# Credit Rating



## rattiegyal (Jun 22, 2010)

Once arriving in the US how easy is it to establish credit rating? Or do the banks use/access your credit rating you had in the UK? Just trying to see how easy it would be (once fully employed etc.) it is to get a mortgage, say.


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## USC (Jun 13, 2010)

rattiegyal said:


> Once arriving in the US how easy is it to establish credit rating? Or do the banks use/access your credit rating you had in the UK? Just trying to see how easy it would be (once fully employed etc.) it is to get a mortgage, say.


Your UK credit history generally won't transfer. However, if you bank at HSBC in the UK they are one of the few banks that will transfer your UK history and issue you a credit card on that basis. They also have a mortgage programs for expats and will even do a mortgage for those buying a second home even if they are on a VWP or B2.


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## Fatbrit (May 8, 2008)

rattiegyal said:


> Once arriving in the US how easy is it to establish credit rating? Or do the banks use/access your credit rating you had in the UK? Just trying to see how easy it would be (once fully employed etc.) it is to get a mortgage, say.


Your credit history does not transfer -- you start from scratch.

A mortgage will be difficult in the first couple of years.


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## twostep (Apr 3, 2008)

Start small. Get a secured credit card and use it. Use it! A couple of months later ask the same bank for an unsecured one. It is basically an anlysis of your outstandings versus your keeping your payment agreements.

If possible get a note from your automobile insurer about your driving and insurance history. Some underwriters consider this to a certain extend. Try not to go on line and pick auto insurance. Let an agent work for his money and your price.


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## USC (Jun 13, 2010)

USC said:


> Your UK credit history generally won't transfer. However, if you bank at HSBC in the UK they are one of the few banks that will transfer your UK history and issue you a credit card on that basis. They also have a mortgage programs for expats and will even do a mortgage for those buying a second home even if they are on a VWP or B2.


A clarification of my earlier post is in order. Your credit history with the bureaus (ie Experian, Equifax and Transunion) will NOT transfer from the UK to the USA. However, if you bank with HSBC and certain other banks (IIRC, also Citibank) they will transfer your credit history with them to their US operations. I am providing links for HSBC below as they provide the necessay information. 

Moving to the U.S.

This is what they offer (this is not just a mere claim by HSBC, about a month ago I helped a colleague on B2 visa with no Social Security number visa open a HSBC Visa credit card with a $18,000 limit. The card was appoved while she was in the branch and she received it in the mail about a week later):

"Checkbooks, bank cards, credit cards and PIN numbers within ten working days prior to moving to the US."

"HSBC credit card with similar limits to those you currently enjoy with HSBC in the your country (subject to status, US laws and terms and conditions)"

"Seamless transfer of your HSBC credit history"

With regards, to mortgage HSBC will lend you 60% without too much fuss provided you put down the other 40%. See link below:

Buying Property Overseas

Premier Mortgages and Loans

In order to avail of these services you have to sign up for Premier banking, HSBC charges $50 per month for this service but will waive the fee if you maintain a $100,000 balance across all accounts.


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## Ms B (May 9, 2008)

Fatbrit said:


> Your credit history does not transfer -- you start from scratch.
> 
> A mortgage will be difficult in the first couple of years.


My husband and I were approved for a mortgage last October having lived in the US since Jan 2009. The mortgage company were able to do an international credit check. It took time but it worked.


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## Fatbrit (May 8, 2008)

Ms B said:


> My husband and I were approved for a mortgage last October having lived in the US since Jan 2009. The mortgage company were able to do an international credit check. It took time but it worked.


Yep -- but how much did they require down, and how did your rate compare with that which someone with an A paper would get?


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## Ms B (May 9, 2008)

Fatbrit said:


> Yep -- but how much did they require down, and how did your rate compare with that which someone with an A paper would get?


The min they required we put down was no different to somebody with an American credit rating. The rate was also the same, I know that for sure. 

We did have to pay to get it done. I can't remember how much it was because the cost got swallowed up in all the other fees. But I would have remembered if they were asking for crazy money.


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## twostep (Apr 3, 2008)

Ms B said:


> The min they required we put down was no different to somebody with an American credit rating. The rate was also the same, I know that for sure.
> 
> We did have to pay to get it done. I can't remember how much it was because the cost got swallowed up in all the other fees. But I would have remembered if they were asking for crazy money.


There is no swallowed up cost - read your HUD1 and look for loan fee.


