Building up a US credit history

[anonymous-user]

My wife and I are moving to Orlando in 3 weeks for her job. She has the l1 visa and I'm on the l2. The visas are valid for three years but if we like it we may try and stay longer.

Because we are new in the USA we have no credit history (we will have a SSN soon). We are leasing a car through international autosource but that's very expensive.

What is the best way to build up my credit history?

Would I be able to build it up enough to get finance or a loan for a car in say 6-12 months.

Thanks

[Trev450]

The advice I was given when I was considering living there was to purchase everything from gas to groceries on a credit card as this contributes to your credit rating. Not sure if this is still the case, but I'm sure someone will confirm whether or not it is.

[EK993]

Best thing I did was to take out an annual policy with Travelguard - they arranged an HSBC MasterCard for me prior to arriving in the US. They also arranged very reasonable auto insurance for me. You need to apply for the policy prior to leaving UK. See the link below, you want the inbound USA program.

http://www.travelguardworldwide.com/services/servi...

The other thing I did was to call Amex as I already had a card in the UK - they provided me with a US card immediately. Between that and the HSBC MasterCard I started to build a credit history.

[Matt Harper]

Who will you be banking with? Some banks are a lot more co-operative than others.
As already mentioned, do you have an AmEx card?
Are you renting your accommodation?
Do you have the necessary to utilize a secured credit card?

I'm an ex UK citizen and have lived in Orlando for the last 16 years - happy to help out with local knowledge and resources if you need it.

[geeman237]

I moved to the US in 2004. Bank of America gave me a $500 credit card limit and I opened a store card for some early purchases then closed them. Off it went from there. All seemed pretty painless.

[Dr Gitlin]

Depending where you are a credit union could be a better idea. FWIW I don't remember it being difficult to get a credit card when I moved here on a J-1 way back in 2002.

[Matt Harper]

Be mindful that a car lease can actually hurt your credit rating initially - takes longer than a conventional car loan to start having a positive effect. Make sure you are named as co-leasor, rather than spouse.

I agree with the good Doctor - A credit union may be more flexible than a bank - McCoy Federal is a good one in Orange County - Lake Mary is in Seminole - but close enough not to make much difference.

Your EAD will take up to 3 months to arrive and you'll need your SSN first - wait a week or so after arrival before heading to the utter hell that is the Social Security Office - it takes a few days for your details to be logged into their system, so if you go too early, they won't have a record of you - and you'll have to endure the whole nightmare all over again. Govt offices are shockingly awful due to the total disregard of your time and it's value, the sloth-like, mouth breathing Neanderthals that they employ and the teeming hoards of unruly great unwashed that they 'serve'.

I banked with Bank of America from day one - I travel a lot for work and they have branches and ATM's nation-wide. They are a bit faceless though. Unless you kick off with a large stack of cash (>$30k deposited). be prepared for a fairly hefty slew of routine bank charges - essentially there is a fee for pretty much everything you do with them.
Sun Trust Bank also have a pretty good reputation here.

For a secured CC, I'd go with BoA, personally.

What kind of work will you be looking to do?

L1/L2 visas are renewable - L1-A up to 7 yrs (renewed twice) and L1-B up to 5 yrs (renewed once). Is her employer open to sponsoring a permanent resident petition? If so, try to persuade them to get that rolling ASAP - it can take a loooong time to process (not cheap either).

Just shout out if I can be of assistance.

[5ohmustang]

I used a secured credit card. Pre pay X amount on the card. Only use 60% of the credit available, pay it all off each month. Doing that for a year, most banks will then move you onto a regular credit card.

[anonymous-user]

We have a relocation agent in the area who is there to help us. He has already warned us about then hell-hole that is the SSN office. We will be going there within the 1st week.

I work in the automotive bodyshop trade as a paint sprayer. I am bringing my tools with me but I'm also thinking about maybe finding another job. I have three months to think about it while my EAD is sorted. It's tricky as its too easy to stick with what you know.

What would be the pros/cons using a credit union instead of a bank?

