Obtaining credit statuts as a new arrival

[Bec_Dipu 103]

Slightly off subject, but I was worried about my fiance having to establish his credit history from scratch when he gets here. My internet research (so not 100% reliable) said that if I add him to some of my existing lines of credit, that history will become his history on his credit report. I've already picked out a few to add him to that will give a long history with excellent payments and low utilization...basically building him awesome credit.

Just one idea of how all of you new and soon-to-be new citizens can start off on the right foot.

If anyone knows this to be wrong, please respond so I don't enact a terrible plan

[mell8725 0]

Slightly off subject, but I was worried about my fiance having to establish his credit history from scratch when he gets here. My internet research (so not 100% reliable) said that if I add him to some of my existing lines of credit, that history will become his history on his credit report. I've already picked out a few to add him to that will give a long history with excellent payments and low utilization...basically building him awesome credit.

Just one idea of how all of you new and soon-to-be new citizens can start off on the right foot.

If anyone knows this to be wrong, please respond so I don't enact a terrible plan

U r right about adding him to your accounts, he will have great credit instantly so thats a really good idea....good luck to you guys!!

[N M 96]

I hear differing opinions about this. I've spoken to some staff at Experian who say it helps build a credit rating from scratch - and then others who say it makes no difference at all!

Another option (which definitely helps) is to import your own history. This only works if you have cards through companies with a global reach (AmEx etc). But if you have an AmEx card from your home country, you can transfer your history with them to the U.S., by replacing your existing (home card) with a U.S. one.

To do so, you need a U.S. social security number - so you have to wait until you actually get here to set the ball rolling.

[웃 910]

Slightly off subject, but I was worried about my fiance having to establish his credit history from scratch when he gets here. My internet research (so not 100% reliable) said that if I add him to some of my existing lines of credit, that history will become his history on his credit report. I've already picked out a few to add him to that will give a long history with excellent payments and low utilization...basically building him awesome credit.

Just one idea of how all of you new and soon-to-be new citizens can start off on the right foot.

If anyone knows this to be wrong, please respond so I don't enact a terrible plan

It will work and then the solicitations will be flowing in about once a week.

My wife mainly gets invitations from American Express...

[VanessaTony 3,567]

Bear in mind you would have to add him as JOINT, not as an authorised user. Also bear in mind you might need to pay because he doesn't have a good credit history OR you might need to start a whole new credit card (and will get different/bad interest rates because of his lack of credit).

For instance - my husband has exceptional credit. Because I have no history I wasn't permitted to be added even just to his phone contract without starting a whole new contract and running a credit check on me. Bearing in mind I have no credit so I doubt I'd be permitted without whatever penalty Verizon allows (maybe a down payment or something as security). My husband doesn't believe in credit card because he used to work for a credit card company (receiving calls, not cold-calling) and knows what trouble they cause.

In order to build my credit I considered a credit card but was told it would need to be one of the ones you pay money for first. So to get a $500 credit card I needed to pay a $500 retainer or something. I was also told opening a store account could help. And someone else suggested getting a small loan (couple of hundred dollars) and paying it back over a couple of months.

In the end we have a joint account, but not a joint credit card. In July 2010 (I arrived Sept 2009) I signed up for electricity on the house we wanted to buy (long story) and only gave my SSN. The woman on the phone said "okay looks good. No need for a deposit.". I wasn't even aware that a deposit MIGHT be required so I was very happy to hear none would be. I have no idea what my credit score is and I don't know how to check without paying in some way (like freecreditscore.com when we checked Tony's I had to CALL to cancel and i've hard even that didn't stop some people being charged).

Anyway. Good luck Let us know how it goes

[웃 910]

There are no requirements that I am aware of to add someone as an authorized user on a credit card. Matter of fact, you can add people that are <18 years old (see 3rd bullet point: give your TEENAGER a card).

