# Building credit



## Jen114 (Mar 5, 2011)

Could someone kindly give me tips in building credit? 

I just received my first credit card ( in the states) have and many in europe. 

When going to get a loan from a bank would my husband be recognised for the credit I have earned?


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## twostep (Apr 3, 2008)

If the US card is in both names - yes. Why do you not pull your consumer credit report? It also depends on what kind of loan.


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## Jen114 (Mar 5, 2011)

I don't have any credit at all as left when I was very young. Immigration should finally happen end of year so want to build up credit in advance .


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## Bevdeforges (Nov 16, 2007)

Jen114 said:


> I don't have any credit at all as left when I was very young. Immigration should finally happen end of year so want to build up credit in advance .


You also need your social security number to even have a credit report. But until you're living in the US, you won't have a credit history there to report.

(And I've been trying to find a way for years to pull whatever credit history they have on me back in the US. Not easy at all!)
Cheers,
Bev


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## Jen114 (Mar 5, 2011)

Thank goodness I have a ss number but obviously since I moved when I was so young no history. I think my husband will only get one when he gets green card?


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## twostep (Apr 3, 2008)

Jen114 said:


> Thank goodness I have a ss number but obviously since I moved when I was so young no history. I think my husband will only get one when he gets green card?


Are you talking about credit history or social security number?

a) He will start from scratch - security deposits, higher interst rates if loans at all, higher insurance rates, secured credit card ...
b) Two weeks after entering the US he can apply for a SS# at the local SS office. Prior to that his information will not have filtered through the system and he will creat a mess. Without SS# he will not get a phone contract, utilities, vehicle registration, drivers license ...


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## xchaos777 (Dec 15, 2010)

Bev, you should be able to get report from any of the 3 main agencies. You get one a year free.


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## Davis1 (Feb 20, 2009)

https://www.annualcreditreport.com/cra/index.jsp


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## Bevdeforges (Nov 16, 2007)

Davis1 said:


> https://www.annualcreditreport.com/cra/index.jsp


>>The AnnualCreditReport.com website is only accessible through ISPs (Internet Service Providers)

located within the United States and its territories.<<
Cheers,
Bev


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## Bevdeforges (Nov 16, 2007)

xchaos777 said:


> Bev, you should be able to get report from any of the 3 main agencies. You get one a year free.


Their websites don't seem to allow you to request a report from overseas. I admit that the credit report information goes by your address in the US, so that kind of makes sense. 

I've often thought, however, that it would be a good idea to check on my credit report just to make sure my social security number isn't generating any bogus transactions over there.
Cheers,
Bev


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## Jen114 (Mar 5, 2011)

So hearing all this it might be worth selling our house in Europe to buy on in USA cash.... Thank so much for information!! Not sure if our return on rental investment is worth keep it hmmmmmm


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## BettinaCC (Jun 24, 2010)

Bevdeforges said:


> Their websites don't seem to allow you to request a report from overseas. I admit that the credit report information goes by your address in the US, so that kind of makes sense.
> 
> I've often thought, however, that it would be a good idea to check on my credit report just to make sure my social security number isn't generating any bogus transactions over there.
> Cheers,
> Bev


I was reading about the American express charge card. If you have an American Express from Australia and use in Australia etc then move to US. Once you get the SSN you can transfer your existing card to US. As per their website. Do you think this would assist in builing a credit history?


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## xchaos777 (Dec 15, 2010)

Yes, it will. Still starting with no US history, but you start building it then.


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## twostep (Apr 3, 2008)

Bevdeforges said:


> Their websites don't seem to allow you to request a report from overseas. I admit that the credit report information goes by your address in the US, so that kind of makes sense.
> 
> I've often thought, however, that it would be a good idea to check on my credit report just to make sure my social security number isn't generating any bogus transactions over there.
> Cheers,
> Bev


You can request the information in writing. Do not try to call as you will be eligible for SS by the time you get a live person:>)


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## twostep (Apr 3, 2008)

Jen114 said:


> So hearing all this it might be worth selling our house in Europe to buy on in USA cash.... Thank so much for information!! Not sure if our return on rental investment is worth keep it hmmmmmm



Which will have no impact on your credit history.


