Building Credit

[CanadaGirl 0]

Hello all,

So I have run into a problem that I can't really find an answer to. How can I build credit if I can't get a credit card due to my "lack of credit history". The credit card companies are telling me since I have no credit history they won't approve me for a credit card. I was told I could sign up for another card for "bad credit" for a low annual cost of $49!!!!

This is getting frustrating. I need credit to get a home loan however no one will give me credit. The mortgage companies just keep saying get a credit card and start building your credit. The credit card companies say you have no credit so ####### off.

I had absolutely perfect credit in Canada that took me 8 years to establish and now I come here and considered the same as someone who went bankrupt.

Also, my husband told me that I might be passed up on a job because of my lack of credit. He told me that they do credit checks and if someone else that is up for a job has excellent credit I may get passed over. Is this true? In Canada that is unheard of but I keep forgetting.....we are dealing with americans now.

Ok ranting done now lol. Just a little frustrated and looking for some advice.

Thanks

[Clownies 2]

Welcome to America!

I know how you feel, I feel the same way here!

Try looking for banks that offer secured credit cards.

Do you have a job? If not that may make things even more difficult for getting a card. I don't have my EAD yet, and i decided to stop looking for a card, until i get a job. Sure there are ways to get cards out there (no credit check, no income check..) but those will cost you a lot of money.

Good luck with your search!

[munchkins 0]

Well i am not sure of just how right this is, but I have been told that if you pay your mobile bill monthy, your gas is paid monthly and other bills are over there, (I cannot remember what they call these bills) but they do start to give you some kind of rating which helps.

We already have a bank account over there but it has to be a savings account until we move over and then we will get it changed over to a current account but this is having regular deposits in which is also helpful.

Someone on here also sugggested at one time to try for a store card as this can also build credit even if they do only offer you the minimum amount possible i.e about $250

[JubJub 0]

Ok ranting done now lol. Just a little frustrated and looking for some advice.

Thanks

The easiest way to build credit is to be added as an authorised user on your hubbies credit cards. This will help a lot more than getting a high rate/high fee credit card of your own, which will have a low credit limit. Then just wait it out, within 6-12 months or so you should start getting credit card offers in the mail.

Most of the time, monthly bills such as phone, gas, electric are not reported to credit bureaus. One exception is Verizon which has recently started doing this in the NE.

Be aware that for mortgage purposes the lender will often want to see 2 years of work history in the same field. If you can't get a credit card they will not give you a home loan, you will probably have to have your hubby take the loan on himself. Also, you need to get a job before you get a loan (sounds like you haven't got one in the USA yet).

Yes, employees can and do run "background checks", which often involve a credit and criminal history check. As long as they apply the same procedure to all applicants it is unfortunately legal. Generally this wouldn't affect you, unless for example you were looking for a job in the financial field and you had declared bankruptcy etc.

[Kez/JWolf 6]

It has taken me since Feb 2005 to build enough credit history to get a credit card in my own name.... My husband had me added to his cards and we have the lease of our home put in my name and all the utility bills.... I have just been able to get a CC from capital one... it only has a $300 limit and a $39 anual fee but every month I clear it off and every month my credit score rises...as soon as I can get a better Credit card I will close the capital one account....

its not easy and very frustrating when I had a good credit rating back in the UK....

Kezzie

[gwenneh 7]

Start small. Get a mobile phone, even a pay-as-you-go one. Then upgrade to a contract. Then get a secured credit card. Then move up to an unsecured one. It takes patience, but it works.

[luv2teach77 41]

About 2 months after I arrived, received my SSN and got married I was added to my wifes bank account as a joint account holder. Soon after that I started getting credit card offers in the mail. I waited until I was offered one which I could apply for online with an instant approval and also that asked for household income as opposed to personal income. In the end I received an offer from Bank Of America for a Platinum visa card that met all the criteria. I filled out the online application and was approved on the spot for $2500. That was in June of 2005. I recently opened another credit card account in my own name with Chase and had the credit limit increased to over $5000.

In addition to getting my own line of credit through these 2 credit cards I was also added to several utility bills which I beleive have also helped my credit score (which is now in the high 600's). I've only been working since January but again these are all things that help improve the score. We recently started looking into mortgages and we had no trouble getting pre-approved for a loan through 3 lenders.

