# Credit in USA - housing / furniture



## ben89 (Jan 13, 2013)

Hi everyone ,

I have a general idea how difficult it is to build credit ratings upon arrival in the US and I know it will be a struggle to get a credit card for a few months . I do have an American Express which I will be transferring over so I'm not too worried about that.

My question is more related to housing purchases and furniture . My wife has little credit rating even though she is a US citizen and I as the UK citizen obviously have one. How possible is it to secure store credit? For example when we get out to San Francisco we will be looking for couches / furniture etc . Over here in the UK almost anyone with a decent enough salary can qualify for monthly payments on beds / couches etc or buy now pay next year type of offers.

Any help would be greatly appreciated 

Thanks

Callum


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## BBCWatcher (Dec 28, 2012)

The direct answer to your question is that it's not _terribly_ difficult.

However, I continue to be amazed with the steady stream of questions in this forum from recent and prospective immigrants who are seeking ways to go into debt in their new country immediately. I must be old fashioned, but that seems like a terrible idea. Particularly for furniture, a type of product that's quite inexpensive in the U.S. and something that also often carries effective interest rates that would make organized crime syndicates blush.


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## Bevdeforges (Nov 16, 2007)

I tend to agree with BBC here. Just because debt has become something of a national way of life in the US doesn't mean it's a good idea to load up the old credit card on arrival. But to answer your question, many large department stores (like Macy's) have weekend specials where you only have to flash your drivers license (the US one, that is) to qualify for a store credit card. 

Now, normally the store cards have to be paid off at the end of the month (unless that, too, has changed since I used to live there - everything else has). But, the fact of your repaying the purchases at month-end does go onto your US credit record and can be a good way to start building a good credit score.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

A lot of those stores issuing store cards also have sign-up promotions, e.g. 20% off your first purchase. That said, here are a couple recommendations on store-specific credit cards:

1. Keep the balance small, and pay it off on time without incurring interest or fees. (It's ideal to set up the card for automatic full balance payment.)

2. Limit yourself to two of those cards. That's more than enough to build a credit history. If you're constantly signing up for new cards every time you see them, that behavior _hurts_ your credit history.

3. Pick two stores where you'll actually shop because they have the products you want to buy at attractive prices. But don't force yourself to use those cards and shop only at those stores. For example, if you have a Macy's card, and Target simply has a better deal on the product you need, buy at Target. It's just not worth paying more chasing after a credit history -- that's folly.

Here are some examples of store-specific credit cards, in no particular order (links provided where I can find them):

Target (the credit version)
Macy's
Bloomingdale's
JCPenney
Pier 1
J.Crew
Saks Fifth Avenue
Victoria's Secret
Home Depot
Gap
Kohl's
Sears
Walmart

Some of these stores offer credit cards that include Visa, MasterCard, Discover, or American Express facilities. Those are not the types of cards you are likely to qualify for with no credit history. Instead, choose the store-only card since those are easier to qualify for. Many of the stores will "upgrade" you to a general credit card (Visa, MasterCard, etc.) as you build your credit history, though their upgrade might not be the best credit card to choose.

Applying in-store is usually better than applying online. You'll get an instant decision in the store, and since you are trying to buy something (presumably) at that precise moment in time the store has the most incentive it ever will have to approve you. The links above are simply provided for reference.


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## accbgb (Sep 23, 2009)

Golly gee, not everyone can afford to furnish a home with nothing but cash...

Most of us do what we _have to_, not necessarily what we _would like to do_.


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## lovestravel (Apr 9, 2012)

Many people start with furniture store purchases to build credit. If you can find one with zero or low interest that would be ideal. Fixed payments and not having the ability to run the balance back up again is a safe way to build credit. Just be sure to pay on time each and every month.


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## twostep (Apr 3, 2008)

A few years back legal changes concerning social led store cards were implemented. Generally application in-store or on-line runs through a matrix connected to SS#'s credit history. Limits seem to be ridiculously low even with well established US credit.
There is always the option of using an ambulance chaser such as rent-a-whatever. If you work their rates into actual purchase price it is insane. The vendor targets a specific audience and risk.
The good 'ole secured credit card issued by a regular bank is still the easiest way to build US credit unless you are the signer on a note.
Credit you cannot pay in full at the end of the month can turn into a never ending and constantly increasing debt. Can not must. 
Get some cheap stuff from places such as Rooms To Go, WalMart, Costco/Sams, local hole in the wall places where merchandise fell off the truck. You will have to do some legwork. Of course there are Craig's List, local newspaper and thrift stores. $stores are a great source for dishes and basics until you are on your feet. 
We "furnished" a 2 br penthouse in DC with a mattress and a small TV. The box it came in made a perfect table for a couple of weeks.
You cannot predict the future. A small emergency can collapse a house of cards no matter how well you planned it.


