Establishing Credit???

Don't laugh now   I have question.  Being my other half is the breadwinner in the household.  If we do decide to go back (whenever) how does his credit hold up in the U.S.?  Because obviously he has no credit history there.  Does that matter?  Would they be able to take his credit history from the U.K.? I assume yes, since we now live in a much smaller world these days.  Or would he be considered to have a "clean slate with no history" and would have to ride on the coat-tails of my history?

ahh, good question...i'd like to know this too, since we are thinking of moving (back) to the US next year.

i would think his credit history follows him, as when we asked ntl regarding cable modem the lady said they could put it under my name and check my reference thru the US.  i'm not sure how they do that and i didn't want to give out my SS# because she couldn't give me any details.

does anyone know this question in reverse, too?

Well I know when I tried to change my Capital One account from a US to UK card, the UK side said I would have to apply from scratch and I wouldn't get as good of interest and I couldn't get enough credit to cover the transfer balance.  (Which Isn't THAT high [smiley=embarassed.gif]).

when I tried to change my Capital One account from a US to UK card, the UK side said I would have to apply from scratch and I wouldn't get as good of interest and I couldn't get enough credit to cover the transfer balance.

The exact same thing happened to me.  My American Capital One card was cancelled and I had to apply for a new British Capital One card which had a credit limit that was only a fraction of my American card.  I was able to obtain a Captial One card because it is an American company operating in the UK, and I had a credit history with them already.  But when I applied for various British-based credit cards I had some difficulty because my credit history for all intents and purposes was non-existent, i.e. not accessible from the UK.  I think the reverse would also be true, i.e. that your BF's credit history would not follow him to the US.  However, I also think it is much easier in America to obtain credit cards than it is in the UK.  And companies tend to give much higher credit limits.

Got this off of www.expatindex.com
Don't know how helpful it is, but it's all I could find.  

"Credit Cards
When you move to a foreign country from the UK (or sometimes: vice versa), you may be taking up a well-paid job. However, when you need to get a local credit card (or enter into any credit or lease agreement) – you will have no local credit history or address. This can apply even if you are with the same bank or credit card company. This may be a nuisance. As a precaution, you ought to ensure that you have sufficient funds in your bank account to allow for short-term lack of credit. You might also wish to review the credit limit on an existing UK card. Those who are with or join American Express before they emigrate, should find they are able to take account of your previous credit history.
In order to start with a local credit card, you may have to build up a credit limit slowly or they may require you to put cash into your credit card account, so you effectively finance it yourself. Be prepared.
You should certainly seek to retain your UK credit card until you are certain that your local card is effective. Be aware that your card supplier may require that you have a UK address. Some people may choose to continue with their UK credit card, but you will be penalised through less attractive exchange rates for non Sterling transactions. Payment of credit card bills by direct debit from a UK bank account will enable you to avoid hassle caused by late receipt of bills and subsequent payments."

I speak with no authority, but I did want to toss in a few ideas. It just so happens that the banks I use on both sides of the pond over the years merged and merged and grew to become International. I didn't purposely seek that out, but I am living the benefits from using them now. In the UK, I bank with HSBC. In the US, I have an account with First Union. Both are International-friendly. And both have pretty good online banking.

As well as having a UK-based credit card, I am fortunate to qualify for a particular US-based credit card that is only available to military personnel and families. This card is paid in US dollars, but they will send to any address in the world. (My other US-based credit cards dropped me like a hot potato when I moved.)

Having both sides of the Atlantic covered (bank and credit card) has been quite useful. I know you have been talking about a visit back to the US; is it possible for you to open an account just in case you may want to move back in the future? Through my First Union account, they give me a debit card and this is just as accepted as a credit card, plus you can use it in US ATMs without paying additional charges. (Yeah, you will have to actually keep money in that account.) Signing my husband onto the account was really easy. Even though he was with me at the time, I think I could have just taken a form and mailed it back completed. I would imagine that once you have an account with them, they'd be more than happy to offer you their credit card once you have a US address. (May even send credit card statements to a UK address like they do with my bank statements.)

Anyway, I think if you have a "foot in the door" you may find melding back into US life won't be like starting over. But I do think that if you just upped and went and did all the paperwork once you got there for good, it would be harder to re-establish credit.

Even if you don't move in the end, it is a plus having accounts in both currencies.

I'm keeping my US credit card by keeping a US bank account open just for cheques I get in dollars to pay the credit card.  That way, they don't even really need to know that I've left the country, as my bills will go to my mother's address right here.

I'm not doing it because I have any plans to move back to the States - it's just that I'm not sure how easy it's going to be to establish myself over in the UK if my BF and I aren't/don't get married for a while, and I want to make sure I have access to money of my own in case anything happens to him.  Plus, the US card is in both our names, so we both can use it.  If need be, we can wire money into it from the UK (he's done that twice before).

Don't laugh now   I have question.  Being my other half is the breadwinner in the household.  If we do decide to go back (whenever) how does his credit hold up in the U.S.?  ....

I've got news for you, and your other half.  His credit in the US doesn't exist!  [smiley=stunned.gif]

We left the UK last November and getting credit was very difficult - no credit history means no credit, and no credit means no credit history.  I was lucky (?) enough to be working for HSBC, so they issued me with a Visa card as a matter of course, which helped.  I also had an Amex Blue card in the UK and I was able to use that to persuade Amex to issue a card here in the US, but only after they turned me down and I wrote back and complained.

Once you get 6 months credit history things start to get a bit easier, but don't bank on having access to much credit for the first few months.

