Credit rating

[ian12312 0]

Hi,

I have been in the US for a couple of months now, have a job paying a high salary, SSN, bank account etc etc and just applied for a credit card...I was declined because i had no history...how do i get one if no one will give me any credit because i dont already have a credit history?

Any advice from anyone who has been through the same would be great!!

Thanks,

Ian

[bucknekkid 0]

Hi,

I have been in the US for a couple of months now, have a job paying a high salary, SSN, bank account etc etc and just applied for a credit card...I was declined because i had no history...how do i get one if no one will give me any credit because i dont already have a credit history?

Any advice from anyone who has been through the same would be great!!

Thanks,

Ian

I established credit quickly and easily by taking a bank loan out on some of my savings. It was a $300 loan payable at $50 or so a month. It is best to pay it off over the whole loan time in order to establish that you can and will make the payments on time....After that was paid, credit cards from the major department stores(Sears, JC Penny's etc) came easily. After paying on those for a while the major credit cards (Visa, Master Card, Amex, and Discover) came fast and furious...

Good luck!!!

[RaspberrySwirl 20]

Here's a good link: http://financialplan.about.com/cs/creditdebt/a/NoCredit.htm

Here's How to Establish Good Credit With or Without a Secured Credit

If you've never had credit in your own name, it can be difficult to get a car loan or credit card. Having no credit history can be as much of a problem as having a bad credit history. Students, other young peole, and newly divorced or widowed women who have always obtained credit jointly with their husbands often find themselves in this situation.

It seems like a vicious circle: you can't get credit because you've never had credit, but you've never had credit because you can't get credit. What's a person to do?

Don't despair. Here are a few tips to help you establish credit in your own name.

~ The best way to establish a credit history is to apply for a small loan or line of credit from your local bank or a credit card from a local department store. Ask whether they report to a credit bureau. If they don't, having the card or loan won't help you establish credit.

~ To get a credit card without a cosigner, you must be at least 18 years old and have a source of steady income. Gas cards are relatively easy to get. Apply for one and use it to establish credit, but pay it off every month to show that you can pay your bills responsibly.

~ If you can't get a small loan or gas or department credit card on your own, try to find someone to co-sign for you. Again, make payments regularly and on time.

~ Increase your chances of getting the loan you're applying for by coming up with a large down payment. If you don't have the cash, consider borrowing from a family member.

~ If you don't have a checking account, open one. You have very little credibility with lenders if you don't have at least a checking account and preferably a savings account as well.

~ Just as importantly, be sure not to overdraw your bank account. Bouncing checks sends a signal to potential lenders that you can't manage your daily finances and are therefore not a good credit risk.

~ Know what lenders and credit card issuers look for when issuing credit. There are other factors that affect credit approval besides just your payment history, such as how often you move and how often you change jobs. It also helps if you've had an apartment or utility in your own name. If you don't have a telephone number in your own name, you may find it more difficult to get credit.

~ If worse comes to worst, you may find it necessary to get a secured credit card. These cards require you to deposit money in an account to secure the loan or credit limit, and they often have fees and higher interest rates. If you default on your payments, the lender takes the money from your account. After a few months of making payments on time on the secured credit card, you may be able to obtain a regular credit card. Remember to make sure the company reports to a credit bureau before applying for a secured card, or the card won't help you establish a credit history.

Before you apply for a credit card or car loan, get your ducks all lined up. Think like a lender. Applying to a number of credit cards in a short period of time can decrease your chances of getting approved. Lenders see this activity on your credit report and steer clear because they think you're getting in over your head, so pick and choose carefully and have a plan of action.

Being rejected for credit can also look bad. Apply only to cards whose requirements you are likely to meet. Read the small print and call the company to make sure your income and other factors qualify you for the card. Just because you get an offer in the mail doesn't mean you qualify.

With careful planning and a little knowledge of how lenders issue credit, you CAN establish a credit history fairly painlessly. There are many businesses waiting in line to take advantage of you by charging exorbitant fees or interest rates, so be careful out there.

