How to build your credit in America

[gflower 0]

Hi!

I moved to Los Angeles in February on a K-1 visa. Got married and this week my work permit was approved!

I have been offered a job which is great, and now I am concerned with building credit in my new home country.

I know I can take on my husbands credit score (well according to him I can) but when we married I didn't change my last name, and I don't want to take his credit score for this same reason: I am an independent woman of the 21st century!

To all the people out there who have already been through this, what words of wisdom can you impart on me? Thank you in advance!

[Dave&Roza 748]

Hi!

I moved to Los Angeles in February on a K-1 visa. Got married and this week my work permit was approved!

I have been offered a job which is great, and now I am concerned with building credit in my new home country.

I know I can take on my husbands credit score (well according to him I can) but when we married I didn't change my last name, and I don't want to take his credit score for this same reason: I am an independent woman of the 21st century!

To all the people out there who have already been through this, what words of wisdom can you impart on me? Thank you in advance!

Two options really: 1) stuff your pride and have him put you on his oldest CC and add you to his joint checking and saving account or 2) build it all by yourself which will take a few years. Up to you which way you want to go. By the way, my wife did not change her name when we got married, but I did put her on a joint CC and the checking and saving account. It took about two months for her to get those Capital One pre-approved CC offers. Then I put her on the investments and she now gets the American Express pre-approved offers. Her credit score is now better than mine since I have the house mortgage and a couple of pre-approval's for the home loan against me. You may also want to think about the ROC step in this process where the USCIS will want to see the co-mingling of assets and your lives.

Good luck in whichever route you choose,

Dave

Edited July 26, 2012 by Dave&Roza

[Saylin 1,605]

Hi!

I moved to Los Angeles in February on a K-1 visa. Got married and this week my work permit was approved!

I have been offered a job which is great, and now I am concerned with building credit in my new home country.

I know I can take on my husbands credit score (well according to him I can) but when we married I didn't change my last name, and I don't want to take his credit score for this same reason: I am an independent woman of the 21st century!

To all the people out there who have already been through this, what words of wisdom can you impart on me? Thank you in advance!

Here's my case:

1. I never changed my last name; still have my maiden name.

2. My husband did NOT add me to any of his credit cards or bank accounts. I opened my own checking and savings account.

3. Also, not sure if this affects my credit score or not, but last summer I applied for financial aid for school here in the US and received student loans.

4. A few weeks after getting a job (took 2 months from getting my SSN), I applied for a credit card (and was approved). Soon thereafter, I started to get credit card offers in the mail (I called a number though and got myself removed from their mailing lists).

5. As soon as I bought something with my credit card (which was about 90% of my purchases as I get 1% cash back), I'd pay it off with my money in my checking account. I rarely had an outstanding balance at the end of the month.

6. I signed up at Credit Sesame (online website) to check my credit score (for free). Early 2012 it was finally posted (the site states it generally takes 6 months after getting an account to get a credit score): 704. Currently, July 2012, my credit score is sitting at 711 (only about 20 points under my husband who's 23 and had credit building for years now).

[gflower 0]

Two options really: 1) stuff your pride and have him put you on his oldest CC and add you to his joint checking and saving account or 2) build it all by yourself which will take a few years. Up to you which way you want to go. By the way, my wife did not change her name when we got married, but I did put her on a joint CC and the checking and saving account. It took about two months for her to get those Capital One pre-approved CC offers. Then I put her on the investments and she now gets the American Express pre-approved offers. Her credit score is now better than mine since I have the house mortgage and a couple of pre-approval's for the home loan against me. You may also want to think about the ROC step in this process where the USCIS will want to see the co-mingling of assets and your lives.

Good luck in whichever route you choose,

Dave

Thanks Dave,

The problem is my husband's credit score is not good... It sounds like yours is really good. I think we will visit our bank together and get advice from them. Thank you!

Here's my case:

1. I never changed my last name; still have my maiden name.

2. My husband did NOT add me to any of his credit cards or bank accounts. I opened my own checking and savings account.

3. Also, not sure if this affects my credit score or not, but last summer I applied for financial aid for school here in the US and received student loans.

4. A few weeks after getting a job (took 2 months from getting my SSN), I applied for a credit card (and was approved). Soon thereafter, I started to get credit card offers in the mail (I called a number though and got myself removed from their mailing lists).

5. As soon as I bought something with my credit card (which was about 90% of my purchases as I get 1% cash back), I'd pay it off with my money in my checking account. I rarely had an outstanding balance at the end of the month.

6. I signed up at Credit Sesame (online website) to check my credit score (for free). Early 2012 it was finally posted (the site states it generally takes 6 months after getting an account to get a credit score): 704. Currently, July 2012, my credit score is sitting at 711 (only about 20 points under my husband who's 23 and had credit building for years now).

Yay! Thanks for this! I'm going to copy you exactly

[Saylin 1,605]

[...]

Yay! Thanks for this! I'm going to copy you exactly

Hopefully your credit score is as nice as mine after a few months

[Peter_Pan 661]

What do you need to open I opened a checking and savings account? Green card, a job, or just SSN?

[Saylin 1,605]

What do you need to open I opened a checking and savings account? Green card, a job, or just SSN?

For checking and savings, I was able to open both with just my passport (and I believe another piece of photo ID was needed, can't quite remember). I did need to give them my SSN later (once I had it), but didn't need it initially to open. This might vary by bank though. Mine's Wells Fargo.

For a credit card, you definitely need a SSN though. And depending what kind of credit card, a job as well, making sufficient enough income.