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## ben89 (Jan 13, 2013)

Thanks for the information everyone. Will take a look at the link BBc has provided .
I have to be honest and say that buying furniture on credit through a store is pretty common place in England and as we are moving from Newcastle (UK) where cost of living etc is minimal to somewhere like San Francisco I think the wisest move would be to pay these things off monthly rather than spend thousands outright.


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## BBCWatcher (Dec 28, 2012)

accbgb said:


> Golly gee, not everyone can afford to furnish a home with nothing but cash...


That's correct, and I've been in that situation on multiple occasions. So here's what I did, in combination:

1. Bought used furniture. They go by many names in the U.S. -- yard sales, tag sales, garage sales, moving sales, flea markets, Craigslist, etc. -- but practically everywhere in the U.S. practically every weekend (at least) somebody is selling used furniture, and haggling is usually expected. I would not buy mattresses and upholstered furniture that way, but (with a modicum of patience) one can find great, inexpensive stuff at those sales. At thrift stores, too. The used stuff is often better than the new stuff anyway.

2. Bought inexpensive furniture. We live in the Age of Ikea. Furniture is simply not expensive in the U.S. Even in San Francisco. It's only expensive if you want (not need) to buy _expensive_ furniture. Quality is _somewhat_ correlated with price, but only somewhat.

3. Bought unfinished furniture. This works well for such things as dressers and desks. Initially I kept the furniture unfinished, then (later, sometimes much later) I stopped by a home improvement store to pick up stain or paint to finish the furniture as I wished. This works better if you've got a semi-protected semi-open air space to do the work, such as a garage or porch. You can even do things like wax finishes for a very natural look.

4. Not bought furniture. Do you _need_ to furnish every room, every corner of a new home on day one? Absolutely not. Nobody _needs_ to do that. Prioritize!

I cannot imagine anyone _who meets the financial requirements to be a legal immigrant_ needing to go into debt for furniture in the U.S. Wanting? Well, that's up to you.


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## twostep (Apr 3, 2008)

BBCWatcher - I do agree with you as far as "want" and "need" is concerned. 

Let's hope that everything works out for OP.


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## Welsh_Charlie (Mar 8, 2015)

Hi All,

I'm having the same problem currently, although it's more going to be looking for a car, everyone looks at us weird when we say we don't have one! I'm struggling to see how I can get a decent car (one that hasn't got a load of mechanical problems) without getting it on finance. 
How long does it take to build up a credit score typically? As I have been here a month or so now, and so far all bills etc have been paid on time, yet today I still wasn't even able to sign up for a phone contract (not even getting a new phone with the contract) without putting down a deposit of between $300 and $500 which is just insane!


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## Davis1 (Feb 20, 2009)

it takes about a year to get a credit rating

Expat Forum For People Moving Overseas And Living Abroad - Search Results for Fatbrit's Guide to Credit and Finance


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## BBCWatcher (Dec 28, 2012)

What on earth are you doing getting a mobile phone _contract_? Just pick your favorite MVNO prepaid offer on your preferred network and pay month to month. It costs less. You can cancel that (foolish) contract you just signed.


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## AmandaL (Feb 20, 2009)

You can also get a secured credit card from your US bank which will help you build credit.


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## cschrd2 (Oct 31, 2011)

After 4 months I got from Capitol one a pre-approved offer (it's only a few 100 bucks limit) and used that for a few months, paying early or on time. After that your rating increases pretty fast. Weird system as it does not look at what you have in the bank (I had 50K$ in WellsFargo and was declined a prepaid card) because the system does not know you.


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## EVHB (Feb 11, 2008)

If you have that amount of money on the bank, and you get declined a secured credit card (where you deposit and block the money a the bank's account), it needs to get overruled by the bank manager.
So ask for the bank manager, and tell him you will transfer you funds if they don't cooperate with trying to build up credit score/history.


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## cschrd2 (Oct 31, 2011)

Actualy a colleague of of mine had a similar situation with the Bank of America (2012). He started by getting a low value card from Kohl's to get it build. It seems to be standard practice.


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