topic Re: International Student - What can I do to improve my credit? in General Credit Topics

International Student - What can I do to improve my credit?

KirkL — Thu, 18 Oct 2012 18:08:36 GMT

Hello everyone,

I'm an international student and only recently got a social security number. I've had a Wells Fargo credit card with a $300 credit limit since April of this year. I don't have much of a credit history established since I'm an international student. I looked up my credit report on the 3 agencies and Experian reported that Wells Fargo is the only one reporting me. I've had good payment history (not a single bill was overdue). Equifax can't find me for some reason and they requested I send them my SSN copies to update their files. TransUnion won't show my report online, but they said they would said it via snail mail.

The problem is the low limit on the Wells Fargo card. Getting lunch alone is putting my balance at $150 easily. I'm paying it off in full but I heard since I'm using 50% of my available credit, this is bad. I was just wondering what I can do to build my credit fast. I would request Wells Fargo to increase my limit but on their website, they say I should wait for a year. In fact, they initially denied my application. I went into the bank and asked them to reconsider and they gave me this card with a low limit. It's a regular card (unsecured).

I also have a checking account with Bank of America (a very modest balance). Should I apply for a card with them? I applied for a credit card in March (when I got my SSN) and was rejected by them and this appears on my Experian credit report.

Any tips? Any cards that are easy to get?

Re: International Student - What can I do to improve my credit?

KirkL — Thu, 18 Oct 2012 18:30:24 GMT

Sorry for being so wordy. I'm essentially seeking for advice on the following two things

1. Should I bother asking Wells Fargo for a credit limit increase (or should wait another 6 months)? I recently found out that they are very conservative.

2. Should I re-apply for a Bank of America card? When I was rejected I didn't have an account with them, I do now. I don't know if this is a factor.

3. Are there any credit cards that are relatively easy to get?

Unfortunately, I can't get a FICO score. They told me they can't verify my identity. When I called, they told me to sort out the matter with Equifax and try again after 3 months...

Btw, I'm making around $1000 at my current job and that will end in December. So I was thinking applying for a card now might be a good idea since I have some income to show. After December, the income will go to $0.

Re: International Student - What can I do to improve my credit?

wallyworld123 — Thu, 18 Oct 2012 20:42:21 GMT

Hello and welcome the best thing for you to do is making sure you have fico scores from all bureaus. No bank will approve you if they can't identify who you are. Im happy for you about the one card you do have but this will take some time.Focus on the card you have. Do not apply for another card. Wait at least 6 months. I know you are anxious but trust me it takes time to build.

Re: International Student - What can I do to improve my credit?

KirkL — Thu, 18 Oct 2012 20:45:57 GMT

Okay :( I guess I should take care of the issues with Equifax and Transunion then

Re: International Student - What can I do to improve my credit?

wallyworld123 — Thu, 18 Oct 2012 20:55:37 GMT

yes you should first. your goal is achievable it just takes some time. you have to crawl before you can walk. Once you get your identity taking care of with the other 2 credit bureaus you are a step closer. Think about opening up a unsecure card for your second step.

Re: International Student - What can I do to improve my credit?

mrwheezy117 — Sat, 20 Oct 2012 00:44:38 GMT

I'm an international student as well and I wasn't aware that Wells Fargo gave out un-secured credit cards out to non-permanent residents/citizens... So I'm going to assume that you are on a secured card.

Keep the card for 3-6 months then apply for a Capital Journey Student card. No AF, 1% cash back, and no forex fees. It'll be the best you can get for now. Then after 6 months you can apply for some other store cards or AMEX Zync (they discountinued) or Chase Amazon, etc.. Then after a year you can enter the Chase Freedom/low prime land.

After that you should be knowledgeable enough to go on your own.

1) They are super conservative. Don't bother. They do their periodic reviews twice a year.

2) They are less conservative compared to WF.

3) Capital One. They have a bad rep but hey, they give out credit to those who can't get any. Beggers like us can't be choosers. :(

Also your SSN won't be in the full database for a few weeks but definitely get in contact with credit bureaus and get it CLEARED UP. That was the biggest PITA for me. There's a good thread somewhere here that helps you settle it with Equifax.

Re: International Student - What can I do to improve my credit?

Oyiwaa — Sun, 21 Oct 2012 18:51:16 GMT

Hi,

Nice to hear from an "international student" -- I have been in your position - several times: once in Europe, Mexico and now US.

One thing you can do is try to get a secured card from Bank of America - you just need a small deposit - maybe $300. They will hold it an an account and use it to secure a card for you. If yo have a friend, you can politely ask to be an authorized user on their account. Both will help. Avoid getting cards like First Premier Bank at all cost; they can help. Otherwise, wait for a year and apply to WellsFargo again.