Thanks again

[Matt Harper]

This is a pretty good explanation of bank vs Credit Union...
http://www.moneycrashers.com/why-credit-unions-are...

[jeff m2]

Assuming you have a bank account.
Go to one of the cust service people and say you would like a "pass book loan" 6 Month term.

This is a loan secured by a deposit. The amount doesn't need to be big. 500 - $1,000.
Basically, nothing much will change except they will put a hold for the amount on your account.
They will also give you the 500 or 1,000 in another account. They will set up a direct debit to pay off the loan.
At the conclusion of the loan (paid off). the 500 or 1K will be yours and the hold removed.

You now have a paid up loan on your credit history with no late payments.

Repeat.

[Harry-yh3q1]

interesting topic ...

I moved to Lake Mary from Surrey 2.5 years ago.
Leased a Mustang through international AutoSource.

My credit score is now in the highest category of Excellent.

I opened 2 accounts, a checking account and a savings account at SunTrust
I got 1 credit card from Capital one which i buy everything on, and then ensure i pay off straight away.
I rented an apartment for 2 years.
I am now looking to buy a new car and have bought a house...

Everyone gave good advice probably, but.. sounds over complicated and you don't have to do any of that ....

[Mansells Tash]

I'm wondering about all this at the moment, we're looking to relocate from the Middle East to the USA/Canada, it kind of hurts my head even thinking about it all, if only there was a way to transfer my banking history to the USA too,I've had huge loans and paid a couple of hundred grand off in rent over the last 6 and a bit years without a single blip on my banking history, but no, I'll have to start from zero.

[ReaperCushions]

Mansells Tash said:

I'm wondering about all this at the moment, we're looking to relocate from the Middle East to the USA/Canada, it kind of hurts my head even thinking about it all, if only there was a way to transfer my banking history to the USA too,I've had huge loans and paid a couple of hundred grand off in rent over the last 6 and a bit years without a single blip on my banking history, but no, I'll have to start from zero.

From my own experience it doesn't take that long, maybe 6 months to get a decent score as long as you use the card and pay it off. Credit card from your bank provider is the way to get started.

I use BofA and got a credit card approved the same day I opened the bank account, which was 2 days after entering the country on an L1 visa.

[mwyatt82]

I became a member of the AIG expat program and then got a card with advancial, a Texan credit union (I live in Wisconsin), they were very relaxed and gave me a credit card with a 5k limit. The other thing was opening an account with HSBC USA too, I opened a UK HSBC account 4 months before I moved to help expedite this process. My credit rating is now 750+ after 2 years here.

[off_again]

When the credit rating does improve, you can see the difference. Been here just over 2 years now and have a good rating. Suddenly I get 4-6 credit card offers per week and when my wife recently went to look at cars, she had some fantastic deals thrown at her. In the end got nearly 20% off a lease of the new Malibu! In stock, drive away there and then and fully loaded - all because of good credit.

On the other hand, she works with someone who has poor credit and recently got finance on a Kia at 13% APR!!!! Ouch. And that was the killer deal, everyone else either said no or wanted more.

[anonymous-user]

mwyatt82 said:

I became a member of the AIG expat program and then got a card with advancial, a Texan credit union (I live in Wisconsin), they were very relaxed and gave me a credit card with a 5k limit. The other thing was opening an account with HSBC USA too, I opened a UK HSBC account 4 months before I moved to help expedite this process. My credit rating is now 750+ after 2 years here.

Definatly helps being part of the AIG program. They have really helped us get a car lease/insurance and a credit card

[Matt Harper]

Mikes2k said:

We have a relocation agent in the area who is there to help us. He has already warned us about then hell-hole that is the SSN office. We will be going there within the 1st week.

I work in the automotive bodyshop trade as a paint sprayer. I am bringing my tools with me but I'm also thinking about maybe finding another job. I have three months to think about it while my EAD is sorted. It's tricky as its too easy to stick with what you know.

When you get settled - shoot me an private message - maybe I can give you your first job.
This needs a repaint....