Questions regarding Credit Score and Credit Cards

[ch3john 308]

My wife is an authorized user on my AMEX account and builds credit from that. She is also an authorized user on a Chase account but doesn't build credit from that. 

So far, i've found AMEX is the only one that builds credit for the authorized user. They asked for SSN and sent a card with a different account number but it's tied to my main account. Super easy to add as an authorized user.

 

Click the link and scroll down to the question about being new to the US

https://www.americanexpress.com/us/content/financial-education/guide-to-credit.html

 

Edited June 25, 2017 by ch3john

[Jmc1 13]

Hello, I'm also impatiently waiting to build an excellent credit score in USA so I can benefit from similar awesome credit card perks I benefited from in UK. It's frustrating starting over, but on the plus side, once have a decent score I look forward to making most of a whole array of the perks offered to new customers, as I'd exhausted many in the UK.

 

As others have said, Bank of America offers a secured credit card, which attracts a small fee to open, but apparently after around four months I should get a FICO score. I use the Credit Karma app (free) to see how much score is doing, which was available pretty soon after opening my BoA credit card. I've been experimenting and seem to get a better score by using under 10% (so under $30 out of $300 which seems ridiculous to me but am keeping my eye on the end goal). Since the amount to spend is so crazy low I've also spent more on it and then paid part of it off before next score generated, which seems to have worked well for me so far.

 

Next I took out a Discover secured credit card, which lowered one of my scores by -16 points due to the hard credit inquiry, but that will give me some cash back points, which I wait for a better card and hopefully score will recover in time ok. I could choose how much to pre-pay on that secured card and can raise that level after first month apparently. Still need to keep this usage under 30%, ideally even less. But again, it's all about the end goal of building credit score, trying to now let it get me down having to pre-pay for these credit cards plus the BoA fees, as it's only a temp measure until get to enjoy the regular credit cards in a few months! But I am looking forward to using Discover to keep me sane whilst I wait and wait... Best of luck to you!

[quentin955 4]

I did not expect so many answers! 
Thank you everyone, this was very helpful.

I will read everything again with my wife when she comes back from work and we will see what we are going to do.
I guess I will get a secured credit card at first, and we will see what we can do about Amex. 

Thank you again!

[Sunnyland 639]

Do the gas stations credit cards help to build credit score?

[Bzlibem 111]

1 hour ago, Sunnyland said:

Do the gas stations credit cards help to build credit score?

Nope 

[ch3john 308]

1 hour ago, Sunnyland said:

Do the gas stations credit cards help to build credit score?

Yes, is it's a credit card and not a gift card. nearly all types of credit cards tied with a SSN are reported to credit agencies thus impacting your credit score

[Balamban 113]

So many opinions.  Do some research, it's available on the web.  Search for: "How to build and improve my fico or credit score."

 

1. Is there an easy way for me to build a credit score, or at least, what would be a good way to start?
2. If my wife sign up for the AMEX card and get a free second card for me, will it help and build my credit score as well?
3. My last question is: Is it necessary for me to have a credit score, since my wife has a good one? I mean, if we want a loan to buy a house later, will they only use her credit score, or mine as well?

 

Assuming your wife has a score ~780 (~720 to 780 makes a big d ifference, 780 is close to excellent, 720 is often a lower tier):

 

1) Yes.  Open a checking account; open a savings account; pick up a few "store" cards (JC Penney, etc. which are easy to get).   See if you can get the bank to loan you some $, even if it means you pay a high rate and buy something little, like a piece of furniture) (and never, ever miss a payment).  Which leads into #2:

 

2) Yes, if your wife puts you as a signor on her credit card much of her score absent any negative stuff will pop your score up.

 

3) It is necessary to have a good credit score, period!  Car insurance uses FICO credit scores and other credit scores. This means that my insurance for the same car may be $250 less a year than you would pay.  "Unfair," well fairness does not enter the machine's minde.  When you apply for a credit card the rate they give you often goes like this: "If approved you will be given a rate of 7.99%; 12.99% or 15.99% based upon your creditworthiness."   Twenty years ago it was not so important, today one must be absolutely squeaky clean.

 

If you can buy, for instance a refrigerator on credit then do so.  Never miss a payment, pay two weeks early, and pay more than minimum each time.  For instance:  Buy a $900 fridge, and pay $50/month for 24 months, your score goes up.  Buy a $900 fridge and pay $101.00 per month, your score goes up more than the prior method.  Buy a $900 fridge, make two $50 payments and then pay to zero: Surprise > Your score does NOT go up.  The machine wants consistency.

 

Credit scores are a mindless machine.   It looks at (not necessarily in order of importance)  1) Length of time you have had credit. 2) Length of time you have lived where you live.  3)  Job, what you earn, how long you have been with that company.  4) What credit you have and what percentage you use.  For instance you have 3 credit cards, each has $3,000, so you have $9,000.  If you pay off each month, dynamite.  If you owe on these cards $1000, excellent.  If you owe$2500, not so great.  If you owe $3001, your score drops!   Anything negative will wallop your score, though today late paid medical bills affect score less than say, a late payment on a car, but either will hurt you.

