Building credit with restricted SSN.

[Coleman21 6]

1 hour ago, NYCruiser said:

No you are incorrect. WITH a restricted SS number, we were told the bank would NOT give a loan for a car or other loans. I never said just having a SS number builds one's credit history. Kindly don't put words in my reply. We have had real world experience with this. 

Anyway, good luck to the ORIGINAL poster. I am bowing out of this discussion.

You probably experienced this because the bank did not know they could use your SS number. Not many people know about the restriction statement on SS cards. I was able to even get jobs with the restriction statement still on my SS card after I got my GC. I said to them this restriction statement is supposed to be removed but I haven't done that yet, and they were like, they didn't care.

[Suss&Camm 2,213]

12 minutes ago, Coleman21 said:

You can build credit with the restriction statement on the SS card by paying bills on time. You have to use your name on those bills, though, not like your spouse's name. Credit karma may not recognize you if you recently changed your name or your SS number has not been used much. (like tax returns)

Tax returns and paying bills on time (unless credit bills to companies that report) again have nothing to do with credit. As mentioned by many others, what you need to do is make sure the creditors are reporting to the credit bureaus and that you have a file with the major credit bureaus, Experian, Tansunion and Equifax. I have had several long conversations with departmens at all three bureaus and sent them copies of my information in order for a file to be created quicker and my information to be verified. It's not needed but I'm impatient.  

Quote

Just use your name and SS number on many things.

You will have to wait until your new GC comes in order to remove the restriction statement from the SS card; that's what I had to do. I tried with the expired green card and the extension letter, and I explained to the SS administration that with the extension letter, the expired GC is still valid, and I'm legal. But they told me to come back with a new card, and that's what I had to do. Once you get your new GC, it's very easy.

 

The employee at the SSO that you spoke to was completely wrong and should have accepted your extension. You could have pushed it to a supervisor and/or brought proof in writing but I understandnot wanting the hassle with it all.

Edited June 1, 2017 by Suss&Camm

[Suss&Camm 2,213]

3 minutes ago, Coleman21 said:

You probably experienced this because the bank did not know they could use your SS number. Not many people know about the restriction statement on SS cards. I was able to even get jobs with the restriction statement still on my SS card after I got my GC. I said to them this restriction statement is supposed to be removed but I haven't done that yet, and they were like, they didn't care.

Your Green Card is a "DHS authorization" so to say.. -it's valid for work always... so it makes the statement on the ssn card moot.

[arken 4,197]

10 hours ago, NYCruiser said:

Incorrect. Again, you must have a reading issue. I never blamed anything on anyone or anything. Get your facts right, or stop responding. The SS # was blocked and the bank was not able to enter it into their system. Citibank...they do know what they are doing. Same with the Home equity line of credit. After the SS number was updated with no restrictions, the credit rating showed 715 on Transunion and Experion.

Your "SS# was blocked" statement implies you know nothing about SS#. When a person with no knowledge of solar system looks at the sun from the earth, he will say the sun rotates around the earth.

I had car loans and few credit cards and credit score of over 750 for 5-6 years with what you call the restricted SS#.

[andy78 178]

14 hours ago, NYCruiser said:

Actually this is not correct. The card is restricted due to the fact this type of SS # is purposely restricted as there is a lot of fraud with students/J1 etc getting credit, car loans, etc in the past and skipping the country once they have finished their studies. So now, these restricted cards are not valid for much. You have to go to the SS Administration and tell them you are now a PR and they will send you a card within less than a week. 

 

Credit Karma will not recognise your restricted card either.

 

If you came in as a spouse of a USC, then get another card in your name under their account or a loan etc..y spouse has a credit rating of 731 using this method in 2 years (of course contingent on payment history)

 

The card is restricted only for employment purposes. You have to have "DHS Authorization" to work, such as a green card, H1B visa, F1 visa (to work on campus), etc. The restriction has nothing to do with credit or loans. Like I posted earlier, I have been using a restricted SSN for a dozen years until today. Credit cards, car loans, mortgage, all from multiple lenders... no issues. The restriction or lack of it does not determine your legal status. Your visa or your green card does, and that is what the lender will want to see if you are a foreign citizen applying for a mortgage, for example. They will want to see your green card. But the "DHS authorization" will have no impact in this situation.

 

[Hypnos 6,576]

18 minutes ago, NYCruiser said:

Since this is getting very negative, dont bother responding to my posts.

It's against the ToS of these forums to direct others not to post. 

 

Your incorrect information has already been debunked.

[Hurry&Wait 92]

22 hours ago, FROWNcat said:

Long story short, I've has my SSN for a little over 3 years now and forgot to get the VALID FOR WORK ONLY WITH DHS AUTHORIZATION removed and I am now trying to build credit. Will I need to go to my local SSN office or will it work anyhow? For some reason CreditKarma won't recognize my SSN and I was wondeing if that's the reason why.Weird thing is, my GC is expired but I have my extention letter which is valid until April 2018: can I use that as proof I am no longer on a visa?

I used to own a small real estate and mortgage company and found that some people struggled with building credit. From my experience, I suggest opening one installment loan and two revolving accounts. Not having an installment loan of some kind could hurt one in the future when trying to purchase an automobile or home. 

 

Regarding the revolving accounts, Capital One does have a great secured card! They will begin considering increasing one's credit limit after a short time (I believe 6 months). Then, a "Venture" card may be offered after about a year or so. This happened to a close friend of mine.

