Just moved to US: How can I build up credit from scratch?

[StageLeft]

Currently things I'm paying for:
- apartment
- power bill
- cable bill
- renting furniture from Cort

Do any of these contribute to credit? I have already been cleared for a couple of new car purchases (because they count their rebates as a down payment so it helps) since the dealers were able to get my canadian credit rating, but for things like cell phone and more trivial issues I have absolutely zero credit here - and I have no intentions of building it up by getting suckered into a 15.4% interest rate on a new cavalier, so I will not be buying a new car.

What are some reasonable ways to build up my credit? Ideally I'd like a credit card based out of the US but I highly doubt my bank will give me one - or anybody will for that matter since my SSN is only about 8 days old!

 

[MomAndSkoorbaby]

You can build up credit by coming home to MrsSkoorb

 

[StageLeft]

 

[RaoulDuke]

get a debit card from your bank and it will act as a credit card, of course you won't get any credit ratings. I would assume everything on that list would attribute to your credit. maybe i'm wrong.

 

[Shy]

<< You can build up credit by coming home to MrsSkoorb >>



Ouch. Harsh.

-Shy the Mononucleus

 

[StageLeft]

Yeah I already have one of those cards from my bank. I have a credit card based out of Canada that I use and my CAN credit is very good but a US one would help credit down here!

 

[Viper GTS]

Get a secured credit card. Granted, it won't be for much ($500 probably), but it's better than nothing. That will allow you to start building credit immediately.

Also, maybe there's some way the credit bureaus that have both US and Canadian sides can transfer your credit history? Just a thought, but maybe there's a way.

Viper GTS

 

[MrBond]

Yeah, many credit card companies will give you a card if you agree to an annual fee. I got my first CC, paid $20 for an annual fee, and charged enough stuff on it to build up credit. Paid it right off when the bill came, and cut it up. Waited until time came to reapply, then I applied for a no annual fee card, then called the other company and cancled.

The renting of furniture should add to your report. Did they take a Social security number for you?

 

[kami]

Skoorb, how's the new job?

 

[Argo]

A way to build up credit is to get it. So you'll need at least a few credit accounts (car loan, furniture loan, credit cards). Once you get that, try not to touch your credit (don't apply for a new one) for at least a year. Pay all your bills on time and never go over the limit. In a couple of years you should have great credit history.


Basically all these things contributes to credit in positive way:

- Length
- Maximum credit line
- On time payments

These all are bad:

- Frequent enquires into your credit history
- Late payments
- Going over the limit


To sum up, while it's pretty easy to ruin your credit history, building it up takes time. So good luck, and btw, welcome to the US, I hope you like it here.

 

[StageLeft]

kami Only had a few days so far settling in. It looks promising but I'll know more in a week or two!

others

Well the problem is I'm not renting to own or anything like that. I will probably be getting a junky car in the near future from some half assed used place and that should hopefully contribute...paying an annual fee for a credit card is probably a good idea - are there any companies that give out CC's quite easily under this scheme?

 

[Mday]

=(

 

[kranky]

Can you scratch up a few hundred? Take your paycheck stub to your bank and explain that you need a credit card and you'd like to get one through them. Reference your good history in Canada, show your stub and say that you understand that they might want to set up a secured card initially since you are new to the area. Say you can deposit some money to secure the card, and throw in some words about how you'd like to set up a good relationship with a bank there so you have a place to go for investments, savings, etc. since you don't have time to research all the different banks and stockbrokers in the area. That ought to make their eyes light up.

Don't talk to a teller, walk up to one of the people sitting at a desk who isn't busy and ask them who you can talk to concerning setting up additional accounts. You don't have to say &quot;credit card&quot; until you're sitting down with someone. Your chances will be improved if you are with a smaller bank. If you are dealing with MegaGlobalBankCorpInc, they might not care. Smaller banks are much better for getting some leeway.

 

[StageLeft]

Not a bad idea - I had a major problem earlier in the week with the bank that I am now using. Anyway they got it all sorted out and it was with the same guy who set up the account a few days earlier so he knows me by name. I just may go in and do that...I'm not really opposed to securing $500 into it if I know it will aid my credit.

 

[bozo1]

Skoorb - you may not need to go the secured creditcard route. Many credit card companies offer unsecured credit cards (small limit of course) to people with no credit or even bad credit if the bad stuff is over a year old. You will pay a higher interest rate (19% or higher) and they charge an annual fee of $50+, but you can probably get them.

Capital One is one of the largest that do this and is respectable.
Cross Country Bank does nothing but issue cards to people with less than stellar credit, but their fees can be high.

Good luck!

