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New immigrant - looking for advice on how to get started with banking, especially CCs

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sellingpineapples
New Member

New immigrant - looking for advice on how to get started with banking, especially CCs

Hi there,

 

After quite a wait I have finally received my Employment Authorization and with it been issued a brand new SSN whilst we continue to wait for the Green Card process to finish.

 

I'm planning on going down to NFCU in the next couple of days to open my first ever checking/savings account in this lovely country and have me added to my husband's account with NFCU as a joint user potentially. 

 

As I've been in complete limbo during the immigration process I have been unable to work and thus have no current income (and that won't likely change until autumn/winter time due to some travel commitments), but household income is decent if that counts for anything. 

 

Considering there is literally no history to my SSN/credit in this country, is there even any point in applying for a credit card with NFCU straight away? Perhaps the secured one they ovver? Or would it be best to just start with the checking/savings account and wait it out for a few months before attempting to get a CC?

 

My husband otherwise also banks with Chase, but there's no Chase in Hawaii. Apart from that he also has the Chase Sapphire and Amex Platinum CC - would it be helpful to try to have me added as an authorized user to those at this point in time?

 

I have an existing relationship with Amex in the UK since 2015 (no fancy card, but a circa £20k limit) and have read that they offer some form of global "transfer", however, I'm unsure how to best utilise my prior relationship with them abroad considering my nonexistent credit history in the US. Unfortunately I haven't been able to find much detailed first-hand experience of people going down this route on how to time it correctly.

 

If anyone has been through the same as a new arrival or has any input on the above I'd be extremely grateful. I've been doing my reading for a while now, but unsure how to best approach the start of my credit journey to make sure I don't immediately mess up my credit whilst it's still fresh. 😅

 

Thank you!

 

11 REPLIES 11
Creditin
New Contributor

Re: New immigrant - looking for advice on how to get started with banking, especially CCs

Become an authorized user instead a joint account, if possible. AUs, count in the credit report.

CITY, CHASE and AMEX did a soft enquire in my credit report when I became an AU.

After the windwall of my wife cards in my report, I'm getting way higher limits than before.

I have a cousin that came to The US three years ago, who has a good income.

Even if he had the green card. It's the first question they ask. Are you a citizen?.

They gave him the runaround until he got tired of sending documents 3 or 4 times.

I told him to go for debit cards until at least next year.

He already recieved a promotion from Cap1pre selected to apply. Because of income.

He will get that Platinum Blue eventually, where most of us started.

I wish you and your husband all the best. 

Cheers.

Message 2 of 12
K-in-Boston
Epic Contributor

Re: New immigrant - looking for advice on how to get started with banking, especially CCs

Welcome to the forums!  Getting unsecured revolving credit will be tricky until you have credit reports generated with the three major US credit reporting bureaus: Equifax, Experian, and TransUnion.  You mentioned opening checking and/or savings accounts; unfortunately, those accounts in good standing are not reported to those credit bureaus.  If you have mixed finances, adding yourself as a joint owner of the checking account should be sufficient.

 

Being added as an authorized user on any of your husband's cards would be helpful with generating files and scores, although that will take some time (I believe it's 6 months of file activity to generate credit scores) and it's important to note that most financial institutions have their own internal scoring and underwriting that will often wholly discard authorized user accounts.  For the American Express Platinum card, two important things to note are that you will not inherit the account history (the opening date will be listed as the day you were added to the account) and there is a $175 additional annual fee for 1 to 3 authorized users.  You do receive additional benefits for that fee, however, such as your own Gold status with Marriott and Hilton, your own Priority Pass account and access to their other lounge networks, TSA PreCheck or Global Entry, etc.  With the Chase Sapphire, you did not mention whether that was Sapphire Preferred or Sapphire Reserve (there is a legacy Chase Sapphire card but that is uncommon for people to have); if it is the Sapphire Reserve, that would result in an additional $75 annual fee for an authorized user (you do get your own Priority Pass account for that as well, and Chase's version of that is arguably better than Amex's).  Chase will report the full account history of his account to your credit reports.

 

Getting the secured card from NFCU would be a great way to get started in my opinion, or any other secured card products which are known to graduate to unsecured cards and preferably have product change options for better rewards so that you can keep the accounts useful without them merely being stepping stones.

 

The Amex Global Transfer program is absolutely a great option to pursue as long as your card is still open, or has been closed within the past 3 months.  The link for that is here:

https://www.americanexpress.com/global-card-transfers/united-states.html

Message 3 of 12
Anonymous
Not applicable

Re: New immigrant - looking for advice on how to get started with banking, especially CCs


@K-in-Boston wrote:

 

 

The Amex Global Transfer program is absolutely a great option to pursue as long as your card is still open, or has been closed within the past 3 months.  The link for that is here:

https://www.americanexpress.com/global-card-transfers/united-states.html


Yes, Global Transfer is the best way to get credit history building.   Rules prevent credit bureaus transferring history from one country to another (so, eg Equifax US cannot access (officially anyway!) Equifax UK) but Global transfer (Amex using their own records) is a way around this.

