Credit…. Once in America

[john&lindsey 0]

So… my fiance' and I are discussing how "credit" and "credit scores" work here in America. So…. my question is does he start with a certain credit score when he becomes a citizen here in the States? He has perfect credit over in Scotland and is never denied anything but they do their credit off of income and how long a person has been at their employer. So……. Anyone want to share if they were given a credit score or rating once they arrived in the States or did they have to start from scratch and build their credit… thanks

[Ryan H 3,812]

Moved from US Embassy & Consulate Discussion to Moving Here and Your New Life In America forum.

[missicy 87]

He starts with no credit, sorry, so he will have to start from scratch. His score in Scotland has zero impact on his score in the US. I suggest he starts building it soon after he arrives. Oh, and he won't be a US citizen for at least 3 years.

[X Factor 1,112]

He is not known in America. There are no records of him borrowing and repaying here.

[VanessaTony 3,567]

Start from scratch. I got a secured Capital One credit card to start building mine.

[TimeTravel 78]

Yes, one has to start from scratch and build their credit in US.

Yesterday I called to Amex Global card transfer, I was told that I am eligible for this, and I can get the Amex credit card in USA right away based on my good standing credit for my Amex India.

[Leatherneck 693]

The technique of starting with a secured card is a great strategy. After using that card for 3-6 months, get a (or two) credit card from one of the major oil companies (Chervon, Shell, ExxonMobil, etc.,) and buy gas with it each month. Then move on to acquire a major retail store card, the interest rates are horrible when using an oil company credit card or retail store card, but when one is building credit from scratch -- the options are limited.

If you have good credit, your husband can piggyback on your credit as an authorized user on your accounts to boost his credit. Just be mindful of the reported utilization each month, be careful of the inquiries and limit the number of cards to no more than three.

http://www.creditcards.com/no-credit-history.php

[john&lindsey 0]

He starts with no credit, sorry, so he will have to start from scratch. His score in Scotland has zero impact on his score in the US. I suggest he starts building it soon after he arrives. Oh, and he won't be a US citizen for at least 3 years.

Thank you so much for the information!!

Start from scratch. I got a secured Capital One credit card to start building mine.

So a secured credit card.. Is that a "pre-pay" credit card that is sent to the credit bureaus?? I have told him we will get secured loans off his money once in a CD and thats how my mom started building my credit when I was a kid…. Thanks for telling me that.. I will look into it soon!

Yes, one has to start from scratch and build their credit in US.

Yesterday I called to Amex Global card transfer, I was told that I am eligible for this, and I can get the Amex credit card in USA right away based on my good standing credit for my Amex India.

Thank you!!!

The technique of starting with a secured card is a great strategy. After using that card for 3-6 months, get a (or two) credit card from one of the major oil companies (Chervon, Shell, ExxonMobil, etc.,) and buy gas with it each month. Then move on to acquire a major retail store card, the interest rates are horrible when using an oil company credit card or retail store card, but when one is building credit from scratch -- the options are limited.

If you have good credit, your husband can piggyback on your credit as an authorized user on your accounts to boost his credit. Just be mindful of the reported utilization each month, be careful of the inquiries and limit the number of cards to no more than three.

http://www.creditcards.com/no-credit-history.php

Thanks for the information. I have thought about adding him to my cards once here but I will limit it to three accounts… Thanks so much!

[Leatherneck 693]

Your welcome!

You can do a search for 'secured credit cards,' the link I posted is a start. Make sure the secured card you decide on, reports to all three credit agencies -- some do not report your payment history. I personally used that method (secured credit card-then gas card-then department store card = great credit) to re-establish my damaged credit years ago after a job loss and a separation. I also used that method to help two young nieces to establish credit.

If you allow your husband to piggyback on your credit as an authorized user on your account(s), choose an account that has no late pays or any other derogatory information. The information from that account will transfer to his new credit profile at all three of the big agencies. Be careful not to attempt to establish too much credit quickly -- that is damaging to the credit score also, take a long term approach (1-1 1/2 yrs) to building a 800+ FICO score.

Edited March 14, 2012 by Leatherneck

[Stranded 0]

Once he's there,his credit is Zero. Building credit is getting harder these days due to the economy. Getting worse I see.Use his name to pay bills and other things through you,to build them. They are strict and quick enough to lower your credit ratings quickly to get people to pay out more money and taxes as usual when they want to. Building it up will take a long time considering you don't fall behind on payments.

[Chris2991 0]

Just a quick point - I don't know who your fiance banks with in the UK, but he should check with his bank to see if they have any international introduction arrangements with a US bank. I banked with NatWest, and my manager was able to forward a letter of introduction to Bank of America here in the US - they were then happy to open an account for me BEFORE I got here, and using my UK address! Because I had a few months history with them, once I was here, they gave me one of their secured cards, and a promise to upgrade it to non-secured in six months (we're three months in so far...let's hope tey keep their word).

It also kinda made me feel like I was doing something useful and productive during that long wait for the NOA2!!

[VanessaTony 3,567]

So a secured credit card.. Is that a "pre-pay" credit card that is sent to the credit bureaus?? I have told him we will get secured loans off his money once in a CD and thats how my mom started building my credit when I was a kid…. Thanks for telling me that.. I will look into it soon!

Yep basically. I got one through Capital One (it's the best option for immigrants honestly) and it cost $49 for $200 credit. After a year as long as you're in good standing they'll refund the $49. I've got a score in the 700's now and I've only had the card since August (went up to 700 after about 3 months). I use it only occasionally and ALWAYS pay it off before the deadline.

This is the one I got: http://www.capitalone.com/creditcards/mastercard-secured-credit-card/r/?linkid=WWW_1010_CARD_TGUNS11_CCBRWPOP_C3_36_T_CP18003RW Interest rate sucks but a long as you pay it off there's no problem I applied online, paid immediately online, got the card in less than a week. Easy peasy

When I first got here I tried a store card and was denied due to no history. This didn't affect my score, and isn't on my history, because I HAD no history. Now that I have a credit history I'm wary to apply until I'm sure I'll be approved

Edited March 15, 2012 by Vanessa&Tony

[rick313 5]

Have you looked into a jointly owned card? Through my bank we opened a new credit card account with myself and my wife on it. I have good credit and she was starting from scratch. Because of my good history, they had no problem opening a new account for us as joint owners. Of course, that means we are both responsible for any payments too.

[afoyoswa 178]

If you have good credit, your husband can piggyback on your credit as an authorized user on your accounts to boost his credit. Just be mindful of the reported utilization each month, be careful of the inquiries and limit the number of cards to no more than three.

http://www.creditcards.com/no-credit-history.php

Note: this is no longer true. I can't find a really helpful source quickly, but here's a site that discusses the change: http://www.stopccdebt.com/credit_bureaus_end_piggybacking.htm. I believe this stopped being an option in around 2007. You can certainly add someone as an authorized user to your cards, but the account will not appear on the authorized user's credit report: only on yours.

There is still an option to add someone to your credit card account as a joint account owner, but if you do this, the company will check that person's credit before issuing the card and deny the card if the person has no credit.

So, the secured/retailer/gas card approach is what our non-USC fiance(e)s/spouses will need to do.

[Nica_In_Love 98]

I applied to this card after a few months of arriving and got approved. I had no credit history and wasn't on my husband's credit cards either.

http://www.capitalone.com/creditcards/newcomer-credit-card/