Credit…. Once in America

[rheanick 42]

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.

If this is in effect in 2007, they are not doing a good job with it. I piggyback with my husband's credit card (we did a joint account) in 2009. After few months, my credit shows same history as my husband, told by the credit card company. I often asked the main reason i was pre-approved for another credit card.

[afoyoswa 178]

If this is in effect in 2007, they are not doing a good job with it. I piggyback with my husband's credit card (we did a joint account) in 2009. After few months, my credit shows same history as my husband, told by the credit card company. I often asked the main reason i was pre-approved for another credit card.

I don't know the specifics of your situation (or if your "joint account" is equivalent to being an authorized user), but if the legal changes were made in 2007, it's possible it took some time to be put into practice. It is definitely not an option now. I have seen other VJ threads already mentioning it as well, which is why I was surprised to see it not brought up here.

[Gary and Alla 3,694]

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

No credit to begin with.

Alla opened her own account with a credit union within a week of arriving. she deposited a relatively small amount of money and was given a credit card with a $500 limit. This was NOT a "secured" credit card, it is member benefit of this particular credit union, so check around. After 6 months they raised her credit to $1000, then $1500 6 months after that and now it is at $5000 plus she has several store credit cards and bought a car on her own. Her current credit score is 781. She does not keep any balances but pays off the cards every month and uses the store cards to get extra discounts.

Check with local credit unions.

She established ALL credit on her own, except our home mortgage. We have joint accounts, insurance, home mortgage, etc etc and plenty of proof of a legitmate marriage. I thought it was more important for her to have her own credit cards.

[floridadave 195]

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.capitalon...er-credit-card/

Thanks for the link. My wife just applied and was approved. No credit history too. This board is a gem!

[VanessaTony 3,567]

Thanks for the link. My wife just applied and was approved. No credit history too. This board is a gem!

I personally got this one: http://www.capitalone.com/creditcards/mastercard-secured-credit-card/r/?linkid=WWW_1010_CARD_TGUNS11_CCBRWALL_C3_36_T_CP18003RW The major differences seem to be an annual fee with mine and none with yours. I also get no charge for going over the limit, yours does but worst is the late payment fee :S Mine us up to $19, yours is up to $35.

I anticipate getting my deposit back at the end of the year without problems and then I'm hoping to get a card through my bank, Wells Fargo, to make it all consolidated My score is already in the 700s and was after only 3 months.

[Leatherneck 693]

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.stopccdeb...ggybacking.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.

Discontinuing the practice of 'piggybacking or using trade lines from another person's credit was tossed around back in 2006 & 2007 by Fair Isaac's. However, Fair Isaac got quite a bit of push-back then changed their tune. The practice is still alive.

[Nica_In_Love 98]

Thanks for the link. My wife just applied and was approved. No credit history too. This board is a gem!

No problem. I'm glad she was approved. I've read about other VJers not getting approved but I'm not sure why since we're all newcomers.

After about 5 months they raised the limit to $750 and then to $2,250. The APR is high and late fees expensive but the point is to use the card to build your credit, which is what I've done.

Good luck!

[N M 96]

Discontinuing the practice of 'piggybacking or using trade lines from another person's credit was tossed around back in 2006 & 2007 by Fair Isaac's. However, Fair Isaac got quite a bit of push-back then changed their tune. The practice is still alive.

^^^^^ This ^^^^^

That proposed ban on piggybacking was actually thrown out by the courts, who ruled that it would discriminate against stay at home spouses (mainly women).

PIGGYBACKING IS STILL VERY MUCH ALIVE.

But..... these days you can only piggyback through an immediate relative (spouse, child, parent). You can no longer piggyback off a BFF, colleague, or even a stranger. Yep, as mad as it sounds, some enterprising indivduals used to rent out authorised user spots on their accounts to complete strangers. One example (cited by FICO a few years back) was a card with over 200 authorized users!

[N M 96]

A source for the above (from August 8, 2008 - detailing Fair Isaac's u-turn on FICO 08):

http://www.bankrate.com/brm/news/cc/20080812-authorized-users-a1.asp

[afoyoswa 178]

^^^^^ This ^^^^^

That proposed ban on piggybacking was actually thrown out by the courts, who ruled that it would discriminate against stay at home spouses (mainly women).

PIGGYBACKING IS STILL VERY MUCH ALIVE.

But..... these days you can only piggyback through an immediate relative (spouse, child, parent). You can no longer piggyback off a BFF, colleague, or even a stranger. Yep, as mad as it sounds, some enterprising indivduals used to rent out authorised user spots on their accounts to complete strangers. One example (cited by FICO a few years back) was a card with over 200 authorized users!

This is good to know! I guess this fits with the general rule that at least half of the information on the internet is completely made up.

[sorchaine 10]

When my husband arrived I put him as an authorized user on my Capital One card. His length of credit goes back to when I initially opened the card, before he was in the US. So while he has only been here since September 2010, his credit length is longer. He started out just as my authorized user and now has several cards from a couple secured, to several unsecured, and store cards. He does have quite a few hard hits on his credit due to the large amount of cards he has right now, but he is always keeping track of how much he's spent on each of his cards, when the due dates are, the interest rates, when the statements print that way he can manage to keep his cards in the best standing possible. He also pays each month to keep track of his credit report and score to see how it fluctuates and changes. We added myself to a few of his larger unsecured cards, which is done a great help to my credit and has been increasing it over the past few months. Which is great news for me!

[N M 96]

This is good to know! I guess this fits with the general rule that at least half of the information on the internet is completely made up.

I know how you feel, but this is a good example of how the internet stores information for ever and ever - even when it's totally out of date.

The original version of FICO 08 did stop piggybacking - and that story was widely reported.

What wasn't so widely reported, was the U-Turn in July 2008 - which allowed piggybacking again. Whether this was intentionally brushed under the carpet I have no idea. But the cynic in me thinks it may have been.

[kzielu 1,149]

I opened a checking / savings account in my company's credit union, then at the same place I got a credit card with my wife as a co-signer (10% APR - not like 24% from Capital One - which really did not matter that much cause I am paying it off completely). Two months after that I started getting credit card offers in mail... Personal data privacy in this country generally does not exist.

[Leatherneck 693]

^^^^^ This ^^^^^

That proposed ban on piggybacking was actually thrown out by the courts, who ruled that it would discriminate against stay at home spouses (mainly women).

PIGGYBACKING IS STILL VERY MUCH ALIVE.

But..... these days you can only piggyback through an immediate relative (spouse, child, parent). You can no longer piggyback off a BFF, colleague, or even a stranger. Yep, as mad as it sounds, some enterprising indivduals used to rent out authorised user spots on their accounts to complete strangers. One example (cited by FICO a few years back) was a card with over 200 authorized users!

Thanks for the link and the update. I knew it was still alive and well -- I allowed two young nieces (2 yrs ago) to use one trade line form one of my cards after traveling the secured card route, it served them both well. We all share the same last name, maybe their was an appearance of kinship.

Edited March 22, 2012 by Leatherneck