# Bad Credit in the USA



## mixTown (Aug 18, 2008)

I am hoping someone can help me with a question i have about moving back to the USA

I am in Canada and I previously worked in Dallas TX from 2004 - July 2005

While there i leased two cars, one a Honda and one a GM. in 2005 my job was downsized and i had to take a package and leave the country because i was on an L1 Visa.

I had very little time to pack up and go and so we returned the cars to the dealerships... of course we still owed money on these cars since they were only 8 months old.

we immediately left the country and moved back to Canada. however i have now been offered a job in LA and its a very good opportunity. I am concerned that I will not be allowed back into the US because of my credit history, and if I am how would i get another car or insurance or even purchase a house or even rent?

I am not sure if anyone else has ever had the same issue but if you have can you let me know what you did about it and if anyone has advice I would love to hear it.

regards


----------



## Fatbrit (May 8, 2008)

While it's not a bad idea to have good credit, you're not exactly in a small club if you have a few blips in it.

First job is to get a copy of your credit reports and see what the damage is. I'd guess they've probably gone to collections. Then you're going to have to decide whether to pay them out or wait the next four years for them to clear from your report. Use a throw-away phone and PO box when negotiating if you decide to take this route -- otherwise they'll pester you constantly. Remember as soon as you pay anything towards them, you re-age the accounts -- so you need to either negotiate a final settlement or do nothing nothing. You need to educate yourself and have a plan before you start. If it's not in writing, it's not worth anything. You should be able to get them to a final figure a lot less than the original claimed debt. 

As they're over two years old, their impact on your credit score is going to be less. If you can reestablish credit (a secured credit card, for example), your score should quickly rise again. You'll manage insurance and a rental with bad credit -- you just won't get the best terms. A reasonable mortgage is not going to be possible without settling the accounts and at least a couple of years of good history in this current market.


----------



## synthia (Apr 18, 2007)

I don't know if immigration runs credit checks, but I doubt it. Legally, someone has to give you car insurance, though it may be expensive. I think car insurance is a function of your recent driving record, and if the companies can't check your Canadian record, they will charge you a lot anyway. Once you have been here a year and have a clean record, be sure to contact them and ask for a good driver discount. Otherwise they may continue to charge you high rates forever.


----------



## twostep (Apr 3, 2008)

It depends on how the vehicles were returned prematurely and financial obligations not fullfilled.
Did the dealership go the route of collections and if so how far? Legal steps will show on the background check which some visas require.


----------



## Fatbrit (May 8, 2008)

twostep said:


> Legal steps will show on the background check which some visas require.


Criminal legal steps will show up. This is a civil matter.


----------



## American Guy (Aug 27, 2008)

*You have a problem*

The fact that you left without resolving the outstanding lease issues means that, most likely, the financing company obtained a default judgment against you - there is probably a lien waiting to be filed against you should you obtain employment in the US. Plus, your credit rating is probably trashed (although if it's been more than 2 years, the impact is now smaller). You need to obtain a copy of your US credit report and see what's on it. Although this won't impact your immigration status, it WILL impact your ability to get a job, new credit, etc.


----------



## tcscivic12 (Jul 2, 2008)

Also as with most debt you have to pay Interest and if you haven't been making any payments since you have left the country the interest accrues for the few years from the last time it was paid and the amount owed is probably ALOT more than the previous prinvipal balance so your P&I(payments&interest) probably will be alot more than before also.


----------



## YaGatDatRite (Aug 7, 2008)

*#7 -*

Not true, they don't carryover these debts forever year after year. The a/c is declared delinquent and turned over to collections (internal, or external third party agency). For its part, the finance co. will likely report the data to credit agencies like Experian, TransUnion, etc.

Usually this data remains on file for up to 7 years and sometimes more. Credit agencies are not known for being consumer-friendly, they couldn't care less if it showed up on your record 30 years from now.

If the defaulter enters into a payment arrangement (now with a new creditor i.e. collection agency), they also have need to contact the credit agencies to update and clear their records after the debt is re-settled.

That said, after a certain amount of time, these debt is usually written off by whoever purchased it or is saddled with it. Given the depressed mortgage and loan markets, OP will have a whole other set of hurdles to overcome getting a loan, credit cards, etc.


----------



## YaGatDatRite (Aug 7, 2008)

And oh yes, welcome to the club, OP


----------



## twostep (Apr 3, 2008)

a) The information you posted is wishy-washy. It gives nothing concrete to work with. Usually ... should ... ...
b) You may want to give some actual advice.
c) Aha


----------



## synthia (Apr 18, 2007)

Hey, twostep, usually is about as good as you can get. Some stuff never makes it on a credit report, some goes away for no good reason, and some of it is just plain wrong. So, usually,...if it were consistent and accurate, there would be no need to check up on it.

According to Suze Orman, one way to extend the amount of time a bad debt is on your record is to make a payment on it, because that resets the clock. So if a debt has been around for five years, and you come into some money and pay half or it off, it's still listed as bad, but now it's fresh.


----------



## Fatbrit (May 8, 2008)

synthia said:


> According to Suze Orman, one way to extend the amount of time a bad debt is on your record is to make a payment on it, because that resets the clock. So if a debt has been around for five years, and you come into some money and pay half or it off, it's still listed as bad, but now it's fresh.


This is a woman who recommends mutual funds for gawd's sake! But on this one, she is right.


----------



## twostep (Apr 3, 2008)

Not the most interesting reading but sometimes useful. Section 605 C
http://www.ftc.gov/os/statutes/031224fcra.pdf


----------



## Basar (Aug 26, 2008)

Well actually, as someone who has experience on this matter, no, you'll not be denied a visa or entry based on this. Your credit score on the other hand, is trashed and you better start rebuilding it with secure credit cards + good bill standings from now on.


----------



## synthia (Apr 18, 2007)

fatbrit - Her audience is not, from what I have seen, astute enough to manage any kind of a portfolio, so mutual funds make a lot of sense. A large percentage of them seem surprised that going into extreme debt because they just have to have a luxury car that will cost them half their monthly takehome. Individual stock managers they are not.


----------