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## Guest (May 1, 2011)

Bevdeforges said:


> Their websites don't seem to allow you to request a report from overseas. I admit that the credit report information goes by your address in the US, so that kind of makes sense.
> 
> I've often thought, however, that it would be a good idea to check on my credit report just to make sure my social security number isn't generating any bogus transactions over there.
> Cheers,
> Bev


You can get a 3-in-1 report with data from all 3 of the big credit agencies through Equifax for $30 with your SS number, and giving your last address in the US. You get 30 days access to the report online, and you can also print out hard copies. If you want just the Equifax report, it's only $10.

I also recognize that as their "right", many people want this information for free. I would rather pay something upfront and get it immediately than fighting a computerized telephone system for 3 hours - that's not "free".

My report still lists data from some things more than 20 years old (student loans), which they also consider for longevity to raise your FICO score.


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## Guest (May 1, 2011)

twostep said:


> Which will have no impact on your credit history.


They could take the cash from the Europe sale, and then buy a house in the US with a 75% down payment, with a low rate 30 year mortgage payable in 5 years, and no qualifying needed for the small mortgage. 

With steely resolution, make all mortgage payments on time, take the mortgage interest write-off on their income taxes, and then pay off the mortgage balance before the 5 years is up. Result is a solid credit rating, a paid-off house, and a bit less income taxes.


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## Jen114 (Mar 5, 2011)

Oh wow thanks ****** for your reply you really sound like you know what your taking about. 

What would you do If you were in our situation? We have a property in Europe if we sell we will make a very good amount of profit. And if we don't we would make aprox 800 dollars profit a month . 

If we do sell we can buy the property in states out right and not have a mortgage. If we choose to keep the property in Europe we will still have aprox 130,000 to play with .

On the other hand I have just received a credit card and have started charging and I will make sure I pay on time hoping to build up credit slowly?

Does any of this make sense?


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## nextstopus (Dec 23, 2008)

You can't raise your scores if you don't use credit. Credit scores try to predict how well you're likely to use credit in the future by how well you've used it in the past. So while living a cash-only lifestyle may do wonders for your wallet, it won't boost your scores -- in fact, without continuing use of some type of credit, eventually your credit reports won't even generate credit scores. 

Here are a few good ways to get credit:

- Credit Card (I know you have one but for others) HSBC Bank is very expat friendly
- Mortgage - Wells Fargo and HSBC helps expats with no credit score
- Car leasing - LionLeasing.com helps expats with no credit score new and used cards


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## Bevdeforges (Nov 16, 2007)

Jen114 said:


> On the other hand I have just received a credit card and have started charging and I will make sure I pay on time hoping to build up credit slowly?
> 
> Does any of this make sense?


Unless you're in the US and your credit card is (1) a US based card (i.e. through a US bank or financial institution) and (2) one with a US billing address, you may find that making purchases on the card won't really affect your US credit rating one way or the other.

You should also be wary of opening up too many credit card accounts once you get to the US. One or two, used carefully and responsibly, are fine. But past a certain point if you open up new credit card accounts, it can actually damage your score.

Another idea is to open a couple of store-based charge cards. These are like credit cards, but you don't have the option to roll over the balances at the end of the month. The big department stores will often open an account for you based just on your driver's license (in-state, obviously). Then you make small, regular purchases and pay the balance off by the end of the month when billed. 
Cheers,
Bev


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## Jen114 (Mar 5, 2011)

Thank you bev, we tried to open store cards last year like maceys jc penny etc etc but since had no record of me with my ssn I was not accepted. I have bank acc with one of the major banks and after much persuasion I convinced them to give me a visa for the matter of building credit only had it for one month. I personally do not like cc cards but in this case if it means getting credit then I'll use it wisely


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## Native Texan (Apr 29, 2011)

Buy a house, using a huge downpayment 75 - 80 %, intrest rates are so low in the states it is incredible and then pay it off early, this can be done in a variety of ways. Use that credit card and pay it off every month. Most car dealers and stores are going to give you credit if you put down a large sum as a deposit, they need the business right now and this will also boost your credit raiting quickly. Pay off the car quickly as per the house. Card companies are not as bad as they used to be but for a long while they would issue a card to anyone that could sign their name or click on the right button of their computer. It is still fairly easy to get a card, my son in law, without a job, is constantly getting offers for cards. It shouldn't be to difficult to get that history going and a good credit score in place in a fairly short period of time.


