# Bank accounts and renting houses



## Ms B (May 9, 2008)

I currently bank with HSBC and I am sorting a US bank account with them before I head out there in January. On the plus side it will be one less thing to sort out when I arrive and I will have credit history. Unfortunately my nearest branch will be 6 hours away. I am unfamiliar with banking in the US so I am unsure about how much of an issue this is, will I have to drive 6 hours whenever I want to pay some money in?

Also in December I am going to Florida to find a house to rent. I have a realtor helping me find properties (I have asked her to send details in advance) and I have sought local advice on where to live. Any advice on renting? Anything that I should be looking out for?

Thank you,

B x


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## Fatbrit (May 8, 2008)

Ms B said:


> I currently bank with HSBC and I am sorting a US bank account with them before I head out there in January. On the plus side it will be one less thing to sort out when I arrive and I will have credit history. Unfortunately my nearest branch will be 6 hours away. I am unfamiliar with banking in the US so I am unsure about how much of an issue this is, will I have to drive 6 hours whenever I want to pay some money in?
> 
> Also in December I am going to Florida to find a house to rent. I have a realtor helping me find properties (I have asked her to send details in advance) and I have sought local advice on where to live. Any advice on renting? Anything that I should be looking out for?
> 
> ...


I'd open one at a local bank also....if I were you. HSBC won't give you a credit history! If they give you a credit card, you can start your credit history but it'll be at least 6 months until you get a score. To maximize your credit score at minimum cost, spend no more than 20% of the limit on the card and pay off in full every month. A good credit history takes many years to build.

Renting property without a credit score is not impossible. Explain why and produce evidence of capital or income.


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## Bevdeforges (Nov 16, 2007)

I'll second fatbrit's advice. Find a local bank with good Internet access. You can use the HSBC connection to transfer funds between home and the US, then transfer into your local account for day to day use.

You can't transfer a credit history. The US only uses their own.

Work with the realtor on the best way to overcome the lack of a US credit history. Sometimes you can just post a slightly larger deposit, or produce a letter from your employer stating that your income is a certain level (i.e. sufficient to cover the rent). Worst possible case, you may be asked to "prepay" the rent for some period of time. The realtor only gets paid if they rent out the place, so he or she will be extremely helpful.
Cheers,
Bev


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## Ms B (May 9, 2008)

Thanks for the info. It looks like I was wrong about the credit history thing, the direct quote from the HSBC website is:

If you have been our customer for 12 months or more, we can provide you access to credit facilities at similar levels as you currently enjoy in the UK.

I can blame my husband for that bit of wrong information 

Last night I was talking to a friend of mine who spent a few years living in the US and she said I should join a Credit Union instead of a bank. Would this be a good idea?


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## Bevdeforges (Nov 16, 2007)

Ms B said:


> Thanks for the info. It looks like I was wrong about the credit history thing, the direct quote from the HSBC website is:
> 
> If you have been our customer for 12 months or more, we can provide you access to credit facilities at similar levels as you currently enjoy in the UK.
> 
> ...


I think what they're telling you here is that they will extend you credit on your US HSBC account on similar terms to those you had in the UK. (Not a bad deal - they'll basically issue you a credit card with more or less an equivalent limit, I bet. This is a huge step toward establishing your credit history in the US.)

A Credit Union can be an excellent idea. Used to be you had to be part of some group to be eligible, but they've expanded the eligibility rules to the point that almost anyone can join. Best thing to do, though, would be to ask around when you get to the US to see what banks and credit unions in the area are the handiest, friendliest and most solvent.  A big factor in the US is the availability of bank machines you can use without a big fee - some banks and credit unions let you use anyone's bank machines. Others charge you $2 or more to use a "foreign" ATM.
Cheers,
Bev


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## Fatbrit (May 8, 2008)

Ms B said:


> Thanks for the info. It looks like I was wrong about the credit history thing, the direct quote from the HSBC website is:
> 
> If you have been our customer for 12 months or more, we can provide you access to credit facilities at similar levels as you currently enjoy in the UK.
> 
> ...


Take their credit card, then, and use it as I described above. Apply for another US credit card in around 9 months time and follow similar rule. How are you going to buy a car?


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## Ms B (May 9, 2008)

I am not sure about the car buying. We are just after a cheap second hand car so I doubt we will have to take out a loan.


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## synthia (Apr 18, 2007)

If HSBC has good internet banking, you may not even need a local account. They really are only necessary if you need to deposit cash on a regular basis. I haven't had a local bank since 1990, and some of my friends have done all their banking with on-line banks for years. Even when I had a local bank, I usually didn't go inside more than a couple of times a year, if that. What matters is ATMs and whether your bank will cover fees from other banks or there are ATMs near you that don't charge fees. For that matter, I rarely use more than $200 in cash per month anyway, so even the ATM fees aren't that onerous.


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## Fatbrit (May 8, 2008)

Ms B said:


> I am not sure about the car buying. We are just after a cheap second hand car so I doubt we will have to take out a loan.


There's a nice trick you can play to boast your credit score if you're taking out a car loan without it costing you much. Although with the credit crunch at the moment, it'd be touch and go whether you'd get a "first-time buyers" auto loan.


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## Porvera (Nov 1, 2008)

Fatbrit said:


> There's a nice trick you can play to boast your credit score if you're taking out a car loan without it costing you much. Although with the credit crunch at the moment, it'd be touch and go whether you'd get a "first-time buyers" auto loan.


We will be looking for a car loan next year and as we will have zero credit history is this a non starter? 

We would be able to put down approx 50% on a car valued at say €15,000

Porvera


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## Fatbrit (May 8, 2008)

Porvera said:


> We will be looking for a car loan next year and as we will have zero credit history is this a non starter?
> 
> We would be able to put down approx 50% on a car valued at say €15,000
> 
> Porvera


Who knows what's happening with the loan industry these days! Availability of products is reduced daily along with raising the bar. You can but ask and try. Make sure it's a real car loan reported to the credit bureau rather than an in-house one. A year ago, I'd say with a job, 50% down and a blank credit report, you'd easily sang a "first-time buyers" car loan at a couple of percent above the market rate.


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## synthia (Apr 18, 2007)

Car dealerships are going out of business, not because there are no buyers, but because there is no financing. If the exchange rate holds steady, at about 1.5 USD to the GBP, you would have 7,500 GBP, or USD 11,250. If you can't get a loan, that should be enough to buy a new Korean car. It may not be what you want, but that would get you around the financing issue.


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## Porvera (Nov 1, 2008)

synthia said:


> Car dealerships are going out of business, not because there are no buyers, but because there is no financing. If the exchange rate holds steady, at about 1.5 USD to the GBP, you would have 7,500 GBP, or USD 11,250. If you can't get a loan, that should be enough to buy a new Korean car. It may not be what you want, but that would get you around the financing issue.


Just reading the BBC website and their remarks on the US car industry bail-out, it looks as though car prices will have to start coming down. This is of course if the "big 3" get the funding and can continue to make cars.


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