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## Fatbrit (May 8, 2008)

Ms B said:


> The min they required we put down was no different to somebody with an American credit rating. The rate was also the same, I know that for sure.
> 
> We did have to pay to get it done. I can't remember how much it was because the cost got swallowed up in all the other fees. But I would have remembered if they were asking for crazy money.


Difficult to say as we have no details. You would not qualify for an A-paper as your credit history was too short.

Rolling fees into your mortgage is common -- and pricey if you're paying interest on them for 30 years.

I like this site for a general explanation of US mortgages: mtgprofessor.com


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## Ms B (May 9, 2008)

I’m just trying to be helpful!!  

I could be wrong about the fees, I apologize if I am. I’m not claiming to be an expert, I’m just sharing my experience.

We got a mortgage based on our international credit rating, we didn’t have to put anything extra down and we weren’t charged a higher rate nor are we paying anything extra on a monthly basis. They ran a normal credit rating and then an international one, the only difference between the two was that the international one took longer and they required extra paper work (UK bank statements and wage slips).


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## USC (Jun 13, 2010)

Ms B said:


> I’m just trying to be helpful!!
> 
> I could be wrong about the fees, I apologize if I am. I’m not claiming to be an expert, I’m just sharing my experience.
> 
> We got a mortgage based on our international credit rating, we didn’t have to put anything extra down and we weren’t charged a higher rate nor are we paying anything extra on a monthly basis. They ran a normal credit rating and then an international one, the only difference between the two was that the international one took longer and they required extra paper work (UK bank statements and wage slips).


I think many readers will find your contribution useful and appreciate your sharing your experience.


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## twostep (Apr 3, 2008)

Ms B said:


> I’m just trying to be helpful!!
> 
> I could be wrong about the fees, I apologize if I am. I’m not claiming to be an expert, I’m just sharing my experience.
> 
> We got a mortgage based on our international credit rating, we didn’t have to put anything extra down and we weren’t charged a higher rate nor are we paying anything extra on a monthly basis. They ran a normal credit rating and then an international one, the only difference between the two was that the international one took longer and they required extra paper work (UK bank statements and wage slips).


There is no such thing as international credit rating when applying for owner occupied residential real estate loans in the US. Your US credit history was not established enough so previous work history in same field, .... was applied. This does take a few extra days and generally adds a few nicks to the rate. Underwriting is something the consumer hardly ever gets exposed to. 
If you can give details about this international credit rating - PLEASE share it as a number of folks would benefit from it.


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## Ms B (May 9, 2008)

I've looked through all my emails and they only references to it from our mortgage person are things like this:

_I'll follow up with you soon when we get word back on your international credit report. _

At the time I thought this was normal so I didn't ask for specifics.


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## twostep (Apr 3, 2008)

Ms B said:


> I've looked through all my emails and they only references to it from our mortgage person are things like this:
> 
> _I'll follow up with you soon when we get word back on your international credit report. _
> 
> At the time I thought this was normal so I didn't ask for specifics.


In all my years in banking I have never come across an international credit report. Verbiage can take on a life ot it's own sometimes. Would have been nice for a lot of folks were there such a reporting agency.


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## Fatbrit (May 8, 2008)

Ms B said:


> I’m just trying to be helpful!!


Help away!

Did you use a broker or a bank?
What percentage did you put down?

It's a good time to buy in some parts of the US, so if folks can get a mortgage with little history, all power to them. At the height of the craziness, you could probably have got a 110% mortgage with no credit history and nothing down. But these days it is less sure.


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## Ms B (May 9, 2008)

_Did you use a broker or a bank?_
We dealt directly with Bank of America

_What percentage did you put down?_
They asked as for a minimum and we put down more than that purely because we could afford to. I really can't remember what they asked for, but I do remember that it didn't change between the time they thought they could do a standard credit check and them realizing that they had to do an international one.

I don’t know what to say. I live in a University town, they get a lot of international people coming in and that was how I was told they got mortgages. It sounded like a pretty standard procedure.

Sorry everyone, that’s all I know.


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## BritishGav (Jan 26, 2010)

I'm really interested in this topic because it's going to have a big impact when I emigrate which hopefully will be summer 2011. 

The foreign bride has a credit history, but she's not earning very much as she's still at university, and I won't have a credit history. 

But, we should have about $50,000
I do bank with HSBC although I've never really used credit cards
The most borrowing I have done is really my student overdraft which I have rarely gone beyond the agreed limits, and never by much
Still have a big overdraft facility but again I almost never use it.

