Should I keep my credit card?

[k_stacky 65]

Hi there!

I'm currently planning my move to the United States from Canada and if all goes to plan, I should be leaving mid-December. I've done a bit of reading and have basically found that the credit I'm building here is going to be worth nothing once I move to America. So my question basically is this;

Should I keep my Canadian Visa credit card?

Are there any benfiets to having the credit card still active in Canada and has anyone discovered any cons?

Any input would be appreciated.

[Transborderwife 4,666]

You can but make sure that you use it occasionally. My parents have one that they use annually during vacation. Banks tend to close inactive cards

[Rob L 3,811]

You should definitely maintain your Canadian credit cards / profile. It may take some time for you to get into the US system and build credit.

[CherRy143 1]

I wouldn't recommend keeping it. For one, the difference in exchange rate. You'll be spending more than you do if you use it in US. Two, there will be foreign transaction fees. And lastly, Canadian credit score and history doesn't transfer to US. So, it's pointless if you planned to move permanently.

My advice is to apply for two forms of I.D, (passport/work permit, work permit/state ID or driver license), and then open a bank account, then apply to an entry level card. After 6 months to a year, and a few pay checks, you will be able to apply for better cards from capital one, etc. For bank account, I would recommend opening at Bank of America as they tend to approve easily for their customers and give higher balance on their credit cards.

[Rob L 3,811]

I wouldn't recommend keeping it. For one, the difference in exchange rate. You'll be spending more than you do if you use it in US. Two, there will be foreign transaction fees. And lastly, Canadian credit score and history doesn't transfer to US. So, it's pointless if you planned to move permanently.

My advice is to apply for two forms of I.D, (passport/work permit, work permit/state ID or driver license), and then open a bank account, then apply to an entry level card. After 6 months to a year, and a few pay checks, you will be able to apply for better cards from capital one, etc. For bank account, I would recommend opening at Bank of America as they tend to approve easily for their customers and give higher balance on their credit cards.

1. It is hard to survive without a credit card ( for example try to rent a car with a debit card)
2. The exchange rate is negated by the fact that you are earning and paying in USD
3. You don't have to use the Canadian credit to keep it open.

[CherRy143 1]

Debit card is fine with most banks. Almost all banks in US issue VISA debit cards which works as debit card or VISA card. Not having credit card is not an issue in this case.

[Kat&Jon 85]

I would recommend keeping your account open. This way when you visit friends and family back home you can use that card just in case whatever credit card you do get has foreign exchange fees. I know from one of my recent trips to see Jon that those fees can add up fast so it will save you some cash.

The only thing I would recommend beforehand is calling your credit card company to see if they are able to accept payments from a US bank account. Not all credit card companies are able to accept payments in a foreign currency. If they aren't able to, keeping it open may be more difficult than its worth since there are a few US credit cards that do not have exchange fees.

Hope this helps!

[usabound12456 0]

Are you all positive that credit scores are not applicable cross border? I understand credit scores may be different in their methodology, but equifax and the like companies are present in both Canada and the USA.

Any evidence of this?

[CherRy143 1]

Are you all positive that credit scores are not applicable cross border? I understand credit scores may be different in their methodology, but equifax and the like companies are present in both Canada and the USA.

Any evidence of this?

http://www.experian.com/blogs/ask-experian/2010/10/27/canadian-credit-history-will-not-transfer-to-u-s/

[Kat&Jon 85]

I was just about to link the Fair Credit Reporting act but Chery beat me to the punch with a much more user friendly post!

The laws governing credit are different per country and the US has some of the strictest laws, so sadly no history from any other country will transfer to the US.

[Florida Bear 7]

Unless you're planning on moving back to Canada someday I don't see any reason to hold a Canadian credit card. Most banks here issue Visa debit cards which you can use to rent cars and do all of your shopping with, Also the majority of banks here don't charge monthly fees like Canadian banks do just to have an account. When I moved to Toronto last year I was floored at the prices banks charge and the weird transaction limitations they place. Down here I have Wells Fargo and have never had any issue with them at all. When you are building your credit here, it's also good to find a credit card with perks like the American Express Starwood card or something that gives you some sweet benefits for using it.

[Rob L 3,811]

I recommend that you hold onto your Canadian credit card until you have established American credit card.

[Lemonslice 4,840]

No negative in keeping it. Also, if you use Amex, global transfer makes it very very easy to get an American card (and you do not have to close your Canadian account either). I kept mines because American cards were not offering pin+chip until recently, which was a requirement for me.