Building Credit Again

Well, I'm probably going back to the USA in about a year.  I've been away just over 8 years.  When me and the wife move back we obviously need to buy cars, a house or rent an apartment, etc.  We will have ZERO credit as it doesn't seem to transfer from country to country. 

For those that have repatriated, how have you built up your credit and how long did it take?  We have time and will have proceeds from the sale of our house here in the UK but the biggest challenge is buying those big items immediately such as a car and securing an apartment.  We maintained nothing but a bank account in the USA so we have nothing to build it back up again until we actually set foot back in the USA.

Experience and advice are much appreciated. 

Regards

Hello Texfoto!

You're in a better position than I was when I returned to the US in 2004 after nine years away. I had not maintained a US bank account or returned with any money as my family were affected from the "Telecomms Bust of 2000" and lost our home to foreclosure. We left England with three-four suitcases of belongings for two adults and three kids and $75. Seriously. It was okay though because I moved to England with a kid and two suitcases and $72/£42 so I was up $3 from when I arrived so woo-hoo for me!

The first thing I did was get a bank account. I had my US passport and my SS card so it was enough to open the account. I only had $75 so I only qualified for a savings account. But I got mail at my father's address within a week from the bank. As soon as I started receiving mail from the bank, I was able to get a state ID. Once I got the state ID, I was able to start earnestly looking for work since I needed that for my applications. I got a temp job and earned enough to get a basic checking account. Within a month, the bank offered me the "opportunity" to get a $100 secured credit card with a $100 security that was placed in a second savings account for six months. I had it for two months when I noticed they raised my limit to $500. When I had the account for five months, the credit card became "unsecured" and I was returned my initial $100 security and my new card limit was $1000. My credit building had begun!

All that was within six months of my return and that was with me not having an existing account, money or work. So it should be relatively painless for you coming back and probably much faster. In fact, it may be a non-issue for you.

This may not pertain to you since you have significant funds but Jesus was I charged insane interest for my first car. I had a down payment of 20% for a car but I had a heck of a time getting financing. When I did find one sole company to help me, I paid 15% for a Kia Sportage!! I didn't have much of a choice. It took around 18 months to reduce the interest rate to 10% and another six months later to reduce it to 6.5%. If I were to do it over again, I'd pay cash and build up credit gradually.




Sent from my iPhone using Tapatalk

As far as renting, not sure where you'd be going (if it's expensive for housing or not) but you might be able to work with realtors on renting a house, explaining your situation or showing your bank account balance/paying a few months rent ahead of time or rent through an apartment complex that way. It can be tricky to rent with no current proof of income. There are long stay hotels that are studio like, with a kitchen and those can run about $50 a night. That can add up, but maybe OK depending on your situation. Some can be sketchy, some are OK depending on area. Some Airbnb's will let you rent for an extended time - but again, pricey. Last resort, probably renting a room from someone. Once you get an address/lease, something to show you live there you can update your bank info, get a state ID/drivers license/Voter Registration and so maybe you can get a PO Box (USPS wants to see you actually live somewhere), Cell phone so you can be reached for possibly job offers.
Once you get a job and start having income, like Lorenausuk says, you can probably start applying for secure credit cards, you may also be able to try for store cards as well.  Car loan maybe rough with the high rates with no credit. Depending on your savings you might be able to transfer to a credit union, I hear they can sometimes do lower interest rates.  Depending on your area that you move to and your money situation you may need to take public transportation for awhile or hoof it.  All depends on your situation though.

There is some great advice about building credit on the https://www.reddit.com/r/personalfinance/   forums, what and what not to do and people's experiences on how long it's taken them to bump up their credit.