Getting Credit Stateside

[imported_n/a]

Hi Steve

I have only been stateside since October last year.... and yes, I love it out here.

Your money certainly goes so much further out here.

The people are friendly, and there are loads of brits working out here.... some of them are even doing it legally! lol

I work in the property sales area, and now really is a fantastic time to buy and rent.
I personally am buying another 2 homes for the rental market. But as with everything else in this country, people will try to wripp you off when they hear the british accent... so be careful with any investments out here. Shop around for everything. You can always get a deal if you work hard enough for one!!!!

[chrizzy100]

quote:Originally posted by neilandkay


Some tips from when we moved stateside.

If you can, open up a US bank account at least 6 months to a year in advance. Try to keep adding funds to the account to show activity. Citibank is a good one because you can get a UK citibank account based in London

Order an Amex in the UK if you don't already have one. Hopefully plenty of time in advance and use it responsibly. When you get to the USA you can call up Amex in the USA and tell them you have moved and they transfer everything.

MBNA Credit Cards over in the USA were the most helpful to us with setting up a credit card from scratch. You will need to show a few months of back credit statements to prove that you are credit worthy.

You will need a social security number to do almost anything over in the USA including taking your driving test.

Car Insurance was another problem area as generally your no-claims from the UK doesn't exist here. We found that Allstate were willing to accept our no-claims from the UK. This was very useful as car insurance is so expensive.

Good luck

--Kay

Just a quickie but I never needed a social security number to take my driving test....that maybe just for Mass......I only got a social security number with my greencard last year....
We got our house within days of living here....plus credit cards....I agree Citibank is the best one to start off with....

They'll not even make a phone call about your credit in the UK.....so have a years worth of every bill.....but it the end money talks....if you bring over enough money....there's nothing you can't get in the USA......

[esprit]

Credit cards are difficult on arrival we hear. Even with a SS number, most banks will only give you a secured credit card with a low credit limit. We have been with Bank of America seven years with two mortgages and a savings and a checking account and they said they would give us a credit card with - wait for it- a $500 credit limit on arrival. Wow!! The easist way to get a credit rating, we have been told, is back reporting. Someone who has paid a mortgage there does have a credit rating but it isnt attached to a SS number and that is what people search against. We have been told that as soon as we get SS numbers, we should contact our mortgage providers and ask them to back report the years of mortgage payments to the SS numbers and that should sort us out credit wise.
Deposits!! Yeh, just had to pay $250 on a cell phone. Its a hard haul.

[chrizzy100]

quote:Originally posted by esprit

Credit cards are difficult on arrival we hear. Even with a SS number, most banks will only give you a secured credit card with a low credit limit. We have been with Bank of America seven years with two mortgages and a savings and a checking account and they said they would give us a credit card with - wait for it- a $500 credit limit on arrival. Wow!! The easist way to get a credit rating, we have been told, is back reporting. Someone who has paid a mortgage there does have a credit rating but it isnt attached to a SS number and that is what people search against. We have been told that as soon as we get SS numbers, we should contact our mortgage providers and ask them to back report the years of mortgage payments to the SS numbers and that should sort us out credit wise.
Deposits!! Yeh, just had to pay $250 on a cell phone. Its a hard haul.

My hubby had a ss number......but not me or the kids....
MBNA....give us a few thousand limit....citibanks still our lowest limit.......but after doing your first tax return....they can't throw cards at you quick enough....

[SteveDonovan]

This was a very good posting that I found on another site. The guy who wroth this worked for Experian, the worldwidwide credit agency, so I think it is an informed resonse.


Some useful advice there from Ben, just wanted to add a few pointers.

Ben, secured credit cards do you no favors ( I worked with Experian for 4 years) it only shows the card issuer that you can pay on time so they may then offer you and unsecured card. Most credit decisions made by lenders disregard secured cards.
As far as lenders are concerned they see you have a vested interest in paying on time since the financial institution concerned hold $x of your money. Unsecured lending is at no "risk" to the consumer.
Again information provided to you from my experience at Experian.

I would suggest the following Kitten:

Open a store credit card, unless you have derogatory information on your credit file IN THE US you will be accepted by Macys/Sears etc (John Lewis/House of Fraser equivalents) as long as you have a check card (debit card) with your bank or a credit card with another US institution (which you wont have yet so use your bank card). They give you "Instant Credit" based on you showing them a card bearing the VISA/Mastercard logo. You will also need a drivers license (US). Myself and 9 of my Brit, no credit, Visa holding, co-workers did this and all of us got a card with $1000 limit.!

Unlike the UK, the US arent too concerned about your salary, marital status, length of time with bank etc (you wont often find these questions on credit apps).

Some other pointers: Dont apply for lots of credit, it looks like your financially desperate and lenders are wary of this, from my experience it seems lenders want people who dont "need" credit.