 

IMHO, Amex sucks because usually there is an annual fee.  I think Amex should be the last card you look at and then only looked at when your score is so good they offer you $250 (cash or perks) to join.  They are "cherry-picking," and my friend (due only to your short credit history) you are not a cherry.  (Or become an authorized user on your wife's card).

Edited June 25, 2017 by Balamban

[visaqueries 111]

When my husband arrived in May 2014, we added him as an authorized user to my Discover Card.  We thought having him get a secured card would be beneficial, so we began the process.  At almost the same time, we started researching which cards would allow you to add someone as a joint user.  Discover allowed that, so we filled out the paperwork, and Discover gladly added my husband as a joint user to my credit card.  We then cancelled the secured credit card application as we felt one card would be enough to start.  I've had the Discover card since 2002, so now when we review our credit, my husband has credit that dates back about 15 years (according to the reports we receive) :).  Along comes the need to purchase a second car in November 2014.  The dealership ran my information to determine eligibility, but they put both of our names on the title and loan.  After about a year, my husband applied and received his own Capital One card based on his own scores.  

 

Fast forward to April 2017...we found we needed to replace our first car.  Long story short, the lady at my credit union knew our credit story then chuckled as she saw my husband's credit score was actually higher than mine.  

 

If you wonder what was the process for such a good score for him, I can only speculate.  1.  We've always paid our balances off in full each month.  2.  We wanted to diversify his credit by having a few credit cards as well as taking out a car loan.  3.  When we decided to do some work on our house, we took out a 0% interest card in just my name.  We did this so he wouldn't have tons of new credit card accounts opening within a year or two of each other thus taking a toll on his newly established credit.  

 

You asked if it is necessary for you to have a good score.  I would say you should at least start building up your score and heading towards a great score.  You never know when you'll need to take out a loan based solely on your information.    

[Pat&Ana 14]

Just as an aside, you can add someone to an AMEX credit card (or two) without a SSN.  Though it's a requisite on the forms, just ask the customer service representative and they can get you the cards sent to your home address.

 

I needed to give my fiancee access to my Delta Plat & Reserve cards for travel and she wasn't in the US (and w/o a SSN).

 

Adding someone to a credit card, for a few months is indeed the fastest way to build credit. 

[Hopeful diva 99]

Does paying utilities and rent on time help to build credit? Or is credit building solely tied down to acquiring credit cards and loans? 

Also, if I paid off my credit card debt assuming I'm at a very low balance now/utilized 75% of my credit line, within how many days or weeks would it take for me to see a rise in my credit score? 

[visaqueries 111]

Out utilities don't factor into our score. We have a mortgage, so I'm not sure about rent.

 

[dhenz91 2]

I added my husband who doesn't have any credit history as an authorized user on 3 of my credit cards (given that i have a good record), the following months, he's been receiving lots of pre-approved credit cards with good perks. And when he got his own account, his score actually went up so fast, higher than mine. And I also added myself as authorized user on his credit card. 

[glmg21 330]

I am not sure this is of any help to those of you who have already moved to the United States, but Amex is one of the few credit card companies that operates globally, and as such offers you the ability to "transfer" your membership account from one country to another.

 

You can't transfer the card itself or any balances, but you keep your customer status and as such your payment history, membership rewards, and all the past good credit you (should) have built with Amex. They then let you apply for a new card in the US, but instead of looking at you as someone with zero credit history, they'll take into account your Amex history as a customer in another country, meaning you'll get approved.

 

This is how I did  it, and as well as the convenience you essentially get to benefit from two sign-up bonuses to the same membership rewards account!

 

More here: https://www.americanexpress.com/global-card-transfers/

 

[Suss&Camm 2,213]

21 hours ago, millefleur said:

2. If you're just an "authorized user" it will have no effect on your credit score.

 

21 hours ago, WandY said:

Being an authorized user has no bearing on the authorized users' credit or future extension of credit. It isn't reported. It just means that the cardholder is responsible for someone else. I'm against giving other people authorized use. It only extends risk, nothing else.

This is nonsense. Most creditors report SPOUSES (and even children) as authorized users. It is more a rule than an exception, but you do still need to call and make sure that the creditor you plan on using does report it since there are exceptions. It is a very common and effective way to start growing a new credit score from scratch. One should also open one's own line of credit to be sure of having a credit in case of divorce or death, as mentioned.

Edited June 26, 2017 by Suss&Camm

[Suss&Camm 2,213]

Utilities and rent normally don't report (again with some exceptions) to credit bureaus but there are services that you can purchase for around $10/month where a third party company will report it for you to. At current I've only seen it for TransUnion, so I doubt if it's yet worth it.

Edited June 26, 2017 by Suss&Camm