Establishing credit for new permanent resident

[jbrid 0]

Hi All,

My wife got her green card about 6 months ago. I am wondering what other folks have done to establish credit for their new spouse.

We are currently searching for a house to buy. During the mortgage pre-approval process I was told that my wife's name could not be added to the mortgage because she did not have any credit history. My wife was also denied a credit card for the same reason.

We transfered our utility bill to her name thinking that this may help after some time.

Any other have experience with this issue?

Thanks,

Jay

[Darnell 8,478]

this was covered prior, here on VJ - use search terms 'secured credit card' and 'secured loan' and 'cash collateral'

1. get a secured credit card , use it

2. get a loan at a bank, using cash as collateral, for a 'secured' loan.

There's a lot more detail to this, but that's the 'gist' of it.

Good Luck !

[Abhay 15]

Ask your bank to give her a secure credit card that is attached to your checking account. They have low spending limits on them, but helps in credit history.

[milimelo 4,508]

I never had a secured credit card but I guess that's the way to go. From experience (2 years ago), Chase gave me an un--secured credit card after I held a job for two months. So working helps as well.

Definitely research all your options as with the new Credit Card act in force since February 2010, getting credit cards got even more difficult for recent immigrants (length of credit history always comes back as a negative effect and reason for denial).

[Brother Hesekiel 2,236]

First . . . add her as an authorized user to your existing credit cards. Then be patient, and in a year or so she will receive offers for really crappy cards. Take 'em, use em, then upgrade to better cards yet do not close the old accounts unless they charge you an annual fee. It will take years to build a great credit history, but in the end she should be able to earn one.

[v333k 59]

Another suggestion - There are some banks/credit card companies who approve credit cards for people without credit history.

You can also co-sign her or add her to one of your cards to establish a history.

[redBlue 1]

Another suggestion - There are some banks/credit card companies who approve credit cards for people without credit history.

You can also co-sign her or add her to one of your cards to establish a history.

I'm wondering if there is any difference between the credit history that was established by co-signing of the spouse and the credit history established only under your name?

Is one of them faster than other for establishing the histtory etc?

My hubby had actually added my to one of his credit card last year when I was still in Canada and I've been using it since then.But I still haven't been able to obtain a credit card from anyone since I've moved :-(

[milimelo 4,508]

I'm wondering if there is any difference between the credit history that was established by co-signing of the spouse and the credit history established only under your name?

Is one of them faster than other for establishing the histtory etc?

My hubby had actually added my to one of his credit card last year when I was still in Canada and I've been using it since then.But I still haven't been able to obtain a credit card from anyone since I've moved :-(

Haven't the rules changed so you can't piggy back off of someone else's credit history? I think you don't get any info reported when you are an authorized user of the CC, only if you're joint cc holder. Check with your bank.

[Darnell 8,478]

I'm wondering if there is any difference between the credit history that was established by co-signing of the spouse and the credit history established only under your name?

Is one of them faster than other for establishing the histtory etc?

IMO, the 'cash as collateral' approach is faster. Use cash to secure as collateral for a 'secured credit card' and use cash as collateral for a 'secured loan at the bank'.

[jbrid 0]

Thanks for the replies all.

@Darnell - you're right...actually there are tons of threads about this. I was searching for the wrong strings. Thanks.

I like the secure credit card option. BOA told her about this option while she was applying for their "un-secure" card (which she was later denied for).

In the short term, I guess we will have only my name on the mortgage. Not a problem I suppose. She can be added to the title.

[Darnell 8,478]

Ya, if you can put together 3 to 4 thousand for a 'bank loan' project - here's some basic steps -

1. get secured loan for 2500 at bank #1. take the cash out and

2. get secured loan for 2500 at bank #2. take the cash out and

3. get secured loan for 2500 at bank #3. take the cash out, put in savings account somewhere

then pay the monthly amounts for 5 months. On month 6, pay off loan #1, take proceeds and pay off loan #2, take proceeds and pay off loan #3.

6 months later - you've a history of 3 loans with timely payments, totalling 7500 usd. Sure, you've lost some money on this, but IMO, it's worth it. This came out of a publication from Bud Hibbs last century, and still works.

On the credit history report, 'collateral' is not reported, 'secured loan' is not reported, only 'loan'.

Good Luck !

[RIDION 0]

this was covered prior, here on VJ - use search terms 'secured credit card' and 'secured loan' and 'cash collateral'

1. get a secured credit card , use it

2. get a loan at a bank, using cash as collateral, for a 'secured' loan.

There's a lot more detail to this, but that's the 'gist' of it.

Good Luck !

Hi! We are on the verge of applying for a credit card & getting a secured loan from my husband's bank (credit union) where we have a debit account. Should it be in my own name with my husband as a co-signer or jointly will do too, to build a credit history? Also, I am an authorized user (w/ my own card) of his Sam's club credit card. Does it help in building credit? My husband wants a consolidated credit but I don't know if it's helping me or not since his credit score is just fair. Please help...

[Captain Oates 911]

First . . . add her as an authorized user to your existing credit cards. Then be patient, and in a year or so she will receive offers for really crappy cards. Take 'em, use em, then upgrade to better cards yet do not close the old accounts unless they charge you an annual fee. It will take years to build a great credit history, but in the end she should be able to earn one.

This is good advice from BOB - I got myself on wife's cards then a few months later opened a bank account at fifth third bank and they gave me a card straight off. I only had a bit of credit but it was enough with our joint checking account and an account in my sole name.

Don't wait though - ask about opening a bank account after 3 months with your joint card and say you will do it if they give you a card.

[VanessaTony 3,567]

My wife got her green card about 6 months ago. I am wondering what other folks have done to establish credit for their new spouse.

We are currently searching for a house to buy. During the mortgage pre-approval process I was told that my wife's name could not be added to the mortgage because she did not have any credit history. My wife was also denied a credit card for the same reason.

We transfered our utility bill to her name thinking that this may help after some time.

Any other have experience with this issue?

I'm going to answer directly to the mortgage part.

My husband and I are in the process of doing this. I am NOT permitted on the mortgage documents and I asked about that. Apparently there is a waiting period of TWO years in order to get a mortgage in my state. You have to have been working at the same place for 2 years. My broker said their is a clause for students who just finished school, something about working in your field of work. Oh and apparently they might waive some of the 2 year rule if you change work in your field and get a higher income than at your previous work. needless to say, I don't qualify as either of those just yet. I can go on the title though thankfully.

[Harsh_77 718]

Justbob - answered it perfectly. You will have to wait Credit history does not get built in few months.

But first step would be to add her on your cards.