Building Credit Score - Tips & Tricks

[gypsyqueen 103]

1 hour ago, troika said:

How else would they do it ... still by cheque ?

Yes, some still do it by check. If you don't do direct deposit, you'll get a check attached with your pay stub.

[moosy 139]

My main question: has anyone had any bad luck with (1) maiden name vs married name?

I opened a bank account months ago at a Federal Bank on my maiden name. I was told this was going to be the best considering I have a Belgian account of which I'm still putting money into my American account every time the dollar is low. I asked the Belgian bank if I could change my maiden name to my married name, but that's apparently linked to many things and the short answer was : if you really want to, yes, but it takes a lot of paperwork.

But now I have changed my maiden name to my married name on my SSN, and I am wondering if this will be a problem for my bank trying to get my credit score (as they use my maiden name).

I might be making this too complicated, though. I just want to make sure that whenever I add 10K from the Belgian account, that the IRS or whoever checks it, can clearly see it's from and to the same person.

 

In addition, I tried getting a credit card from that bank, and was denied. They do not have secured credit cards. They suggested doing a "shared loan". Is this the same as the (2) secured installment? I googled it and I think that's what they said. I found this explanation for others who didn't understand that part either: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756

As I understand it as a regular consumer with almost zero knowledge of financial things, you basically give the bank money to say "hey, I'm going to loan this amount and this exact amount will serve for you as making sure I can pay it back". Although I get this part, I don't understand why anyone ever would want to do this aside from building credit? I am paying the bank to loan money I already have? I don't understand.

 

And (3) does anyone have a few ideas for good/cheap secured credit cards that give out to newbies? I'm honestly lost in trying to find one. I obviously don't want to pay fees, and I am fully able to pay back whatever I loan. When I google, it seems that the good ones aren't available in Georgia, or you need to be a client at their bank. Is it worth getting a new bank account for? 

 

[moosy 139]

18 minutes ago, moosy said:

 

 

And (3) does anyone have a few ideas for good/cheap secured credit cards that give out to newbies? I'm honestly lost in trying to find one. I obviously don't want to pay fees, and I am fully able to pay back whatever I loan. When I google, it seems that the good ones aren't available in Georgia, or you need to be a client at their bank. Is it worth getting a new bank account for? 

 

Wanted to add that I do not yet have a job, so a few of the best secured credit cards are out

[SimonBelgium 49]

26 minutes ago, moosy said:

My main question: has anyone had any bad luck with (1) maiden name vs married name?

I tried getting a credit card from that bank, and was denied. They do not have secured credit cards. They suggested doing a "shared loan". Is this the same as the (2) secured installment?

 

And (3) does anyone have a few ideas for good/cheap secured credit cards that give out to newbies? 

 

(1) No experience, sorry.

(2) and (3), see below:

 

I would strongly suggest you join a local Credit Union, that has a branch office close by. You'll need a US issued driver's license and your SSN to join.

 

Then explain the following to them:

a) You're new to the US, and you want to get a few reporting lines to your credit report.

b) Ask them for a secured credit card. You basically want to deposit $1000 or so as a security for that card. You'll then get a credit card with $1000 limit, which means you can charge up to $300 on it to get optimal benefits. Use it regularly and keep an eye on the balance. As said before, you CAN charge the full $1000 if you wish, as long as you pay down the balance to below 30% (so $300 in this case) before the reporting period closes.

c) Ask for a secured loan in your name. Deposit $2000 or so, and they'll put the $2000 back into your account. You then pay the loan back in installments. It nicely reports into your credit report, just don't miss the payments ! You can use  part of that $2000 for point b) above, by the way. 

 

Credit Unions have many advantages over large banks. Try to talk to a senior person to explain your situation and have them understand your plan. When you need a car loan or mortgage later, that new relationship will help you a lot!

[moosy 139]

Ok, so I just do the exact same thing I did with the federal bank, but then with a credit union. I'll become a member Monday (there is only one credit union near me, about 10 miles further down) and ask for all those things.

Thanks!

 

 I also read that for those secured loans, it's better to pay everything off apart from 9%, instead of only doing monthly installments, to get your credit score higher?

[SimonBelgium 49]

1 minute ago, moosy said:

I also read that for those secured loans, it's better to pay everything off apart from 9%, instead of only doing monthly installments, to get your credit score higher?

