Eshtablishing Credit in USA

[hindocha 0]

I'm struggling to get credit in USA as LPR. I have job and a bank account. I pay bills to virgin and netflix every month. What is the fastest way for me to establish credit?

[belinda63 3,038]

We have the same problem. One way to start is to obtain a secured credit card (mastercard or visa). You can obtain one from your bank or apply for one elsewhere. Basically you make a deposit with the bank and they issue you a credit card with the same credit limit as you deposited. The interest rate sucks and there is sometimes a fee also.

Another good way if you can manage it (might want to use a co-signer) is obtaining a car loan.

[Darnell 8,478]

1. secured credit card from yer bank

2. secured personal loan from yer bank. Take about 2K in cash or deposit, use it as collateral, make those monthly payments for 6 months, then on month 7, pay it all back/close the loan.

[Dakine10 5,452]

A car loan is a good way. When I first came to the US, I got a car loan the first week after I arrived. I was on a 1 year non-immigrant visa. I had $25 in the bank and hadn't even seen my first paycheck yet.

Store credit is also a possibility. Like Lowes, Home Depot etc.

[Dr. Obvious 49]

My husband was approved for a Capital One Platinum yesterday, the one of last of the subprime cards. This was after countless rejections for no credit history. Yeah, he's been here a 'long' time, but we had no reason to care about this at all until recently. The interest rate is astronomical, but it is not like he'd ever pay a dime in it. It is purely for credit building purposes only.

[Usui Takumi 1,562]

My husband was approved for a Capital One Platinum yesterday, the one of last of the subprime cards. This was after countless rejections for no credit history. Yeah, he's been here a 'long' time, but we had no reason to care about this at all until recently. The interest rate is astronomical, but it is not like he'd ever pay a dime in it. It is purely for credit building purposes only.

Whats the interest rate on it? My wife got one recently @ 13% which isn't much different from mine which i've held for 10 years.

[Harsh_77 718]

capital one is the answer.

They are the one of the credit card company that does give out credit card at higher rate of interest, but they will.

[Winonan 3]

Capital one was the company which gave me my first credit card when no one else would. Now every body wants to give me a one. No thank you, credit cards are necessary evil.

[nab 74]

oh i hope the OP hasnt done anythign yet!!

the worst thing you can do (other than default on a loan) is to get a "secured card" because on your credit report it will read like you are bad credit risk.

go to a store you shop regularly, a grocery or something, and apply for store card. once you have that in hand, use it responsibly! dont buy anything extra, only needed items you would have purchased with cash... keep the money for it in your checking acct (keep track of your charges against what you have in bill paying checking acct)

you will begin to get offers in mail... ignore these. you want one or two GOOD cards, not a bunch of junk ones. contact discover card and citibank and apply over the phone. you may get turned down first time but once you get one (or both) of these you're golden. same with store card, only use for needed items and make sure to pay balance off each month - NEVER carry a balance.

once you have had this for awhile call them and tell them you need a higher credit limit. dont try to bump up too high too quickly but if you dont have at least $1500 at first, bump it to that now. if you have several thousand then bump to over 10k.

you're best bet is to tell them you have several purchases in mind and leave it up to them how far they will bump it -they will usually give you more than what you would have asked but this is best saved for last good bump up.

your credit score is based on what type credit you have, how much credit is extended to you, how you have paid, how long you have had that credit - so you want GOOD cards, not a lot of them (2 good ones with high limit and a store card in any amount are perfect, dont want a lot of small no good cards), pay these cards off in full every month, and keep them forever (dont get then cancel crappy cards).

in a year your credit will be awesome and in 2yrs you will be untouchable. check your credit report every 2yrs minimum (yearly is best, especially if you have a common name!) and this is MOST IMPORTANT = never never never share your credit with anyone. even husband wife, each of you need your own cards and put other as authorized user. sometimes it is necessary to have a joint card, in this situation ONLY is it ok to apply for an additional card whihc is joint, but stick with citi and discover. and make sure the limit is low (i.e. $500)... they may try to start you out much higher if your credit is good by that time but do NOT take that, call them and lower it.

hope this helps.

[nab 74]

forgot to add - if this is married couple, apply for store card separately and put each other as authorized user... or apply at two stores - wife at one and husband at other, then add each other as authorized users.

your credit doesnt just affect loan rates (3% for someone with good credit vs 13% for someone with bad), it affects MANY things such as your car/house insurance rates or your employment and whether or not you get a job and it can affect the rate of pay they offer you (though i would NOT give SSN to a "prospective employer" - tell them you will supply upon hiring it is for income purposes only).

