Establishing credit!

[christera22 8]

Thanks Kaffy.what is the difference between secured & unsecured card ??

[kaffy 2]

these links explain it pretty well, otherwise have a search on google

https://www.wellsfargo.com/credit_cards/secured/

http://www3.bankofamerica.com/creditcards/...p;router_flag=y

[trailmix 77]

Excuse me for being so ignorant but doesn't your FICO score affect the interest rate you get offered?

higher score = lower rate = less paid in interest = more money saved over time, and vice versa... or at least that's what I heard

Yes it does but you CAN still get a great rate with no FICO score if the lender does manual underwriting and you have the required down payment, employment history, etc.

I have not had to 'borrow' any money in about 10 years. I still have some of my old credit card statements and stuff and occasionally I look back at them and see how much I got charged in interest every month... Makes me sick to think about how much money I wasted on interest payments because I was not patient enough to save.

Well, just something you may not have noticed - this is an immigration website - therefore most of the immigrants DON'T have the required U.S. employment history.

[It's me 1]

Go to capitalone.com and apply online. All she'll need is a SSN. I applied for one before I even got here (whlist waiting in the UK) and it was here waiting for me when I arrived.

They start you off with a piffling credit limit ($300 in my case) but guarantee to raise it (to $750 in my case) after 3 months if you:

A - Activate and use the card within 90 days of receipt

B - Make at least the minimum payment

C - Don't go over your credit limit or pay late

Really, that easy.

very good advise, i agree

[chili74 0]

I just want to offer a warning- we neglected to request our free annual credit reports each year + as a result, we did not realize that the wrong address was on file for 3 years with one of the reporting companies (TransUnion, Experian, + Equifax). Be careful to make sure all addresses with all banks are correct and also that various financial instruments (credit cards etc) are actually working for your immigrant spouse to build HER or HIS credit file, not the USC's cedit file. We were getting mail from these places even though, buried in their files, they had the wrong address still on record. Sadly waking up to all these details...

Edited June 2, 2009 by chili74

[kaffy 2]

According to http://www.creditkarma.com/ I have a credit score of 750+

If that's accurate then that's not bad considering I haven't even been here a year and have only 2 credit cards active, no other loans

[GraceandMercy 0]

Interesting article I found online (www.moneycrashers.com) which I'm in agreement with regarding establishing credit without going into debt:

Many people, including financial professionals, believe that the only way to build your credit is by going into debt. This is simply not true. It is not necessary for an 18 year old man or woman to open up a credit card in order to build his or her credit. There is no need to simply take out a loan for a car in order to qualify for a mortgage later.

Our financial culture worships the FICO score. Our culture believes that our FICO score is a good indicator of our financial well-being, but it has nothing to do with that. Here are the factors that go into calculating the FICO score:

•payment history on outstanding debts.

•the amount of debt you have.

•the length of your credit or debt history.

•New Credit (this is the most ridiculous one. you can actually be penalized for not having new credit lines opened!)

•The types of credit you use (secured, unsecured, blah blah)

Nowhere does this score factor in your net worth! You could be a self-made millionaire that has 10 million dollars sitting in the bank and you have not used credit for 10 years, chances are that you won’t even HAVE a FICO score! Now you might say, “well someone with 10 million dollars doesn’t need a loan”. That’s exactly my point! If you save your money and pay cash for things, you will not need to worry about a stupid credit score.

You might not be able to save up enough money for a house anytime this century, but there are alternative methods to qualifying for a mortgage other than looking up your credit score.

1.Pay your rent on time for 2 or more consecutive years

2.Pay your utlities on time for 2 or more consecutive years

3.Save up for a down payment — at least 10% - 20% percent, but more is better.

4.Show stable employment and boost your income through side businesses and recieving certifications and continuing education at your job.

Note:

This information falls in line with manual underwriting (mentioned prior) as an alternative method vs. using your FICO to qualifying for "WHATEVER" you are seeking to purchase.

[antda 13]

Hi Everyone,

From my experience, here is how I established "credit" and financial history here in the USA:

-I had no credit/credit cards while I was in Canada, as I didn't need any nor did I want any. I did though have a chequing/checking account.

-Because of the USCIS requiring "joint financial documents" (lol...especially for the I-751 stage)

-I was added to my husband's chequing/checking bank account, and it's a "joint account"

-I "piggybacked" on my husband's credit card, as a "joint cardholder"

-We used our card "for emergencies only", with very little balance left on it

-My husband made payments on the credit card every month, paying more than the minimum required

-Our credit limit kept on increasing and we never went over our limit

-Lol...then I kept on getting many more credit card offers, but I didn't want another card and I don't like credit cards anyways.

-I have no employment history at all in the USA

-Ironically, having good credit helps, as we recently purchased a house (we'll be moving in July 2009), and we found out:

-After about 2 years of being "joint": My credit rating was 750+, My husband's credit rating was 800+.