So all the points in this thread are very interesting, and any insight into my situation would be greartly appreciated


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## Fatbrit (May 8, 2008)

BritishGav said:


> I'm really interested in this topic because it's going to have a big impact when I emigrate which hopefully will be summer 2011.
> 
> The foreign bride has a credit history, but she's not earning very much as she's still at university, and I won't have a credit history.
> 
> ...


Get a UK Amex card now. Spend 50 quid on it every month, then pay off in full when the bill arrives. When you move to the US, you should be able to xfer it, and this will kick start your US credit history.

Where are you moving to? 50k in Phoenix at the moment will buy you the house without a mortgage! 50k in, say, Santa Monica is probably 5% down.


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## goodman (Oct 3, 2009)

rattiegyal said:


> Once arriving in the US how easy is it to establish credit rating? Or do the banks use/access your credit rating you had in the UK? Just trying to see how easy it would be (once fully employed etc.) it is to get a mortgage, say.


Good Question, it has taken us 18 months to establish even a minimum credit rating. Even though we had a great score in the UK, nothing transferred to here. We even had credit cards that used MBNA and Citibank, both of which are US companies, ridiculous in this day and age with computers it could not be recognized in the US!! We tried to buy a house and the lender we used said he would do a manual credit score which involved a conference telephone call with our mortgage lender and credit card companies back in the UK. Everything was pre-approved and we were told "Congratulations so go house hunting" which we did. At the last minute, everything was declined because we did not have a US creidt score. What a waste of time that was. We decided to rent an apartment and try to build up some credit. What I would recommend is go to The Bank of America and get a secured credit card. You basically, give them $300 and they then let you spend it on the card!!! Sounds crazy but that is the only way you will get on that credit score ladder. After about 12 months you will start being sent applications for all sorts of credit cards but do not think you have a good score. My husband and I were unindated with these applications and then went to apply for finance for a car. It turns out our credit score was not as good as we thought because we were not borrowing enough! Eventually, you will get there but it takes time. A bit of advice, keep some credit cards or loans going in the UK just in case you ever have to move back, you do not want this hassle again, make sure you apply for them before you move overseas as they will not be interested once you have moved abroad. Good luck.


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## rattiegyal (Jun 22, 2010)

goodman said:


> Good Question, it has taken us 18 months to establish even a minimum credit rating. Even though we had a great score in the UK, nothing transferred to here. We even had credit cards that used MBNA and Citibank, both of which are US companies, ridiculous in this day and age with computers it could not be recognized in the US!! We tried to buy a house and the lender we used said he would do a manual credit score which involved a conference telephone call with our mortgage lender and credit card companies back in the UK. Everything was pre-approved and we were told "Congratulations so go house hunting" which we did. At the last minute, everything was declined because we did not have a US creidt score. What a waste of time that was. We decided to rent an apartment and try to build up some credit. What I would recommend is go to The Bank of America and get a secured credit card. You basically, give them $300 and they then let you spend it on the card!!! Sounds crazy but that is the only way you will get on that credit score ladder. After about 12 months you will start being sent applications for all sorts of credit cards but do not think you have a good score. My husband and I were unindated with these applications and then went to apply for finance for a car. It turns out our credit score was not as good as we thought because we were not borrowing enough! Eventually, you will get there but it takes time. A bit of advice, keep some credit cards or loans going in the UK just in case you ever have to move back, you do not want this hassle again, make sure you apply for them before you move overseas as they will not be interested once you have moved abroad. Good luck.



Thanks for the reply! However, I do not intend coming back to the UK. How are you finding it out in the US - relatively easy to adjust?


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## USC (Jun 13, 2010)

Fatbrit said:


> Difficult to say as we have no details. You would not qualify for an A-paper as your credit history was too short.
> 
> Rolling fees into your mortgage is common -- and pricey if you're paying interest on them for 30 years.
> 
> I like this site for a general explanation of US mortgages: mtgprofessor.com


OT - FB, it appears that everyone's reputation (at least mine & yours) points have been reduced by approximately 10,000. Is this deliberate or a bug in the forum software?


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## Fatbrit (May 8, 2008)

USC said:


> OT - FB, it appears that everyone's reputation (at least mine & yours) points have been reduced by approximately 10,000. Is this deliberate or a bug in the forum software?


Don't panic!

The forum was originally set up do you could disapprove of a post as well as give thanks. The disapproval part was a bit negative....so it was removed by removing this option when you hit the reputation button. All's good except the buddy gang in the Lounge are soaring for the skies as they pat each other on the back. So poor admin has been rehashing the code to get more sensible figures.


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