It is quite possible that every credit card company is different but I added my wife as an authorized user over the phone and she picked up my credit history for that card. So she arrived January 2009 but all 3 credit bureaus showed her as having established credit since December 2007 when I opened the card. The card was a Merrill Lynch visa. About the same time we opened up a secured credit card (we paid $400 for a $400 limit)....a year later we closed the secured card and got our $400 back. Now she has good credit (715 middle score). Good enough to get a 30-year mortgage on $17,000 of income from working part-time at a minimum wage job.

It has been 2 years 2 months since Diana has arrived and here is her DEBT / CREDIT situation (all of the following are in her name only):

Chase Sapphire: $5,000 limit

Chase Freedom: $5,000 limit

AmEx Blue (no annual fee): $2500 limit

Bought a house for rental purposes with a 30-year mortgage: roughly $20,000

Authorized user on a Merrill Visa: $2500 limit

Bear in mind you would have to add him as JOINT, not as an authorised user. Also bear in mind you might need to pay because he doesn't have a good credit history OR you might need to start a whole new credit card (and will get different/bad interest rates because of his lack of credit).

For instance - my husband has exceptional credit. Because I have no history I wasn't permitted to be added even just to his phone contract without starting a whole new contract and running a credit check on me. Bearing in mind I have no credit so I doubt I'd be permitted without whatever penalty Verizon allows (maybe a down payment or something as security). My husband doesn't believe in credit card because he used to work for a credit card company (receiving calls, not cold-calling) and knows what trouble they cause.

In order to build my credit I considered a credit card but was told it would need to be one of the ones you pay money for first. So to get a $500 credit card I needed to pay a $500 retainer or something. I was also told opening a store account could help. And someone else suggested getting a small loan (couple of hundred dollars) and paying it back over a couple of months.

In the end we have a joint account, but not a joint credit card. In July 2010 (I arrived Sept 2009) I signed up for electricity on the house we wanted to buy (long story) and only gave my SSN. The woman on the phone said "okay looks good. No need for a deposit.". I wasn't even aware that a deposit MIGHT be required so I was very happy to hear none would be. I have no idea what my credit score is and I don't know how to check without paying in some way (like freecreditscore.com when we checked Tony's I had to CALL to cancel and i've hard even that didn't stop some people being charged).

Anyway. Good luck Let us know how it goes

Edited February 28, 2011 by Lord Infamous

[VanessaTony 3,567]

There are no requirements that I am aware of to add someone as an authorized user on a credit card. Matter of fact, you can add people that are <18 years old (see 3rd bullet point: give your TEENAGER a card).

It is quite possible that every credit card company is different but I added my wife as an authorized user over the phone and she picked up my credit history for that card. So she arrived January 2009 but all 3 credit bureaus showed her as having established credit since December 2007 when I opened the card. The card was a Merrill Lynch visa. About the same time we opened up a secured credit card (we paid $400 for a $400 limit)....a year later we closed the secured card and got our $400 back. Now she has good credit (715 middle score). Good enough to get a 30-year mortgage on $17,000 of income from working part-time at a minimum wage job.

It has been 2 years 2 months since Diana has arrived and here is her DEBT / CREDIT situation (all of the following are in her name only):

Chase Sapphire: $5,000 limit

Chase Freedom: $5,000 limit

AmEx Blue (no annual fee): $2500 limit

Bought a house for rental purposes with a 30-year mortgage: roughly $20,000

Authorized user on a Merrill Visa: $2500 limit

I never said anything about requirements for Authorised User. I specifically said JOINT card holder. Your wife was unlikely able to be added as joint with no history so she needed to be added as authorised to increase her history. As you said, there are no requirements for that (that I'm aware of).

Your wife has had credit history since 2007. I am curious though, did she had an SSN? You said she got a secured card around the same time. how do yuo know her history isn't due to that card, and not the "authorised user" of the other? If she had a good history then she wouldn't have needed it to be secured. The OP was asking about building credit score. I specifically mentioned a secure card as a good method of building her score.

