourself trustworthy/capable of using credit wisely then it should have some bearing in any country... of course - if you are starting from scratch - no job, no job, no capital, then I can kinda understand why people wouldn't want to lend you money. But at the same time you would have thought that it would have demonstrated good sense in dealing with money...

A credit reference and or letter from a foreign bank can but used in making a lending decision but to my knowledge there is no importing of the credit history to impact a US Credit rating. Particularly in the case of a mortgage, you can get a letter of reference from a foreign lender.

[pushbrk 12,883]

I just think that if you have proved yourself trustworthy/capable of using credit wisely then it should have some bearing in any country... of course - if you are starting from scratch - no job, no job, no capital, then I can kinda understand why people wouldn't want to lend you money. But at the same time you would have thought that it would have demonstrated good sense in dealing with money...

A credit reference and or letter from a foreign bank can but used in making a lending decision but to my knowledge there is no importing of the credit history to impact a US Credit rating. Particularly in the case of a mortgage, you can get a letter of reference from a foreign lender.

These people know how to consider all factors in addition to a credit rating, when granting a mortgage.

http://www.churchillmortgage.com

[Fandango 1,439]

Jeraly....US credit is attached to your SS#...since your UK banks are not reporting to bureaus with your US SS#, no US credit.

Trailmix...foreign nationals can get loans at higher rates, but usually it's with 30% down. You cannot get a non-foreign nat'l loan without a social.

Yes, he does have a SSN. I didn't mean to imply that any old 'foreigner' can go to the bank and get a loan, just that they were not permanent residents at the time (work visa) Plus they had no U.S. credit cards, so basically almost nil on the credit report, which is why having a relationship with a personal banker, in that situation, can perhaps help when going to apply for a mortgage.

You don't need to be an LPR to have credit. They either put enough down, or had someone cosign, or they are one of these dodgy mtgs where there's bad to no credit and 100% financing

[reeses16 8]

Hey everyone. We've been working on bulding my husbands credit. And I wanted to share a few thoughts. I do not believe that opening a joint bank account or adding a spouse as an authorized user helps build credit. My husband was added as an authorized user to my account a year before we got married and we opened joint bank accounts in July. When I went to see his credit report/score, experian, equifax, and transunion all said he had no credit history. About a month or two ago, he was added was upgraded as a joint/responsible party on my credit card. The company sent paperwork to us, which required both our signatures and SSN. I think submitting the SSN is what creates his credit profile. I haven't tried to check his credit score again. I'll try this evening.

Also, we waited a while before adding him to my card because it had a high balance and he was unemployed. Once we paid it off, we requested him to be added. I was worried that a large balance with no income might affect his score. Then he got a job and now we charge things regularly and pay the card off within a few days.

[Texanadian 10]

As well as the US, Experian has operations in most European countries, Argentina, Brazil, Chile, South Africa, China, Japan and Australia. Also in Canada

Equifax is in the USA, Canada, and the UK.

TransUnion operates in 24 countries.

FICO score uses all three of the above. I had credit scores from all three in Canada yet nothing in the US. Basically what I'm saying is that your credit score should be able to be transfered from one country to another but it doesn't.

[JoeCanuk 3]

As well as the US, Experian has operations in most European countries, Argentina, Brazil, Chile, South Africa, China, Japan and Australia. Also in Canada

Equifax is in the USA, Canada, and the UK.

TransUnion operates in 24 countries.

FICO score uses all three of the above. I had credit scores from all three in Canada yet nothing in the US. Basically what I'm saying is that your credit score should be able to be transfered from one country to another but it doesn't.

But in Canada they go off of your SIN number and in the states they go off your SSN. There is no way it can be transferred. Besides, it's two different countries. One has no right to access your credit rating in the other. Honestly, I'm glad about that.

Question for anyone: can you be arrested when you return to your home country if you haven't (weren't able to) pay your bill?