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## Native Texan (Apr 29, 2011)

Almost forgot, open up an account at a local credit union, they make it easier to get loans and generaly give a good deal to members.


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## Bevdeforges (Nov 16, 2007)

Jen114 said:


> Thank you bev, we tried to open store cards last year like maceys jc penny etc etc but since had no record of me with my ssn I was not accepted. I have bank acc with one of the major banks and after much persuasion I convinced them to give me a visa for the matter of building credit only had it for one month. I personally do not like cc cards but in this case if it means getting credit then I'll use it wisely


Forgot to mention, but for the store cards, you have to be there during one of their big sales weekends and have a local driver's license. (Macys seems to do this quite frequently during sales.) Not only will they give you a store credit card, but you get 5 or 10% off whatever you're buying at the moment.

Seems they are always running this deal when I'm back in the States, but they can't give a card to someone on a foreign driving license and/or with a foreign billing address.

On the bank cc, you may or may not be building a credit history until you have a US billing address. I keep meaning to check into that, but I know I'm not allowed to purchase certain things online because my billing address gives away my "true" location.
Cheers,
Bev


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## Jen114 (Mar 5, 2011)

Thank you so much for all your help !!! I am using my cousins address for everything credit cards, bank accounts etc etc. I tried to get store cards with Ssn and cousins add but they did not agree. 

Really appreciate u taking your time to give me this advise !


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## twostep (Apr 3, 2008)

Jen114 said:


> Thank you bev, we tried to open store cards last year like maceys jc penny etc etc but since had no record of me with my ssn I was not accepted. I have bank acc with one of the major banks and after much persuasion I convinced them to give me a visa for the matter of building credit only had it for one month. I personally do not like cc cards but in this case if it means getting credit then I'll use it wisely


It has nothing to do with your ss# not being on record - the primary card holder's income is the main factor in the declination.


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## Guest (May 4, 2011)

Native Texan said:


> Buy a house, using a huge downpayment 75 - 80 %, intrest rates are so low in the states it is incredible and then pay it off early, this can be done in a variety of ways. Use that credit card and pay it off every month. Most car dealers and stores are going to give you credit if you put down a large sum as a deposit, they need the business right now and this will also boost your credit raiting quickly. Pay off the car quickly as per the house. Card companies are not as bad as they used to be but for a long while they would issue a card to anyone that could sign their name or click on the right button of their computer. It is still fairly easy to get a card, my son in law, without a job, is constantly getting offers for cards. It shouldn't be to difficult to get that history going and a good credit score in place in a fairly short period of time.


Yes, make a big down payment and borrow the rest for both a house and a car, but DO NOT pay them off too fast either. If you pay both off within 6 months or a year, it will actually have a negative effect on your credit scores. The mortgage company will look at this and say that you didn't really need a mortgage, and they went through all of the work to create a mortgage and then banked on getting income from those mortgage payments and the interest. They don't like this, so they can ding your credit score as retaliation.

Better solutions: get a 30 month car loan through a credit union for the balance. Get a fixed rate 30 year mortgage due in 5 years - you get the 30 year mortgage rate, but the balance is due in 5 years. You will make mortgage payments for 4 or 5 years and then pay off the balance, and be fine.

Credit scores in the US are calculated based on different types of loans: Mortgages, revolving credit such as credit cards (you need to use them frequently, but you can pay them off each month so you don't pay interest), and smaller term loans such as car payments or furniture loans.

If you don't have a US address, you can use one of the international mail forwarding services who will give you a US address and then forward your mail to you wherever in the world you happen to live. It does cost to do this, but it does help your credit score. Just take care with this address so that you don't get an avalanche of junk mail for which you pay to receive.


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## twostep (Apr 3, 2008)

****** - it is either a 30 or a 5 year mortgage. Are you talking about a 30 year without pre-payment penalty?


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## Guest (May 4, 2011)

5 year balloon loan with 30 year rates. In other words, you have to pay it off or refinance within the first 5 years.


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## twostep (Apr 3, 2008)

GringoCArlos said:


> 5 year balloon loan with 30 year rates. In other words, you have to pay it off or refinance within the first 5 years.



That is a different animal:>) but why lock yourself in a balloon especially when the breadwinner is a realtor brandnew to the US when you can prepay or if necessary drag it out?


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