Building Credit in the U.S.

[HK12 273]

Ok guys, I know this has been discussed before, but most of the threads are at least a couple of months old, and with the ever-changing financial world, I figured I'd start a new discussion.

I came to the States 10 months ago, and I would like to build up my credit history. My husband and I have been having joint checking and savings accounts for 7 months now, and I am an authorized user on his credit card (since July I believe). Asked a car dealer how much they would charge for a car loan (not that I need it, just to build up credit) and was told that the interest rate would be 25 percent So no thank you, I'll pay in cash. I have been working for 4 months in a well-paying job.

I tried to figure out my current credit score just right now via creditkarma.com, but unfortunately they say they cannot verify my information - so I assume I do not have a credit score yet and the authorized user deal for the credit card does not work. So, my question to all of you is - how can I build up credit? I know I could apply for a secured credit card - which ones would you recommend (is the Capital One Secured MasterCard any good?)? Wouldn't it hurt my credit score to get a secured card because lenders would see that it is a secured one and thus assume that I do not have a good credit score? Any other ways to build up credit without ridiculously high interest rates?

Thank you!

[Darnell 8,478]

Ok guys, I know this has been discussed before, but most of the threads are at least a couple of months old, and with the ever-changing financial world, I figured I'd start a new discussion.

method to build a credit history not change, so is best you get back to those old topics and read again. Read twice. Make copious notes. then, when yer ready, write out yer plan of attack, pencil to paper.

Then enact yer plan.

That's it, that's all. I swear !

[Harpa Timsah 13,258]

Having a savings account won't get you a score. Being a mere authorized user might not either. Any credit card you can get is a good one to start. My husband got the "CapitalOne for Newcomers" card, which was nonsecured. It was BS but it worked.

You can avoid interest altogether by paying your bill in full each month. You don't need to accrue interest to get a credit score.

Getting a new card does dock you a few points but you currently have zero points. Getting a secured card or any card is much better than having no score. You can "graduate" to normal cards later.

Edited November 13, 2013 by Harpa Timsah

[Mela17 36]

Ok so here's some things that effect credit score:

1. Length of time at address

2. Number of accounts in good standing

3. Amount of credit availability used - for example if you have a credit card with a limit of 1,000 dollars, it's advisable to use 30% or less of this total each month, so 300 or less dollars and in some cases it is advisable to use only 10% of your credit limit.

4. length of time account is held

5. loans

6. mortgatges

You say your husband has you as an authorized user on his accounts, this does indeed report in your name to the three major credit beuraus. The reason creditkarma can't find you is because you usually aren't findable until you have been in the country for one calandar year and filed taxes.

The easiest card to get is normally a store card ( wal mart, best buy, macy's, target) etc

You can also get a secured card through your bank that you yourself provide the balance on, an example is if you go to wells fargo and say you would like to get a secured card, they take 2 to 300 from your account and mail you a card with a 2 to 300 dollar spending limit that reports to the credit agencies. This is all you need and once you start using the card you can begin to track your score and you will start to receive credit offers in the mail.

[Harpa Timsah 13,258]

Any store card I have seen pulls your information from your other cards and piggy backs on your credit score to approve or deny.

My husband was denied a store card before he had credit; most store cards are backed my Visa/MC that I see.

[christeen 966]

Building credit history is the same method.... First get a secured card n your name... No card=no score... Get a card that is step 1

[Mela17 36]

This is probably the Universal Default Clause. A lot of cards have it. if you don't pay on one card, other cards will deny you.

[Lynkali 163]

I was pleasantly surprised today to find an unsolicited American Express card junk mail addressed solely to my new husband, since it's the first sign that he is actually starting to build credit. I added him as an authorized user to my two credit cards in August, and this is the first junk mail that has arrived addressed to him. Coincidentally, just yesterday he opened a solo bank account and got a Wells Fargo secured credit card, so he's on his way even without piggybacking on me -- but it looks like the authorized user addition did indeed report to the credit agencies and got him started.

[Nongorilla 0]

Ok guys, I know this has been discussed before, but most of the threads are at least a couple of months old, and with the ever-changing financial world, I figured I'd start a new discussion.

I came to the States 10 months ago, and I would like to build up my credit history. My husband and I have been having joint checking and savings accounts for 7 months now, and I am an authorized user on his credit card (since July I believe). Asked a car dealer how much they would charge for a car loan (not that I need it, just to build up credit) and was told that the interest rate would be 25 percent So no thank you, I'll pay in cash. I have been working for 4 months in a well-paying job.

I tried to figure out my current credit score just right now via creditkarma.com, but unfortunately they say they cannot verify my information - so I assume I do not have a credit score yet and the authorized user deal for the credit card does not work. So, my question to all of you is - how can I build up credit? I know I could apply for a secured credit card - which ones would you recommend (is the Capital One Secured MasterCard any good?)? Wouldn't it hurt my credit score to get a secured card because lenders would see that it is a secured one and thus assume that I do not have a good credit score? Any other ways to build up credit without ridiculously high interest rates?

Thank you!

I tried to join Credit Sesame (similar service to Credit Karma) and the attempt failed.

The customer service told me that you need at least: (1) SSN that is more than 1 year old, and (2) having 2 active lines of credit for more than 6 months, to simulate your score.

usually an authorised user is not reported to the credit bureaus. so you need to start with a joint credit card or a secured card.

bank issued secured card is cheaper with annual fee and less risky to get a denial based on your baking history.

they will grant you to graduate to non-secured card (with no annual fee) in a year or two. so you can keep the first little card for keeps.

[HK12 273]

Thank you to all of you who have given me helpful hints and thoughts. I will go with the secured card and start from there.

As for the authorized user, I believe I have read that some credit cards report and others don't. After some further research, I also double Goatherder's post that you generally have to have a credit card for at least 6 months before it reflects on your credit score.

Again, thank you all!

[Dave&Roza 748]

The easiest card to get is normally a store card ( wal mart, best buy, macy's, target) etc

When my wife arrived I put her on all my investment accounts as a joint account holder. We also applied for a JOINT CC. I checked her credit score after about 8 months and it was 720. She tried for a Macy's and was denied because she has no income of her own and they would not allow her to claim my income. Banana Republic did give her her own Visa card. Her credit score is now 745.

To build credit as a new immigrant to the US is the same as it is for a college student. Start will a low limit CC or a secure CC and wait. If the USC spouse has any assets, have them put the immigrant spouse on as a joint account holder, that way the asset counts towards the debit to equity ratio.

Good luck,

Dave

[Nongorilla 0]

I posted a new topic about easing income restrictions on Credit Act.

from Nov 4, you can use a household income to apply for a credit card.

http://www.visajourney.com/forums/topic/466217-good-news-income-restriction-for-applying-for-a-credit-card-has-now-eased/

[JayJayH 546]

Get a BS, very high interest unsecured card. Buy a gallon of milk on it and spend 6 months paying it off. Sure, it'll cost you $25 for that gallon of milk, but it builds your credit.

[HK12 273]

Get a BS, very high interest unsecured card. Buy a gallon of milk on it and spend 6 months paying it off. Sure, it'll cost you $25 for that gallon of milk, but it builds your credit.

...

[Harpa Timsah 13,258]

Get a BS, very high interest unsecured card. Buy a gallon of milk on it and spend 6 months paying it off. Sure, it'll cost you $25 for that gallon of milk, but it builds your credit.

You do not need to carry a balance to build a credit score.

This is probably the Universal Default Clause. A lot of cards have it. if you don't pay on one card, other cards will deny you.

No, my husband never failed to pay a card. It was because he had no credit in the US and that's what store cards use, just like any other card.