# Which bank for Australian moving to US on E3?



## tjunction (Oct 20, 2015)

I'm moving to Texas US on the E3 visa soon.

I'm considering which American banking facilities to use for Savings (depositing my US salary) and Credit Card facilities.

In Australia, I have;
- Westpac Altitude Credit Cards (Mastercard and AMEX cards)
- 28Degrees Credit Card for international transactions
- Citibank Mortgages x2
- Bankwest mortgages x2

1. I've got a good credit rating in Australia, can I leverage any of the relationships with my existing banks to setup accounts conveniently in the USA? (perhaps Citibank?)

2. If not, then do you recommend any banks?


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## BBCWatcher (Dec 28, 2012)

tjunction said:


> I'm considering which American banking facilities to use for Savings (depositing my US salary) and Credit Card facilities.


With respect to U.S. credit cards, you'll have to keep your expectations modest. You already have a 28Degrees credit card from Australia which is excellent. About the only thing you need a credit card for is to rent a car, and you can do so with that card you already have. Then, as you return the car, switch the form of payment to a U.S. debit card if you wish.

Credit cards require a credit history. You don't have a credit history in the U.S., not yet. But that's not actually a problem.

If you do persuade Citibank to carry over your Australian credit history to some degree then the Citi Double Cash Card (a credit card) is probably their best credit card offer right now but only for U.S. domestic spending.

What part of Texas are you moving to?


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## tjunction (Oct 20, 2015)

Thanks BBCWatcher,
I'm moving to Houston Texas.
Like everyone I'm keen to establish a credit rating asap to broaden options. I'm heading over to Houston next week and will visit citibank to discuss benefits they can offer.
Thanks again.


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## BBCWatcher (Dec 28, 2012)

Among national Internet-based banks my current favorite checking account is probably Ally Bank's Interest Checking Account. You currently get a 0.6% APY if you maintain a $15,000 balance (0.1% APY below), which is rather good for a U.S. checking account. (They offer a savings account with a decent interest rate, too, but start with the checking account.) There is no minimum balance and no monthly maintenance fee. You can use Allpoint network ATMs for free (a big nationwide network), plus they reimburse up to $10 per month in non-Allpoint ATM fees. You can deposit paper checks using your smartphone's camera, or you can use a postage paid envelope to deposit a paper check. They provide a low cost debit/ATM MasterCard with the account, and they also provide free paper checks and free online bill payment service. You can order cashier's checks free of charge, too. If you have to use your debit MasterCard overseas the cost is reasonable (less than 1%, so apparently no Ally Bank markup), and it's a MasterCard which generally offers a better network rate than Visa. They even answer their phone 24 hours per day.

The _only_ reason not to like Ally that I can find is that it's an Internet bank, meaning you don't have a local bank branch if that's the sort of thing you think you need. But nowadays you don't actually need a local branch.

Ally sends your debit/ATM MasterCard and initial batch of paper checks by mail within about 10 days of the initial deposit into the account. That could be your first salary payment, for example. If you want to accelerate that a bit, you can buy a cheap money order (at Walmart, for example -- costs $0.70 plus the $1 in cash if you want a $1 money order) and use Ally Bank's smartphone app to deposit the check into your account. You'll of course need a U.S. Social Security number to open an account.

I'll take a look at Houston area banks and get back to you on that if you prefer a traditional branch banking experience. Bear in mind the offer won't be as good in terms of interest rate, fees, etc.

Don't be at all surprised if you have to build a credit history from scratch. You can ask Citibank to issue that specific credit card I mentioned, but don't be surprised if they politely decline. I don't think they're going to be able to issue you a U.S. credit card without at least a U.S. Social Security number anyway. Citibank has a secured credit card available, but don't bother -- it's lousy. You can do better, e.g. with Capital One's.

But really, don't worry about that. It's not your highest priority in a move. You can already do everything you need to do.


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## tjunction (Oct 20, 2015)

OK that's great info. I'm very happy with an online bank. I currently use one.

First things first, I will apply for my SSN during my visit from next week. I'll hopefully get the SS number (verbally at least) within a couple weeks to allow me to apply for bank facilities thereafter.

