"No credit" tips

Hi everyone,

I just relocated to the USA from Toronto at the end of August. I knew that it would be difficult to get credit if you are new to the country but I applied anyway as I am determined to build credit under my SSN. Even furniture stores declined my application. I don't want to sound bitter but these businesses that declined my application will never get my business a year from now (or ever) when my credit is established.

When I opened my bank account, I even showed a hard copy of my excellent credit report from Canada. Bank of America has a policy of not accepting international credit report so I was "approved" for a secured credit card if I make a deposit. I just did that.

Today, I just found out that Capital One will approve anyone new to the country with a valid SSN and US address. First time that I was approved ever. Capital One just gained a new loyal customer.

So now, I have two credit cards that report to three major US credit bureaus. I will build my credit over time the same way I did in Canada.

Thanks for the tip about Capital One.

It has been long-standing experience that if one deals directly with a person, rather than online, then one has a better chance to get whatever credit instrument they need (car loan , furniture, credit card, mortgage).

I'm surprised the furniture store did not override the credit company they deal with. Your response to not deal with those who made your life difficult is absolutely the correct one.

Just a note of caution. Typically a secured credit card, while it might (only might, becuase they are not in fact giving you any credit) build up your credit history, usually adversely impacts your credit score, which is often more important, since it identifies you are someone for which there was an obvious credit risk. While it was likely that card that got you accepted at capital one (after all, how would they know your SSN was legit unless another firm had first given you credit), ditch that card as soon as possible.

One builds up credit history by paying all your bills on time. Paying your heating/rent/mortgage/phone on time will go much farther than keeping a positive balance on a secured card.

Thanks for the tip about Capital One.

It has been long-standing experience that if one deals directly with a person, rather than online, then one has a better chance to get whatever credit instrument they need (car loan , furniture, credit card, mortgage).

I'm surprised the furniture store did not override the credit company they deal with. Your response to not deal with those who made your life difficult is absolutely the correct one.

Just a note of caution. Typically a secured credit card, while it might (only might, becuase they are not in fact giving you any credit) build up your credit history, usually adversely impacts your credit score, which is often more important, since it identifies you are someone for which there was an obvious credit risk. While it was likely that card that got you accepted at capital one (after all, how would they know your SSN was legit unless another firm had first given you credit), ditch that card as soon as possible.

One builds up credit history by paying all your bills on time. Paying your heating/rent/mortgage/phone on time will go much farther than keeping a positive balance on a secured card.

Yes, I was surprised with the furniture store. I did not really need credit from them other than to build history (I had moving allowance provided by my company as part of the relocation to buy new furniture). I just thought that I had a better chance of getting approved there versus Visa/MC.

As for the secured card, I'll keep that in mind. Thanks for the note. The Bank of America secured card did not really contribute for my approval for a Capital One unsecured card, as my BOA Visa will only report to the credit bureaus on Oct. 26. I think it was the utility companies or Direct TV. But I've only been in the USA for about a month so I think anyone with good income can be approved for Capital One if you are new to the country.

Yes, thanks for the tip about Capitol One!!!

We were able to get a mortage but had to put a significant amount down. We also got a car loan but we only got it because the dealership screwed something up.....it's a long story (also, we had to take it for only 24 months so it would be fully paid by the time the Visa expires)! We still don't have a CC after 8 months here. They have decided that, now we have applied for too much credit in the past 6 months, even though we have had perfect payment history on those loans. Craziness! Oh well, we have no credit card debt, since we can't have a credit card.

The firm which hired you down would have been in the best palce to provide you with financial relocation information which would have gotten you a CC and a mortgage as you arrived.

That is what relo agents take care of.

Hi everyone

If you have American Express credit card, you can easily transfer it to the US.
Search google for:
AMEX Global Transfers

Question to Mehran:

Thank you very much for this information!! Now... will Amex want to give me a new card in Canada even if I have an R7 ?? :S or should I better keep my current Amex?

Silvermoon,

What is R7?
Yes you will be able to keep both your US and Canadian credit cards

I found td bank US division has many services, including credit card.
http://www.tdbank.com/personalcreditcar ... cards.html

I called them, they said they would look at my canadian credit report and my TD credit card history from canada division. and they have many location in east coast. their service seems better and larger than RBC US division.