Your UK credit history will be disregarded by almost every single lender you go to - note I said almost NOT all. It is infuriating that global organizations like Experian and Equifax cannot share information in some universally recognised format. For every one that considers it 99 will not look at it.

Credit granters base lending on a combination of things - your ability to pay back on time, the amount of lending you have right now, in relation to you salary, and your outgoing vs income.
If you are paying out 90% of your salary in outgoings lenders look less favorably on you, if you have a US credit account that is maxed out - again they look less favorably on you because it looks like you need the money.

My advice in short:
1) Department store card, spend upto 60% of the limit and make minimum payments or more for 12 months.
2) Apply for a US credit card with Capital One or Providian Bank they are "sub-prime"lenders ie for no credit/bad credit consumers. Use this card in the same way NEVER MAX IT OUT.
3) If you need car finance go with a company that will "guarantee" finance (many non-franchise dealers do this on new or nearly new cars - look through the Auto Mart (its a freebie publication available at most supermarkets). The interest rates are higher but after a year or 18 months refinance the vehicle.
I bought a BMW 323 for $24k at 14% with 20% down and after 18 months I have now traded it in on a $37k one and got a 6% rate with 10% down. More reasonable again in a year or so I may qualify for a 0% or low APR. (I hope my example helps).
The combination of 2 credit cards with low credit limits and low balance to credit available ratios, and 1 major purchase (your car) will make you look ideal for anything else you want. In fact this is the type of consumer most lenders want (according to studies).
Finally dont worry about high APRs you will not qualify for the 0% or low APR loans, car loans, mortgages or credit cards yet, however a year or so with the higher ones and you will.

Good luck

[chrizzy100]

quote:Originally posted by SteveDonovan

This was a very good posting that I found on another site. The guy who wroth this worked for Experian, the worldwidwide credit agency, so I think it is an informed resonse.


Some useful advice there from Ben, just wanted to add a few pointers.

Ben, secured credit cards do you no favors ( I worked with Experian for 4 years) it only shows the card issuer that you can pay on time so they may then offer you and unsecured card. Most credit decisions made by lenders disregard secured cards.
As far as lenders are concerned they see you have a vested interest in paying on time since the financial institution concerned hold $x of your money. Unsecured lending is at no "risk" to the consumer.
Again information provided to you from my experience at Experian.

I would suggest the following Kitten:

Open a store credit card, unless you have derogatory information on your credit file IN THE US you will be accepted by Macys/Sears etc (John Lewis/House of Fraser equivalents) as long as you have a check card (debit card) with your bank or a credit card with another US institution (which you wont have yet so use your bank card). They give you "Instant Credit" based on you showing them a card bearing the VISA/Mastercard logo. You will also need a drivers license (US). Myself and 9 of my Brit, no credit, Visa holding, co-workers did this and all of us got a card with $1000 limit.!

Unlike the UK, the US arent too concerned about your salary, marital status, length of time with bank etc (you wont often find these questions on credit apps).

Some other pointers: Dont apply for lots of credit, it looks like your financially desperate and lenders are wary of this, from my experience it seems lenders want people who dont "need" credit.

Your UK credit history will be disregarded by almost every single lender you go to - note I said almost NOT all. It is infuriating that global organizations like Experian and Equifax cannot share information in some universally recognised format. For every one that considers it 99 will not look at it.

Credit granters base lending on a combination of things - your ability to pay back on time, the amount of lending you have right now, in relation to you salary, and your outgoing vs income.
If you are paying out 90% of your salary in outgoings lenders look less favorably on you, if you have a US credit account that is maxed out - again they look less favorably on you because it looks like you need the money.

My advice in short:
1) Department store card, spend upto 60% of the limit and make minimum payments or more for 12 months.
2) Apply for a US credit card with Capital One or Providian Bank they are "sub-prime"lenders ie for no credit/bad credit consumers. Use this card in the same way NEVER MAX IT OUT.
3) If you need car finance go with a company that will "guarantee" finance (many non-franchise dealers do this on new or nearly new cars - look through the Auto Mart (its a freebie publication available at most supermarkets). The interest rates are higher but after a year or 18 months refinance the vehicle.
I bought a BMW 323 for $24k at 14% with 20% down and after 18 months I have now traded it in on a $37k one and got a 6% rate with 10% down. More reasonable again in a year or so I may qualify for a 0% or low APR. (I hope my example helps).
The combination of 2 credit cards with low credit limits and low balance to credit available ratios, and 1 major purchase (your car) will make you look ideal for anything else you want. In fact this is the type of consumer most lenders want (according to studies).
Finally dont worry about high APRs you will not qualify for the 0% or low APR loans, car loans, mortgages or credit cards yet, however a year or so with the higher ones and you will.

Good luck

We have a lot of credit cards and pla