BTW, none of the stuff you listed above is reported to credit bureaus unless you default on them.

 

[MomAndSkoorbaby]

Hi Skoorb, get some credit so that when I move down we can get some wheels!

 

[divinemartyr]

<< are there any companies that give out CC's quite easily under this scheme? >>



I had good luck getting a card through Aria as no one else would give me one. Once I had it for a few months I applied for a card with Citibank and got a Platinum card with a really nice limit, no annual fee, and cash back based on purchases.

dm

 

[RossMAN]

Get a secured credit card. Granted, it won't be for much ($500 probably), but it's better than nothing. That will allow you to start building credit immediately.

You stole the words right out of my mouth, this usually has like a 99% guaranteed success rate. Yes it's not a lot of money but it opens the door to establishing credit.

 

[The Stigenator]

skoorb, first congrats on the job.

Your power bill, cable bill and furniture thing will provide an indirect link to your credit history. However to get started you can do a few things.

1. Get a gas card (from some gas station) they always give it to you. This will get you started
2. if your getting a cellphone, well there is another place where you can build credit history.
3. Apply for a card at capital one and see where it gets you.


Hope this helps.

TGG

 

[Scrapster]

Hi Skoorb, get some credit so that when I move down we can get some wheels!

Chicks...All they've got is cars on their mind.

 

[Murpheeee]

Went through the same thing when I moved to the US a few years back.
I could get a car loan and mortgage but could not get a credit card to save my life. (the car &amp; house they can take away if you don't pay, credit cards are unsecured loans)

I finally got a credit card from Capital One, had a $30 annual fee and the interest was horrific - 21.9% - but I made sure I carried as little a balance as possible.

Finally...after 2 years (almost to the day) I started receiving a flood of offers for good credit cards with low rates and no fees....and getting approved. During this 2 years I had always been working and paying bills and loans....I am guessuing it is something to do with having your SS# for 2 years.

Oh...one other thing....the more CC's you apply for, counts against you too. They will use that as an additional reason to reject you...I guess if you look desperate they worry.

Good Luck

 

[StageLeft]

Good ideas; I'm gonna check into these.

I don't know if its different in the US but I recently got a credit report from Canada. All it had on it was my student line of credit and my credit card. it said how long I'd had each, my current balance, minimum monthly payments, and how many months I'd paid on time or paid late - unfortunately there was nothing at all about rent or power or anything else. I guess this is what bozo1 and goodguy are talking about - I'll see if I can score one of these credit cards though!

murphee The guy I know who moved here before me said he had similar problems and started getting pre-approved cards 8-12 months after getting here. He managed to borrow $2500 for a car and just this year (he moved to the US in May/00) got approved for a mortgage. Pretty funny how you can get a car and a house worth $200k but you can't get somebody to lend you $500 on a damn card

 

[RossMAN]

Oh...one other thing....the more CC's you apply for, counts against you too. They will use that as an additional reason to reject you...I guess if you look desperate they worry.

Very true and this is something most people ignore. They assume applying 20 times versus 2 times has no impact on their credit rating, WRONG! If you know you're going to be declined for a home mortage or car loan or credit card then don't apply. Everytime you apply for credit online, over the phone, via mail or in person that's strike one against your credit. A lot of inquiries is not a good thing.

If you want further proof that applying for a zillion different credit cards isn't a good thing then read this.

 

[Emulex]

macy's card. easiest card to get in the world. The federated department stores will give you one if you have a phone in your name and stuff.

www.capitalone.com ($99 deposit) secured card, $500 limit, they'll give them to ANYONE.

You need one card to begin with, both of those will suffice. In less than 12 months you'll be carrying platinum..

 

[RossMAN]

www.capitalone.com ($99 deposit) secured card, $500 limit, they'll give them to ANYONE.

There's other companies who will issue credit to ANYONE and they also charge a fee (much less than $99 usually $59) but:

1) When you apply for your next &quot;real&quot; credit card, trust me the loan officers will see that you have a high risk credit card (The Associates, Household Finance/Beneficial, American General Finance, CapitalOne, etc.). They'll get a good chuckle out of this and it might effect their decision and how much credit they grant you. If I had to choose between someone who had a home mortgage with a reputable lender like Bank of America or a fly by night like The Money Store I'd choose the former.

2) Why pay a $59 or $99 application fee, $39 annual fee and sky high interest rates when you can be approved for a normal credit card. All you have to do is save up $500 or more, open a savings account or invest it into a CD then use that as collateral. You're almost guaranteed to be approved and your application fee is $0 ZERO, your annual fee is $0 ZERO and your interest rates will be normal instead of 33%.

3) Compare different credit card companies and read reviews at Gomez.com