[huongkhin 9]

-Ask him to add you to 3-4 of his oldest credit cards.

-Wait for 2-3 months for his credit cards' history to show up on your credit report.

For example:he has a 10 years old card. You are an AU. When the creditor pulls your credit report, they see this card as a 10 years old card too.

-Apply for your own cards.

-Ask him to remove you from his cards. Your credit score will drop as well because you are no longer have that history on your credit report. I don't recommend doing this since the credit card company may soft pull your credit report and decrease your credit line. You should wait until all your credit cards are several years old and your credit is more established.

Edited August 14, 2012 by huongkhin

[huongkhin 9]

Here's my case:

1. I never changed my last name; still have my maiden name.

2. My husband did NOT add me to any of his credit cards or bank accounts. I opened my own checking and savings account.

3. Also, not sure if this affects my credit score or not, but last summer I applied for financial aid for school here in the US and received student loans.

4. A few weeks after getting a job (took 2 months from getting my SSN), I applied for a credit card (and was approved). Soon thereafter, I started to get credit card offers in the mail (I called a number though and got myself removed from their mailing lists).

5. As soon as I bought something with my credit card (which was about 90% of my purchases as I get 1% cash back), I'd pay it off with my money in my checking account. I rarely had an outstanding balance at the end of the month.

6. I signed up at Credit Sesame (online website) to check my credit score (for free). Early 2012 it was finally posted (the site states it generally takes 6 months after getting an account to get a credit score): 704. Currently, July 2012, my credit score is sitting at 711 (only about 20 points under my husband who's 23 and had credit building for years now).

3. It's called Types of Credit.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

4. It's easy to get a credit card but not easy to get one with high credit line and low rate. Some credit card company won't raise your credit line. Capital One is one of them.

5. Paying off your card monthly isn't a good thing. Let at lease one of your credit card reports a balance around 10%-15% to your credit report.

6. The FICO credit scores that the banks use can only be obtain from MyFico.com. The score from other source is called FAKO. Google it.

[NotworkSte 19]

Here's the process I went through.

1 - Wife added me to her checking account

2 - Open my own checking account when I started job about 3 months after arriving

3 - Got drivers license

4 - Bought car from buy here pay here - had been in country 2 months by this point.

First things, I made sure the BHPH dealer reported the line of credit to the correct agencies. I got hammered on APR, but I had wheels and I was finally on the road (no pun intended) to getting a credit file.

5 - Had terminix do some work on the house. Could of paid it outright ($800) but applied for finance for it over 1 year. Got approved.

At this point I applied for, and got knocked back for, a couple of regular credit cards. I did not signed up for one of the pre-paid ones, probably should have.

After a year I got knocked back when I tried to sign up for a BMW for the wife, they wanted 25% down or nada. So we walked away.

6 - Just about the year mark I financed more Terminx work, much higher, and it worked.

7 - Applied for credit card through CapOne and got, with $500 credit limit. In country 18 months.

8 - Wife applied for (in my name) a Amazon card and for it, $3k limit!

9 - Paid off BHPH car, swapped for newer car, got approved.

Some things

- My score fluctuates wildly. It's been up at 749, low as 540-ish. This is pretty much because of the length of time I have been here. Although I had ok credit, time is important.

- I pay everything when I remember. I keep a small balance on one credit card. But I am not always on time, as I am a bit lazy. Doesn't seem to bother them too mcuch.

- Wife had abysmal credit, caused by us both getting fired just before I arrived, so I couldn't use her at all or get added to her cards. We defaulted on everything for a few months, including the mortgage.

I didn't need a prepaid card in the end, but salary probably swung the first card with CapOne. Otherwise I probably would have gone that route. Financing terminix and BHPH, who both make their own decisions, was key though. That and time. Until you're here a few years you will have issues, even with a good score.

[Saylin 1,605]

3. It's called Types of Credit.

http://www.myfico.co...nyourscore.aspx

4. It's easy to get a credit card but not easy to get one with high credit line and low rate. Some credit card company won't raise your credit line. Capital One is one of them.

5. Paying off your card monthly isn't a good thing. Let at lease one of your credit card reports a balance around 10%-15% to your credit report.

6. The FICO credit scores that the banks use can only be obtain from MyFico.com. The score from other source is called FAKO. Google it.

Thanks for the information.

As for paying off my credit card fully, I just recently read about it in another thread and will be changing how I pay things off now. Hope to see an increase in my score...

[Nica_In_Love 98]

4. It's easy to get a credit card but not easy to get one with high credit line and low rate. Some credit card company won't raise your credit line. Capital One is one of them.

Agree with the first part of that statement, not the second though, as that depends on every case.

For the OP, I personally applied for the Capital One Newcomers Card about 3 or 4 months after POE(I found out about it via a fellow VJer, the link for the card is http://www.capitalone.com/creditcards/newcomer-credit-card/). I wasn't working at the time and I had just recently opened a joint bank account for my husband. I was approved online with a $500 credit limit. About 5-6 months later, they raised the limit to $750, and subsequently to $2,250. So they do indeed raise the limit depending on how you use the card. The APR is high and they won't lower it even if you asked.

Later on I started to receive offers and took one from American Express. The limit is $5,500 with no annual fee and 0% interest for 18 months. So, I would suggest trying out with Capital One and if you get approved, work your way from there.

[Married2009 32]

My husband did a 'secured' credit card thru our federal credit union. The money is still in the savings account, but it is frozen. He is building credit. (Even though we have a joint account, he could have done this if he was the only one on the account.) He buys fuel for his car, small stuff, and we pay it off every month.