Hope this helps - Oyiwaa

Re: International Student - What can I do to improve my credit?

HiLine — Sun, 21 Oct 2012 22:32:04 GMT

Since you have a bank account with BofA, your best bet would be to apply for a secured card with them. In general, the banks that you already have a banking relationship with will be the most generous to you. I would suggest talking to your personal banker and see what he/she suggests. If you could get the BankAmericard Rewards secured card from them, it'd be top notch. BofA is very flexible about the credit line for their secured card; you can deposit up to $10,000 towards your credit line. That being said, if you're not concerned about the low credit limit of the Wells Fargo card, I would just wait for your credit history to mature before applying for an unsecured card. The credit utilization ratio depends on the balance at the statement cut-off date, not on the daily balance. As long as you pay off your balance before the statement is due, your credit utlization will be great.

Re: International Student - What can I do to improve my credit?

distantarray — Mon, 22 Oct 2012 11:37:19 GMT

It takes 6months of history before your generated a FICO score so don't be surprised, but you can usually go to any credit union and request a secured card. Most local credit unions these days from my experience have their own credit card printer so they can print it for you on the spot. $1,000 deposit and they give you $1,000 card in about 10 minutes at my credit union. Once your credit score is good at my CU will unsecure the account. =)

But the FASTEST way to generate a FICO score into great territory is to be added as an AU (authorized user) or ACM (Amex's term for AU aka Additional card member)

Another person, friend or family adds you on their credit card, allowing you access to use it. As an authorized user you are not responible for paying the debt, but you can spend it. (quite nice right?) best part about this process is they don't even have to give you the card to use, and their credit report for that card will copy and paste into your credit file. I had my friend add his 16 year old son onto a 30 year Amex account.... the result? 807 credit score... and yes on the report it stated 30 years.

Re: International Student - What can I do to improve my credit?

HiLine — Tue, 23 Oct 2012 16:44:33 GMT

Good advice, but hasn't FICO recently stopped considering AU accounts in their scoring model?

Re: International Student - What can I do to improve my credit?

llecs — Thu, 25 Oct 2012 16:43:12 GMT

HiLine wrote:
Good advice, but hasn't FICO recently stopped considering AU accounts in their scoring model?

No, AUs are fully counted. At one point they made an announcement that they would limit AUs after pressure from lenders. Many lenders were experiencing heavy losses because borrowers would artifically prop their reports with purchased TLs, and then would default after borrowing money. FICO made a move to stop that by limiting AUs on the newest FICO versions only (hardly anyone are using them now so it probably wouldn't matter anyway). After a review of the Equal Credit Opportunity Act, FICO backed away from that AU claim for fear that spouses without any credit could be harmed with this change. AUs are scored in the newest versions. Lenders can still decide though who or what they allow within the reports though. There are some examples in here of mortgage lenders asking borrowers to remove AUs.

Re: International Student - What can I do to improve my credit?

HiLine — Sat, 27 Oct 2012 20:01:17 GMT

llecs wrote:
HiLine wrote:
Good advice, but hasn't FICO recently stopped considering AU accounts in their scoring model?
No, AUs are fully counted. At one point they made an announcement that they would limit AUs after pressure from lenders. Many lenders were experiencing heavy losses because borrowers would artifically prop their reports with purchased TLs, and then would default after borrowing money. FICO made a move to stop that by limiting AUs on the newest FICO versions only (hardly anyone are using them now so it probably wouldn't matter anyway). After a review of the Equal Credit Opportunity Act, FICO backed away from that AU claim for fear that spouses without any credit could be harmed with this change. AUs are scored in the newest versions. Lenders can still decide though who or what they allow within the reports though. There are some examples in here of mortgage lenders asking borrowers to remove AUs.

That's great news! Thanks for the demystifying!!!

Re: International Student - What can I do to improve my credit?

jamie123 — Sat, 27 Oct 2012 20:23:49 GMT

I would suggest you apply for a Walmart card at the end of this month. Make sure that you have 6 months history with your Wells Fargo card before applying. Walmart might start you out with a really low limit but they are really great with automatic credit line increases. You also get a free TU FICO08 score after signing up for electronic bill pay.

I would also suggest that you apply for a Captal One (Journey) card after the Walmart card. You should easily be approved as long as you have that 6 month history with Wells Fargo.

You have a VERY thin file and the sooner you get more good credit reporting the better.

Once your Wells Fargo card turns 1 year old, apply for a BoA 1-2-3 Rewards card and a Chase Freedom card.

Good luck!