Anyone can get a secured card, right off the boat so while I applaud your wifes good score now, I can't rely on the info you've given as gospel for WHY it is. I personally think the secured card is the reason, but without her own SSN I'm curious about how this is linked to her SSN (which is essentially her identity).

Anyway OP.. I googled "new immigrant, building credit" and there are lots of results. The secured card (if you can afford it) is one of the most recommended ways.

[VanessaTony 3,567]

It is quite possible that every credit card company is different but I added my wife as an authorized user over the phone and she picked up my credit history for that card. So she arrived January 2009 but all 3 credit bureaus showed her as having established credit since December 2007 when I opened the card. The card was a Merrill Lynch visa. About the same time we opened up a secured credit card (we paid $400 for a $400 limit)....a year later we closed the secured card and got our $400 back. Now she has good credit (715 middle score). Good enough to get a 30-year mortgage on $17,000 of income from working part-time at a minimum wage job.

FYI as well: http://www.credit.com/credit_information/credit_report/Consumer-Alert-FICO-Formula-Changes.jsp being an Authorised User does NOTHING to your credit score... not anymore. In fact it's been changed since September 2007 so it appears we have now clarified that adding her as an authorised user did nothing to improve her score, it was the secured card.. that is if she was a joint holder on that.

It's also important to note that it takes about a year for the good to come from those cards, you said you had it open a year. You also said her score is NOW 700+ and that she's been here for 2+ years.

Edited February 28, 2011 by Vanessa&Tony

[웃 910]

FYI as well: http://www.credit.co...ula-Changes.jsp being an Authorised User does NOTHING to your credit score... not anymore. In fact it's been changed since September 2007 so it appears we have now clarified that adding her as an authorised user did nothing to improve her score, it was the secured card.. that is if she was a joint holder on that.

It's also important to note that it takes about a year for the good to come from those cards, you said you had it open a year. You also said her score is NOW 700+ and that she's been here for 2+ years.

Not true. She arrived January 2009. She had ZERO CREDIT. No history. Nothing. Fresh off the boat. I checked my files and I added her in AUGUST 2009 to my Merrill Visa. I am not 100% but I am pretty sure she got her secured card around the same time (August 2009).

By late January 2010 she received an invitation from Chase Sapphire. I said what the heck and applied (her name only) and she was approved for 5 GRAND! I was shocked. So in less than 4 months she went from having 0 credit to being approved of a $5,000 credit limit (my first card was $300 and my second was $1000....3 of my credit cards to this day are less than $3,000 credit limit so I was blown away by the $5,000 limit)..

I checked her credit history and all 3 bureaus reported her as establishing credit and making ontime payments since 2007....So it had a DRAMATIC impact on her score/history in a very positive way. Length of credit is a huge factor in determining a credit score. Nobody wants to give someone credit if they only have a 3 or 4 month history. This made it look like she had 3 years of history.

The secured card with a $400 limit did have a positive impact but not even close to the impact of being added as an authorized user giving her 3 years of history immediately on a $2500 limit...

[slangofoil 50]

Bear in mind you would have to add him as JOINT, not as an authorised user. Also bear in mind you might need to pay because he doesn't have a good credit history OR you might need to start a whole new credit card (and will get different/bad interest rates because of his lack of credit).

For instance - my husband has exceptional credit. Because I have no history I wasn't permitted to be added even just to his phone contract without starting a whole new contract and running a credit check on me. Bearing in mind I have no credit so I doubt I'd be permitted without whatever penalty Verizon allows (maybe a down payment or something as security). My husband doesn't believe in credit card because he used to work for a credit card company (receiving calls, not cold-calling) and knows what trouble they cause.

In order to build my credit I considered a credit card but was told it would need to be one of the ones you pay money for first. So to get a $500 credit card I needed to pay a $500 retainer or something. I was also told opening a store account could help. And someone else suggested getting a small loan (couple of hundred dollars) and paying it back over a couple of months.