Thanks again


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## BBCWatcher (Dec 28, 2012)

I don't see a lot of _spectacular_ banks in the Houston area in terms of the account costs and benefits, but I found a fairly good credit union offer....

Shell Federal Credit Union has a "Be Green" checking account that currently pays 2.2% APY on the first $20,000 in your account provided that you: (a) arrange for direct deposit of your salary (which you'd do anyway) or make one automatic payment per month (e.g. for rent), (b) access online banking at least once per month (to get your statement, for example), (c) sign up for electronic statements instead of paper, and (d) make 20 debit card purchases per month (such as buying a coffee each morning at your employee cafeteria with your debit card).

After 60 days as a Shell FCU customer you should be able to sign up for overdraft protection, and that will _probably_ start generating a credit history since it's a line of credit. No guarantees that overdraft protection will be approved or that they'll send reports to the credit bureaus, but you could ask them about that. Their Rewards MasterCard credit card is decent. Credit unions tend to be quicker to approve credit cards after you've been a customer for a little while, though I don't think that's a terribly important factor.

Shell FCU doesn't have a huge number of branches, but they have several. Most of the credit unions in Houston have banded together to provide "Co-Op" services, meaning you can visit an affiliated credit union's branch for routine services like depositing a check. I do see that Shell FCU (and most credit unions) charge some fairly hefty fees for wire transfers, so pay attention to that.

Back to online accounts for a moment.... Discover's Cashback Checking account is intriguing. It too is an Internet-based account, and it comes with a Discover debit card. Discover isn't as widely accepted as Visa and MasterCard, but in the U.S. acceptance is still quite good. The very interesting thing about this particular debit card is that you get 10 cents back as a cash rebate every time you use it to make a purchase, even buying a cup of coffee, up to 100 times per month ($10 total per month). Discover also offers a pretty good companion savings account which currently pays 0.95% APY. And Discover is a credit card issuer, so the chances that you can qualify for a credit card with them are better after you've been a banking customer for a while. The account is free of practically all fees, but you have to be careful to avoid out-of-network ATMs that charge fees since there are no ATM fee reimbursements. But that's pretty easy to do since they use the Allpoint and Moneypass ATM networks which are big ones.

Capital One 360 and Everbank are two other online banks that are pretty good too, but I think Ally has the best deal right now.

If you keep getting rejected everywhere for whatever strange reason then stop by Walmart and open a Bluebird account. Bluebird is rather good for basic consumer banking services, although it doesn't pay any interest. And every Walmart store is effectively a Bluebird branch. The Bluebird debit/ATM card is an American Express card, so it too is not as widely accepted as Visa and MasterCard but not bad.


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## Bellthorpe (Jun 23, 2013)

BBCWatcher said:


> You can ask Citibank to issue that specific credit card I mentioned, but don't be surprised if they politely decline. I don't think they're going to be able to issue you a U.S. credit card without at least a U.S. Social Security number anyway.


I'd say your advice is pretty sound, but would just mention that I got a credit card from Citibank last year without a SSN. Admittedly I'd had a checking account with them for some 20 years.

When I got a SSN I just rang them up and told them. 'Thank you, we'll update our records'.


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## tjunction (Oct 20, 2015)

BBCWatcher said:


> "They provide a low cost debit/ATM MasterCard with the account, and they also provide free paper checks and free online bill payment service".


For my clarification, using these Ally facilities will contribute to a credit history, correct?


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## tjunction (Oct 20, 2015)

Thanks Bellthorpe, I'll give Citibank US a call now and enquire.


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## Bevdeforges (Nov 16, 2007)

Assuming you already have a job lined up, don't hesitate to ask your employer for help and advice. Some employers can help you get a bank account in "their" bank, and having that employer backing can help with the credit situation. But in general, your credit history won't carry over.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

tjunction said:


> For my clarification, using these Ally facilities will contribute to a credit history, correct?


Probably not much.

So why is a U.S. credit history important to you? Are you aspiring to have a bank buy a house in the U.S. that you live in, then to buy the bank's ownership over time, with interest?

If that's the plan, your employer may offer a program to provide some mortgage support. You also have a relationship with Citibank Australia, so you could inquire with Citibank U.S. when/if the time comes to see whether they'll extend you a mortgage based on your Australian credit history.