Edited April 11, 2006 by RaspberrySwirl

[cyph0r 0]

i remember when i first arrived having no credit that even a store card would decline me. I did get on my husband's credit cards and opened a joint checking and savings card. Also am on the lease of our apartment and the energy bill. And have gotten store cards without problems and have been receiving pre approved card sin the mail (though i don't want them ). it'll take time to build but as long as you pay your bills it will build up and soon you won't remember the time you had no credit

[Leafgal 3]

Geez, I never even thought of credit. I have credit cards from Canada, can I just change my mailing address and still retain them?

Leafgal

[CarolineM 0]

We went to the bank and asked about a secured credit card. That's where you put in like $300, and then you have a credit card with a $300 limit. It helps build credit.

Stewart somehow qualified for a partially secured card at Bank of America. We pay $99 and he has a $500 credit limit.

The post above is VERY good. It takes time!

[ChristinaM 0]

I piggy-backed off my husbands (excellent) credit by having cards on his accounts. I also have an active flow of money through both my personal and joint bank accounts and we have a good record as far as the credit we have goes. I found I have been able to get two store cards in my own name which I have paid off month by month and I'm just beginning to get junk mail about credit cards "proper". I've been married since June last year and working since October, so it did take a little time.

[Jaylen Brit 0]

Geez, I never even thought of credit. I have credit cards from Canada, can I just change my mailing address and still retain them?

Leafgal

Apparently you can do this with UK based credit cards - I have a goldcard that I really want to keep cos my SO doesn't have the world's best credit rating and doesn't use a CC himself. If thats the case I can't see WHY you couldn't do it with a Canadian based one - they will be able to tell you - call them and make a 'hypothetical enquiry'. You MAY need to retain a Cnadian based bank account as well - I don't know - I intend to keep my UK bank accounts in order to pay the UK credit card and take advantage of the exchange rate.

[canucker18 0]

I am from Canada too, and our credit rating doesn't come with us. It doesn't matter. I am paying off my credit card in Canada and it doesn't count. Good times eh?

As far as I know changing your address won't do a thing because it's not an American institution that issued you the card.

I have my SSN and I am going to try and get a department store card next week. Keep your fingers crossed-momma needs to charge it! lol

[lbartl 0]

When I first came to the States on a H1B visa I couldn't get a Credit Card. I eventually got one from Capital One which had a credit limit of something like $300. I used this for a few months and before to long it was up to a couple of grand. I would recommend getting one ASAP as it is very important to start building a credit history.

[Sister Fracas 5]

Here's a good link: http://financialplan.about.com/cs/creditdebt/a/NoCredit.htm

Excellent info Swirly Girl!

Edited April 11, 2006 by Frances

[ktun 0]

It may be the easiest route to ask your own bank for a credit card from VISA or MASTERCARD. If they sponsor their own card(S). Also someone I know found it easier to first get an American Express Card.

Mr Ktun

[Mr&Mrs2859 0]

Geez, I never even thought of credit. I have credit cards from Canada, can I just change my mailing address and still retain them?

Leafgal

You can still keep your Canadian credit cards and just call them and let them know of your new address in the states. They love the fact that your spending money here and paying them for it Hubby just made phone calls to change the address and they didnt even ask if he had a canadian bank acct. Its very common because of the snowbird thing.

[roombarob 0]

It is frustrating. I earn decent money, have a green card, I am a cosigner on a car, pay rent, gas, eletric, cable etc all in my name and yet I cant even get a lowes card due to lack of revolving accounts!

I am with a smaller local bank, do you think that also effects credit building?

[Leafgal 3]

This is wonderful that I can just change the address so I can still retain them since my SO doesn't have a credit card either. I don't mind taking the time to establish the credit in the US but I don't want to be without one in the mean time. So great information from everyone, this was a great topic for sure.

Leafgal