In the end we have a joint account, but not a joint credit card. In July 2010 (I arrived Sept 2009) I signed up for electricity on the house we wanted to buy (long story) and only gave my SSN. The woman on the phone said "okay looks good. No need for a deposit.". I wasn't even aware that a deposit MIGHT be required so I was very happy to hear none would be. I have no idea what my credit score is and I don't know how to check without paying in some way (like freecreditscore.com when we checked Tony's I had to CALL to cancel and i've hard even that didn't stop some people being charged).

Anyway. Good luck Let us know how it goes

Vanessa, you should only ever use www.AnnualCreditReport.com. That's the one you can use for free, once every twelve months to check your score. All of those other "free" sites are scams. I can't believe how many have popped up in recent years.

[VanessaTony 3,567]

Vanessa, you should only ever use www.AnnualCreditReport.com. That's the one you can use for free, once every twelve months to check your score. All of those other "free" sites are scams. I can't believe how many have popped up in recent years.

But it doesn't show your SCORE it shows your credit report/history. I know about that site. That's what I use. To get your score you have to pay a fee. the report is free though.

[slangofoil 50]

But it doesn't show your SCORE it shows your credit report/history. I know about that site. That's what I use. To get your score you have to pay a fee. the report is free though.

Oh yes, I know what you're talking about now. That is a bit of a pain. But I've never had a problem with using whatever "free" offer they provide and canceling it. Never been charged when I shouldn't have been. I think it's been nearly a year now since I checked my reports so I should do that....

[rheanick 42]

I never said anything about requirements for Authorised User. I specifically said JOINT card holder. Your wife was unlikely able to be added as joint with no history so she needed to be added as authorised to increase her history. As you said, there are no requirements for that (that I'm aware of).

Your wife has had credit history since 2007. I am curious though, did she had an SSN? You said she got a secured card around the same time. how do yuo know her history isn't due to that card, and not the "authorised user" of the other? If she had a good history then she wouldn't have needed it to be secured. The OP was asking about building credit score. I specifically mentioned a secure card as a good method of building her score.

Anyone can get a secured card, right off the boat so while I applaud your wifes good score now, I can't rely on the info you've given as gospel for WHY it is. I personally think the secured card is the reason, but without her own SSN I'm curious about how this is linked to her SSN (which is essentially her identity).

Anyway OP.. I googled "new immigrant, building credit" and there are lots of results. The secured card (if you can afford it) is one of the most recommended ways.

Vanessa,

I have the same story with Lord Infamous wife though my credit history goes back to 18 years though i only arrived last dec 2008. I was added as a joint card holder late of 2009 with my hubby's credit card account. 2010, i have been receiving credit card offer both personal and business. Few months ago, I applied for AMEX blue card and got a credit limit of $6500.

I dont really know how the system goes, but im showing 18 years of credit history. Same length of time my husband maintains his present credit card. Though my credit limit is nothing compare to his.

[웃 910]

Vanessa,

I have the same story with Lord Infamous wife though my credit history goes back to 18 years though i only arrived last dec 2008. I was added as a joint card holder late of 2009 with my hubby's credit card account. 2010, i have been receiving credit card offer both personal and business. Few months ago, I applied for AMEX blue card and got a credit limit of $6500.

I dont really know how the system goes, but im showing 18 years of credit history. Same length of time my husband maintains his present credit card. Though my credit limit is nothing compare to his.

Sounds about right. You got $6500 from AMEX blue because you are showing an 18 year history of paying on time payments....My wife applied to the same card and she was approved for $2500. I was hoping she would get a little bit more but that is ok.

If you are looking for a good card with a high limit then I recommend the Chase Freedom. They gave my wife $5,000 as basically her first card. In a couple months I'm gonna try to increase the limit and see what they say. They actually denied me a couple times but finally I applied again in January (either my 2nd or 3rd time applying over a 1 year time) and they gave me $7500 which is my highest limit by far.

But it doesn't show your SCORE it shows your credit report/history. I know about that site. That's what I use. To get your score you have to pay a fee. the report is free though.

Maybe 1 time a year I go to annualcreditreport.com and I pay the $6 for my score.