 

Unfortunately it's not guaranteed to work, my daughter had to apply twice to get a UK card based on her US history, but certainly well worth a try.

Message 4 of 12
C6
Regular Contributor

Re: New immigrant - looking for advice on how to get started with banking, especially CCs

Sable issues a secured card and bank account with no minimum deposit. The terms are pretty decent and it can unsecure in as little as 4 months. www.sablecard.com 

Message 5 of 12
HeavenOhio
Senior Contributor

Re: New immigrant - looking for advice on how to get started with banking, especially CCs

Welcome @sellingpineapples. Smiley Happy

 

I like the ideas I'm seeing. Definitely explore AMEX global transfer. That might be the most expeditious way to get your own credit going.

 

Also, it's great that you're headed to NFCU. You'll probably be able to go with the rep's advice. Head over here if you have questions.

 

And definitely do the AU thing on a couple of cards. While some banks ignore AUs, you might find yourself in an improved position with others like Discover and Capital One.

Message 6 of 12
ChargedUp
Senior Contributor

Re: New immigrant - looking for advice on how to get started with banking, especially CCs

First off, welcome  emoti.gif to MyFico!

 

Pick one or two cards from Amex using the Global Transfer option to report as your own accounts while having hubby add you as an AU on a couple of his accounts (Assuming they're all in good standing.) Wait 9-12 months while the above put your new SSN on the map with the big 3 credit bureaus (Experian, Equifax and Trans Union). By this time you should be able to pick up one or two more cards of your own from Discover, Capital One, NFCU, PenFed CU, FNBO (Evergreen or Getaway), Chase (Freedom/Freedom Unlimited/Amazon and possibly Sapphire Preferred), Elan Financial Services (search this lender for more details.), BoA, Petal and a few others.

 

NOTE: You're likely going to start seeing credit card offers showing in the mail around now. Please make certain you read the fine print before considering any of them as some will be "rebuilder cards" with exorbitant fees and interest rates. YOU DON'T NEED THESE! Some of the most common ones are Credit One (not the same as Capital One!), Continental Finance, Merrick Bank, Bank of Missouri, Open Sky, Avant, Surge, Reflex, Indigo, Fingerhut, 1st Premier, 1st Applied, Celtic Bank, Mission Lane, Destiny, etc. These are for rebuilding from BAD credit. While you'll quite easily get these types of cards, they're low hanging fruit and you're building from NO credit so no need to waste money getting tied into these fee harvester cards. When in doubt, simply make a post here in the Credit Cards forum and we'll let you know what you're looking at! yes.gif

 

You might consider a credit builder loan from a Credit Union (like NFCU or PenFed) to help give you a score bump in the "Credit Mix" category as well. 18-24 months (and with applicable income and perfect payment history), you should be able to land a card, car loan, etc. from most American lenders while getting low to mid tier interest rates.

 

In 5+ years, with <9% utilization, perfect payment history, credit mix, low inquiries and at least 3 major lenders (Visa/MC/Amex/Discover) reporting, you'll have a solid file and your Fico 8's should be in the 760-800+ range. Your credit is now entering the "sweet spot" where you should be able to get low interest rates and large starting limits (income permitting) from most lenders. Keep up the good work to maintain the credit profile you've worked hard for!

 

As said around here, building credit is a marathon, not a sprint. Time and perfect payment history are your biggest assets in building a thick, solid credit file. You're more than welcome to come hang with us in "The Garden", which can be found under the "Personal Finance" category while you're growing your file. You don't want to apply for too many cards within a short span as it'll knock your "Average age of accounts" down along with racking up inquiries. As your file ages and thickens, these two things will have a lesser effect on your scores. In the mean time, I'd limit applying for new credit to a maximum of a couple cards at 9-12 month intervals for at least the first 3 - 4 years. Remember, you only need a *minimum* of 3 major bank cards and an installment loan to optimize your scores. Having more does help thicken your file, but from a scoring perspective, not necessary.

 

Edit to add... Store cards. While these tend to mostly be easy to grab, loading up on a bunch of store cards is not a good idea. If there's a couple that provide useful benefits and/or rewards to you then that's fine. If they happen to be store/retail cards with a Visa/MC/Amex logo, even better. A credit file full of store cards will tend to be frowned on by a lot of the major banks (and strangely can have an effect on insurance rates.) Most of the store cards out there are backed by two different lenders. Synchrony and Comenity, which tend to get weird if you have too many accounts with them, even though they are for different retailers. A search of either in this credit card forum will bring up many accounts of adverse action by both Synch and Comenity, where most of the time it was someone with a lot of accounts backed by one or the other.

Message 7 of 12
Anonymous
Not applicable

Re: New immigrant - looking for advice on how to get started with banking, especially CCs


@sellingpineapples wrote:

Hi there,

 

After quite a wait I have finally received my Employment Authorization and with it been issued a brand new SSN whilst we continue to wait for the Green Card process to finish.