 

Most credit unions offer a secured installment loan against savings. The interest rate is much lower than a credit card and they offer interest on the savings component. Yes, one may pay about 5% of a deficit, but this may strengthen a credit file quickly. I suggest opening one with an 18 month to 36 month term. Please, do not pay this off before a year. Having made actual payments for over 12 months is much better than 11.

 

As others have posted, one's status should not influence credit-worthiness. It may impact auto and mortgage loans (a friend on an L-1 visa is experiencing this now). 

 

 

[Ontarkie 14,221]

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[Suss&Camm 2,213]

3 minutes ago, Thuy&Nathan said:

I used to own a small real estate and mortgage company and found that some people struggled with building credit. From my experience, I suggest opening one installment loan and two revolving accounts. Not having an installment loan of some kind could hurt one in the future when trying to purchase an automobile or home. 

Completely agree - Credit karma has a function where it gives you tips on each component of your credit and what is currently positively or negatively impacting your score - and tips how to improve it, such as having exactly what you say, different types of credits/loans

3 minutes ago, Thuy&Nathan said:

As others have posted, one's status should not influence credit-worthiness. It may impact auto and mortgage loans (a friend on an L-1 visa is experiencing this now). 

Right! but that is the status - not the notation on the SSN card (that was asked about in this thread). Some places are tougher than others regarding this as evidenced by experiences here on VJ. Hope your friend figures it out

[mamosc 7]

So much disinformation here.

Bills paid in time don't build credit

Secure credit card it is not your best way to build credit

credit card and SSN are not related in any way but to identify you correctly.

You don't have to have a credit line to build credit

If you want to boost or create your credit, be an Authorized User of the oldest card of your spouse or friend or whoever have trust in you

 

[FROWNcat 24]

13 hours ago, Coleman21 said:

You can build credit with the restriction statement on the SS card by paying bills on time. You have to use your name on those bills, though, not like your spouse's name. Credit karma may not recognize you if you recently changed your name or your SS number has not been used much. (like tax returns) Just use your name and SS number on many things.

You will have to wait until your new GC comes in order to remove the restriction statement from the SS card; that's what I had to do. I tried with the expired green card and the extension letter, and I explained to the SS administration that with the extension letter, the expired GC is still valid, and I'm legal. But they told me to come back with a new card, and that's what I had to do. Once you get your new GC, it's very easy.

 

I figured they wouldn't know what to do with my extension letter. They hardly knew if I could have a SSN with my K1 visa and almost didn't give me an ID with my EAD/AP card. Happy to hear I can apply for a card anyway.

After all these replies it looks like a secured one is my best bet. I tried applying with my bank for one but at this point I imagine I will be denied. I will wait until they contact me with an approval/ denial letter and then go with the secured one I can apply for online.

[Suss&Camm 2,213]

1 hour ago, mamosc said:

So much disinformation here.

Bills paid in time don't build credit

Secure credit card it is not your best way to build credit

credit card and SSN are not related in any way but to identify you correctly.

You don't have to have a credit line to build credit

If you want to boost or create your credit, be an Authorized User of the oldest card of your spouse or friend or whoever have trust in you

 

A secured credit card may not be the "best way", but for many new immigrants starting out it can initially be the only way to have your "own credit started. It helped me get a really good score quickly (in combination with being an authorized user). I think it's good advise for anyone starting out, re-building or new.

 

Being an authorized user is often also suggested here on VJ, I agree fully of the benefits - one needs however, to make sure that the creditor one is using reports authorized users. Most do for spouses and family members, but far from many do it for other relations, Cap1 is one example.

One also should really get ones own credit started, since if something unexpected happens to an account where you are authorized user - e.g. it's closed, you are removed (after a divorce or similar) - then all that account history will disappear from your credit.

[mamosc 7]

1 hour ago, Suss&Camm said:

 

Consider that 30% of the score is based on the utilization ratio line of credit/spending, another 30% is based of length of history and approx 10% mixed of inquiries & active accounts . So a secure card usually comes with a $500 CL. As a general rule a good utilization ratio is -10% which is $50 monthly spending. Now the Bureaus also consider how much is your spending, not only in terms of ratio. Length of history: in order to get a regular credit card with a decent CL you need to have at least 2+ years of history. So as long as the immigrant has the chance to be added as AU and apply for a regular card this is the way I suggest to do. Also keep in mind all the benefits that come with a regular CC (cashback, points, miles etc). The issuer don't really care what the relationship of the AU is with the primary. The AU is not responsible for that account.

So my suggestion is, whenever possible, being added as AU first thing, and apply for a personal cc after that.

If not possible at least trying to get a secured card with the highest CL possible

[mamosc 7]

2 hours ago, FROWNcat said:

After all these replies it looks like a secured one is my best bet. I tried applying with my bank for one but at this point I imagine I will be denied. I will wait until they contact me with an approval/ denial letter and then go with the secured one I can apply for online.

I strongly suggest you to contact the reconsideration line and ask why your application was submitted for reviews. Sometime you can be approved even after being rejected. Happened to me

Edited June 1, 2017 by mamosc

[Hopeful diva 99]

On 5/31/2017 at 11:33 AM, zilchfox said:

Hi OP,

 

Your restricted SSN has nothing to do with Credit Karma not being able to find you, it's entirely because you lack a credit history. Get a credit card first, and wait a couple of months and try CK again. I was in the same boat, however after around 2 months of having my credit card from Bank of America, CK found my credit profile despite at the time it being a restricted SSN showing "VALID FOR WORK ONLY WITH DHS AUTHORIZATION".

Good to hear