Credit history

[llllary 0]

Hi guys.

I came to USA on my k1 visa and plan to get marry pretty soon.

Is it possible to get a credit for a cell phones with 2 years agreements /monthly pays (don't really know), for example.

Also, what do you think the best way to start a credit history is.

Thank you very much

[Ontarkie 14,346]

~~moved to Tax & Finances During US Immigration, from K1 P&P~~

Edited May 28, 2016 by Ontarkie

[JR loves JR 196]

We opened a joint account and got him a secure credit card with a $500 limit. He then made sure to pay it off entirely and on time every month. He also only used $200 or less of it per month. When we went back to see about a credit increase a year later his score went from zero to 715. Your credit score can't be built overnight but it actually isn't that difficult if you follow the guidelines on how to improve your credit score.

As for a monthly contract on phones, there are plans out there for people with bad credit but they're kind of expensive. I believe you can get a cosigner to get a better deal at some places.

Edited May 28, 2016 by JR loves JR

[WandY 430]

You need a Social Security number. Not all companies report to credit agencies. Make sure to ask if they report. Also, use auto-pay (your bill is automatically paid from a bank account). Auto-pay ensures that your bill is paid regularly and timely. Having a good credit score is not everything. You will need to have several accounts reported before the score means anything. Just having one credit card and a credit score is kind of meaningless when compared to an actual credit check. Build your credit slowly by living within your means, paying bills on time, keeping credit card accounts low and paid on a regular basis, and keeping steadily employed. A good employment history is worth a lot - it's a major part of a credit check. And don't forget to file and pay taxes.

[Jose&Jenna 0]

Payments on cell phone bills do not report to the credit bureau unless your account is delinquent. So that will not help you establish credit. As Jr Loves Jr mentioned the best way to establish credit is through a secured credit card (that will eventually convert to an unsecured card and reimburse your deposit). Look up online to see if there are any secured credit cards you can open before you have a social security number. It will depend on where you live. For us, in MN, we were unable to begin establishing credit for Jose until he has a SS#.

But once he did, and he opened a secured credit card with our bank and with Capital One, and he paid it in full every month, his credit jumped from 0 to 700 in 6 months. And we just were approved for a mortgage. So it can happen with some financial responsibility and time!

Good luck!

[luckykeys 2]

I have researched this topic extensively. You will need a social security number first. Without it, you will not be able to get credit. Period.

The fastest way to get a good credit rating is to start with a secured credit card. A secured credit card is one where you pay into a deposit account an amount of money. That amount of money is usually (not always) the same amount as your credit limit. Capital One Secured is the best bet because the total amount of your credit line is almost always larger than the amount you must put up for a deposit (i.e. you pay $49 into a deposit, you get a $200 credit line is typical

When you have the card, pay your bill on time and in full for the bets results. In other words, each month when they issue a credit card statement your balance should be zero. This means your "credit utilization" is low. Credit utilization is the amount you have actually used divided by the total amount of credit you have.If you *have* to have a balance on your card, strive to make it less than 30% of the card's credit limit or you will damage your credit score.

After a few months of regular and prompt payment, apply for a second card with a different credit card company. Same rules. Make regular on time payments.

When searching for cards, do online research first before applying. Each "hard inquiry" at the credit bureau nibbles away at your credit score - more than 3 in a a 6 month period often means automatic denial because it shows you are shopping for credit.

After you have three credit cards open, you should be able to apply for a personal loan, which will also build your credit score because it shows that you are responsible with credit with a different kind of credit (fixed loan as opposed to a revolving credit card like credit cards).

That's the down and dirty version. Building strong credit takes time, patience and paying off your card each month.

[mallafri76 1,012]

You need a SSN before you can do any of that. And when it comes to the phone, it might be easier to get a prepaid now in the beginning. A good credit score is everything in the US.

A few years ago, when I was still living in Sweden, I opened a bank account in the US and kept that minimum balance as to where you don't have to pay the monthly fee. I didn't know it at the time, but that bank account actually made me build some kind of report with my bank. Once I moved to the US and tried to get store cards, creditcard etc, I kept getting a no due to no credit score but my bank actually approved me for both a proper creditcard with a $1,000 AND and a pretty extensive autoloan. My bank said that although I didn't have a credit score, by keeping a high enough of money in my account so I didn't have to pay the monthly fee, it had actually showed them that I knew how to manage my money. So I suggest others to do that too. It definitely worked for me.

