Getting a US Credit Card/Transferring Credit

[Jessibobessy]

I'm trying to get everything organizing for moving to the US on a TN Visa. I will need to cover my own expenses for work (which are then re-imbursed twice a month). I intend to use a credit card for this but don't want the hassle of dealing with the Canadian credit card I already have and paying that off. Since I won't have credit established in the US and it will be a new job, how do I get an American credit card?

Also I will have a vehicle loan in Canada to pay off while I'm down there. Can anyone recommend a good bank that will allow me to keep a Canadian and US account, for easier money transfers? I can't seem to find any except maybe HSBC. Thanks!

Jess

[Steven]

Using a bank to transfer money is a really bad idea because they will kill you on the exchange rate, use a currency broker, e.g. www.xe.com - which is what the banks do. Plus then you can use any bank you want.

Two ways of doing the credit card thing, either get an Amex account here and transfer it to the US, or get a secured credit card in the US, most major US banks offer them. Basically you keep x amount of money in your account and that will be the credit limit on your card.

Bear in mind on the car loan issue that if you don't currently own your car you won't be able to permanently import it into the US or register it there. The usual trick is to get a bank loan and pay off the financing. You need the bill of sale/title or some other proof of ownership to get a title in a US state, which is what you need to register it.

Also read up on the tax issues if you haven't already: http://www.cra-arc.gc.ca/E/pub/tg/p151/README.html - which explains briefly how to file as a non-resident of the US.

IRS publication 519 explains how to move your tax home to the US which may or may not be a good idea depending on how long you plan on staying.

The reason I mention this is because of the banks - currently your Canadian bank issues you a T5 if they pay interest, if you move your tax home to the US you need to tell them so they issue an NR4 instead. On the US end as a non-resident you file W-8BEN with the bank, if you become resident it's a W-9. IRS publication 519 explains all of this in comatose inducing detail.

[canuckgirl21]

If you have some time before you move, apply for a US$ American Express card using your Canadian address. Then, once you move to the States, all you have to do is change the address. Amex is the only one you can do this with.

I moved down a few years ago, and naively thought that because I had both a Canadian Visa and Mastercard with good credit ratings, I would be able to get a US credit card. The US credit system does not do cross border checks and therefore, as a new resident, you are considered to have no credit history. I was lucky and found a sympathetic bank manager who was willing to overwrite the rejection from Visa and give me a card with a tiny limit - $500. It has taken me a long time to build up the limit to something reasonable.

If you have already moved and are having problems, go in person to a major bank and ask to speak to a manager. Explain the situation, bring pay stubs and if you have a Canadian Visa statement with your previous limit, it might help too. The managers have some discretion, but can't give you a high limit.

On the plus side, not having a big limit on my credit card forced me to learn to live on cash instead of credit and that is probably a good thing in the long run. Good luck.

[Steven]

Didn't they offer you the secured credit card option? Been around for awhile now. Didn't exist when I lived in the US years ago, how I did it way back when was to get a credit card through the phone company because they offered one, they based by creditworthiness on my paying my phone bill on time.

Don't know if that's still an option.

[All4Fun]

@canuckgirl21 or Anyone:

When you say a "US$ American Express", are you saying apply for the Amex card from the U.S. Amex site with your Canadian Address or apply for any AMEX card from the Canadian site and just switch the address afterwards?

I'm just slightly confused because you say "US$ Amex card" and there's no explicity US$ card on the Canadian Amex website.

thanks.

[Steven]

Apply for a Canadian one; transfer the account to the US.

[irakon]

@canuckgirl21 or Anyone:

When you say a "US$ American Express", are you saying apply for the Amex card from the U.S. Amex site with your Canadian Address or apply for any AMEX card from the Canadian site and just switch the address afterwards?

I'm just slightly confused because you say "US$ Amex card" and there's no explicity US$ card on the Canadian Amex website.

thanks.

Getting a US Amex card is very easy if you already have a Canadian Amex. I did the switch over the phone. Once I moved to the US I just phoned the 1-800 number and asked to get a US amex based on my Canadian amex credit history, got approved for $5000 amex card right away. When I got the new card in the mail, I cancelled my Canadian amex.

[suthakamal]

HSBC Premier is astounding. I moved to the US, and of course had no credit history. Was consulting in the US for several months while waiting on my TN-1 to get approved, and was having significant money paid into my Bank of America account... when I finally got a US SSN, BofA gave me a $500 credit card w/ $100 deposit.

A month later, I applied for, and received a normal HSBC MC w/ a ~$3k limit, and shortly after that Amex gave me a $8K card. I called BofA and asked if they would at least remove the "secured card" nonsense... they said they wouldn't even review my card until I'd had it for 9 months.

My wife and I rolled over a bunch of cash into our HSBC account, and switched to HSBC Premier. Instantly they gave me a ~$15k USD credit card, $10k line of credit, and have been astoundingly helpful when it comes to setting up other bank accounts, etc.

They'll open an account for you (complete w/ credit cards) in practically any country in the world, regardless of where you currently reside... it certainly makes life for any expat a whole lot easier.

If you qualify for their premier tier, I couldn't recommend them more highly. They're incredible...

I hope I never need to set foot into another BofA branch so long as I live