You've only been in the US since April so I'd give it a little bit more time before you seriously start looking into credit cards and mortgages. I also left perfect credit in the UK and had to start from scratch over here but one of the lenders we approached said they would consider doing an international credit check if we proceeded with a loan through them. It would cost us slightly more than the usual credit check but would be worth it if it lowered the rate they were planning on offering us. This is something to look into if you wish to proceed down that path now !!

Mark

[CanadaGirl 0]

Thanks so much for the support. I don't have a job yet however I just went to an interview on Friday that seemed very promising. My career field is Architecture so I really hope that my credit score means nothing when applying for a job in that field.

When I apply for any credit cards I just say I am self employed and our gross household income is under $30,000 (my husbands income).

I have heard of secured credit cards through my bank but they wanted $300 minimum to get one and I don't really have that kind of cash laying around so was looking for a cheaper option. I still have to pay to adjust my status in the next couple weeks.

My husband was preapproved for a home loan already but we really want my name on the mortgage too for immigration purposes and just so I can feel like I have something in my life lol. Also, I did work in my field for 1 year back home in Canada so maybe that will help.

I didn't know getting added to my husbands credit cards would help my credit score. He has excellent credit so that is good!!

I think I might try to get a JC Penny card or other department store too.

Also, I read somewhere that you can get a cosigner on a credit card however, whenever I see the applications I dont' see a spot for a cosigner.

Thanks again for the help and it's good to know everyone here goes through the same thing I do

[Kathryn41 3,205]

My husband added me to his credit cards and also we took out a car loan with both of our names on the loan and ownership so that I would start to build credit under my name. Now I am inundated by credit card offers. Like you, I had great credit back in Canada. You may try asking if they will run an International Credit check - you can generally access your credit record through Equifax Canada - many will check with Equifax in the US so if you can convince them to check the Canadian version you may have some success.

Edited August 7, 2006 by Kathryn41

[Sleepybears 0]

Recently my husband and I are considering buying a house together. But we're told that it's better if my name isn't put under the mortgage because I dont have any credit here. Yet my husband's parents said he can always add my name under the property later. Is that true? Besides, is it better if my husband can add my name into one of his bank accounts?

We were just too busy to think about this before... until I read this post I realise having a credit history seems so important here.

[clloyd 0]

My wife put me on her credit card, we switched her credit union account to a joint one, (well, putting my name on her account, thus making it a joint account), put my name on one bill, and about a year later I have an "excellent" credit score. It does not seem to take much.

[kimlbs 0]

Well....regular bills such as the monthly utilities (gas, electric, water, garbage ect...) do not get reported to creditors. Additionally, monthly cell phone bills do not get reported unless you are deliquent. I am not sure about the Verizon plan that someone else mentioned so you may want to check this out.

Most times, they will not randomly check your credit for a job. You need to sign an authorization for them to do that. Like someone previously posted, usually accountant positions and law enforcement jobs check credit as a background enforcement only.

Also, be very careful about randomly filling out credit offers. Department stores and gas cards can be the hardest to obtain. Your credit score will get lower and lower each time someone actually goes in to check your credit. Be very wise about who and how many credit applications you submit.

The VERY best place to start credit is at a local mall jewelry store once you get a job. Kay Jewelers is a good place to start. Most anyone with a job can get a small credit amount at a mall jewelry store. Do not pay it off the balance at once but make more than the minimum payment each month and before you know it, your credit will rise and credit card companies will be fighting to give you credit!!!

My wife put me on her credit card, we switched her credit union account to a joint one, (well, putting my name on her account, thus making it a joint account), put my name on one bill, and about a year later I have an "excellent" credit score. It does not seem to take much.

Not really sure how adding your name to her credit union account and one bill could have anything to do with your credit. Unless the bill was a credit forming account such as car loan, credit card ect..... the connection does not make sense. I am in that industry and the two have nothing to do with each other so maybe you just lucked out if your credit score is high!!!!

Edited August 7, 2006 by kimlbs

[clloyd 0]

I'm not implying a connection. I don't think I did. Please read what I said again.

[clloyd 0]

Ok, I was rude. I guess I did imply a connection. but I think my credit score probably has more to do with the credit card than anything else.

[Clarax 0]

Ok, I was rude. I guess I did imply a connection. but I think my credit score probably has more to do with the credit card than anything else.

I started off with a secured card from Wells Fargo. Then I got a credit card from the jewellers where we bought our wedding rings. I started in November 2005.

My husband and I have recently been approved for a home loan (going off only my credit score because his isnt very good). I dont even have a year of credit but I have been able to get a mortgage.

Start off small and then work your way up as other people have said. You will get there.