# How To Build Credit History?



## superlori (Apr 23, 2012)

Hi everyone,
So another thing that has dawned on me is our lack of credit history in the US. Other than a current account that has been kept open in the States for the last 13 years (and in the past ten years has never had much more of a balance than a couple hundred dollars) in which I have used to keep paying off my student loan, that is all the financial history I have. And that is assuming that paying my student loan even counts as credit history.

So buying a car, getting a rental property, getting a credit card - how will I begin to do this? Renting a property might be easy enough as we are moving to a college town (so lots of teen renters with no credit history!), but as for cars, credit cards? 

My plan is, if I can get a credit card with even a small limit on it, I can use it instead of cash for groceries, etc, and just pay it off each month - though I'm not keen on this as I *really* don't want to go down the debt line when we move - want this to be a fresh start! So I'm looking for advice from others who have been-there-done-that.

Cheers!
Lori


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## Bevdeforges (Nov 16, 2007)

Ask the bank where you've had your account for paying off your student loan about getting a credit card through them. Then, treat the credit card as a debit card for a while - pay it off each month without fail. 

And hit up that bank again for a car loan when you need one. If it's a small regional bank, you'll get much more flexibility, and you'll get credit for making those student loan payments as well as for keeping your account open all these years. If it's a big bank and they don't want to play ball, find a smaller regional bank, preferably one you have some sort of connection with - where your parents bank, sisters or brothers, any connection you have. Try a local credit union if you have one handy.
Cheers,
Bev


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## superlori (Apr 23, 2012)

Bevdeforges said:


> Ask the bank where you've had your account for paying off your student loan about getting a credit card through them. Then, treat the credit card as a debit card for a while - pay it off each month without fail.
> 
> And hit up that bank again for a car loan when you need one. If it's a small regional bank, you'll get much more flexibility, and you'll get credit for making those student loan payments as well as for keeping your account open all these years. If it's a big bank and they don't want to play ball, find a smaller regional bank, preferably one you have some sort of connection with - where your parents bank, sisters or brothers, any connection you have. Try a local credit union if you have one handy.
> Cheers,
> Bev


Thanks. It is a small(ish) regional bank so they might be all right. Is it easier to get car loans from banks if perhaps you have a co-signer (ie, my mom or someone)?

Also wish I could get a credit report, as once or twice in the past ten years I've had a 'returned item fee' when money has been debited from the account when it wasn't supposed to (or if I didn't get UK money transferred in time) but it seems I need a US address to use these free credit report websites.


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## Bevdeforges (Nov 16, 2007)

A co-signer will certainly help - but first see if you can get the bank to lend you the money without one.
Cheers,
Bev


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## twostep (Apr 3, 2008)

To get a free report the denial has to be recent. No you cannot pull anything with a non-US IP. 
You will probably have to start out with a secured credit card. The issuing entity holds the amount of funds you have access to.
Using credit cards does not mean debt. The user determins what to do with the balance. I see it as free money for up to 60 days; have not paid interest/fees in 25 years but used very perk possible from cash back to gift cards with additional funds not to mention assistance with vendors not providing services/merchandise as agreed upon.


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