Canadian and US Banking and Car Leasing questions

Hey everyone,

I am a Canadian citizen moving down to LA on a TN visa, and would love some advice on the following 2 issues:

- I'd like to lease a new car when I get there (instead of importing my current beater). Many dealerships offer great 36 month rates with 0 down. But I assume this only applies to US citizens with good credit. Problem is, I don't have US credit yet. Has anyone had any experience with this? Are there any stipulations, added costs or things to be aware of when leasing for the first time in the US with no US credit history? Is there a way to get the standard leasing options?

- What's the best bank to go with for a Canadian who is new to the US? Or which banks should I avoid? I need regular checking account and credit card. There's a few posts on this forum about getting an AMEX and transferring it, but I'd prefer to have my CC and checking account from the same bank.

Thanks!
Hoopz

Hello hoopz. I immigrated to the US in February and can answer some questions:

1) When you immigrate to the US, you are considered to have no credit. It doesn't matter how great your Canadian credit is or how much money you have. For your first 6 months, until you establish credit, leasing a car or buying a house or getting a credit card will be very difficult. The lease deals are for Americans with very good credit. If you put a substantial amt down, you might get lucky. Your best bet is to outright buy a used car here as they are cheaper here.

2) Royal Bank has a US Division and I think BMO has one, too. TD just started one. They're your best options to ask about money because they can speak about both systems. However, those banks have very minimal US branches (think snowbird locations ) We are banking through US Bank. we successfully managed a mortgage and a car loan, with TONS of difficulty , but they still won't give us a credit card. Now they say we've applied for too much credit too soon. In the US, you can get a "check card", where your debit card can also work like a credit card (but you still have to have the money in the bank like a debit card). You can still use your Canadian credit cards if you have a way to make the payments on them, though.

Good luck. The money situation is a little difficult due to the economy here, but not impossible.

hi there, i am also new to the US, from canada. i had a bank account with RBC in canada (but no credit card). i called them, they set up a US account over the phone and also gave me a US credit card (i actually did this before i moved to the US, so that is not a requirement). i just receive my SSN so i am in the process of having my SSN added to the account so that it helps to build my US credit.

capitol one has a credit card on their website that's listed as intended for newcomers to the US, to help you build US credit. the benefit is that is is not a secured card. the interest rate is high (24.5% or something) but worth it if it helps to build credit.

As laustin intimated, a secured card (which you actually load up and then use) will NOT help you establish good credit in US, as it (a) does not establish a pattern of re-apyment, and (b) is a red flag for credit bureau since these cards are almost exclusively used by those with very poor credit.

So, you want to speak to a live person, and get an unsecured card with your SSN.

I moved to the US from Canada in June/2011, here is what I have found:

1)Since you are new to the country and will be getting a fresh SSN, you will not have credit. That being said, if you go to bank of america and open a bank account, apply for a credit card at the same time. It may sound odd but BoA policy is that if you are new to the country you get credit - thats how I got my credit card (2 grand starting limit). I've had a BoA credit card for about 2 months now and am already getting mail from capital one to get credit through them, which I followed up on just to see their offer... Getting a credit card is easy here, if anyone else is saying you can't, I don't know where/what you tried, but mine was easy as cake.

2) Secured credit cards DO help your credit raitng, you just need to make sure you get it through a major bank that reports to the major credit bureaus. The thing about them flaggging secured cards is bogus...

Also, if anyone knows an easier way to get money to Canada without paying the international wire transfer fees from the bank, sendign cheques in the mail, or paypal, I would love to know!

customhouse.com is a good one.

Hi,

I just have a couple of comments about my situation which is very similar to mine. We moved to the US 3 months ago and set up a checking account with TD Bank. TD Bank explained that they were owned by a canadian bank and that accessing our Canadian credit reports would not be a problem. I can now say that this was nothing further from the truth. TD Bank in MA was pretty much hopeless. Not only did TD lead us to believe we could get a TD BANK Visa (US) and that we could also get a car loan. We were declined on both. TD was a complete waste of our time. We eventually joined Rockland trust.

We also looked at leasing or financing an auto as a means of establishing a US credit score. Leasing was less attractive for us since the leasing companies we looked at would only do a 3 year lease to coincide with my visa term (very expensive). We eventually went to Lexus and put 20% down to finance a car at a very very low rate over 5 years. We should have a more positive credit score in a couple of months.

Also not sure about your advise on keeping a canadian bank account. We were advised by a tax accountant to close any Canadian banks to avoid any possibility that CRA would tax my US income.

Also not sure about your advise on keeping a canadian bank account. We were advised by a tax accountant to close any Canadian banks to avoid any possibility that CRA would tax my US income.

Your accountant doesn't know what he's talking about. First, a bank account is NOT a residentail tie, Second, by the US/cdn tax treaty, living and working in US overrides ALL Cdn residential ties, never mind a simple bank account.

His advcise was for those moving to a non-treaty county, like arabiaor caribean.