-Needless to say, our high credit rating helped us with the "approval" of the "joint mortgage" for our new house.

Hope this helps. And yes, you too can establish credit in the USA! (even though you might hate credit, but still need it anyways...)

Ant (Credit-hating, but high in credit....)

Edited June 12, 2009 by AntandD

[Lili 3]

Interesting article I found online (www.moneycrashers.com) which I'm in agreement with regarding establishing credit without going into debt:

Many people, including financial professionals, believe that the only way to build your credit is by going into debt. This is simply not true. It is not necessary for an 18 year old man or woman to open up a credit card in order to build his or her credit. There is no need to simply take out a loan for a car in order to qualify for a mortgage later.

Our financial culture worships the FICO score. Our culture believes that our FICO score is a good indicator of our financial well-being, but it has nothing to do with that. Here are the factors that go into calculating the FICO score:

•payment history on outstanding debts.

•the amount of debt you have.

•the length of your credit or debt history.

•New Credit (this is the most ridiculous one. you can actually be penalized for not having new credit lines opened!)

•The types of credit you use (secured, unsecured, blah blah)

Nowhere does this score factor in your net worth! You could be a self-made millionaire that has 10 million dollars sitting in the bank and you have not used credit for 10 years, chances are that you won’t even HAVE a FICO score! Now you might say, “well someone with 10 million dollars doesn’t need a loan”. That’s exactly my point! If you save your money and pay cash for things, you will not need to worry about a stupid credit score.

You might not be able to save up enough money for a house anytime this century, but there are alternative methods to qualifying for a mortgage other than looking up your credit score.

1.Pay your rent on time for 2 or more consecutive years

2.Pay your utlities on time for 2 or more consecutive years

3.Save up for a down payment — at least 10% - 20% percent, but more is better.

4.Show stable employment and boost your income through side businesses and recieving certifications and continuing education at your job.

Note:

This information falls in line with manual underwriting (mentioned prior) as an alternative method vs. using your FICO to qualifying for "WHATEVER" you are seeking to purchase.

I disagree with the advices of that website. I have numbers 1, 2 and 4 for over 4 years and still no credit history. Without a credit card or loan, no credit history. It is so frustrating.

[BermyCat 1]

If you have access to USAA, apply for a credit card through them. My husband explained that I had just immigrated and they didn't bat an eyelash. They just asked for my alien number veriifed our address and issued me a $500 credit card. The rep advised me to never put more than $250 dollars on the card and to pay it in full each month. They also added me as a joint holder of his card.

I guess a lot of military folks marry foreign nationals so they are very used to helping the immigrant spouses build credit.

~ Catherine

[ccndyeth 0]

This is interesting.. Thank you for sharing.

I actually have a USAA credit card, but the bill is still under my husband's name.

Thank you so much!!

Edited June 12, 2009 by ccndyeth

[shawndoc 0]

1.Pay your rent on time for 2 or more consecutive years

2.Pay your utlities on time for 2 or more consecutive years

Most landlords and utilities don't file with the credit reporting agencies, so it doesn't do anything to help your credit.

[Ladylethal 12]

I have a joint credit card with hubby and our WoW account is set on my card and I also try to shop on the card and then withdraw the money from the account and save it to pay the credit card bill in full every month. Since I haven't been working the past year I'm waiting a long time before I can check my credit score, but it should start showing up soon.

[faryan 4]

Awesome topic! I've been wondering about this for a while now too. Hubby tried to explain, but i guess it will take time for me to grasp it. ALtho somebody here mentioned how credit is not the same as debt. That helps!

I am going to start work at the uni here on July 1st (yay for me), and before that shall open my own bank account for direct deposit. I am listed on hubby's bank account (i have debit card from that account), but i think thats just supplemental, hence may not do a thing to establish credit for me.(?) But anyways, we think that will be good as additional proof of cohabitation etc etc for when removing conditions for my CR1 visa in 2 years time.

We have an old Toyota which we dont have to pay a thing for, and we probably be able to get a new (used) car some time in future if the car stop cooperating. Should we put our name jointly on that new car loan so that we both get credit from it?

F

[kaffy 2]

Having a (joint) checking account doesn't affect your credit score whatsoever. Does your husband have a credit card? If you get him to add you onto his credit card as a joint account holder then that will help you in establishing credit. (NOTE: being a joint account holder is not the same as being a secondary card holder so make sure you get it done correctly)

Yes, if you plan on buying a new car soon and will take out a loan for it, get it in both your names.

*Laura*- You should be able to check it now on http://www.creditkarma for free. I've been here only 10 months and have a 750+ score already (1 joint credit card, 1 secured individual credit card, no loans or mortgages)