Building Credit

[Messybrownhair 251]

Would like to ask what is the best way to go about building my credit? I already have my GC and SSN, I am part of a joint bank account, and I will have three household bills in my name starting August. I have been receiving letters from Capitol One and other banks to open a credit card, just not sure which I should get because I am not familiar with the lingo and how to build credit in general. Besides, we have a debit card which we usually prefer to use, so I wouldn't know what to pay for with a credit card anyway? Can someone just guide me in the right direction? My hubby doesn't have a credit card either, just debit, should we get a joint credit account or should I get one separately? Just lost and confused in this matter, any advice would help!

[Messybrownhair 251]

Also, what about walmart credit card? Or since im going back to school, should I get those cards offered to students?

[liz16 0]

My cousin wanted to build her credit, so she started getting victoria's secret credit card, macy's, etc. i think as long as it's "credit" card and you pay them regularly... that's just my opinion.

[Adil & Jeanne 296]

Be careful of to many credit cards. One really is enough and to use it for emergiencies. A good checking account balance, paying bills on time, and saving is the best way to insure good credit. Getting into debt with credit cards is very foolish.

[Glyn and Kathy 288]

Be very careful of credit cards...its so easy to over spend. I would suggest a store credit card to start with...i.e. Macy's, Kohls. Pay it ON TIME, ALL THE TIME. And always try to pay more than the minimum due. Rule of thumb, if you can't afford to buy it in cash...DON'T BUY IT.

[Messybrownhair 251]

That's not a prob, hubby and I are excellent in budgeting money.. he has excellent credit, I have zero. Just wanna get working on it

[Aztec&Taino 144]

Would like to ask what is the best way to go about building my credit? I already have my GC and SSN, I am part of a joint bank account, and I will have three household bills in my name starting August. I have been receiving letters from Capitol One and other banks to open a credit card, just not sure which I should get because I am not familiar with the lingo and how to build credit in general. Besides, we have a debit card which we usually prefer to use, so I wouldn't know what to pay for with a credit card anyway? Can someone just guide me in the right direction? My hubby doesn't have a credit card either, just debit, should we get a joint credit account or should I get one separately? Just lost and confused in this matter, any advice would help!

MessyBrownHair,

As an immigrant myself, I have some experience on building credit. It can be difficult to find a credit card that will approve you without a credit history. So, you can start with store credit cards (Macys, Sears, Target, etc.) or you can also consider obtaining a "secure" credit card (you deposit a certain amount of money with the company as a collateral or insurance to your debt). There are also credit cards that can be obtained without the need for a deposit. I would suggest you try to start with one of the latter, if possible.

Other VJ members have been succesful obtaining the Capital One card that is specially designed for new immigrants. I would suggest that you obtain a credit card on your name and use it wisely. I actually pay everything by credit card. By doing this, I have built a credit history. I pay off my credit card balance every month so I pay no interest or fees whatsoever and I actually get rewards for my credit card use! Again, the key is self-control and responsibility. Make your payments on time and in full if you do not wish to be charged interest. Your credit history will begin to be built as you use your credit. Little by little your credit score will improve and you will be more easily approved for more credit. It is a process that takes time and intelligent budgeting and self-control as I have already mentioned. Do not fear credit cards (as so many people do), simply understand their use and potential problems.

Best wishes!

[Maxximus1074 14]

If you really would want to have a credit card to establish credit I would recommend to get a low limit one from Capitol one.

They have cards (my ex used to have one) that let you spent only up to a small amount (in my ex's case $250) which is easy to pay off

and so have credit activity. That way you don't accumulate a big load of debt with interest, fees etc. - as I read on some consumer complaint

boards regarding store credits such as those from Old Navy, especially if you would apply for several of them. If they qualify you (I remember I didn't with no

credit history)

With those at school I'd be very careful, too - the banks soliciting campuses are very eager to get you and your money and probably will do anything sound

good and like you said, without the knowledge you may sign up for something you later on will regret.

Lastly, there is what's called secured credit cards - you basically pay yourself back - the bank will issue a credit card after you make a deposit and that is also your spending limit. You have to pay monthly as with every credit card.

You being on household bills already helps, and a joint account is also very good.

Maxximus

[mrsfrisbey 6]

Hey MBH, try capitol one, i applied and got approved.

[VanessaTony 3,567]

Would like to ask what is the best way to go about building my credit? I already have my GC and SSN, I am part of a joint bank account, and I will have three household bills in my name starting August. I have been receiving letters from Capitol One and other banks to open a credit card, just not sure which I should get because I am not familiar with the lingo and how to build credit in general. Besides, we have a debit card which we usually prefer to use, so I wouldn't know what to pay for with a credit card anyway? Can someone just guide me in the right direction? My hubby doesn't have a credit card either, just debit, should we get a joint credit account or should I get one separately? Just lost and confused in this matter, any advice would help!

I've been in the US since Sept 2009 and still have ZERO credit history. I tried a Kohl's card and was declined because of no credit history. I have the electric bill in my name, still no history. I'm on my husbands accounts but he doesn't believe in credit cards because he used to work with a bank and saw what it did to people and families. I tried a capital one credit card but will have to do a secured one thanks to no credit history. Ugh. Pain in the butt!

