Getting a credit line in the states

the Guru

Folks some of you have moved to the states in the past, I have a question for you. I'm living here for the past year and a half and now I want to buy a car but I cant get a credit line, how do I get around this or set one up.

even MBNA wont give me a card

FatherTed

the Guru wrote:

Folks some of you have moved to the states in the past, I have a question for you. I'm living here for the past year and a half and now I want to buy a car but I cant get a credit line, how do I get around this or set one up.

even MBNA wont give me a card

Because you are still "new" to the country, you have a very limited credit history. So it is difficult for you to get a good credit score, and therefore hard for you to get a credit card, lean etc.

Some helpful tips on how to establish credit:

http://www.frbsf.org/publications/consumer/credit.html#establish
http://www.wikihow.com/Establish-Credit

Ajos

I'm sure those links have all the advice you need, but anecdotally here's what I did.

I signed up for a secured credit card with Orchard Bank. "Secured" basically means that you give them $200 and they give you $200 credit. Their charges, interest rates etc. are appalling and I've been bombarded with "special offers" that just go straight in the trash.

But... I used it for a couple of months, and suddenly credit card offers started coming through the door. I picked one of these and signed up for it. I think they gave me credit of $300, which isn't that useful.

But... 1 year of using these cards to buy groceries and paying them off in full every month built up my credit enough that I can now get a $200,000 mortgage.

I was worried about it too, but it's actually pretty straightforward and doesn't take as long as you might think. As soon as the mortgage goes through (this week hopefully) I'll cancel my secured card and get the money back.

Rabies

Send Ruu a pm, I'm sure he won't mind. He is living in America now and has bought a house.
Doubt if he used drug money, must have got credit somewhere
He should be able to help you out will all the info you need.

Ruu_Old

Heh, yeah drug money...¬.¬

I posted this ages ago but I'll dig it up again. Now I am only a year in the US and have a pretty good rating considering all I had for banks to look on was a secured credit card and small loan. Our lender at the time of getting our mortgage this month said my rating was excellent and considered very good.

The secured credit card builds up credit history faster than regular ones but has the limits. When you are done, you can always get a better card. Anyway, see below, pick out what you will and don't hesistate to ask any questions. It looks like you will want to get a secured credit card to start off with, your local bank will give you one.

This applies mainly to America but can be applied to any country really. Since I had troubles when moving to America and establishing myself heres a few pointers for you all. Credit is very important, you wont get a mortage or a loan without something on your report.

1. Open up a checking and savings account and keep at least $100 in both accounts, lenders will see that you are at least putting money away for the future.

2. You wont get a credit card unless you have something on your report therefor you have to apply for a special type of credit card. This card is called the "secure credit card", probably offered by your local bank. It works where you deposit an amount (normally $500 min.) and it acts as your spending limit. This money is used by the bank should you fail to make payments but it gains interest and if you close the account, you get the money back. Its basically a security deposit for them.
Every month, make at least the minimum payment and the company will report to the credit companies that you have a good payment history. After a few months you will notice that card companies will start coming to you offering their cards. Dont get carried away!

3. Consider taking out a small loan from your local bank and pay it back over time but make sure to ask the bank of this loan will be reported to the credit bureaus otherwise it will be for nothing and not much use to you.

4. Pay your electrics, rent, etc on time. Alot of the things I mentioned wont go on your credit report. HOWEVER, it will go on your credit report if you fail to pay on time, so keep paying on time.

the Guru

Cheers Folks and Ruu, I think the secured CC is the best option at the moment I will speak to suntrust, im trying to buy a car and its a bloody nightmare, thanks again

Ruu_Old

You'll get the secured one alright because basically the money you deposit and use for your credit line, the bank owns (until you close the account) and uses if you can't make your payments. Explain to the bank what your situation is, they should be very understanding.

It'll take a few months for some history to show up, so grab a copy of your credit report (if any) and in 4-5 months time, while paying off your credit card fully each month, get a copy of the report again and I'm sure you'll be suprised.

Skittlebrau

Things have obviously changed since I was in the States. Was there in 2001 for just over a year and applied for (and got) 2 credit cards online. American Express and Capital One as far as I remember. Took a matter of days. No hassle whatsoever. Capital One had a $500 dollar limit and the Amex was $3000.

Mate of mine applied too, got rejected, applied again with a few different details and duely got the card.

Manic Moran

Hmm. I moved in early 2000, and ran into the OP's problem. I ended up getting a secured credit card.

Greatest rip-off in financial history. "So you're taking my $500, putting it into a savings account, and in the meantime I get this card with a $500 limit. So I'm financing my own credit, while you get the interest payments and fees!?"

When I bought a car, I gave proof of employment to the car salesman, and he was willing to underwrite the loan for me on the basis that he believed I was likely to make my payments to the bank. (Only two salesmen out of seven or eight I went to were willing to do that). He got his car sold, I had wheels, and when I bought my second car, I went back to the same shop.

NTM

Skittlebrau

Weird.

I have no explanation why it was so easy for me. Was thinking it could have been different rules for different states but I was in Illinois but that's where Ruu is.

Ruu_Old

I'm about to chuck my secured card since my credit rating is about good enough to get a proper one now. Hello unlimited credit line!