[BethandBilly 86]

oh i hope the OP hasnt done anythign yet!!

the worst thing you can do (other than default on a loan) is to get a "secured card" because on your credit report it will read like you are bad credit risk.

go to a store you shop regularly, a grocery or something, and apply for store card. once you have that in hand, use it responsibly! dont buy anything extra, only needed items you would have purchased with cash... keep the money for it in your checking acct (keep track of your charges against what you have in bill paying checking acct)

you will begin to get offers in mail... ignore these. you want one or two GOOD cards, not a bunch of junk ones. contact discover card and citibank and apply over the phone. you may get turned down first time but once you get one (or both) of these you're golden. same with store card, only use for needed items and make sure to pay balance off each month - NEVER carry a balance.

once you have had this for awhile call them and tell them you need a higher credit limit. dont try to bump up too high too quickly but if you dont have at least $1500 at first, bump it to that now. if you have several thousand then bump to over 10k.

you're best bet is to tell them you have several purchases in mind and leave it up to them how far they will bump it -they will usually give you more than what you would have asked but this is best saved for last good bump up.

your credit score is based on what type credit you have, how much credit is extended to you, how you have paid, how long you have had that credit - so you want GOOD cards, not a lot of them (2 good ones with high limit and a store card in any amount are perfect, dont want a lot of small no good cards), pay these cards off in full every month, and keep them forever (dont get then cancel crappy cards).

in a year your credit will be awesome and in 2yrs you will be untouchable. check your credit report every 2yrs minimum (yearly is best, especially if you have a common name!) and this is MOST IMPORTANT = never never never share your credit with anyone. even husband wife, each of you need your own cards and put other as authorized user. sometimes it is necessary to have a joint card, in this situation ONLY is it ok to apply for an additional card whihc is joint, but stick with citi and discover. and make sure the limit is low (i.e. $500)... they may try to start you out much higher if your credit is good by that time but do NOT take that, call them and lower it.

hope this helps.

Although I do not agree with the store card comments, I do agree with the credit card comments, do not get crappy cards, do not use Chase, Bank of America and of those companies. Discover is a good card to have, I do not know Citibank so cannot comment.

Good Luck mate, I know it's hard, I've just been put as a joint card holder on my husbands credit card, not an authorized user, but a joint account holder, is there anyway you and your wife could do that, if one of you has better credit than the other?

[nab 74]

Although I do not agree with the store card comments, I do agree with the credit card comments, do not get crappy cards, do not use Chase, Bank of America and of those companies. Discover is a good card to have, I do not know Citibank so cannot comment.

Good Luck mate, I know it's hard, I've just been put as a joint card holder on my husbands credit card, not an authorized user, but a joint account holder, is there anyway you and your wife could do that, if one of you has better credit than the other?

i'm not a big fan of store cards either, simply becasue a major credit card can be used ANYWHERE vs just one place, BUT, when people do not have credit established they have to begin somewhere, even if with a $250 store card. A good credit card co. isnt going to accept someone with no credit at all.

one benefit of getting it at a store you shop at frequently is most times they will send coupons with your statement or even separate if you are not using it much. you can get nice discounts like this on things you woold have already purchased (i.e. $25 off $75 etc).

[juliava 80]

Here is my story:

Came to US in Summber 2004 with $75 cash in my pocket.

Late 2004 - Opened a regular Bank Account at Bank of America

Summer 2005- bought a cellphone/T-mobile plan (I paid more than usually for it, about $200 for that cellphone because "there was no credit history")

Late Fall 2005-applied for a random Bank of America Credit Card-I remember I was supposed to mail them a $99 check and they gave me a $500 credit line

Nothing changed until 2009, when I got married-but I was employed all these years. I was just paying that credit card and my $50/month cellphone. I requested a couple of credit line increase on that credit card and I got approved everytime I requested it, but I stopped when I reached the $2000 credit line-it just didn't make sense to me at that time to keep increasing it. Credit line is currently the same.

Summer 2009-applied and got approved for a $1000 furniture loan

Fall 2009- approved for a HOME loan, purchased the house in October

November 2009 - applied for a $25.000 car loan - got approved and purchased the vehicle. Yeah, I didnt have a car until 2009!

June 2010-Got my 2nd Credit Card-Mastercard Platinum Capitol One, $500 line of credit.

That;s it...it takes a while, but if you are patient and pay your bills on time you may establish good credit.

Edited August 25, 2010 by juliava

[tokyo.lovers 6]

yeah credit card is a must.

then car loan sounds good. you can get cheap used cars for decent prices!

[princess03 2]

don't mean to burst anyone's bubble but even thought citi and discover are better cards to get they are harder to get, i dont think the OP, with limited or no credit will get approved for these, not all secured cards report as secured, a store card is a good idea but if that fails i do recommend a secured card, capital one is ok to start out,all you need is 6 months of good payment history and u can upgrade to a better card.