does Canadian credit history matter?

sheds
New Member



Joined: 13 Jan 2004
Posts: 8

Posted: Tue Mar 02, 2004 6:56 am

 

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hi, does anyone know...if you move from Canada to the U.S, does your credit history follow you when applying for a mortgage, car loan or credit card?
thanks..

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kjsikora
New Member



Joined: 16 Mar 2004
Posts: 2
Location: Victoria BC Canada

Posted: Tue Mar 16, 2004 4:08 pm

 

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Hi, sorry this is late, I have just joined the site. I am a canadian who moved to and lived in the US for 4 years...........here is my comments and advice.

Credit history is not available to US banks, credit bureaus etc... So if you are in a position similar to what I was, this was a mixed blessing. My Canadian credit was not great, but they could not access it so it didn't matter. Some "less that reputable" rental agencies and auto dealers, did request a copy of it, but I did not provide it. I just moved on to a different agency or dealer.

There was a bigger problem though, in efffect when you move to the US and get your social security number, you have no credit history at all, remember what that was like in Canada ? It's worse in the US. To get a cell phone when I first moved, I had to put a $1000 deposit down as security. I could not get a loan for a car unless I had 25% or more down, and even then needed a coworker to co-sign. Almost all rental agencies for homes want credit checks and this was also a problem, but with time and well thought out explanations it was overcome.

One big big problem I had was that because of my NO CREDIT situation, I had to do a lot of shopping around, many used car dealers tried to charge me 20% interest on loans, be very very careful when buying a car, they well try to only tell you your monthly payment and not reveal the terms until it is too late for you, the payment may be low, but the term will be 4 or 5 years and interest well over 15%. Take your calculator and stand firm.

Also, if you can, get a car loan or some sort of loan with a major bank like Bank of America. Get an account with the same bank and after awhile you will build a small credit history and the bank will give you a credit card.

It took about 18 months for things to get settled for me, before I had some sort of credit history. After that life was somewhat easier. But start building your credit ASAP. You will find once you get a small loan or something that 3rd party credit cards begin to show up in your mail, just call to activate type cards, usually with small limits 500 to 1000. Pick one and don't worry about the interest rate, just use it wisely and pay every month, this is a very easy way to build credit. Be careful.....lots of these cards will show up, get ride of them fast, every card you activate will show on your new US credit report and work against you with quantities.

I started to mention earlier, be very careful when shopping around for loans, cars, appts. etc... everyone wants to run a credit check, every one of these will hit your us credit report and works as negative points. Try and get all negotiating done before you let them check your credit, or go pull a report yourself to show them, explain that you do not want checks done unless this deal will be done. Let them know that based on the one you show them they need to work it out and once everything is agreed they can pull a report to confirm.......they will argue this, if they do.....leave, find another lender or it will hurt you big time.

I can honestly say that for a long time I said that if I knew how hard this was going to be, I never would have moved to the US, but the truth is after the dust settled we had a good life there an I do miss it now that I am home.

Hope this helps.
Kelly

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sheds
New Member



Joined: 13 Jan 2004
Posts: 8

Posted: Tue Mar 23, 2004 7:54 am

 

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thanks for the reply kj. i take it you are back in Canada? it might be a bit easier for me here since i'm already living with my American b/f and we are getting engaged soon. (i'm not working yet). i have been learning that in the eyes of the US, i have NO credit history and it will be like i am starting all over again, as though i were 16 and applying for my first credit card...so, i'm hoping it'll be a bit easier for me than it was for you to establish a credit record here in the US since i'm soon to be engaged and married to a US citizen.
thanks for your great response!
sheds

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