[Messybrownhair 251]

I've been in the US since Sept 2009 and still have ZERO credit history. I tried a Kohl's card and was declined because of no credit history. I have the electric bill in my name, still no history. I'm on my husbands accounts but he doesn't believe in credit cards because he used to work with a bank and saw what it did to people and families. I tried a capital one credit card but will have to do a secured one thanks to no credit history. Ugh. Pain in the butt!

My hubby is the same! He doesn't believe in credit cards too, and he doesn't know why I want one.. lol.. I don't even know why I want one but I feel like maybe it's something I need to do??? I mean just to build credit.. Might be useful someday..

[NASN 1]

Think about it first before applying for one, everytime you apply, they check your credit, and everytime they do points get taken off from your credit. Don't get a credit card with an annual fee, just wait for a good credit card offer (no annual fee, low interest rate and maybe rewards). I suggest starting with a store credit card, but make sure it's a store that you shop quite often from. When you have the card, don't spend more that 30% of your credit limit, this will help build credit, never make a late payment because this will really hurt your credit. I did start with Banana Republic CC, they gave me $400 limit at first that I can only use at Old Navy, Gap, & Banana Republic, after a few months they upgraded me to a Banana Republic Visa & gave me a $4000 limit which I can use anywhere that accepts Visa.

[prep.mac 7]

Hi Messybrownhair:

Same predicament here..lol!

I did some research on how we (new immigrants) can build credit here. There are 3 ways:

1. Apply for a secured credit card as suggested by Maxximus..

2. Try Capital One. They actually target our group.. They have reasonable rates. Also, some VJers got approved and that sounded encouraging.

2. Try to get a regular credit card (I got a fIlipina/accountant friend in Cali who got hers from Bank of America without a credit history...it's a funny story and she was lucky! She was initially denied but she asked to speak to the Manager. She asked them why she was denied. Obviously, no credit is the reply. So she gave it back to them.."tell me how I can build a credit here if no one will give me a credit card?" The Manager approved it!)...who knows?!

3. "Piggy backing" - find someone willing to make you an extension of their credit card..someone with a good credit history, of course, who can trust you and you can trust in return. I forgot how this can be the "fastest" way for you to build your credit but it was considered to be the fastest one. I got my aunt to do this for me once I get my SSN.

Also, I would be wary on applying for credit cards offered in schools and even shopping cards (Macy's, Target, Walmart, etc)..if ever I'll get just one just to help with the credit building.

I am very pragmatic and disciplined when it comes to spending.

Appreciate all the inputs of the other VJers here...means much!

Happy July 4th, everyone!

prep.mac

My Timeline:

10/2009 - met online

11/2010 - came here on B1/B2 visa

12/2010 - first meeting in person in Chicago, IL

03/2011 - moved in with him in IN

4/25/11 - got married in Mitchell, IN

5/02/11 - sent AOS packet (I-130/I-485/I-765) to Chicago Lockbox

5/04/11 - AOS packet received by Chicago Lockbox

5/23/11 - Received NOA for RFE (I-693)

5/27/11 - Sent RFE to DHS Lee's Summit, MO

6/02/11 - DHS Lee's Summit received REF reply

6/06/11 - Biometrics done at Louisville, KY as per NOA schedule

6/24/11 - Received NOA for July 25 interview in Indianapolis, IN

6/30/11 – Received text and email messages EAD card on production

I-130 Petition for a Minor Child of USC

6/25/11 - Sent I-130 packet for stepchild

6/27/11 – USCIS receipt date

6/28/11 - Received text and email messages stating USCIS received it and moved case to CSC for processing

7/01/11 - Touched

7/02/11 – Received NOA1

[VanessaTony 3,567]

Also, just applied for the secured card. Approved with no issue. Paid the $49 refundable security deposit, should get the card in 3 weeks, $200 limit.

I found this interesting: http://financialplan.about.com/od/creditdebtmanagement/a/creditscore.htm think its gunna take me a while... at least i'm married to someone who can financially support us with a fabulous credit score right? otherwise I would be screwed :S Its one of the things I actually think they should make easier on us.. the rest I can deal with but a credit score is so important I think more education about it should be done.

[VanessaTony 3,567]

Think about it first before applying for one, everytime you apply, they check your credit, and everytime they do points get taken off from your credit. Don't get a credit card with an annual fee, just wait for a good credit card offer (no annual fee, low interest rate and maybe rewards). I suggest starting with a store credit card, but make sure it's a store that you shop quite often from. When you have the card, don't spend more that 30% of your credit limit, this will help build credit, never make a late payment because this will really hurt your credit. I did start with Banana Republic CC, they gave me $400 limit at first that I can only use at Old Navy, Gap, & Banana Republic, after a few months they upgraded me to a Banana Republic Visa & gave me a $4000 limit which I can use anywhere that accepts Visa.

I agree it WOULD be an issue but as I have no credit history, I have no points... so what "points" can they take from me? You can't get store cards without a history.. or at least I couldn't by myself so a secured card it is.

My hubby is the same! He doesn't believe in credit cards too, and he doesn't know why I want one.. lol.. I don't even know why I want one but I feel like maybe it's something I need to do??? I mean just to build credit.. Might be useful someday..

Tony's at work so i just texted him (literally after I posted that first comment) to tell him that i already applied for one. We've discussed it before but I just went ahead and did it because I NEED to start building a history... So yes I agree, I don't really need one except to start building credit.. which is REALLY important here so a $200 limit one is good for me!