For a small loan like that, it doesn't matter AFAIK. Lenders are looking at your ability to pay off installment loans consistently. After 6 months of reported on-time payback of the loan, you should see your score go up. So that's probably 8 months from the day you open the loan.

 

I did all that actually, but it will still take a while until your score is really good enough to get anything you want.

[O.C 160]

Just wanted to share my experience with building credit in the US.

 

We got married in November, as as soon as I got a SSN I opened a bank account at the same bank as my husband and he made me joint on his account.

He has also added me as an authorized user to both his credit cards so I  had credit cards with my name on them.

 

A couple weeks ago, Capital One sent me a pre-approved offer in the mail and I followed through, and now have my first credit card on my own here. Once I created a login, it let me see what my credit score was and it was the same as my husbands credit score which is in the high 700's -- so being an authorized user helps as long as your S/O has good credit!!

 

I never inquired about getting a card from Capital One, or anywhere else at all.. It has been 7 months of ..well, me existing in the U.S  and I got approved with my own card, not so bad   

Edited June 6, 2018 by Orit.d

[SimonBelgium 49]

15 minutes ago, Orit.d said:

Just wanted to share my experience with building credit in the US.

 

We got married in November, as as soon as I got a SSN I opened a bank account at the same bank as my husband and he made me joint on his account.

He has also added me as an authorized user to both his credit cards so I  had credit cards with my name on them.

 

A couple weeks ago, Capital One sent me a pre-approved offer in the mail and I followed through, and now have my first credit card on my own here. Once I created a login, it let me see what my credit score was and it was the same as my husbands credit score which is in the high 700's -- so being an authorized user helps as long as your S/O has good credit!!

 

I never inquired about getting a card from Capital One, or anywhere else at all.. It has been 7 months of ..well, me existing in the U.S  and I got approved with my own card, not so bad   

Thanks for sharing! 

Make sure to get several credit lines reporting into your credit report ASAP. The credit score itself is not all the lenders look at. For instance, you won't be able to just buy a car fully financed, if you've never had any car loan. So you may need to put a lot cash down when that time comes, to get that loan. 

I would suggest getting a few more things opened up, and you'll be good when you guys want to buy a house or a new car, later on

[O.C 160]

2 minutes ago, SimonAndKimberly said:

Thanks for sharing! 

Make sure to get several credit lines reporting into your credit report ASAP. The credit score itself is not all the lenders look at. For instance, you won't be able to just buy a car fully financed, if you've never had any car loan. So you may need to put a lot cash down when that time comes, to get that loan. 

I would suggest getting a few more things opened up, and you'll be good when you guys want to buy a house or a new car, later on

Thanks for the advice! 

 

I have also gone back home to Canada as well and changed my name to my now married name, so my creditors could report that to the credit bureau in Canada.  I have some Canadian friends who had trouble purchasing a house in the US as they were trying to cross reference her by her maiden name in Canada. So that's taken care of as well.

 

We are looking to buy a house in the next year or so I'd say, but what other things can I open up if i don't necessarily need anything just yet? I have 2 creditors reporting to my credit report in the U.S now according to TransUnion. 

[SimonBelgium 49]

21 minutes ago, Orit.d said:

Thanks for the advice! 

 

I have also gone back home to Canada as well and changed my name to my now married name, so my creditors could report that to the credit bureau in Canada.  I have some Canadian friends who had trouble purchasing a house in the US as they were trying to cross reference her by her maiden name in Canada. So that's taken care of as well.

 

We are looking to buy a house in the next year or so I'd say, but what other things can I open up if i don't necessarily need anything just yet? I have 2 creditors reporting to my credit report in the U.S now according to TransUnion. 

 

2 is by far not enough.

Open a secured loan. In short, you put (e.g. $1200) on a secured account, the bank gives you back $1200, and you pay back your $1200 loan over the course of a year. Will cost you like a dollar or 2 per month in interest, but quite worth it. Make sure it's all in your name.

 

Maybe you guys want a new TV or something, so instead of buying cash, see if they have a finance option, but ALWAYS ask if their lender reports into your credit report. If not, it's no use. Often, there is a 0% finance option, so that's great too.

 

You should try to get to 6 or more credit lines, and they all should report in for more than 6 months.

 

If you have a car, you could turn in the title to your bank (or credit union) and finance part of it again, if they'll do that.