If your other half has a job arranged when you come back to the US, I recommend a car broker called Autosource (516-496-1816) as they will sell on standard US credit terms (depends what is currently on offer - 2.9%, 0.9%, or 0% are typical right now) to immigrants with confirmed employment.  There are two catches (i) only Ford, GM, and Chrysler brand cars are covered (no, Ford does not include Volvo, Jaguar, etc, and Chrysler does not include MB) and (ii) you must commit to buy and pay a deposit BEFORE you leave the UK.  It worked great for us though - a Ford Mustang GT at 0% over 36 months for £17,300 (at current rates). [smiley=thumbsup.gif]

I recently tried to get a US AMEX and got turned down (I'm still in the UK), I hope that being turned down for one card doesn't influence other cards.

Good tip on applying for a UK AMEX and then writing and complaining when it doesn't transfer over!! Give 'em hell!

Getting a US Credit Card, for those of you without US credit histories.

My advice would be, first get a checking account with a debit/credit check card.  These cards do help to establish a credit history for you!  Then apply for any store credit card.  Most store credit cards are pretty easy to get.  There are also a lot of "secured" cards you can get easily that do require a deposit, but you only need it for six months or so and then you can get a real card.  (You will need a social security or "tax ID" number for this.  Get one right away.)

If you look online you will find LOTS of sites for cards for people with no credit.  Failing that, just watch TV and you'll see the ads.

The important thing is, get the card and USE IT.  Every month.  Then PAY IT IN FULL.  Every month.  This will establish an excellent credit history for you.  (You can run a balance for a month or two-most companies want you to do so, as that's how they make money.  But don't run the card up immediately & then pay it off slowly-the credit reporting agencies that score you like to see activity every month.)  Don't apply for too many cards, though-first, too many credit inquiries lowers your credit score, and second, banks check your debt-to-income ratio.

You debt to income is a little odd, because it is not calculated based on how much debt you HAVE but how much you can BUILD.  In other words, if you make 30k a year, and have 15k in available credit on your various cards, Regardless of whether or not you use all 15k, you are a poor credit risk.  If you make that same 30k, but have only 3k in available credit, you have a much better chance..they don't want you to become so deeply in debt you default, and there is a much greater risk that you will if you have too much credit available.

After 6 months or so of this, you will be in a great position.

Also, mortgages are fairly easy to obtain these days, so that's another way to establish some credit for yourself.  

I worked in a credit card bank for several years, so if anyone has any other questions about your US credit report etc. let me know.

.....  There are also a lot of "secured" cards you can get easily that do require a deposit, but you only need it for six months or so and then you can get a real card. .....

Tread carefully with the secured cards.  They show up as "secured" cards on your credit report.  Mostly the people that need to have a secured card are those with horrendously bad credit, therefore anyone who has a secured card on their credit report doesn't look like a good credit risk.  If you can find another way, avoid applying for a secured card.  

And remember, Amex, and HSBC (if you are moving to New York), will issue credit cards based on your UK credit history with their own company.

Good point, and certainly a secured card is not the best option, but remember as well you can attatch a letter to your credit report explaining why you have this card (i.e. "I have just moved from the UK and to establish a credit history in US I got this card.")

But you are absolutely correct, it is indeed much better for you to get another type of card if at all possible.

I'm in terribly shape credit wise... british hubby has excellent credit, which is why I won't be sullying his name with mine....

I'm going to have him apply for an AMEX card very soon... we plan to move to the states before the end of the year.  I'm thinking I'll move out ahead of him, after most of the immigration stuff is done and we're just waiting... get a job and start trying to make my credit less bad.

This will be tough because I declared bankruptcy in 1997, and then I've been in default of my student loans for 1 year now... I was told by an admissions officer of a vocational school in Arizona last November that after 6 months consecutive payments on my Student loans I'll take myself out of default ~ does anyone have bad news for me on if this will help or not?

SAF, I'd be interested to hear what you have to say... 3 months after declaring bankruptcy I was getting approved for credit cards in the US, and have an MBNA card over here in the UK...

I know things will be tough... any further advice on what to expect will help.

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Carrie in Scotland

I'm a little confused..did you file bankruptcy in the US and then get approved for US cards, or did you file in the UK?

Also, what was your credit like before you filed?  It can take a few months before things like bankruptcy show up on your report. What kind of card (ie what company) was it that approved you..but then, especially a few years back, the credit card industry was experiencing SUCH a boom, and were so ready to approve people, it's possible they didn't really care...after all, if they're your only card, they're the only one you'll use, right?

I don't know anything about student loans, to be honest, but the good news is that if you filed bankrupt in 97 it's now been 6 years, you may find it's easier for you to reestablish credit.  (Outside of the loans, which I don't know about).

MBNA is, as I'm sure you know, an American company.  Unfortunately, I don't know how willing they will be to issue you a card based on your history with them in the UK, I know that an MBNA "person", which was their twee little word for employee (which I was one, for two and a half years of ABSOLUTE MISERY) who had a card in the US was not guaranteed one in the UK as well.  Any other company I would feel more confident that they might work with you on it, but not MBNA.  I would suggest that you call and ask them to write you a credit reference letter before you go, but for heaven's sake don't tell them why!!!  Tell them it's for a landlord or something.  You might find yourself cancelled otherwise.  (I am dead serious here.  It was MBNA policy to do such things.)  

Let me know, I'm always happy to help!

Thanks for your response... I've not been on the site for awhile...  

I hate MBNA ~ didn't like them in the states... haven't been impressed with them here... ah well... I have every intent of not using credit cards in the USA.  My credit before I filed for bankruptcy in the USA wasn't sterling, but it was okay.  From what I've heard, my name is mud with the student loans thing.

I know dh would like to have one for the emergencies...

Anyway... I'll have him apply for a Sears card... they usually approve anyone, you can get anything you need - just about - from the store, even rent a car through Budget.

thanks again,
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