[kris&me 572]

you really don't need credit card to establish good credit

have your spouse add you to you to utility bills when you marry

after getting the SS card get on her banking statements and open a savings account

credit cards can hook you into high interest rates / if you don't know this system, be careful

why doesn't financee add you to their phone plan?

you two need to start establishing joint accounts for the AOS

[Dey & Edouard 0]

What about hospital bill? Can paying it monthly on time help with credit?

[rutabaga 209]

you really don't need credit card to establish good credit

have your spouse add you to you to utility bills when you marry

after getting the SS card get on her banking statements and open a savings account

credit cards can hook you into high interest rates / if you don't know this system, be careful

why doesn't financee add you to their phone plan?

you two need to start establishing joint accounts for the AOS

None of that will establish good credit, only loans will (and credit cards are a type of loan). You don't need to be hooked into anything to build credit with a credit card, heck, you don't even need to use one more than a couple of times a year (just to keep it open as some banks close down CC accounts for extended non-usage).

Edited May 28, 2016 by rutabaga

[rutabaga 209]

What about hospital bill? Can paying it monthly on time help with credit?

In general no as such a thing, like utilities, would only report if you were to become delinquent (not pay your bill for a while) which would negatively affect your credit (so in that sense it helps your credit to pay your bills on time since if you don't it starts to hurt your credit ).

[Amy_and_Victor 159]

I would recommend to build your credit history with small secured loan and/or secured credit card. When your credit will get to the average/good level you may be able to apply for a real credit card. Car loans, mortgage, student loans will help as well but of course I wouldn't take such big loans just for the credit score purpose. I started building my credit history with $500 secured loan and now, about 3 years later I have an excellent credit score and a handful of the best rated credit cards with nice benefits like 1.5 - 6.0% cashback. I know some people blame credit cards for screwing people but it's nothing about cards, it's only financial instrument, before you get one you need to understand how to use them responsibly. You wouldn't start a chainsaw without even reading the manual, right? And if you cut off your finger by ignoring safety rules you wouldn't blame chainsaw for doing it. Some people get their first credit card and treat it like a debit card until they get into financial troubles and start blaming "evil" credit cards and banks instead of blaming their lack of financial education.

you really don't need credit card to establish good credit
have your spouse add you to you to utility bills when you marry
after getting the SS card get on her banking statements and open a savings account

None of these things will help you with a credit score/history. Utility bills, savings and checking accounts, debit cards etc. do not even go to your credit report. Credit cards and loans will help the best way.

- Victor from Russia

[gryphon 20]

There are lots of good responses here, but I just wanted to chime in on the phone thing. Unless you just HAVE to have the latest Samsung or iPhone, you're usually better off with a prepaid like Virgin Mobile, Boost or any other pay-as-you-go. You can get a VERY good phone for $100 or less (as opposed to the $600+ for the latest and greatest), they usually have better prices, higher data caps (if any) and best of all, no contract.

I use Virgin Mobile (on the Sprint Network) and pay $40/mo (+taxes) for unlimited everything (talk, text, data) and International Texting. I just picked up a Motorola Moto G (3rd gen) for $100 and I love it.

[rutabaga 209]

There are lots of good responses here, but I just wanted to chime in on the phone thing. Unless you just HAVE to have the latest Samsung or iPhone, you're usually better off with a prepaid like Virgin Mobile, Boost or any other pay-as-you-go. You can get a VERY good phone for $100 or less (as opposed to the $600+ for the latest and greatest), they usually have better prices, higher data caps (if any) and best of all, no contract.

I use Virgin Mobile (on the Sprint Network) and pay $40/mo (+taxes) for unlimited everything (talk, text, data) and International Texting. I just picked up a Motorola Moto G (3rd gen) for $100 and I love it.

Agreed, we switched to Cricket from Verizon a couple of weeks ago and got a great deal on our phones since we ported our numbers (we got this phone for just the tax essentially so ~ $3 per phone since it was further discounted at the time, like the Samsung Galaxy Amp Prime is currently). We went with Cricket because they run on AT&T's network and AT&T has pretty much the best coverage in WV.

[Dey & Edouard 0]

Thank you all for much information.