But you also have myriad ways to develop a U.S. credit history, as practically everybody does over time. One possible way is to get Capital One's Secured MasterCard. You place a deposit with them of up to $200, and they issue you a genuine credit card with a credit limit as low as $200. You don't earn interest on your deposit, but there's no annual fee. And that card starts generating a credit history.


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## tjunction (Oct 20, 2015)

BBCWatcher said:


> So why is a U.S. credit history important to you?


The credit history is not immediately important to me, but I would like to develop it so that in time I have the option of getting a car loan or a home loan at reasonable rates.

In the short term however, I will be minimising my commitments in the US until I confirm that my job/E3 sponsor is a good fit and my family and I are happy to stay longer term. A more stable visa would probably be necessary in my mind to commit to a home loan.

I'll take your advice and get a secured card to begin the process. Many thanks again. Your advice is invaluable. Pity I cant 'Thanks' more than once in a thread.


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## tjunction (Oct 20, 2015)

FYI- a colleague at the same company has recommended Chase in Houston;

https://www.chase.com/content/chase...est+-+Brand+-+Exact/sea/JRwIjsVM/Chase+-+Bank

Free checking facility if your pay is deposited into it via EFT plus $150 gift when opening the account. 

I need to spend some time comparing the details...


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## BBCWatcher (Dec 28, 2012)

If you like the $150 up front sign-up bonus, Chase isn't bad. If you like the low or zero interest rate on your deposits and high fees for using your ATM card practically everywhere else except a Chase ATM (as examples), well....

Chase does not provide a good overall deal in my view.


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## BBCWatcher (Dec 28, 2012)

Just to elaborate a bit, Chase has a network of about 15,000 ATMs, mostly in the United States. That's pretty good, right? It is, but the Allpoint network has about 55,000 ATMs, mostly in the U.S. If a bank or credit union provides free ATM use on the Allpoint network (for example), that's going to beat Chase. Chase has upper level checking accounts that provide either limited (4 times per month) or unlimited waiver of Chase fees when using non-Chase ATMs but no reimbursement of the operators' fees. To get those Chase fee waivers you need to keep a much higher balance.

All but one Chase checking account charges fees for incoming wire transfers. Most online banks don't.

Chase charges a foreign transaction fee for debit/ATM card use overseas.

Chase pays a 0.01% APY on checking accounts.

....And so on. Sure, check the terms and conditions including fee schedules. But, except for the $150 sign-up bonus, I don't think Chase has a particularly good checking account on offer. (There's a reason there's a sign-up bonus!) A couple of the online banks also have sign-up bonuses.

I don't hate Chase, though. In my view Chase has a couple good _credit cards_ on offer. The Chase IHG Rewards Club Select credit card is quite good, as an example. It has a $49 annual fee after the first year, but you get a certificate each year for a free night at practically any IHG hotel. Their Southwest Airlines card isn't too bad either, and it often has a good sign-up bonus. Chase charges no Chase-levied foreign transaction fees on the two cards.


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## Bevdeforges (Nov 16, 2007)

Just for another opinion, you may want to look into some of the smaller "regional" banks in the area around where you'll be living. It depends on just what you need, but I have found that the regional bank I use in the States has been wonderful about providing personal service. If I have a question, I ask and they seem to do their best to accommodate what I need. 

Have heard so many stories about the big, impersonal banking chains that I feel very lucky to have stumbled onto a smaller bank like this. Ask around - there may be some hidden treasures in the area.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

The aforementioned Shell FCU is in that category (Houston area credit union).


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## kangarooooo (Nov 26, 2015)

Hi Tjunction,

Congrats! I'm also moving to Texas soon on the E3 visa.

I had just the same question as you; did you end up finding out whether Citibank can help with transferring your credit history here? I generally bank with CBA but do have a Citibank credit card and transaction account...

And, are you getting a mortgage or will you be renting? I'm veering towards mortgage as the rents seem to be a lot higher than having a mortgage!

Cheers.



tjunction said:


> I'm moving to Texas US on the E3 visa soon.
> 
> I'm considering which American banking facilities to use for Savings (depositing my US salary) and Credit Card facilities.
> 
> ...


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