 

Just be creative, and explain to your finance person that you're just trying to create a credit history, because the US credit rating system is not that great

[Luis CP 14]

Hey guys, 

 

I am moving on august with a K1 and planning to get married asap, i will be applying for a 5K Secured credit card and i wanted to ask you a couple of questions:

 

• My fiancee has a good credit score +700 but she is right now doing a master degree and only getting the internship salary ( 1K )
  • Is it worth it for me to join her credit cards and deposit my expenses to her account before the due date to help my credit score?
  • I am planning to buy a new car and fortunately i got enough liquidity to pay cash whatever the amount is but i would like to lease it since i love to change cars quickly, will it be possible to put the lease in under both of us since she is getting only 1K Salary but i can prove a lot of liquidity from my side?

Thank you!

[jeanieCZ 228]

First of all, @SimonAndKimberly thank you for this thread!

 

I am about to immigrate to the US from Europe and I am almost absolutely unfamiliar with the US credit scores and "reputation" matters. Back in my home country, as well as in the Netherlands, where I live at the moment, I never needed to have any credit score. Since my teen age I have owned a debit bank account and a debit card which I have been using to pay for everything - grocery shopping, eating out, paying my rent and all other bills, my vacations, making online purchases etc etc. I have owned a credit card (Mastercard) only because some online purchases or hotel bookings required to be paid by Mastercard. However, using the Mastercard doesn't build me any score. 

So I'm trying to understand how this whole thing works in the US.

I am the kind of person who prefers to pay everything right away, I do not like to take a loan unless I absolutely cannot afford to pay right away. 

So what I wonder about is if I actually NEED to build a credit score in the US. Imagine I do not plan to take a mortgage or take a loan to buy a car....imagine I have income, so that there's money in my bank account which allows me to pay my bills and to do my shopping etc. Why would I need to worry about building up a credit? 

[SimonBelgium 49]

8 hours ago, jeaniecz said:

First of all, @SimonAndKimberly thank you for this thread!

 

I am about to immigrate to the US from Europe and I am almost absolutely unfamiliar with the US credit scores and "reputation" matters. Back in my home country, as well as in the Netherlands, where I live at the moment, I never needed to have any credit score. Since my teen age I have owned a debit bank account and a debit card which I have been using to pay for everything - grocery shopping, eating out, paying my rent and all other bills, my vacations, making online purchases etc etc. I have owned a credit card (Mastercard) only because some online purchases or hotel bookings required to be paid by Mastercard. However, using the Mastercard doesn't build me any score. 

So I'm trying to understand how this whole thing works in the US.

I am the kind of person who prefers to pay everything right away, I do not like to take a loan unless I absolutely cannot afford to pay right away. 

So what I wonder about is if I actually NEED to build a credit score in the US. Imagine I do not plan to take a mortgage or take a loan to buy a car....imagine I have income, so that there's money in my bank account which allows me to pay my bills and to do my shopping etc. Why would I need to worry about building up a credit? 

 

To answer your main question, wether you NEED to build credit? YES YES YES YES YES !

Everything here works on that dumb credit score. Want to lease a house? You need good credit. Want a job? Let's check your credit report. Want to get a license for something? Credit score OK? 

 

Even getting your utilities connected requires a good credit score, or you'll pay through your nose to get that done. 

So yes, get several lines of credit, and then use your good habits to pay everything on time, and you'll lead a comfortable life, and will have access to loans if you ever DO need it.

[SimonBelgium 49]

On 6/6/2018 at 5:04 PM, O.C said:

We are looking to buy a house in the next year or so I'd say, but what other things can I open up if i don't necessarily need anything just yet? I have 2 creditors reporting to my credit report in the U.S now according to TransUnion. 

Open a few lines of credit for sure. You need a good mix, plus average age of accounts is important. With your partner's older record (you should be on the oldest accounts), yours should look a lot better really soon!

[jeanieCZ 228]

2 hours ago, SimonAndKimberly said:

 

To answer your main question, wether you NEED to build credit? YES YES YES YES YES !

Everything here works on that dumb credit score. Want to lease a house? You need good credit. Want a job? Let's check your credit report. Want to get a license for something? Credit score OK? 

 

Even getting your utilities connected requires a good credit score, or you'll pay through your nose to get that done. 

So yes, get several lines of credit, and then use your good habits to pay everything on time, and you'll lead a comfortable life, and will have access to loans if you ever DO need it.

Thank you. 

 

So let me see...how do I do this? I have some savings, so can I just walk into a bank, ask them to open a (debit) bank account and also a credit account?

 

And, let me turn the question around: Do I actually need a debit account?