 

I'm planning on going down to NFCU in the next couple of days to open my first ever checking/savings account in this lovely country and have me added to my husband's account with NFCU as a joint user potentially. 

 

As I've been in complete limbo during the immigration process I have been unable to work and thus have no current income (and that won't likely change until autumn/winter time due to some travel commitments), but household income is decent if that counts for anything. 

 

Considering there is literally no history to my SSN/credit in this country, is there even any point in applying for a credit card with NFCU straight away? Perhaps the secured one they ovver? Or would it be best to just start with the checking/savings account and wait it out for a few months before attempting to get a CC?

 

My husband otherwise also banks with Chase, but there's no Chase in Hawaii. Apart from that he also has the Chase Sapphire and Amex Platinum CC - would it be helpful to try to have me added as an authorized user to those at this point in time?

 

I have an existing relationship with Amex in the UK since 2015 (no fancy card, but a circa £20k limit) and have read that they offer some form of global "transfer", however, I'm unsure how to best utilise my prior relationship with them abroad considering my nonexistent credit history in the US. Unfortunately I haven't been able to find much detailed first-hand experience of people going down this route on how to time it correctly.

 

If anyone has been through the same as a new arrival or has any input on the above I'd be extremely grateful. I've been doing my reading for a while now, but unsure how to best approach the start of my credit journey to make sure I don't immediately mess up my credit whilst it's still fresh. 😅

 

Thank you!

 


Hi, I went through the same process 7 years ago, when I immigrated from Brazil. One thing that help me a lot was the fact that I had a bank account with HSBC Brasil and they opened a US bank account and also issued a US CC. Do you have any relationships with an UK bank that has operations in the US?

 

Joster

Message 8 of 12
Anonymalous
Valued Contributor

Re: New immigrant - looking for advice on how to get started with banking, especially CCs


@K-in-Boston wrote:

Being added as an authorized user on any of your husband's cards would be helpful with generating files and scores, although that will take some time (I believe it's 6 months of file activity to generate credit scores) and it's important to note that most financial institutions have their own internal scoring and underwriting that will often wholly discard authorized user accounts.  For the American Express Platinum card, two important things to note are that you will not inherit the account history (the opening date will be listed as the day you were added to the account) and there is a $175 additional annual fee for 1 to 3 authorized users.  You do receive additional benefits for that fee, however, such as your own Gold status with Marriott and Hilton, your own Priority Pass account and access to their other lounge networks, TSA PreCheck or Global Entry, etc.  With the Chase Sapphire, you did not mention whether that was Sapphire Preferred or Sapphire Reserve (there is a legacy Chase Sapphire card but that is uncommon for people to have); if it is the Sapphire Reserve, that would result in an additional $75 annual fee for an authorized user (you do get your own Priority Pass account for that as well, and Chase's version of that is arguably better than Amex's).  Chase will report the full account history of his account to your credit reports.

 


A FICO score does require 6 months of credit history, but an AU card's history counts. I became scorable after 5 months (not 6) when I was added as an AU to an old card. You're correct that AUs can give a major bump to your score, but they're not a pancea. A lot of lenders discount or ignore AUs. Someone with scores approaching 800 but less than a year of personal credit history is still someone with less than a year of credit history, to most lenders.

 

I can verify that NFCU is friendly to AUs. Based on what other posters have reported, Capital One seems to be as well, and they're also friendly to new files (they gave me an unsecured Platinum when one of the credit bureaus couldn't even verify I was a person). Chase is not, even when a Chase private banker is calling their UWs on your behalf almost every day.

Message 9 of 12
K-in-Boston
Epic Contributor

Re: New immigrant - looking for advice on how to get started with banking, especially CCs


@Anonymalous wrote:

@K-in-Boston wrote:

<snip>it's important to note that most financial institutions have their own internal scoring and underwriting that will often wholly discard authorized user accounts.  For the American Express Platinum card, two important things to note are that you will not inherit the account history </snip>

 


A FICO score does require 6 months of credit history, but an AU card's history counts. I became scorable after 5 months (not 6) when I was added as an AU to an old card. You're correct that AUs can give a major bump to your score, but they're not a pancea. A lot of lenders discount or ignore AUs. Someone with scores approaching 800 but less than a year of personal credit history is still someone with less than a year of credit history, to most lenders.

 


Anonymalous, my mentioning of the AU card's history not counting was specific to the American Express Platinum Card.  Since about 2015, American Express reports the date that an authorized user was added to any Amex account as the account's opening date and, unlike other lenders, any history on the account prior to this date is not furnished to the credit reporting bureaus.  They are the sole lender that I am aware of that does this and this change happened at the same time they stopped backdating new accounts for primary cardholders (i.e. Member Since 1980 opened a new Amex account in August of 2010, Amex reported the opening date to the bureaus as August 1980).

Message 10 of 12
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